Bill Text: CA SB785 | 2013-2014 | Regular Session | Amended

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

---

Bill Title: Design-build.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Passed) 2014-09-30 - Chaptered by Secretary of State. Chapter 931, Statutes of 2014. [SB785 Detail]

Download: California-2013-SB785-Amended.html

---

BILL NUMBER: SB 785	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 17, 2014
	AMENDED IN SENATE  JANUARY 14, 2014
	AMENDED IN SENATE  MAY 2, 2013
	AMENDED IN SENATE  APRIL 23, 2013
	AMENDED IN SENATE  APRIL 1, 2013

INTRODUCED BY   Senator Wolk
   (Principal coauthor: Assembly Member Levine)

                        FEBRUARY 22, 2013

   An act to repeal Sections 14661 and 14661.1 of the Government
Code, to amend Section 32132.5 of the Health and Safety Code, and to
add Article 6 (commencing with Section 10186) to Chapter 1 of Part 2
of Division 2 of, to add Chapter 4 (commencing with Section 22160) to
Part 3 of Division 2 of, to repeal Sections 20133, 20175.2, 20193,
 20209,  20301.5, and 20688.6 of, and to repeal
Article 22 (commencing with Section 20360) of Chapter 1 of Part 3 of
Division 2 of, the Public Contract Code, relating to design-build.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 785, as amended, Wolk. Design-build.
   Existing law authorizes the Department of General Services, the
Department of Corrections and Rehabilitation, and various local
agencies to use the design-build procurement process for specified
public works under different laws.
   This bill would repeal those authorizations, and enact provisions
that would authorize the Department of General Services, the
Department of Corrections and Rehabilitation, and those local
agencies, as defined, to use the design-build procurement process for
specified public works. The bill would authorize the Marin
Healthcare District to use the design-build process when contracting
for the construction of a building and improvements directly related
to a hospital or health facility building at the Marin General
Hospital. The bill would require moneys that are collected under
these provisions to be deposited into the State Public Works
Enforcement Fund, subject to appropriation by the Legislature. The
bill would require specified information to be verified under penalty
of perjury. By expanding the crime of perjury, the bill would impose
a state-mandated local program.
   This bill would make legislative findings and declarations as to
the necessity of a special statute for the Marin Healthcare District.

   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

  SECTION 1.  It is the intent of the Legislature to consolidate
existing design-build statutes and eliminate inconsistencies in
statutory language by adopting authority of general application to
identified agencies and repealing superseded sections.
  SEC. 2.  Section 14661 of the Government Code is repealed.
  SEC. 3.  Section 14661.1 of the Government Code is repealed.
  SEC. 4.  Section 32132.5 of the Health and Safety Code is amended
to read:
   32132.5.  (a) Notwithstanding Section 32132 or any other law, upon
approval by the board of directors of the Sonoma Valley Health Care
District or the Marin Healthcare District, as applicable, the
design-build procedure described in Chapter 4 (commencing with
Section 22160) of Part 3 of Division 2 of the Public Contract Code
may be used to assign contracts for the construction of a building or
improvements directly related to construction of a hospital or
health facility building at the Sonoma Valley Hospital or the Marin
General Hospital.
   (b) For purposes of this section, all references in Chapter 4
(commencing with Section 22160) of Part 3 of Division 2 of the Public
Contract Code to "local agency" shall mean the Sonoma Valley Health
Care District and the Marin Healthcare District.
   (c) A hospital building project utilizing the design-build process
authorized by subdivision (a) shall be reviewed and inspected in
accordance with the standards and requirements of the Alfred E.
Alquist Hospital Facilities Seismic Safety Act of 1983 (Chapter 1
(commencing with Section 129675) of Part 7 of Division 107).
  SEC. 5.  Article 6 (commencing with Section 10186) is added to
Chapter 1 of Part 2 of Division 2 of the Public Contract Code, to
read:

