This chapter's purpose is to:
A.
Authorize
alternative project delivery methods and alternative project management
methods for procuring the city's public works projects;
B.
Engage
a contractor or construction professional before or during the design
process to provide advice and input on the design phase, including,
but not limited to, constructability review, scheduling, pricing,
preparation and coordination of bid packages, cost control, value
engineering, and phasing, and to assist the city in:
C.
Deliver
buildings, facilities, and infrastructures of high quality in design
and construction;
D.
Obtain
design features that are not achievable through traditional project
delivery methods; and
E.
Implement
uniform procedures to:
1.
Assure
that the selection process and procedures for soliciting a proposal
or bid on a public works project and awarding a contract—when
using an alternative project delivery method, or alternative project
management method, or both methods—are as open, fair, objective,
and cost-effective as the traditional competitively bid design-bid-build
method,
2.
Create
certainty and confidence in an alternative project delivery method
and alternative project management method, especially for design professionals,
contractors, and other persons who submit proposals or bids, and who
perform services or work, on a public works project, and
3.
Provide
accountability to the general public in the city's procurement activities.
(Ord. 5863 § 2, 2015)
The city council finds, determines, and declares that:
A.
The city's Charter, Article VI, Section 9, requires that "... for the construction, improvement, repair, or maintenance of public works..." the city council must award a contract to "... the lowest responsible bidder after competitive bidding." Under this provision, a public works project must be competitively bid through a public advertisement and awarded to a bidder who:
B.
Article VI, Section 9 provides an exception to the competitive bidding requirement:
"Upon recommendation of the city manager, the council may dispense
with competitive bidding for any contract when it determines that
it is in the best interests of the city so to do and acts by resolution
setting forth the reason for such action."
C.
The
city's traditional public works construction project delivery method
is design-bid-build, whereby design and engineering, procurement,
and construction of the project proceed sequentially in three phases,
with the city's first hiring the design professional under a separate
contract, then the city's awarding the construction contract to the
lowest responsible bidder based on completed plans and specifications,
and finally, the city's starting the project's construction.
D.
The
Charter exception—under appropriate circumstances ("... when
it is in the best interests...")—allows the use of other methods,
processes, and approaches for financing, designing, constructing,
and completing a public works project, including alternative project
delivery and alternative project management methodologies.
E.
While
the design-bid-build method and procurement to the lowest responsible
bidder are the city's preferred process for public works projects,
other project delivery systems, construction management methods, and
financing mechanisms exist which employ a combination of competitive
and non-competitive elements, and qualitative and quantitative evaluation
criteria, to:
1.
Achieve
higher quality, more innovative design, quicker completion time, better
life cycle efficiencies, and greater costs savings;
2.
Encourage
increased cooperation between the design professional and contractor,
or gain efficiencies by contracting with one entity serving as both
design professional and contractor;
3.
Gain
private sector expertise; and
4.
Effectively
manage responsibilities and risks by assigning each risk to the party
best suited to manage it.
F.
In the
past 20 years, the state of California, cities, and counties increasingly
have turned to alternative project delivery methods and alternative
project management methods for completing public works projects, thereby
giving them new tools to increase the efficiency and effectiveness
of their capital programs. State and local laws authorize a variety
of modern and innovative approaches that satisfy valid public policy
concerns of:
1.
Ensuring
fairness in process;
2.
Fostering
a competitive construction market;
3.
Obtaining
high quality design and construction;
4.
Using
the most highly qualified organization to perform the work;
5.
Lowering
project costs;
6.
Expediting
the project's completion; and
7.
Reducing
life-cycle costs for both financial and environmental sustainability.
G.
In its
findings for Public Contract Code Sections 22160 through 22169—which
authorizes cities and counties to procure public works projects in
excess of one million dollars through the design-build method of project
delivery—California's legislature stated that various state
agencies which had selected design-build delivery, using a best value
procurement methodology, "reported benefits from such projects including
reduced project costs, expedited project completion, and design features
that are not achievable through the traditional design-bid-build method."
H.
Likewise,
the city has experienced outcomes similar to the state's results when
the city used the design-build method of project delivery on a limited
number of construction projects:
1.
In
2004, the community services and parks department built two mini-parks,
Harvard and Windsor, using the design-build approach. The project
finished on time and came in under budget by $433,701.
2.
