Structural Engineers Association of Northern California Newsletter - March 1996

Legislation News

Richard Ludke
Legislative Comittee Chairman

PECG, Professional Engineers in California Government, is sponsoring a constitutional amendment initiative that would establish that the design work for all state projects, a large percentage of local government projects, and some private projects would have to be done by state employees. This initiative would have a major impact on private consulting engineering businesses in California. This initiative is a major move toward legally mandating government design and engineering of many government projects. At issue is the requirement that projects with government funds must be engineered by state government employees.

The following title and summary of the PECG initiative are from the Attorney General's office. This will appear on the November Ballot if PECG is successful in their signature gathering efforts. PECG has retained campaign firms and public relations firms to advance their efforts to qualify this initiative for the November Ballot.

STATE-FUNDED DESIGN AND ENGINEERING SERVICES. COST ANALYSIS, CIVIL SERVICE, COMPETITIVE BIDDING. CONTRACTOR RESPONSIBILITY. INITIATIVE CONSTITUTIONAL AMENDMENT.

Requires competitive bidding for state-funded engineering or design contracts over $50,000 unless delay from bidding would endanger public health or safety. Prohibits contracting where performance by civil service less costly unless urgent need for contract. Prohibits contracts which Controller or awarding agency determines are against public interest, health, safety or where quality of work would be lower than civil service work. Contractors must indemnify state in suits related to performance of contracts. Provisions severable and should be harmonized with similar measurers on subject. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: This measure would result in an initial cost of up to $300,000 and annual costs of up to $1 million for the State Controller to perform the required cost analyses. There will be unknown savings or costs for state and local Governments to obtain certain architectural and engineering services.

The PECG initiative would amend the California Constitution so that design work would have to be done by state civil service employees. It would be very difficult for state agencies to use private firms. Private firms can be used only when the state's incremental costs for in-house design exceeds the total of all of the state's direct and indirect costs plus a consultants design fees. "Bids" for design contracts would be required when there are no plans or documents on which to base a "logical" proposal. California would be making a move towards government mandated civil service engineering while the rest of the country is moving towards more open privatization of services.

The SEAONC Legislative Committee has recommended to the Board that we actively oppose this initiative. We believe that this initiative would shift work to State employees by understating the actual costs of using state employees for these services, the cost analysis may not account for all state costs associated with state employment, and the costs to a private sector are not identified. We believe that continued use of qualifications-based selection of private consulting engineering companies, along with continued use of government employed engineers, will provide the best quality and quantity of engineered projects for California.

Two State Propositions on the March Ballot are seeking Bond funding for seismic retrofit of schools and highway bridges. Proposition 203 is a $3 billion bond measure that would go to the state's K - 12 schools, community colleges, and universities for rebuilding, repairing, and making improvements, including earthquake safety.

Proposition 192 is a $2 billion State Retrofit Bond Act of 1996 for the seismic retrofit of state-owned highways and bridges throughout the state. If the voters do not approve this measure in the March 26, 1996 primary elections, the measure will appear again on the November 5, 1996-general election ballot. If this bond act is approved, it would allow these funds to be used for Toll Bridges Retrofit. It extends existing exemptions from specific state contracting and environmental law and current authority to contract out for seismic retrofit projects. Recent news stories related to the high costs for Bay Area Toll Bridge retrofits are publicity related to generating support and awareness for this Bond issue financing.

The SEAOC Board has created a state Legislative Coordinating Committee to provide technical support needed by the Executive Office to develop sound and supportable positions on proposed legislation. Allan Goldstein, Reinhard Ludke, Carl Josephson (SEAOSD) and SEAOC committee delegates from Seismology, Code, existing buildings, and Professional Practice will be on the committee.

Responsibilities: The following would be the responsibilities of the Legislative Coordinating Committee:

1. Provide technical analysis and recommend positions on proposed legislation to the Executive Director for transmittal to the Executive Committee.

2. Suggest language for amendments to proposed legislation.

3. Recommend proposed legislation for consideration by the Executive Committee and Board of Directors.

4. Maintain liaison with the Legislative Committees of each of the Member Organizations and communicate Member Organization positions to the Executive Director if they differ from the recommendation of the State Legislative Coordinating Committee.

Assemblymen, Assemblywomen, and Senators have until February 23 to introduce Bills for consideration by the 1996 legislature. We will be reviewing proposed legislation and may ask local section committees for review and input, similar to last year. To have any influence on the language or content of an existing bill we need to express our view while bills are in the committee early in the legislative session. SEAOC intends to only takes an active role or action on legislation where we "strongly support" or "strongly oppose" a bill. If you have information or an opinion about pending legislation, contact the Legislative Committee chair.