      Article 6.  State Agency Design-Build Projects


   10186.  (a) The Legislature finds and declares that the
design-build method of project delivery, using a best value
procurement methodology, has been authorized for various agencies
that have reported benefits from such projects including reduced
project costs, expedited project completion, and design features that
are not achievable through the traditional design-bid-build method.
   (b) It is the intent of the Legislature that the following occur:
   (1) This article provides general authorization for certain state
agencies to use design-build for projects, excluding projects on the
state highway system.
   (2) This article shall not be deemed to provide a preference for
the design-build method over other procurement methodologies.
   10187.  For purposes of this article, the following definitions
apply:
   (a) "Best value" means a value determined by evaluation of
objective criteria related to price, features, functions, life-cycle
costs, experience, and past performance. A best value determination
may entail selection of the lowest priced technically acceptable
proposals or selection of the best proposal for a fixed price
established by the procuring agency, or it may consist of a tradeoff
between price and other specified factors.
   (b) "Construction subcontract" means each subcontract awarded by
the design-build entity to a subcontractor that will perform work or
labor or render service to the design-build entity in or about the
construction of the work or improvement, or a subcontractor licensed
by the State of California that, under subcontract to the
design-build entity, specially fabricates and installs a portion of
the work or improvement according to detailed drawings contained in
the plans and specifications produced by the design-build team.
   (c) "Department" means the Department of General Services and the
Department of Corrections and Rehabilitation.
   (d) "Design-build" means a project delivery process in which both
the design and construction of a project are procured from a single
entity.
   (e) "Design-build entity" means a corporation, limited liability
company, partnership, joint venture, or other legal entity that is
able to provide appropriately licensed contracting, architectural,
and engineering services as needed pursuant to a design-build
contract.
   (f) "Design-build team" means the design-build entity itself and
the individuals and other entities identified by the design-build
entity as members of its team. Members shall include the general
contractor and, if utilized in the design of the project, all
electrical, mechanical, and plumbing contractors.
   (g) "Director" means, with respect to procurements undertaken by
the Department of General Services, the Director of General Services
or, with respect to procurements undertaken by the Department of
Corrections and Rehabilitation, the secretary of that department.
   10188.  (a) Notwithstanding any other law, the director, following
notification to the State Public Works Board, may procure
design-build contracts for public works projects in excess of one
million dollars ($1,000,000), awarding the contract using either the
low bid or best value, provided that this article shall not apply to
any projects on the state highway system.
   (b) The director shall develop guidelines for a standard
organizational conflict-of-interest policy, consistent with
applicable law, regarding the ability of a person or entity, that
performs services for the department relating to the solicitation of
a design-build project, to submit a proposal as a design-build
entity, or to join a design-build team. This conflict-of-interest
policy shall apply to each department entering into design-build
contracts authorized under this article. 
   10189.  (a) For contracts for public works projects awarded on or
after the effective date of the regulations adopted by the Department
of Industrial Relations pursuant to subdivision (g) of Section
1771.5 of the Labor Code, the department shall reimburse the
Department of Industrial Relations for its reasonable and directly
related costs of performing prevailing wage monitoring and
enforcement on public works projects pursuant to rates established by
the department as set forth in subdivision (h) of Section 1771.5 of
the Labor Code. All moneys collected pursuant to this subdivision
shall be deposited in the State Public Works Enforcement Fund,
created by Section 1771.3 of the Labor Code, and shall, subject to
appropriation by the Legislature, be used only for enforcement of
prevailing wage requirements on those projects.
   (b) In lieu of reimbursing the Department of Industrial Relations
for its reasonable and directly related costs of performing
monitoring and enforcement on public works projects, the department
may elect to continue operating an existing previously approved labor
compliance program to monitor and enforce prevailing wage
requirements on the project if it has either not contracted with a
third party to conduct its labor compliance program and requests and
receives approval from the department to continue its existing
program or it enters into a collective bargaining agreement that
binds all of the contractors performing work on the project and that
includes a mechanism for resolving disputes about the payment of
wages. 
   10190.  The director shall notify the State Public Works Board
regarding the method to be used for selecting the design-build
entity, prior to advertising the design-build project.
   10191.  The procurement process for the design-build projects
shall progress as follows:
   (a) (1) The director shall prepare a set of documents setting
forth the scope and estimated price of the project. The documents may
include, but need not be limited to, the size, type, and desired
design character of the project, performance specifications covering
the quality of materials, equipment, workmanship, preliminary plans
or building layouts, or any other information deemed necessary to
describe adequately the department's needs. The performance
specifications and any plans shall be prepared by a design
professional who is duly licensed and registered in California.
   (2) The documents shall not include a design-build-operate
contract for any project.
   (b) Based on the documents prepared under subdivision (a), the
