SR-6E (3)
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F \EPWM\ADMIN\WPDOCS\STAFFRPTIPROP224 WPD MAY 1 2 1198
Council Meeting May 12, 1998 Santa MonIca, California
TO Mayor and CIty CouncIl
FROM City Staff
SUBJECT A Resolution of the City Council Opposing ProposItion 224, An Initiative
on the June 1998 Ballot Restnctlng Local Control Over Capital
Improvement Projects
INTRODUCTION
ThiS report recommends that the City CouncIl oppose Proposition 224, an InItiative on
the June 1998 ballot which would significantly restnct local government control over
capital Improvement projects Local governments and other local dlstncts (school and
water dlstncts, etc) would not be allowed to use consulting engineers for projects of
$50,000 or more when state or federal pass-through funds are Involved Without state
approval Proposition 224 IS sponsored by the ProfeSSIonal Engineers In California
Government (PECG)
BACKGROUND
Proposition 224 IS titled, "Government Cost Savings and Taxpayer Protection
Amendment" It IS sponsored by an organization of state employees known as
ProfeSSional Engineers In California Government (PECG)
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DISCUSSion
ProposItIon 224 would reqUIre that local government public works projects use Caltrans
engineers and architects for design and construction management If any state funds or
federal pass-through money IS used, unless a state conducted analysIs proves It IS less
costly to use private contractors Contracts with engineering, architectural, landscape
archItectural, surveYing, environmental and geology firms are affected by the measure
Local governments would not be allowed to use their own staff or contract wIth outSide
professionals for these projects unless the analysIs by the State Controller's Office
determines that the use of city staff or contractors would cost less than uSing Caltrans
engineers
The effects of such reqUirements Will seriously Impact City projects The definItion of
state dollars IS very broad and It IS not Inconceivable that the City would be precluded
from uSing City staff for projects that Include any amount of state funds
The review process alone would delay currently approved capital Improvement
projects In addition, Caltrans' staffing level IS Inadequate to handle the volume of
projects covered by the measure, further delaYing projects while the state adjusts to the
requlfements of the InitiatIve
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Proposition 224 IS silent regardmg deadlines that the State Controller or Caltrans must
meet to complete either the comparative analysIs or the design work An additional
serious omiSSIon from ProposItion 224 language are routine contract compliance
requirements such as completing projects on schedule and within budget
Hundreds of public and private sector organizations oppose Proposition 224 A
coalition known as "Taxpayers Fed Up with More State Bureaucracy" IS working to
defeat the proposItion This organization Includes many local governments and the
League of California Cities. the Callforma Contract Cities ASSOCiation, the Callforma
Taxpayers Association, the General Contractors of California, and the California
Chamber of Commerce
BUDGET/FINANCIAL IMPACT
Adoption of Proposition 224 will result In Significant delays In the Implementation of
capital Improvement projects and additional costs There are no direct costs
associated with adopting the recommendation contained In this staff report
Recommendation
Staff recommends that the City Council adopt the attached resolullon opposing
ProposItion 224
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Prepared by Craig Perkins, Director Environmental and Public Works Management
Tony Antlch, P E , CIty Engineer
Carol Fox, Senior AdminIstrative Analyst
Attachments Resolution Opposing PrOposition 224
Proposition 224
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f \atty\munl\laws\mJm\prop224 res
City Council Meeting 5-12-98 Santa Monica. California
RESOLUTION NUMBER 9266
(City Council Senes)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA OPPOSING PROPOSITION 224.
