Bill Text: CA SB43 | 2009-2010 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Joint powers agencies: City of Santa Clara.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Passed) 2009-10-11 - Chaptered by Secretary of State. Chapter 330, Statutes of 2009. [SB43 Detail]

Download: California-2009-SB43-Amended.html

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BILL NUMBER: SB 43	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 27, 2009
	AMENDED IN ASSEMBLY  JULY 14, 2009
	AMENDED IN ASSEMBLY  JUNE 30, 2009
	AMENDED IN SENATE  MAY 19, 2009
	AMENDED IN SENATE  APRIL 20, 2009

INTRODUCED BY   Senator Alquist
   (Principal coauthor: Assembly Member Torrico)
   (Coauthors: Assembly Members Beall and Coto)

                        JANUARY 6, 2009

   An act to add Section 6532 to the Government Code, relating to
joint powers agencies.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 43, as amended, Alquist. Joint powers agencies: City of Santa
Clara.
   Under existing law, 2 or more public agencies may enter into an
agreement to jointly exercise any power common to the contracting
parties, as specified. 
   This bill would authorize a joint powers agency, that includes the
City of Santa Clara and the Redevelopment Agency of the City of
Santa Clara formed to construct, operate, or maintain a stadium for
use by a professional football team, to let a design-build contract
without utilizing the competitive bid process for the stadium
construction project, as specified.  
   This bill would provide that the Santa Clara Stadium Authority, a
joint powers agency formed by the City of Santa Clara and the
Redevelopment Agency of the City of Santa Clara, has the authority to
acquire, finance, construct, manage, maintain, and operate a stadium
and related facilities suitable for use by a professional football
team, in addition to the powers common to the city and the
redevelopment agency. The bill prohibits the redevelopment agency
from expending property tax increment revenues to operate or maintain
the stadium.  
   This bill would authorize the Santa Clara Stadium Authority to let
a design-build contract without utilizing a competitive bid process
for the stadium construction project, if, among other requirements, a
ballot measure endorsing the development of a stadium suitable for
use by a professional football team is approved by voters in a
citywide election, the design-build contract does not require
expenditures from the general fund of the City of Santa Clara, and
the design-build contract is not funded by contributions from the
Redevelopment Agency of the City of Santa Clara or a community
facilities district except as provided in the bill. The bill would
provide that redevelopment agency funds and community facilities
district funds may be used to fund subcontracts awarded pursuant to a
competitive bidding process established by the joint powers agency.
 
   This bill would provide that for state highway improvement
projects deemed necessary by the Department of Transportation based
on the construction and maintenance of the stadium, the department is
the responsible agency for project development services, as
specified. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 6532 is added to the Government Code, to read:
   6532.  (a) The Legislature finds and declares that it is in the
best interest of the communities located  within 
 in and around  the City of Santa Clara that a joint powers
agency that includes the City of Santa Clara and the Redevelopment
Agency of the City of Santa Clara formed to construct, operate,
 or   and  maintain a stadium for use by a
professional football team be authorized to let a sole source
contract for the stadium construction project to a qualified
design-build contractor. This authorization may enable that joint
powers agency to  prevent cost overruns  
contain costs  , improve efficiency, and benefit from
specialized expertise.  Nothing in this section shall be
construed to affect any contract relating to the development of the
stadium between the joint powers agency and any private party other
than a design-build contract awarded pursuant to this section. 

   (b) (1) Consistent with existing law, the City of Santa Clara and
the Redevelopment Agency of the City of Santa Clara may enter into a
joint powers agreement to create and operate a joint powers agency
for the construction, operation, and maintenance of a stadium and
related facilities located within the North Bayshore Redevelopment
Project Area that are suitable for use by a professional football
team. The joint powers agency created pursuant to this section shall
be known as the Santa Clara Stadium Authority. In addition to, and
without limitation on, any powers common to the City of Santa Clara
and the Redevelopment Agency of the City of Santa Clara, the Santa
Clara Stadium Authority shall have the power to acquire, finance,
construct, manage, maintain, and operate a stadium and related
facilities suitable for use by a professional football team. 

