Client News Briefs

New Civic Center Act And Bidding Rules Effective July 1

July 2014
Number 33

New laws and regulations effective July 1, 2014 will impact the operations of school districts and other public agencies. These changes include new regulations for recovering costs of the use of school district facilities under the Civic Center Act, and new requirements for bidders on all public works projects.

Recovering Direct Costs for Use of Facilities

The California Department of Education has recently approved the long-awaited regulations that will provide guidance in calculating direct costs which a school district may recover for the use of its facilities under the Civic Center Act. (See Client News Brief No. 64, October 2013.) These new regulations were adopted in accordance with Senate Bill Number 1404 (2012), which amended the Civic Center Act to expand the types of direct costs that school districts may charge for the use of school facilities or grounds. (See Client News Brief No. 64, October 2012.)

The new regulations, which are codified as California Code of Regulations, Title 5, sections 14037 through 14042, provide for two types of direct costs: capital costs and operational costs. The regulations also provide a formula for calculating an hourly fee schedule for each user's proportional share of these costs. We recommend that school districts review their facilities use policies in light of these new regulations in order to incorporate these new provisions and to recover costs related to the use of their facilities by third parties under the Civic Center Act.

Subcontractor License Numbers for Public Works Bidding

Last September, Governor Brown signed Assembly Bill (AB) 44, which will require a prime contractor to include the contractor's license number for each subcontractor listed in its bid documents when submitting bids for any state or local government public works project. This requirement will apply to bids received by a public agency on and after July 1, 2014. According to its author, the purpose of AB 44 is to save public agencies time and to improve efficiency by making it easier to verify the identity and license status of each subcontractor listed in a bid package. This is especially helpful when multiple subcontractors have similar names, or when the use of abbreviations or poor handwriting on bid documents make it difficult to determine which subcontractor is listed.

Public agencies should review their bid documents to ensure that this new requirement for bidders is incorporated into the bid documents for projects that will be submitted on or after July 1.

If you have questions regarding these new laws and regulations, or any other issues regarding the Civic Center Act or public works bidding, please contact one of our eight offices located statewide. You can also visit our website, follow us on Facebook or Twitter, or download our Client News Brief App.