director shall prepare and issue a request for qualifications in
order to prequalify or short-list the design-build entities whose
proposals shall be evaluated for final selection. The request for
qualifications shall include, but need not be limited to, the
following elements:
   (1) Identification of the basic scope and needs of the project or
contract, the expected cost range, the methodology that will be used
by the department to evaluate proposals, the procedure for final
selection of the design-build entity, and any other information
deemed necessary by the director to inform interested parties of the
contracting opportunity.
   (2) (A) Significant factors that the department reasonably expects
to consider in evaluating qualifications, including technical design
and construction expertise, skilled labor force availability, and
all other nonprice-related factors.
   (B) For purposes of subparagraph (A), skilled labor force
availability shall be deemed satisfied by the existence of an
agreement with a registered apprenticeship program, approved by the
California Apprenticeship Council, that has graduated at least one
apprentice in each of the preceding five years. This graduation
requirement shall not apply to programs providing apprenticeship
training for any craft that was first deemed by the federal
Department of Labor and the Department of Industrial Relations to be
an apprenticeable craft within the five years prior to the effective
date of this article.
   (3) A standard template request for statements of qualifications
prepared by the department. In preparing the standard template, the
department may consult with the construction industry, the building
trades and surety industry, and other agencies interested in using
the authorization provided by this article. The template shall
require the following information:
   (A) If the design-build entity is a privately held corporation,
limited liability company, partnership, or joint venture, a listing
of all of the shareholders, partners, or members known at the time of
statement of qualification submission who will perform work on the
project.
   (B) Evidence that the members of the design-build team have
completed, or demonstrated the experience, competency, capability,
and capacity to complete projects of similar size, scope, or
complexity, and that proposed key personnel have sufficient
experience and training to competently manage and complete the design
and construction of the project, and a financial statement that
ensures that the design-build entity has the capacity to complete the
project.
   (C) The licenses, registration, and credentials required to design
and construct the project, including, but not limited to,
information on the revocation or suspension of any license,
credential, or registration.
   (D) Evidence that establishes that the design-build entity has the
capacity to obtain all required payment and performance bonding,
liability insurance, and errors and omissions insurance.
   (E) Information concerning workers' compensation experience
history and a worker safety program.
   (F) If the proposed design-build entity is a corporation, limited
liability company, partnership, joint venture, or other legal entity,
a copy of the organizational documents or agreement committing to
form the organization.
   (G) An acceptable safety record. A proposer's safety record shall
be deemed acceptable if its experience modification rate for the most
recent three-year period is an average of 1.00 or less, and its
average total recordable injury or illness rate and average lost work
rate for the most recent three-year period does not exceed the
applicable statistical standards for its business category or if the
proposer is a party to an alternative dispute resolution system as
provided for in Section 3201.5 of the Labor Code.
   (4) (A) The information required under this subdivision shall be
certified under penalty of perjury by the design-build entity and its
general partners or joint venture members.
   (B) Information required under this subdivision that is not
otherwise a public record under the California Public Records Act
(Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1
of the Government Code) shall not be open to public inspection.
   (c) Based on the documents prepared as described in subdivision
(a), the director shall prepare a request for proposals that invites
prequalified or short-listed entities to submit competitive sealed
proposals in the manner prescribed by the department. The request for
proposals shall include, but need not be limited to, the following
elements:
   (1) Identification of the basic scope and needs of the project or
contract, the estimated cost of the project, the methodology that
will be used by the department to evaluate proposals, whether the
contract will be awarded on the basis of low bid or best value, and
any other information deemed necessary by the department to inform
interested parties of the contracting opportunity.
   (2) Significant factors that the department reasonably expects to
consider in evaluating proposals, including, but not limited to, cost
or price and all nonprice-related factors.
   (3) The relative importance or the weight assigned to each of the
factors identified in the request for proposals.
   (4) Where a best value selection method is used, the department
may reserve the right to request proposal revisions and hold
discussions and negotiations with responsive proposers, in which case
the department shall so specify in the request for proposals and
shall publish separately or incorporate into the request for
proposals applicable procedures to be observed by the department to
ensure that any discussions or negotiations are conducted in good
faith.
   (d) For those projects utilizing low bid as the final selection
method, the competitive bidding process shall result in lump-sum bids
by the prequalified or short-listed design-build entities, and
awards shall be made to the design-build entity that is the lowest
responsible bidder.
   (e) For those projects utilizing best value as a selection method,
the design-build competition shall progress as follows:
   (1) Competitive proposals shall be evaluated by using only the
criteria and selection procedures specifically identified in the
request for proposals.  The following minimum factors, however,
shall be weighted as deemed appropriate by the department:  