In
2010, the community services and parks department once again turned
to design-build to construct the Verdugo Catalina and Mountain Do
trails. Because trail building is unique and site-specific, plans
with precise placement of the trails cannot be easily drawn. Using
the design-build process was best suited for this project, allowed
the trails to open on time, and resulted in budget savings of $40,000.
3.
During
2014-2015, Glendale Water & Power (GWP) used the design-build
approach for the Beaudry Terrace Main Replacement Project. This project
was completed on-time and under-budget. Also, during the design portion
of the project, GWP engineers were able to work with the contractor
on making modifications to the project based on field conditions that
were discovered during construction that would have resulted in higher
costs if the project had been bid under the design-bid-build format.
I.
The
city's past success with design-build demonstrates that this alternative
project delivery method can provide a project less expensively and
more quickly than similar projects built using the traditional design-bid-build
process.
J.
Moreover,
in 2008, the Pioneer Institute for Public Policy Research published
a research paper describing the sources and order of magnitude of
savings from alternative delivery methodologies, such as design-build-finance-operate-maintain
and design-build-operate-maintain, both of which require a focus on
life cycle operation and maintenance costs as part of the initial
investment decision. The researcher found that using those methods
can typically produce cost savings of 30% to 40% over design-bid-build
and typical time for delivery savings of 25% over design-bid-build.
K.
For
the economic, social, and environmental well-being of the city, it
is important that the people of the city have an adequate quantity
of quality public buildings, parks, and related infrastructure. However,
these needs depend on the city's limited revenues to fund necessary
public works projects and infrastructure improvements.
L.
If the
city is going to maintain the quality of life that these public works
projects and improvements provide to residents and visitors alike,
then the city must find new funding sources. One source of new money
is private sector investment capital which the city can use to study,
plan, design, construct, develop, finance, maintain, rebuild, improve,
repair, or operate buildings, facilities, and infrastructure. Alternative
project delivery methods, such as design-build-finance-operate-maintain
and public-private partnership, provide a mechanism for obtaining
and using private investment capital for public works projects.
M.
Alternative
project delivery methods and alternative project management methods,
as well as private sector investment capital, will enable the city
to not only repair or replace existing infrastructure, but also expand
or build new buildings, parks, and infrastructure to serve the city's
future needs.
N.
Alternative
project delivery methods and alternative project management methods
for procuring the city's public works projects are not intended to
eliminate or avoid necessary architectural, engineering, and construction
services; inspections, approvals, and certifications; or compliance
with prevailing wage and apprenticeship requirements, as required
by the Charter, this code, or federal or state law.
O.
These
findings and facts establish the justifications for the council's
authorizing the use of alternative project delivery methods and alternative
project management methods for procuring public works projects.
P.
When the council, as authorized by Section 4.13.070(B)(2)(b) of this chapter, lists in a resolution one or more reasons under Section 4.13.060(A) of this chapter, and one or more justifications under Section 4.13.060(B) of this chapter, for using an alternative project delivery method, or alternative project management method, or both methods, for a public works project, then upon adoption of that resolution the council is deemed to have:
(Ord. 5863 § 3, 2015)
For the purpose of this chapter, the following words and phrases
have the meanings ascribed to them, unless otherwise noted:
means the entity—whether an individual, partnership,
joint venture, corporation, limited liability company, business association,
or other recognized legal entity—that:
Proposes to enter, or has entered, into a contract with the
city for delivery of a public works project under this chapter's provisions;
and
When applicable, holds the appropriate licenses and registrations
in this state, including a current, active, and valid:
Architect's license issued by the California Architects Board.
Professional engineering license issued by California's Board
for Professional Engineers, Land Surveyors, and Geologists.
Contractor license issued by California's Contractors State
License Board.
Contractor registration number from California's Department
of Industrial Relations.
means a value determined by stated criteria—including,
but not limited to, price, features, functions, life-cycle costs,
experience, past performance, or other criteria that the director
deems appropriate—that is used as a basis of award of a contract
for an alternative project delivery method.
means an alternative project management method in which the
city awards a contract to a licensed general contractor who:
means an alternative project delivery method in which the
city awards separate contracts, one for architectural and engineering
services to design a public works project, and the second to a licensed
general contractor who provides:
means an alternative project management method in which the
city awards separate contracts, one for architectural and engineering
services to design a public works project, and the second to a licensed
general contractor who:
means professional services that:
A licensed architect, registered engineer, licensed general
contractor, or other person or entity possessing requisite training,
expertise, or experience provides to the city for virtually any aspect
of an alternative project delivery method; and
Include, but are not limited to: advice, analysis, planning,
budgeting, estimating, procurement, management, supervision, coordination,
scheduling, monitoring, or administration of services or work on a
public works project, from its beginning to completion or during specific
phases of the project.