A STATEWIDE INITIATIVE ON THE JUNE 1998 STATEWIDE BALLOT
WHEREAS, every day billions of dollars of cntlcal bUilding, engineering and design
projects are underway from seismic retrofitting and flood control to schools and hospitals,
and
WHEREAS. state, regional and local governments are currently allowed to complete
these projects In a cost efficient manner by uSing their own staff and/or by competitively
bidding With pnvate firms, and
WHEREAS, current practice allows state, regional and local governments the
essential fleXIbility to use their own staff and/or private firms to deliver a project on time
and Within budget constraints, and
WHEREAS, the "Government Cost Savings and Taxpayers Protection Amendment"
completely changes the process by giVing state employees a Virtual monopoly on
deSigning proJects, and
WHEREAS, thiS will thereby force CIties, counties, schools, special distriCts, and
regional governments to use state employees to deSign roads, parks, hospitals, health
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clinics, schools, water treatment facilIties, flood control projects and other cntlcal
structures, including all englneenng design, geological and environmental work, and
WHEREAS, the proposed inItiative eliminates local control and forces commUnities
to rely on the state for design work, and
WHEREAS, the state controller would have to analyze tens of thousands of
proposed contracts per year, resulting In delays of local projects and loss of local control
over projects costs,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY RESOLVE AS FOLLOWS
SECTION 1 The City Council of the City of Santa MOnica hereby opposes
Proposition 224, an Initiative on the June 1998 statewide ballot
SECTION 2 The City Clerk shall certify to the adoption of thIS Resolution, and
thenceforth and thereafter the same shall be In full force and effect
APPROVED AS TO FORM
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MARSHA JO S MOUTRIE
City Attorney
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GOVERN~ENT COST SAVINGS AND TAXPAYERS PROTECTION AMENDMENT
SECTiON 1 TITLE
This measure shall be known and may be CIted as the Govemmenr Cost Savrngs and Ta><payer Protection
Amendment
SECTION 2 PURPOSE AND INTENT
It IS tne Intent of the people of the State of CalIfornia In enacting thIS measure that englneenng,
architectural, and similar servIces provided by the state and certain other entities be furnIshed at the
lowest cost to taxpayers, consIStent with quality, health, safety, and the publIc Interest; that contracts tor
such li8Mces be awarded through a competitive bidding process. free of undue pOlltlCilllnfluence, and
that contractors be held fully responsible for the performance ot their contracts,
THEREFORE, THE PEOPLE OF THE STATe OF CALIFORNIA DO ENACT AS FOLLOWS'
SECTION 3. REQUIREMENTS FOR CONTRACTS FOR ENGINEERING, ARCHITECTURAL AND SIMILAR
SERVICES
Article VII. sectJOn 121$ hereby added to the Caldornla Constitution to read:
(a) ThJS section shall apply to contracts tOt engineering, archltectural, landscape architectural. surveying,
environmental. or engrneenng geology servICes awarded by the state of CalrfomJa or by any stat. agency
to any pUblIC or pnvale entity. As used In this secoon, Mstate agency" means every state offICe. officer,
agency, department, dIViSion, bureau, board, and commission but does not Include the UniversIty of
Callfomia, the California State University and Collages, and local publIC entities. "State ageney" also
Indudes a state agency adIng JOintly With another state agency or with 8 local public entrty As used In this
section, "local public: entity" means any Cl1y, county, city and county, Including a chartered city or county.
public or munICipal corporation, school dlStnct, speCIal dtstnc:t. authonty, or other public: entity formed tor
the local performance or governmental and propnetary funcllOns within lImited boundans. "Local public
entity" also Includes two or more loc:aI publIC entIties acting JOintly
(b) This section shall also apply to contracts for SBMC8S specified In SUbs8c:tlon (8) awarded by pnvat8
entities or local publIC entities when the contract awarded by the public or private entity Involves
expendrture of state funds or Iflvolves a program. Protect. faCIlity, or public work tor which the stat. or any
state agency has or Will have ownership, liability, or responslbrhty fOt constructIon, operatIOn, or
maintenance. As used 10 thiS sectIon, "state funds- means all money appropnated by the Legislature for
expenditure by the state or a state agency and all money included In specllll funds that the state or a stale
agency controls.
(c) Prior to the award of arty contract cov....d by this seoton. the Controller shall prepare and venfy an
analYSIS of the cost ot perfomung the work using state CIVIl service employees and the cost of the contract.
In companng costs, the cost of pert~ the work using state Civil seIVICe employees shall Include only
the addItIOnal dltect costs to the sta~ to provide the same seMeIS as the contractor, and the cost of the
contract shaJllndude all antICipated oontlact costs and all costs to be Incurred by the state, state agencies,
and the contracting entity for the biddlflg, evaluatIon, and contract award process and for inspecting.
6uperv~lng, venfYlng, morntomg, and overseeing the contrac:t
(d) The c:ontract Shall not be awarded I' IItt'ler of the foUowing condlUOns Is met. (1) the Controller's
analysIs conClUdes that state civ~ MM09 employees can perform the work at less cost than the cost of the
contract, unless the MIVICe8 are such an urgent nature that publiC: Interest. heaJth. or safety reqUires
award of the contract; or (2) the Controller or the contracting enbty concludes that the comract would not
be In the publ1c Interest. would have an adverse Impact on publIC health or safety, or wou~ result In lower
quality work than If state civil servIce emplov", perl'ormed the seMCes
(e) Except for contracts for whICh a delay resulting from the competitIVe bIdding process would endanger
publiC health or safety, every contract. Inclucllng amendments. covered by tNs section that exceeds fifty
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Adopted and approved this 12th of May, 1998
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Robert Holbrook, Mayor
I, Mana M Stewart, CIty Clerk of the CIty of Santa MOnica, do hereby certify that
the foregoing Resolution 9266 (CCS) was duly adopted at a meeting of the Santa
MonIca City Council held on the 12th of May, 1998 by the follOWing vote
Ayes Councllmembers Ebner, Feinstein, Genser, Greenberg, Holbrook,
Rosenstein
Noes Councilmembers None
Absta In Councllmembers None
Absent Councrlmembers O'Connor
ATTEST
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Mana M Stewart, CIty Clerk