   (2) Notwithstanding paragraph (1), the Santa Clara Stadium
Authority and the Redevelopment Agency of the City of Santa Clara
shall not expend any property tax increment revenues allocated to the
redevelopment agency pursuant to Section 33670 of the Health and
Safety Code to operate or maintain a stadium within the North
Bayshore Redevelopment Project Area.  
   (b) 
    (c)     (1)   
Notwithstanding any other provision of law, and subject to 
subdivision (c), a joint powers agency including the City of Santa
Clara and the Redevelopment Agency of the City of Santa Clara formed
to construct, operate, or maintain a stadium for use by a
professional football team may award a design-build contract related
to that stadium to a qualified design-build contractor  
subdivision (d), the Santa Clara Stadium Authority may award a
design-build contract to a qualified design-build contractor to
construct the stadium  without utilizing an otherwise applicable
competitive bid process,  provided that the governing body
of the joint powers agency determines that the cost of the contract
is reasonable and that award of the contract without utilizing the
competitive bid process is in the best interest of the joint powers
agency.   provided that all of the following have 
 occurred:  
   (A) A ballot measure endorsing the development of a stadium
suitable for use by a professional football team is approved by
voters in the City of Santa Clara in a citywide election.  
   (B) The governing body of the Santa Clara Stadium Authority
determines that the cost of the contract is reasonable.  
   (C) The governing body of the Santa Clara Stadium Authority
determines that the award of the contract is in its best interest.
 
   (2) The contract awarded to the qualified design-build contractor
pursuant to paragraph (1) shall not be funded, either through direct
payment or reimbursement, using funds contributed by the
Redevelopment Agency of the City of Santa Clara or by a community
facilities district established under the Mello-Roos Community
Facilities Act of 1982 (Chapter 2.5 (commencing with Section 53311)
of Part 1 of Division 2 of Title 5), except that these funds may be
used to pay for or reimburse for subcontract work pursuant to
subcontracts awarded by the design-build contractor to the lowest
responsible bidder as provided in subdivision (e).  
   (c) A joint powers agency that includes the City of Santa Clara
and the Redevelopment Agency of the City of Santa Clara shall

    (d)     The Santa Clara Stadium Authority
shall  not award a design-build contract pursuant to subdivision
 (b)   (c)  unless all of the following
conditions are met:
   (1) The design-build contract does not require expenditure of
money from the general fund  or enterprise funds  of the
City of Santa Clara.
   (2) The obligation of the Redevelopment Agency of the City of
 Santa Clara to contribute funding toward amounts due under
the design-build contract is limited to a specified maximum amount,
provided that the specified maximum amount need not apply to debt
service and other financing costs.   Santa Clara to
contribute funding is limited to a specified maximum amount,
exclusive of debt service and other   related finan 
 cing costs, and these funds are used only to pay for or
reimburse for subcontract work pursuant to subcontracts awarded by
the design-build contractor to the lowest responsible bidder as
provided in subdivision (e). Nothing in this subdivision modifies the
requirements and limitations set forth in the Community
Redevelopment Law (Part 1 (commencing with Section 33000) of Division
24 of the Health and Safety Code) with respect to the financial
obligations of the Redevelopment Agency of the City of Santa Clara to
the joint powers agency. 
   (3) A private party will be responsible for any construction cost
overruns. 
   (d) A joint powers agency awarding a design-build contract
pursuant to this section shall require that subcontract work be
awarded through a competitive process established by the joint powers
agency.  
   (e) If the Santa Clara Stadium Authority awards a design-build
contract pursuant to this section, it shall establish a competitive
bid process for awarding subcontracts, and it shall require the
design-build contractor to award subcontracts using this process.
This competitive bid process shall provide that subcontracts be
awarded using either the lowest responsible bidder or by best value,
as defined in Section 20133 of the Public Contract Code. Subcontracts
awarded on the basis of best value shall not be funded, either
through direct payment or reimbursement, using funds contributed by
the Redevelopment Agency of the City of Santa Clara or by a community
facilities district established under the Mello-Roos Community
Facilities Act of 1982 (Chapter 2.5 (commencing with Section 53311)
of Part 1 of Division 2 of Title 5). Funds contributed by the
Redevelopment Agency of the City of Santa Clara or a community
facilities district may be used only to fund subcontracts awarded to
the lowest responsible bidder in a manner consistent with the process
applicable to the City of Santa Clara under its charter. 