   (A) Price.  
   (B) Technical design and construction expertise.  
   (C) Life-cycle costs over 15 or more years. 
   (2) Pursuant to subdivision (c), the department may hold
discussions or negotiations with responsive proposers using the
process articulated in the department's request for proposals.
   (3) When the evaluation is complete, the responsive proposers
shall be ranked based on a determination of value provided, provided
that no more than three proposers are required to be ranked.
   (4) The award of the contract shall be made to the responsible
design-build entity whose proposal is determined by the director to
have offered the best value to the public.
   (5) Notwithstanding any other provision of this code, upon
issuance of a contract award, the director shall publicly announce
its award, identifying the design-build entity to which the award is
made, along with a written decision supporting its contract award and
stating the basis of the award.
   (6) The written decision supporting the director's contract award,
described in paragraph (5), and the contract file shall provide
sufficient information to satisfy an external audit.
   10192.  (a) The design-build entity shall provide payment and
performance bonds for the project in the form and in the amount
required by the director, and issued by a California admitted surety.
The amount of the payment bond shall not be less than the amount of
the performance bond.
   (b) The design-build contract shall require errors and omissions
insurance coverage for the design elements of the project.
   (c) The department shall develop a standard form of payment and
performance bond for its design-build projects.
   10193.  (a) The department, in each design-build request for
proposals, may identify specific types of subcontractors that must be
included in the design-build entity statement of qualifications and
proposal. All construction subcontractors that are identified in the
proposal shall be afforded all the protections of Chapter 4
(commencing with Section 4100) of Part 1.
   (b) Following award of the design-build contract, the design-build
entity shall proceed as follows in awarding construction
subcontracts with a value exceeding one-half of 1 percent of the
contract price allocable to construction work:
   (1) Provide public notice of availability of work to be
subcontracted in accordance with the publication requirements
applicable to the competitive bidding process of the department,
including a fixed date and time on which qualifications statements,
bids, or proposals will be due.
   (2) Establish reasonable qualification criteria and standards.
   (3) Award the subcontract either on a best value basis or to the
lowest responsible bidder. The process may include prequalification
or short-listing. The foregoing process does not apply to
construction subcontractors listed in the original proposal.
Subcontractors awarded construction subcontracts under this
subdivision shall be afforded all the protections of Chapter 4
(commencing with Section 4100) of Part 1.
   10194.  (a) If the department elects to award a project pursuant
to this article, retention proceeds withheld by the department from
the design-build entity shall not exceed 5 percent if a performance
and payment bond, issued by an admitted surety insurer, is required
in the solicitation of bids.
   (b) In a contract between the design-build entity and a
subcontractor, and in a contract between a subcontractor and any
subcontractor thereunder, the percentage of the retention proceeds
withheld may not exceed the percentage specified in the contract
between the department and the design-build entity. If the
design-build entity provides written notice to any subcontractor that
is not a member of the design-build entity, prior to or at the time
the bid is requested, that a bond may be required and the
subcontractor subsequently is unable or refuses to furnish a bond to
the design-build entity, then the design-build entity may withhold
retention proceeds in excess of the percentage specified in the
contract between the department and the design-build entity from any
payment made by the design-build entity to the subcontractor.
   10195.  Nothing in this article affects, expands, alters, or
limits any rights or remedies otherwise available at law.
  SEC. 6.  Section 20133 of the Public Contract Code is repealed.
  SEC. 7.  Section 20175.2 of the Public Contract Code is repealed.
  SEC. 8.  Section 20193 of the Public Contract Code is repealed.