means a traditional project delivery method in which the
city sequentially awards separate contracts, the first for architectural
and engineering services to design a public works project, and the
second for construction of the project according to the design.
means an alternative project delivery method in which the
city enters into a single contract for the design and construction
of a public works project from a single entity.
means an alternative project delivery method in which:
The city enters into a single contract for the design, construction,
financing, operation, and maintenance of a public works project over
a contractually defined period; and
The city may or may not appropriate funds to pay for any part
of the services that the contractor provides during the period of
design and construction.
means an alternative project delivery method in which the
city enters into a single contract for the design, construction, operation,
and maintenance of a public works project over a contractually defined
period.
means the director of public works, or the general manager
of Glendale Water & Power, or either one's designee.
means an alternative project delivery method in which the
city enters into a single contract for the engineering and design,
procurement of equipment and construction materials, and construction
of a public works project over a contractually defined period.
means the agreed maximum dollar amount that the city will
pay for a public works project, including, but not limited to:
means an alternative project delivery method for a public
works project in which the participants—the city, design professional,
general contractor, and construction management services provider:
Organize an integrated team of engineers, specialists, material
suppliers, subcontractors, and vendors at an early stage of the project;
and
Implement the project to optimize project results, save resources
and costs, and maximize efficiency through all phases of design, fabrication,
and construction, so that the risk, responsibility, and liability
for project delivery are collectively managed and appropriately shared,
whether through partnership agreements or multi-party contracts.
means an alternative project delivery method in which the
city enters into a contract directly with separate trade contractors,
rather than with a single general or prime contractor, for specific
and designated elements of the work on a public works project.
means services or activities, before construction begins,
that include, but are not limited to: feasibility studies, design
and constructability reviews, sustainability analysis, value engineering,
scheduling, site assessments, cost estimates, preparing bid or proposal
packages, and reviewing and recommending contract awards.
means an alternative project delivery method in which the
city enters into an agreement with a private entity or consortium
of investors for the studying, planning, designing, developing, financing,
construction, rebuilding, improvement, repair, maintenance, or operation,
or for any combination of these purposes, of a public works project
for which:
The city may propose, solicit proposals, and select individually
or as part of a related or larger project; or
The private entity or consortium of investors may propose and
the city may select; and
The private entity or consortium of investors assumes one or
more risks or liabilities for the project, including, but not limited
to: financial, design, construction, repair, maintenance, or operational.
means the planning, financing, design, construction, improvement,
demolition, repair, maintenance, or operation of, or procuring materials
for:
Real property that the city owns, controls, manages, maintains,
or leases.
A city building, structure, facility, complex, or terminal.
A city park, playground, or recreational facility.
A city road, alley, or street (including a curb, gutter, sidewalk,
parkway, median, street light, or traffic signal), or landscaped area.
An aboveground or underground city utility (including an electrical
line, power plant, electrical sub-station, control house, utility
operations center, water line, water distribution or treatment plant,
pump house, tank, reservoir, sanitary sewer line, sewage treatment
plant, storm drain, drainage swale, flood control structure, solid
waste disposal plant, or landfill).
A radio, television, telecommunication, computer, or technology
facility or structure that the city owns, controls, manages, maintains,
or leases.
(Ord. 5863 § 4, 2015)
On a project by project basis, the director may select an appropriate alternative project delivery method, or alternative project management method, or both methods, listed in Section 4.13.050 of this chapter.
(Ord. 5863 § 5, 2015)
Despite any other provision of state law, under this chapter and after having complied with Section 4.13.070 of this chapter, the director may:
A.
Use
the following project delivery methods for the procurement, financing,
design, construction, improvement, repair, maintenance, or operation
of a public works project:
B.
Use
the following alternative project management methods for managing
the procurement, financing, design, construction, improvement, repair,
maintenance, or operation of a public works project:
(Ord. 5863 § 6, 2015)
In selecting and recommending an alternative project delivery
method, or alternative project management method, or both methods,
for a project, the director shall rely on one or more reasons under
subsection A of this section and one or more justifications under
subsection B of this section, which are in the best interests of the
city:
A.
