Competitive bidding: design-build and best value construction contracting.

(1) Existing law establishes procedures for the formation of health care districts and regional open-space districts or authorities and prescribes the powers, functions, and duties of those districts or authorities, including competitive bidding requirements relating to the construction of facilities or other buildings. Existing law authorizes certain types of local agencies and other entities to use the design-build process when contracting for the construction of a building or improvements directly related to construction of certain facilities or buildings in those entities' jurisdictions, as specified. Existing law sets forth the procurement process for design-build projects, as specified, and requires specified information submitted by design-build entities to be certified under penalty of perjury. This bill would authorize, until January 1, 2023, the Peninsula Health Care District, the Midpeninsula Regional Open Space District, and the Santa Clara Valley Open-Space Authority to use the design-build process for the construction of facilities or other buildings in those entities, as specified. Because the bill would expand the application of the procurement process to additional design-build entities, the bill would expand the crime of perjury, thereby imposing a state-mandated local program. (2) Existing law, except as specified, authorizes a local agency, with approval of its governing body, to procure design-build contracts for public works projects in excess of $1,000,000, awarding the contract either the low bid or the best value, provided that those provisions do not apply to any projects on the state highway system. This bill would exempt the Midpeninsula Regional Open Space District and the Santa Clara Valley Open-Space Authority from the minimum project limitation of $1,000,000. This bill would make legislative findings and declarations as to the necessity of a special statute for the Peninsula Health Care District, the Midpeninsula Regional Open Space District, and the Santa Clara Valley Open-Space Authority. (3) Existing law authorizes, until January 1, 2020, the Counties of Alameda, Los Angeles, Riverside, San Bernardino, San Diego, Solano, and Yuba to select a bidder on the basis of best value, as defined, for construction projects in excess of $1,000,000. Existing law requires that bidders verify specified information under oath. This bill would expand this authorization to include the County of San Mateo. By expanding the bidders required to verify specified information under oath, this bill would impose a state-mandated local program by creating a new crime. The bill would additionally authorize these counties to use a best value construction contracting method to award individual annual contracts, not to exceed three $3,000,000, adjusted annually to reflect the percentage change in the California Consumer Price Index, for repair, remodeling, or other repetitive work to be done according to unit prices, as defined. This bill would make legislative findings and declarations as to the necessity of a special statute for County of San Mateo. (4) 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.