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SB 1055

Pajaro Regional Flood Management Agency: contracts.

2025-2026 Regular Session Introduced by John Laird

PRFMA gains flexible, time-limited contracting methods (incl. design-build and best value) with safeguards, for regional flood projects through 2035.

From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 8. Noes 0.) (June 17).
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Bill Summary · SB 1055

Summary of SB 1055 (2025-2026) – Pajaro Regional Flood Management Agency: Contracts

Purpose and Intent

SB 1055, introduced by Senator Laird and amended in 2026, seeks to authorize the Pajaro Regional Flood Management Agency (PRFMA) to use a broader set of contracting and project-delivery methods for public works projects, specifically through the addition of Article 130 to the Public Contract Code. The bill is temporary, with provisions sunsetting on January 1, 2035. The core goal is to provide PRFMA with flexible, cost-effective procurement options tailored to its unique regional flood-management responsibilities.

Key Provisions and Changes

  • Scope of Applicability

    • Applies to contracts entered into by the Pajaro Regional Flood Management Agency.

  • Contracting Methods Authorized (until 2035)

    • In addition to existing methods, PRFMA may use:
    • Lowest-bid contracting
    • Progressive Design-Build
    • Construction Manager-at-Risk (CMAR)
    • Design-Build
    • Construction Manager/General Contractor (CM/GC)
    • Best Value Procurement
    • Job Order contracting (JO)
    • These options supplement, not replace, existing contracting authorities.

  • Job Order Contracting (JO) Specifics

    • If the governing body approves JO, the agency must follow detailed procedures:
    • JO contracts are competitive bids for repair/remodeling work using unit-price catalogs.
    • No annual new-construction JO contracts; limited to repair/remodeling and repetitive work.
    • Solicitations must include unit-price catalogs, terms, specifications; bidders submit bids with adjustment factors; subcontractor disclosure is required.
    • Multiple JO contracts may be awarded based on lowest combined adjustment factors.
    • Provisions to ensure accountability, including prevention of bid shopping and contractor ineligibility for violations.

  • Financial and Term Limits for JO Contracts (21653.1)

    • Maximum total value under a single JO contract: $5,000,000 in the initial term.
    • Single JO order cap: $1,000,000 (excluding change orders).
    • Initial JO contract term: up to 24 months; possible extensions up to four additional 12-month terms (maximum of five years total) and up to $5,000,000 across the subsequent terms.
    • Annual adjustments tied to the California Construction Cost Index.

  • Compliance, Labor, and Oversight

    • All JO work must comply with prevailing wage requirements and labor-code provisions.
    • Independent cost estimates must be prepared for each JO; agency must compare estimates prior to issuing orders.
    • Violations (e.g., bid shopping) can result in contract termination or debarment.

  • Best Value and Standards (21654–21655)

    • Contracts may be awarded on a best-value basis or to the lowest responsible bidder, using objective criteria (price, features, lifecycle costs, experience, past performance).

  • Sunset and Special Statutory Nature

    • Provisions applicable until January 1, 2035; after that date, the article becomes inoperative unless extended.
    • Legislative findings emphasize the unique needs of PRFMA.
    • No mandate for state reimbursement, per Government Code requirements.

Who/What Is Affected

  • The Pajaro Regional Flood Management Agency (PRFMA) and its governing body.
  • PRFMA projects and procurements, especially those suited to JO, CM/GC, CMAR, Design-Build, and Best Value processes.
  • Contractors bidding on PRFMA projects, particularly job order contractors and those participating in alternative delivery methods.

Procedural and Timeline Highlights

  • SB 1055 was amended in March and April 2026 and set for hearings in May 2026.
  • The act applies immediately upon enactment but expires (sunsets) on January 1, 2035.
  • Reimbursement considerations indicate no state-mandated-local-cost requirement, given its special-statute nature.

Overall, SB 1055 gives PRFMA expanded, time-bound contracting flexibility to address regional flood-management needs while imposing specific governance, cost-estimation, wage, and accountability safeguards.

Compiled from official sources — confirm details with the bill’s official record.

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