  SEC. 9.    Section 20209 of the Public Contract
Code is repealed. 
   SEC. 10.   SEC. 9.   Section 20301.5 of
the Public Contract Code is repealed.
   SEC. 11.   SEC. 10.   Article 22
(commencing with Section 20360) of Chapter 1 of Part 3 of Division 2
of the Public Contract Code is repealed.
   SEC. 12.   SEC. 11.   Section 20688.6 of
the Public Contract Code is repealed.
   SEC. 13.   SEC. 12.   Chapter 4
(commencing with Section 22160) is added to Part 3 of Division 2 of
the Public Contract Code, to read:
      CHAPTER 4.  LOCAL AGENCY DESIGN-BUILD PROJECTS


   22160.  (a) The Legislature finds and declares that the
design-build method of project delivery, using a best value
procurement methodology, has been authorized for various agencies
that have reported benefits from such projects including reduced
project costs, expedited project completion, and design features that
are not achievable through the traditional design-bid-build method.
   (b) It is the intent of the Legislature that the following occur:
   (1) This chapter provides general authorization for local agencies
to use design-build for projects, excluding projects on the state
highway system.
   (2) This chapter shall not be deemed to provide a preference for
the design-build method over other procurement methodologies.
   22161.  For purposes of this chapter, the following definitions
apply:
   (a) "Best value" means a value determined by evaluation of
objective criteria related to price, features, functions, life-cycle
costs, experience, and past performance. A best value determination
may entail selection of the lowest priced technically acceptable
proposal or selection of the best proposal for a fixed price
established by the procuring agency, or it may consist of a tradeoff
between price and other specified factors.
   (b) "Construction subcontract" means each subcontract awarded by
the design-build entity to a subcontractor that will perform work or
labor or render service to the design-build entity in or about the
construction of the work or improvement, or a subcontractor licensed
by the State of California that, under subcontract to the
design-build entity, specially fabricates and installs a portion of
the work or improvement according to detailed drawings contained in
the plans and specifications produced by the design-build team.
   (c) "Design-build" means a project delivery process in which both
the design and construction of a project are procured from a single
entity.
   (d) "Design-build entity" means a corporation, limited liability
company, partnership, joint venture, or other legal entity that is
able to provide appropriately licensed contracting, architectural,
and engineering services as needed pursuant to a design-build
contract.
   (e) "Design-build team" means the design-build entity itself and
the individuals and other entities identified by the design-build
entity as members of its team. Members shall include the general
contractor and, if utilized in the design of the project, all
electrical, mechanical, and plumbing contractors.
   (f) "Local agency" means the following:
   (1) A city, county, or city and county.
   (2) A special district that operates wastewater facilities, solid
waste management facilities,  or  water recycling
facilities  , or fire   protection facilities  .
   (3) Any transit district, included transit district, municipal
operator, included municipal operator,  or transit
development board, as defined in Section 99210 of the Public
Utilities Code, or a   any  consolidated agency, as
 defined  described  in Section 132353.1
of the Public Utilities Code,  or  any joint powers
authority formed to provide transit service  ,   any
county transportation commission created pursuant to Section 130050
of the Public Utilities Code, or any other local or regional agency,
responsible for the construction of transit projects  .
   (g) (1) For a local agency defined in paragraph (1) of subdivision
(f), "project" means the construction of a building  or
buildings  and improvements directly related to the construction
of a  building, and   building or buildings,
 county sanitation wastewater treatment facilities,  and
park   recreational facilities,  but does not include
the construction of other infrastructure, including, but not limited
to, streets and highways, public rail transit, or water resources
facilities and infrastructure. For a local agency defined in
paragraph (1) of subdivision (f) that operates wastewater facilities,
solid waste management facilities, or water recycling facilities,
"project" also means the construction of regional and local
wastewater treatment facilities, regional and local solid waste
facilities, or regional and local water recycling facilities.
   (2) For a local agency defined in paragraph (2) of subdivision
(f), "project" means the construction of regional and local
wastewater treatment facilities, regional and local solid waste
facilities, or  regional and local water recycling
