Voters Approve Public Works Changes in Santa Clara, Sunnyvale

Voters in Santa Clara and Sunnyvale are poised to change how their cities hire contractors for public works projects—potentially saving them time and money. About two-thirds of voters for both Santa Clara’s Measure C and Sunnyvale’s Measure G approve of updating their cities’ charters to align with state law. Since 2014, state law has allowed local agencies to use a design-build process for projects like public buildings and parks. The design-build process would let public works combine a project’s construction and design into a single contract. Santa Clara and Sunnyvale’s charters, however, limit their public works departments to a design-bid-build process. Their processes require two separate contracts: the first is awarded to the architects and engineers who design a project; the second is given to a construction company. Whichever company bids the cheapest offer wins the contract. “The traditional two-contract approach is when costs balloon, because the incentives are different for the designer versus the builder,” said Gustv Larsson, a former Sunnyvale council member. “The builder can only get the contract by being the low bidder, so they’re wanting to make up the money on the change order fees.” SPONSORED Combining design and construction into one contract could also shave time off major infrastructure projects. Construction companies could start, for example, demolishing a building before finalizing a design with a city. “Those are some of the areas where you can get into cost savings,” Santa Clara Public Works Director Craig Mobeck said. Both ballot measures make way for Santa Clara and Sunnyvale’s city councils to consider the design-build process, but when they would do so differs. Sunnyvale’s city council plans to pass ordinances that say when the city can use the design-build option. Santa Clara’s charter amendment would allow council members to consider the design-build process for major infrastructure projects more than $250,000—up from the charter’s original threshold of $1,000. Projects costing $250,000 or less would only require approval from the city manager. Raising the threshold would save city employees time from presenting some projects to the council. According to Santa Clara City Attorney Glen Googins, public works’ $1,000 threshold is the lowest of any city contract. “The update was necessary,” Googins said, “to align with the current cost of things and the sophistication and volume of the projects the city has worked on.” Chris Ramirez is a California Local News Fellow . Related Posts: Santa Clara Charter Change for Procurement: Measure C Sunnyvale to Ask Voters to Change City Charter