HomeMy WebLinkAbout1/9/2024 Item 6b, Hermann / Harnett - Staff Agenda Correspondence(:;vfi Y o
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DATE: January 9, 2024
TO: Mayor and Council
FROM: Greg Hermann, Deputy City Manager
Prepared By: Natalie Harnett, Program and Policy Manager
VIA: Derek Johnson, City Manager
SUBJECT: Item 6B — 2023 Legislative Briefing
Staff received the following questions, regarding the 2023 State Legislative Briefing. The
questions are below with staff's response shown in italics.
1) With regard to SB706 and AB400, could you please talk about what these two
bills will do and explain "design build" a little more clearly?
"Design -build" is a project delivery method in the construction and design industry where
both the design and construction phases are handled by a single entity or a team. In
traditional project delivery methods, such as design -bid -build, these responsibilities are
typically split between different entities — an architect or engineer for the design phase
and a contractor for the construction phase. In design -build, the design and construction
teams work collaboratively, often under a single contract with the owner/agency. At its
most effective, design -build contracting can encourage collaboration and streamline
decision -making, reduce risk, and simplify communication via a single responsible
contractor, provide better cost -certainty earlier in the project, and introduce a potential for
faster delivery through earlier involvement with the construction team. Downsides can
include potential conflicts of interest between design and construction teams, resulting in
reduction in quality and workmanship for the purpose of cost savings and fast track
construction; design -build can also be incompatible with highly complex or specialized
projects where a more detailed and phased approach would reduce risk of unforeseen
cost increases.
Note that Article IX of the City Charter does not explicitly allow design -build project
delivery. Staff plan to bring a study session to Council for consideration in Fall 2024 to
determine whether Council would like a work item included in future Financial Plans to
amend the City's Charter to expressly allow for such project delivery alternative.
Below is a synopsis of SB706 and AB400, which are only applicable to agencies with
design -build authority.
City of San Luis Obispo
Item 6B — 2023 Legislative Briefing Page 2
SB 706 - Public contracts: progressive design -build: local agencies
Current law, until January 1, 2029, authorizes local agencies, defined as any city, county,
city and county, or special district authorized by law to provide for the production, storage,
supply, treatment, or distribution of any water from any source, to use the progressive
design -build process for up to 15 public works projects in excess of $5, 000, 000 for each
project, similar to the progressive design -build process authorized for use by the Director
of General Services. This bill would, until January 1, 2030, provide additional authority for
cities, counties, cities and counties, or special districts to use the progressive design -build
process for up to 10 public works in excess of $5, 000, 000, not limited to water -related
projects, excluding projects on state-owned or state -operated facilities. The bill would
require information to be provided under penalty of perjury and would require similar
reports due no later than December 31, 2028.
AB 400 — Local Agency Design -Build Projects: Authorization
Current law authorizes a local agency, as defined, 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 to the lowest bid or the best value. "Local agency" is defined,
in part, for this purpose to include specified local and regional agencies responsible for
the construction of transit projects, including any joint powers authority formed to provide
transit service. Current law, among other requirements for the design -build procurement
process, requires specified information submitted by a design -build entity to be certified
under penalty of perjury. These provisions authorizing the use of the design -build
procurement process are repealed on January 1, 2025. This bill would delete from the
definition of "local agency" any joint powers authority formed to provide transit services
and would instead expand that definition to include any joint powers authority responsible
for the construction of transit projects, thereby authorizing additional joint powers
authorities to use the above -described design -build procurement process. The bill would
extend the repeal date to January 1, 2031.
2) AB 1332 —can you say a little more about the pre -approvals this bill requires?
I thought that the process for building ADUs was already streamlined and
"by right" in most circumstances due to previous legislation (SB 9, and
maybe others)?
Several bills in recent years have significantly streamlined the process to construct ADUs.
This bill streamlines the process further by requiring that a City develop a program for the
preapproval of ADU plans. These ADU plans may not necessarily be associated with a
specific address but would be reviewed by the agency for compliance with required
standards. Once "preapproved" by the agency, the plans and contact information for the
applicant (assumed to be the architect or designer), would be posted on a website. This
would allow property owners to peruse "pre -approved" plans that have already been
reviewed and approved by the City. Should a property owner choose to propose to
construct an ADU that was preapproved on their property, then the City review of the
project would be limited to 30 days (instead of the now -current 60-day timeline). This
program would essentially allow designers and architects to request that the City review
and approve designs forADUs that can then be chosen by property owners (thus creating
a sort of menu of ADU options that are known to be compliant with City and State
Item 613 — 2023 Legislative Briefing Page 3
standards). This would also reduce building plan check fees as review would only be
needed to ensure building placement on the lot is in compliance with Zoning and Building
regulations.
3) AB 965 — can you explain more about what this means for broadband permit
applications locally?
This bill requires the City to "batch" certain broadband permit applications if they are for
substantially similar broadband project sites and are submitted by the same applicant. It
also establishes timelines to provide approvals or denials to applicants. The provisions of
this bill strain City resources for review of such permits depending on the number of
permits that are batched and number of batches that are submitted at a given time. Staff
is working on assessing how this bill could impact workflows and determine what work
processes need to be adjusted to ensure compliance with this law.
4) AB 935 — with this have an impact of any kind on our local enforcement
efforts?
This measure will not have a direct impact on local enforcement efforts, but it is welcomed
legislation to help remove access of flavored tobacco to children. It was enacted to
address some of the implementation concerns about SB 793 (the state's restriction on
the sales of flavored tobacco products). Specifically, AB 935 notes that the state's
licensing board shall suspend or revoke a state -issued license for a retailer who has
violated the flavor ban at least three times. It also expands the language of "retail location"
to include vending machines, mobile units, booths, etc. It will have an impact on illegal
sales, but not on drawing down local Police resources. It will encourage the City to work
closely with the State and our Special Enforcement Team (SET) for scheduled local
tobacco enforcement operations.
5) How will AB 1114 impact our local permitting processes?
The changes in AB 1114 will not impact our local permitting processes significantly. The
City will be required to provide additional information on our website. Existing law already
provides timelines for review of housing projects, including timelines for both entitlement
permits and "post entitlement phase permits" (which is what AB 1114 addresses) in order
to ensure timely review of such projects by agencies. The provisions of this bill amend
the definition of post entitlement phase permits, and also state that post entitlement phase
permits (such as building permits) cannot be subject to appeal or additional hearing
requirements once the agency has determined that the permit is compliant with all
applicable standards. This bill closes a loophole that existed in The City/County of San
Francisco, where project opponents could appeal post entitlement phase permits (such
as building permits). This was a practice unique to San Francisco and not a common
practice statewide.