The
project:
1.
Has
a high level of technical complexity;
2.
Requires
expertise that city staff does not have;
3.
Has
a scope of work and technical requirements that are difficult to define;
4.
Benefits
from early contractor involvement;
5.
Calls
for a high level of risk management or risk elimination;
6.
Has
complex phasing;
7.
Needs
overall schedule acceleration;
8.
Requires
private funding or combined city and private funding;
9.
Needs
value engineering or other solutions to save on construction costs
or to improve function, quality, performance, or sustainability;
10.
Has budget constraints requiring construction cost guarantees;
11.
Requires the city to retain project decision control over some or
all of the design and construction; or
12.
Needs a third party to operate, manage, maintain, or service the
building, facility, or infrastructure after the project's completion.
B.
The
alternative project delivery method, or alternative project management
method, or both methods, achieves or improves:
3.
The
project's quality by:
4.
The
project's functionality by:
a.
Maximizing the life cycle performance of the project.
b.
Providing innovative solutions to complex project problems.
c.
Increasing team collaboration and improving third-party interaction.
d.
Minimizing inconvenience to the public during construction.
e.
Maximizing safety of workers and the public during construction.
(Ord. 5863 § 7, 2015)
A.
Before
the director prepares a specification, notice inviting bids, request
for proposals, request for qualifications, or bid or proposal advertisement
for a project in which the director proposes to use an alternative
project delivery method, or alternative project management method,
or both methods:
1.
The
director shall submit to the city manager a written statement:
b.
Listing one or more reasons under Section 4.13.060(A) of this chapter and one or more justifications under Section 4.13.060(B) of this chapter that led to the selection and recommendation of the particular alternative project delivery method, or alternative project management method, or both methods, for the project.
B.
After the director obtains the city manager's or a designee's approval under subsection (A)(2)(b) of this section, and before a specification, notice inviting bids, request for proposals, or request for qualifications is advertised or given to a person who may potentially perform services or work on the project:
1.
The
director shall:
a.
Recommend to the city council that it approve, by a resolution, the
proposed alternative project delivery method, or alternative project
management method, or both methods, for the project; and
2.
The
city council shall:
a.
Approve, conditionally approve, or disapprove the proposed alternative
project delivery method, or alternative project management method,
or both methods, for the project.
b.
In a resolution approving or conditionally approving the proposed alternative project delivery method, or alternative project management method, or both methods, specify the reason or reasons under Section 4.13.060(A) of this chapter, and the justification or justifications under Section 4.13.060(B) of this chapter, on which the director relied in making the recommendation.
(Ord. 5863 § 8, 2015)
A.
Despite any other provision of state law, under this chapter and after having complied with Section 4.13.070 of this chapter, the director may use any one or more of the following procurement methods and processes that the director determines are appropriate, at the director's discretion:
2.
Negotiations
with proposers before an award; or
3.
Payment
of a stipend, to a proposer identified below, for work product for
technical or financial concepts that the proposer submitted in consideration
for the city's right to use the work product, when the following situation
occurs, including:
C.
Despite
any other provision of state law, and in order to balance the need
to maximize competition and create a transparent process, under this
chapter:
1.
An
APDM or APMM entity's statement of qualifications and proposal are
not subject to public review until the contract's award and the conclusion
of any protest or challenge to the award, unless otherwise specified
in the project solicitation.
2.
A
proposer may identify portions of a proposal that the proposer considers
to be trade secrets, or confidential commercial, financial, or proprietary
information. However, a proposer's characterization of a document
as being exempt from public disclosure is not binding upon the city
if the document is not afforded that protection under existing law.
D.
Despite
any other provision of state law, under this chapter a contract for
an alternative project delivery method, or an alternative project
management method, or both methods—in a form that the city attorney
approves—must include at least the following provisions:
3.
Payment
and performance bonds for construction services, in amounts and on
forms satisfactory to the city's risk manager or the city attorney;
4.
Minimum
insurance coverages and amounts, satisfactory to the city's risk manager
or the city attorney; and
5.
An
indemnification provision satisfactory to the city attorney.
E.
With
input from the city attorney and the general manager of Glendale Water &
Power, and with approval from the city manager, the director of public
works:
(Ord. 5863 § 9, 2015)
California Public Contract Code Sections 22160 through 22169,
or any successor legislation, do not apply to this chapter.
(Ord. 5863 § 10, 2015)
