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CITY COUNCIL AGENDA ITEM NO. 02

Meeting Date: March 13, 2001 

Subject/Title: Support for Design Build Legislation 

Submitted by: Dennis Beougher

Approved by: Jon Elam, City Manager

RECOMMENDATION 
Approve support for the attached legislation, sponsored by Assemblywoman Lynne Leach, concerning City of Brentwood's authorized use of design build contracting for construction projects as an alternative bidding procedure. 

BACKGROUND

Brentwood is a general law city and is thereby subject to the requirements of the Public Contract Code concerning public works projects and its associated bidding procedures. In order to complete a design build contract for certain public works projects, the City must have legislation passed that permits such an alternative bidding procedure.

ANALYSIS

Design-build construction allows an owner to contract with a single entity for both design and construction. The design-build entity may be a joint venture of a construction company and design firm, or a construction company that subcontracts the design work to an architectural or engineering firm. A design firm may contract with the owner, and subcontract with a contractor for construction, but arrangement is less common, and may present licensing issues.

Although the design-build concept is sometimes described as a "new" project delivery method, particularly for public projects, the system has been in use for decades, and its use is increasing. In California, design-build is expressly authorized as a project delivery option for certain state agencies and certain cities.

One of many significant differences between design/bid/build and design-build can be the degree to which the owner controls the project design. In the city's traditional design/bid/build procedure, the city controls the entire design process. On design-build projects, the owner's participation may be limited to providing input about it is requirements at the beginning of the project, leaving the design-build entity broad discretion in developing a cost-efficient plan to meet the requirements. At the other end of the spectrum, the owner may exercise more control by issuing detailed requirements for quality and function in the form of "bridging" or preliminary design documents. In the latter case, the contractor is responsible for completing the construction documents in accordance with the owner's preliminary design. Design-build projects can be structured as turn-key deals that include site selection, leasebacks, or more conventional contracts. The contract can be lump sum, negotiated, or phased. 

Currently, certain cities, West Sacramento and Davis, may use alternative bidding procedures for the design and construction of projects with a cost not exceeding $50 million . The attached bill would authorize the City of Brentwood to use design-build constructing for certain public works projects. The proposed bill would require Brentwood to comply with provisions similar to those governing design-build contracting by the Cities of West Sacramento and Davis, and would establish certain criteria that the City must meet. The bill would also exempt Brentwood from existing provisions governing the use of subcontractors, and create alternative provisions affecting the use of subcontractors. 


Attachment: Bill proposing the addition of Section 20176 to the Public Contract Code


RESOLUTION NO. 


A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD SUPPORTING LEGISLATION TO PERMIT DESIGN-BUILD CONTRACTING


WHEREAS, the City of Brentwood expects to construct various public works projects as the community is buildout; and

WHEREAS, City of Brentwood desires to have design-build as a public works project delivery method; and

WHEREAS, design-build is expressly authorized as a project delivery option for the certain state agencies and the general law cities of West Sacramento and Davis;

WHEREAS, the City of Brentwood supports legislation that would permit it to use design-build contracting for construction projects exceeding a specified cost and would exempt the City from existing provisions governing the use of subcontractors and create an alternative provision affecting the use of subcontractors.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brentwood, supports the bill presented by Assemblywoman Lynne Leach to permit the design-build contracting for public works projects and its related provisions.


PASSED by the City Council of the City of Brentwood at a regular meeting on the 13th day of March, 2001 by the following vote:

AYES: Councilmembers
NOES:
ABSENT:

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