facilities  , or fire protection facilities  .
   (3) For a local agency defined in paragraph (3) of subdivision
(f), "project" means a transit capital project  , but does not
include state highway construction or local street and road projects
 .
   22162.  (a) Notwithstanding any other law, a local agency, with
approval of its governing body, may procure design-build contracts
for public works projects in excess of one million dollars
($1,000,000), awarding the contract either the low bid or the best
value, provided that this article shall not apply to any projects on
the state highway system.
   (b) The local agency shall develop guidelines for a standard
organizational conflict-of-interest policy, consistent with
applicable law, regarding the ability of a person or entity, that
performs services for the local agency relating to the solicitation
of a design-build project, to submit a proposal as a design-build
entity, or to join a design-build team. This conflict-of-interest
policy shall apply to each local agency entering into design-build
contracts authorized under this article. 
   22163.  (a) For contracts for public works projects awarded on or
after the effective date of the regulations adopted by the Department
of Industrial Relations pursuant to subdivision (g) of Section
1771.5 of the Labor Code, the local agency shall reimburse the
department for its reasonable and directly related costs of
performing prevailing wage monitoring and enforcement on public works
projects pursuant to rates established by the department as set
forth in subdivision (h) of Section 1771.5 of the Labor Code. All
moneys collected pursuant to this subdivision shall be deposited in
the State Public Works Enforcement Fund, created by Section 1771.3 of
the Labor Code, and shall, subject to appropriation by the
Legislature, be used only for enforcement of prevailing wage
requirements on those projects.
   (b) In lieu of reimbursing the Department of Industrial Relations
for its reasonable and directly related costs of performing
monitoring and enforcement on public works projects, the local agency
may elect to continue operating an existing previously approved
labor compliance program to
    monitor and enforce prevailing wage requirements on the project
if it has either not contracted with a third party to conduct its
labor compliance program and requests and receives approval from the
department to continue its existing program or it enters into a
collective bargaining agreement that binds all of the contractors
performing work on the project and that includes a mechanism for
resolving disputes about the payment of wages. 
   22164.  The procurement process for the design-build projects
shall progress as follows:
   (a) (1) The local agency shall prepare a set of documents setting
forth the scope and estimated price of the project. The documents may
include, but need not be limited to, the size, type, and desired
design character of the project, performance specifications covering
the quality of materials, equipment, workmanship, preliminary plans
or building layouts, or any other information deemed necessary to
describe adequately the local agency's needs. The performance
specifications and any plans shall be prepared by a design
professional who is duly licensed and registered in California.
   (2) The documents shall not include a design-build-operate
contract for any project.
   (b) Based on the documents prepared under subdivision (a), the
local agency shall prepare and issue a request for qualifications in
order to prequalify or short-list the design-build entities whose
proposals shall be evaluated for final selection. The request for
qualifications shall include, but need not be limited to, the
following elements:
   (1) Identification of the basic scope and needs of the project or
contract, the expected cost range, the methodology that will be used
by the local agency to evaluate proposals, the procedure for final
selection of the design-build entity, and any other information
deemed necessary by the local agency to inform interested parties of
the contracting opportunity.
   (2) (A) Significant factors that the local agency reasonably
expects to consider in evaluating qualifications, including technical
design and construction expertise, skilled labor force availability,
 acceptable safety record,  and all other nonprice-related
factors.
   (B) For purposes of subparagraph (A), skilled labor force
availability shall be deemed satisfied by the existence of an
agreement with a registered apprenticeship program, approved by the
California Apprenticeship Council, that has graduated at least one
apprentice in each of the preceding five years. This graduation
requirement shall not apply to programs providing apprenticeship
training for any craft that was first deemed by the federal
Department of Labor and the Department of Industrial Relations to be
an apprenticeable craft within the five years prior to the effective
date of this article.
