BILL NUMBER: SB 562INTRODUCED BILL TEXT INTRODUCED BY Senator Lara FEBRUARY 26, 2015 An act to add Chapter 15 (commencing with Section 5975) to Division 6 of Title 1 of the Government Code, relating to infrastructure financing. LEGISLATIVE COUNSEL'S DIGEST SB 562, as introduced, Lara. Infrastructure financing: City of Long Beach Civic Center. The Local Agency Public Construction Act prescribes procedures for contracting by local public agencies, including specific provisions for cities. Existing law permits a governmental agency to solicit proposals and enter into agreements with private entities for the design, construction, or reconstruction by, and may lease to, private entities, for specified types of fee-producing infrastructure projects. Existing law permits these agreements to provide for the lease of, or ownership of, infrastructure facilities owned by a governmental entity, but constructed by a private entity, to that private entity for a period of up to 35 years. This bill, notwithstanding the act and any other law, would authorize the City of Long Beach to contract and procure a project for the revitalization and redevelopment of the Long Beach Civic Center, as defined, in accordance with prescribed procedures for qualification, solicitation, proposal evaluation, and contract award. The bill would authorize the lease of the project to, or ownership by, a private entity or entities, for a term of up to 65 years. The bill would make a statement that a special law is necessary and that a general law cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique and special circumstances surrounding the existing Long Beach Civic Center, and the need to immediately, quickly, and efficiently develop the project, and to resolve property issues potentially delaying the project. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares all of the following: (a) The City of Long Beach has experienced an increasing demand to fund infrastructure repairs, replacements, and new improvements. (b) The existing civic center is nearing the end of its useful life and contains significant seismic deficiencies that the City of Long Beach seeks to address as soon as feasibly possible to ensure the public's health and safety. (c) The City Council of the City of Long Beach seeks to address public health and safety in the earliest possible timeframe and understands that the development of a new Long Beach Civic Center using the public-private partnership procurement process presents the most expedient route to protecting the safety of its employees in and visitors to the civic center. (d) The public-private partnership procurement process has demonstrated precedence for the expedient, efficient, and economical delivery of projects, through the delivery of the Long Beach Courthouse, which was completed under budget and ahead of schedule. (e) The ability to utilize private sector investment capital is essential to the development of a cost-effective and time-sensitive Long Beach Civic Center. (f) A public-private partnership procurement method provides the City of Long Beach with an alternative and optional procedure for developing a new civic center that can provide a cost-effective benefit to the City of Long Beach by shifting the liability and risk for cost containment, project completion, and life-cycle maintenance to a private entity. SEC. 2. Chapter 15 (commencing with Section 5975) is added to Division 6 of Title 1 of the Government Code, to read: CHAPTER 15. LONG BEACH CIVIC CENTER 5975. As used in this chapter: (a) "Best interests of the city" means a procurement process that is determined by the city to reduce the project delivery schedule and total cost of the project while maintaining a high level of quality workmanship and materials. (b) "Best value" means a value determined by objective criteria that may include, but are not limited to, price, features, functions, performance, life-cycle costs, experience, and other criteria deemed appropriate by the city. (c) "Business entity" means a partnership, corporation, or other legal entity that is able to provide appropriately licensed contracting, architectural, engineering, financial, operations, management, facilities maintenance, and other services for development of a new Civic Center. (d) "City" means the City of Long Beach. (e) "Private entity" means an individual, business entity, or combination of individuals and business entities. (f) "Project" means the revitalization and redevelopment of the Long Beach Civic Center, which is bounded by Broadway, Pacific Avenue, Ocean Boulevard, and Magnolia Avenue, containing approximately 15.87 acres, and may include additional property as deemed necessary by the city for the project. (g) "Public-private partnership" means a cooperative arrangement between the public and private sectors, built on the expertise of each partner, that best meets the city's needs through the appropriate allocation of resources, risks, and rewards for the purposes of, and, including, but not limited to, studying, planning, designing, constructing, developing, financing, operating, maintaining, or any combination thereof, the project. 5976. (a) Notwithstanding any provision of the Public Contract Code or any other law, the city may contract and procure the project pursuant to this chapter. (b) The city may use a request for qualifications process to prequalify and shortlist the number of private entities that will be allowed to submit proposals. The request for qualifications shall generally describe the project, the private entity's necessary qualifications and responsibilities, and the procurement process. (c) The city shall gather information and prepare a solicitation package for a public-private partnership, which shall generally describe an approved process for methods of project delivery, including a project description and requirements, process and submission requirements, evaluation criteria, or any other information deemed necessary by the city to describe adequately the project requirements and procurement process. (d) The city shall evaluate the proposals and make its determination by choosing the private entity or entities whose proposal is, or proposals are, judged as providing the best value in meeting the best interests of the city and meeting the objectives of the project. The city retains the right to hold and enter into a negotiation process with selected private entities in performing the evaluation and making its determination. The city may enter into a public-private partnership through a lease-purchase, lease-leaseback, or other appropriate agreements, with one or more private entities for delivery of the project. The city may retain the right to select all or any portion of any proposal or reject any or all proposals as determined in the best interests of the city. (e) The contract award for the project shall be made to the private entity or entities whose proposal or proposals are determined by the city, in writing, to be the most advantageous by providing the best value in meeting the best interests of the city and meeting the objectives of the project. (f) The negotiation process shall specifically prohibit practices that may result in unlawful activity, including, but not limited to, rebates, kickbacks, or other unlawful consideration, and shall specifically prohibit city employees from participating in the selection process when those employees have a relationship with a person or business entity seeking a contract under this chapter that would subject those employees to the prohibition of Section 87100. Other than these criteria, the city is not subject to any other provisions of the Public Contract Code or this code that relates to procurement for the project. (g) Notwithstanding any provision of this code, upon issuance of an award for the project, the city shall publicly announce its award, identifying the private entity or entities to whom the award is made, along with a written decision supporting its award and stating the basis of the award. All documents related to the project shall be subject to disclosure under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7), except those exempted from disclosure under that act. 5977. (a) The project is subject to compliance with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code). Neither the act of selecting a private entity, nor the execution of an agreement with the private entity, shall require prior compliance with the act. However, appropriate compliance with the act shall thereafter occur before project construction commences. (b) The public portion of the project, at all times, shall be owned by the city, unless the city, in its discretion, elects to provide for ownership of the project by the private entity through a separate lease agreement during the term of the agreement. Notwithstanding Section 5956.6 or any other provision of this code, the agreement shall provide for the lease of the project to, or ownership by, the private entity or entities, for a term up to 65 years. In consideration therefor, the agreement shall provide for complete reversion of the project to the city at the expiration of the lease or transfer term. (c) The plans and specifications for the project shall comply with all applicable governmental design standards for that particular infrastructure project. The private entity studying, planning, designing, constructing, developing, financing, operating, maintaining, or any combination thereof, the project shall utilize private sector firms for studying, planning, designing, constructing, developing, financing, operating, maintaining, or any combination thereof, the project. However, a facility subject to this chapter and leased to a private entity, during the term of the lease, shall be deemed to be public property for purposes of identification, maintenance, enforcement of laws, and for purposes of Division 3.6 (commencing with Section 810). All public works constructed pursuant to this chapter shall comply with Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code. 5978. The provisions of this chapter are severable. If any provision of this chapter 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. 5979. The Legislature finds and declares that a special law is necessary and that a general law cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique and special circumstances surrounding the existing Long Beach Civic Center, and the need to immediately, quickly and efficiently develop the project, and to resolve property issues potentially delaying the project.