   (e) 
    (f)  Notwithstanding Section 3248 of the Civil Code, for
design-build contracts awarded pursuant to this section, the
 joint powers agency   Santa Clara Stadium
Authority  may specify that the payment bond shall be in a sum
not less than one-half of the contract price or three hundred million
dollars ($300,000,000), whichever is less. 
   (f) Each joint powers agency that elects to proceed under this
section and uses the design-build method to construct, operate, or
maintain a stadium for use by a professional football team shall
submit to the Legislative Analyst's Office, before December 1, 2014,
a report containing a description of each project procured through
the design-build process after January 1, 2010, and before November
1, 2014. The report shall include, but shall not be limited 

    (g)     If the Santa Clara Stadium
Authority elects to proceed under this sectio   n and uses
the design-build method to construct a stadium suitable for use by a
professional football team, it shall submit to the Legislative
Analyst's Office, within six months following the completion of
construction of the stadium, a report regarding the project that
shall include, but shall not be limited  to, all of the
following information:
   (1)  The type of   A brief description of the
 project.
   (2) The gross square footage of the project.
   (3) The design-build entity that was awarded the project.
   (4) Where appropriate, the estimated and actual length of time to
complete the project.
   (5) The estimated and actual project costs.
   (6) A description of any written protests concerning any aspect of
the solicitation, bid, proposal, or award of the design-build
project, including the resolution of the protests.
   (7) An assessment of the prequalification process and criteria.

   (8) An assessment of the effect of retaining 5-percent retention
on the project.  
   (9) A description of the labor force compliance program, as
defined in Section 20133 of the Public Contract Code, and an
assessment of the project impact, where required.  
   (10) 
    (8)  A description of the method used to award the
contract. If best value, as defined in Section 20133 of the Public
Contract Code, was the method, the report shall describe the factors
used to evaluate the bid, including the weighting of each factor and
an assessment of the effectiveness of the methodology. 
   (11) An assessment of the project impact of skilled labor force
availability, as defined in Section 20133 of the Public Contract
Code.  
   (12) An assessment of the design-build dollar limits on the joint
powers agency's projects. This assessment shall include projects
where the agency wanted to use the design-build method but was
precluded by the dollar limitation. This assessment shall also
include projects where the best value method was not used due to
dollar limitations.  
   (13) An assessment of the most appropriate uses for the
design-build method.  
   (h) It is not the intent of the Legislature, under the provisions
of this section, to authorize design-build for other infrastructure,
including, but not limited to, streets and highways, public rail
transit, or water resource facilities and infrastructure not located
on the stadium site or adjacent city streets and property.  

   (i) If the construction and operation or maintenance of a stadium
as contemplated by this section is deemed by the Department of
Transportation under otherwise applicable law to require improvements
on the state highway system, all of the following provisions shall
apply:  
   (1) Notwithstanding any other provision of this section, for any
project on the state highway system deemed necessary by the
department due to the construction, operation, or maintenance of the
stadium as contemplated by this section, the department is the
responsible agency for the performance of project development
services, including performance specifications, preliminary
engineering, prebid services, the preparation of project reports and
environmental documents, project design, and construction inspection
services. The department is also the responsible agency for the
preparation of documents that may include, but need not be limited
to, the size, type, and desired design character of the project,
performance specifications covering quality of materials, equipment,
and workmanship, preliminary and final plans and specifications, and
any other information deemed necessary to design and construct a
project that meets the needs of the department.  
   (2) The department may use department employees or consultants to
perform these services, consistent with Article XXII of the
California Constitution. Department resources, including personnel
requirements necessary for the performance of those services, shall
be included in the department's capital outlay support program for
workload purposes in the annual Budget Act.  
   (j) The provisions of this section are severable. If any provision
of this section or its application is held invalid, that invalidity
shall not affect other provisions or applications that can be given
effect without the invalid provision or application. Except as
provided in this section, nothing in this section shall be construed
to affect the application of any other law. 
  SEC. 2.  The Legislature finds and declares that Section 1 of this
act, that adds Section 6532 to the Government Code, is a special law
which is necessary because a general law cannot be made applicable
within the meaning of Section 16 of Article IV of the California
Constitution because of the unique circumstances of the City of Santa
Clara. In that respect, the  City of Santa Clara needs to
address the unemployment rate in and   construction,
operation, and maintenance of a stadium for use by a professional
football team may enhance employment opportunities in and 
around the City of Santa Clara and the  San Francisco Bay
  south bay  area.