   (3) A standard template request for statements of qualifications
prepared by the local agency. In preparing the standard template, the
local agency may consult with the construction industry, the
building trades and surety industry, and other local agencies
interested in using the authorization provided by this article. The
template shall require the following information:
   (A) If the design-build entity is a privately held corporation,
limited liability company, partnership, or joint venture, a listing
of all of the shareholders, partners, or members known at the time of
statement of qualification submission who will perform work on the
project.
   (B) Evidence that the members of the design-build team have
completed, or demonstrated the experience, competency, capability,
and capacity to complete projects of similar size, scope, or
complexity, and that proposed key personnel have sufficient
experience and training to competently manage and complete the design
and construction of the project, and a financial statement that
ensures that the design-build entity has the capacity to complete the
project.
   (C) The licenses, registration, and credentials required to design
and construct the project, including, but not limited to,
information on the revocation or suspension of any license,
credential, or registration.
   (D) Evidence that establishes that the design-build entity has the
capacity to obtain all required payment and performance bonding,
liability insurance, and errors and omissions insurance.
   (E) Information concerning workers' compensation experience
history and a worker safety program.
   (F) If the proposed design-build entity is a corporation, limited
liability company, partnership, joint venture, or other legal entity,
a copy of the organizational documents or agreement committing to
form the organization.
   (G) An acceptable safety record. A proposer's safety record shall
be deemed acceptable if its experience modification rate for the most
recent three-year period is an average of 1.00 or less, and its
average total recordable injury or illness rate and average lost work
rate for the most recent three-year period does not exceed the
applicable statistical standards for its business category or if the
proposer is a party to an alternative dispute resolution system as
provided for in Section 3201.5 of the Labor Code.
   (4) (A) The information required under this subdivision shall be
certified under penalty of perjury by the design-build entity and its
general partners or joint venture members.
   (B) Information required under this subdivision that is not
otherwise a public record under the California Public Records Act
(Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1
of the Government Code) shall not be open to public inspection.
   (c) Based on the documents prepared as described in subdivision
(a), the local agency shall prepare a request for proposals that
invites prequalified or short-listed entities to submit competitive
sealed proposals in the manner prescribed by the local agency. The
request for proposals shall include, but need not be limited to, the
following elements:
   (1) Identification of the basic scope and needs of the project or
contract, the estimated cost of the project, the methodology that
will be used by the local agency to evaluate proposals, whether the
contract will be awarded on the basis of low bid or best value, and
any other information deemed necessary by the local agency to inform
interested parties of the contracting opportunity.
   (2) Significant factors that the local agency reasonably expects
to consider in evaluating proposals, including, but not limited to,
cost or price and all nonprice-related factors.
   (3) The relative importance or the weight assigned to each of the
factors identified in the request for proposals.
   (4) Where a best value selection method is used, the local agency
may reserve the right to request proposal revisions and hold
discussions and negotiations with responsive proposers, in which case
the local agency shall so specify in the request for proposals and
shall publish separately or incorporate into the request for
proposals applicable procedures to be observed by the local agency to
ensure that any discussions or negotiations are conducted in good
faith.
   (d) For those projects utilizing low bid as the final selection
method, the competitive bidding process shall result in lump-sum bids
by the prequalified or short-listed design-build entities, and
awards shall be made to the design-build entity that is the lowest
responsible bidder.
   (e) For those projects utilizing best value as a selection method,
the design-build competition shall progress as follows:
   (1) Competitive proposals shall be evaluated by using only the
criteria and selection procedures specifically identified in the
request for proposals.  The following minimum factors, however,
shall be weighted as deemed appropriate by the local agency: 

   (A) Price.  
   (B) Technical design and construction expertise.  
   (C) Life-cycle costs over 15 or more years. 
   (2) Pursuant to subdivision (c), the local agency may hold
discussions or negotiations with responsive proposers using the
process articulated in the local agency's request for proposals.
   (3) When the evaluation is complete, the responsive proposers
shall be ranked based on a determination of value provided, provided
that no more than three proposers are required to be ranked.
   (4) The award of the contract shall be made to the responsible
design-build entity whose proposal is determined by the local agency
to have offered the best value to the public.
   (5) Notwithstanding any other provision of this code, upon
issuance of a contract award, the local agency shall publicly
announce its award, identifying the design-build entity to which the
award is made, along with a written decision supporting its contract
award and stating the basis of the award.
   (6) The written decision supporting the local agency's contract
award, described in paragraph (5), and the contract file shall
provide sufficient information to satisfy an external audit.
   22165.  (a) The design-build entity shall provide payment and
performance bonds for the project in the form and in the amount
required by the local agency, and issued by a California admitted
surety. The amount of the payment bond shall not be less than the
amount of the performance bond.
   (b) The design-build contract shall require errors and omissions
insurance coverage for the design elements of the project.
   (c) The local agency shall develop a standard form of payment and
performance bond for its design-build projects.
   22166.  (a) The local agency, in each design-build request for
proposals, may identify specific types of subcontractors that must be
included in the design-build entity statement of qualifications and
proposal. All construction subcontractors that are identified in the
proposal shall be afforded all the protections of Chapter 4
(commencing with Section 4100) of Part 1.
   (b) Following award of the design-build contract, the design-build
entity shall proceed as follows in awarding construction
subcontracts with a value exceeding one-half of 1 percent of the
contract price allocable to construction work:
   (1) Provide public notice of availability of work to be
subcontracted in accordance with the publication requirements
applicable to the competitive bidding process of the local agency,
including a fixed date and time on which qualifications statements,
bids, or proposals will be due.
   (2) Establish reasonable qualification criteria and standards.
   (3) Award the subcontract either on a best value basis or to the
lowest responsible bidder. The process may include prequalification
or short-listing. The foregoing process does not apply to
construction subcontractors listed in the original proposal.
Subcontractors awarded construction subcontracts under this
subdivision shall be afforded all the protections of Chapter 4
(commencing with Section 4100) of Part 1.
   22167.  (a) If the local agency elects to award a project pursuant
to this article, retention proceeds withheld by the local agency
from the design-build entity shall not exceed 5 percent if a
performance and payment bond, issued by an admitted surety insurer,
is required in the solicitation of bids.
   (b) In a contract between the design-build entity and a
subcontractor, and in a contract between a subcontractor and any
subcontractor thereunder, the percentage of the retention proceeds
withheld may not exceed the percentage specified in the contract
between the local agency and the design-build entity. If the
design-build entity provides written notice to any subcontractor that
is not a member of the design-build entity, prior to or at the time
the bid is requested, that a bond may be required and the
subcontractor subsequently is unable or refuses to furnish a bond to
the design-build entity, then the design-build entity may withhold
retention proceeds in excess of the percentage specified in the
contract between the local agency and the design-build entity from
any payment made by the design-build entity to the subcontractor.
   22168.  Nothing in this article affects, expands, alters, or
limits any rights or remedies otherwise available at law.
   SEC. 14.   SEC. 13.   Due to the unique
circumstances of the Marin Healthcare District, the Legislature
hereby finds and declares that a general statute cannot be made
applicable within the meaning of Section 16 of Article IV of the
California Constitution. Therefore, the special legislation contained
in Section 4 of this act is applicable only to the Marin Healthcare
District.
   SEC. 15.   SEC. 14.   No reimbursement
is required by this act pursuant to Section 6 of Article XIII B of
the California Constitution because the only costs that may be
incurred by a local agency or school district will be incurred
because this act creates a new crime or infraction, eliminates a
crime or infraction, or changes the penalty for a crime or
infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIII B of the California Constitution.