1.1                          A bill for an act 
  1.2             relating to Hennepin county; providing for 
  1.3             design-build contracts; proposing coding for new law 
  1.4             in Minnesota Statutes, chapter 383B. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [383B.158] [DESIGN-BUILD CONTRACTS.] 
  1.7      Subdivision 1.  [DEFINITIONS.] (a) In this section, the 
  1.8   definitions in this subdivision apply. 
  1.9      (b) "Acceptance" means a formal resolution of the county 
  1.10  board authorizing the execution of a design-build contract. 
  1.11     (c) "Best value" describes a result intended in acquiring 
  1.12  design-build services.  Best value determination must include 
  1.13  price and must measure a responder's qualifications, experience, 
  1.14  prior performance, and responses to technical and qualitative 
  1.15  criteria. 
  1.16     (d) "Designer selection committee" means the designer 
  1.17  selection committee appointed by the county board to advise the 
  1.18  county administrator and county board in preparing and 
  1.19  conducting the design-build selection process. 
  1.20     (e) "Design-build contract" means a single contract between 
  1.21  the county and a design-builder to furnish the architectural, 
  1.22  engineering, and related design services as well as the labor, 
  1.23  materials, supplies, equipment, and construction services for a 
  1.24  project. 
  1.25     (f) "Design-builder" means the person that proposes to 
  2.1   design and build a project governed by the procedures of this 
  2.2   section. 
  2.3      (g) "Design criteria package" means a performance-oriented 
  2.4   description of the budget, design standards, program, and site 
  2.5   for the project containing sufficient information to permit 
  2.6   design-build firms to prepare a response to the requests for 
  2.7   proposals.  
  2.8      (h) "Design criteria professional" means a person who holds 
  2.9   or employs individuals who hold the licenses under chapter 326 
  2.10  and who is employed by or under contract with the county to 
  2.11  provide professional architecture and engineering services in 
  2.12  connection with the preparation of the design criteria package. 
  2.13     (i) "Design proposal" means the phase-two proposal to be 
  2.14  submitted by a design-builder in a design-based selection 
  2.15  process that includes the building and site design, the design 
  2.16  and construction schedule, and the construction cost, in the 
  2.17  detail required by the county in the request for proposals. 
  2.18     (j) "Past performance" or "experience" does not include the 
  2.19  exercise or assertion of a person's legal rights. 
  2.20     (k) "Person" means an individual, partnership, joint 
  2.21  venture, corporation, professional corporation, business 
  2.22  association, or any other legal entity. 
  2.23     (l) "Project" means an undertaking to design, construct, 
  2.24  erect, or remodel a facility, building, road, highway, or bridge.
  2.25     (m) "Proposal" means an offer by a design-builder to enter 
  2.26  into a design-build contract for a project in response to a 
  2.27  request for proposals, including a phase-one or phase-two 
  2.28  proposal. 
  2.29     (n) "Request for proposals" means the document or 
  2.30  publication through which the county solicits proposals for a 
  2.31  design-build contract. 
  2.32     Subd. 2.  [AUTHORITY.] Notwithstanding section 471.345 or 
  2.33  any other law to the contrary, the county board may solicit and 
  2.34  award a design-build contract for a project on the basis of a 
  2.35  best value selection process as provided in this section. 
  2.36     Subd. 3.  [RESTRICTION.] The number of design-build 
  3.1   contracts awarded by the county board in any year may not exceed 
  3.2   20 percent of the total number of construction contracts awarded 
  3.3   by the county board in the previous year. 
  3.4      Subd. 4.  [PROCEDURES.] (a) The county board shall, by 
  3.5   resolution, adopt implementation procedures consistent with this 
  3.6   section for the award of design-build contracts.  
  3.7      (b) The implementation procedures must, at a minimum, 
  3.8   govern: 
  3.9      (1) the establishment of a designer selection committee 
  3.10  appointed by the county board to advise the county administrator 
  3.11  and the county board in preparing and conducting the 
  3.12  design-build selection process, including a recommendation for 
  3.13  the selection of a design-build proposal it considers to be of 
  3.14  best value to the public; 
  3.15     (2) preparing requests for proposals, including procedures 
  3.16  for determining the appropriate content for each request for 
  3.17  proposal; 
  3.18     (3) standards to be used to qualify or prequalify 
  3.19  design-builders; 
  3.20     (4) preparing and submitting proposals; 
  3.21     (5) establishing procedures for evaluating proposals in as 
  3.22  objective a manner as possible; 
  3.23     (6) negotiations between the county, including the designer 
  3.24  selection committee, and those submitting proposals before the 
  3.25  acceptance of a proposal if negotiations are contemplated, 
  3.26  including safeguards to preserve confidential information and 
  3.27  proprietary information supplied by those submitting proposals 
  3.28  including, but not limited to, an offeror's price, technical 
  3.29  solutions, innovative or unique technology, and innovative or 
  3.30  unique use of commercially available items; and 
  3.31     (7) awarding and executing design-build contracts. 
  3.32     Subd. 5.  [LICENSING REQUIREMENTS.] (a) A design-builder 
  3.33  must be licensed and registered to provide the services required 
  3.34  to complete the project and do business in this state. 
  3.35     (b) A design-builder may enter into a contract with the 
  3.36  county to provide professional or construction services that the 
  4.1   design-builder is not licensed, registered, or qualified to 
  4.2   perform, so long as the design-builder provides the services 
  4.3   through subcontracts with licensed, registered, or otherwise 
  4.4   qualified persons in accordance with this section. 
  4.5      (c) This section does not intend to limit or eliminate the 
  4.6   responsibility or liability owed by a professional on a 
  4.7   design-build project to the county or other parties under other 
  4.8   law. 
  4.9      Subd. 6.  [DEVELOPMENT OF DESIGN CRITERIA PACKAGE.] (a) 
  4.10  Each request for proposals must contain performance criteria 
  4.11  prepared by a design criteria professional employed by or under 
  4.12  contract with the county.  The county administrator, in 
  4.13  consultation with the designer selection committee and the 
  4.14  design criteria professional, must determine the scope and level 
  4.15  of detail required for the design criteria package beyond that 
  4.16  required in paragraph (b).  
  4.17     (b) The design criteria package must specify 
  4.18  performance-based criteria for the project; legal description of 
  4.19  the site; right-of-way and access; survey, soil, and 
  4.20  environmental information concerning the site; interior space 
  4.21  requirements, including adjacency diagrams; material quality 
  4.22  standards; conceptual design; conceptual design specifications; 
  4.23  programming; cost or budget estimates; design and construction 
  4.24  schedules; site development requirements; provisions for 
  4.25  utilities; stormwater retention and disposal; parking 
  4.26  requirements applicable to the project; and any other 
  4.27  information required to adequately describe the project. 
  4.28     (c) The criteria must not impose unnecessary criteria 
  4.29  beyond the reasonable requirements to ensure maximum 
  4.30  participation of qualified design-builders. 
  4.31     Subd. 7.  [SOLICITATION OF PROPOSALS.] (a) A request for 
  4.32  proposals must be prepared for each design-build contract 
  4.33  soliciting design-builders to respond in two phases under 
  4.34  subdivision 8. 
  4.35     (b) A request for proposals must contain, at a minimum, the 
  4.36  following elements: 
  5.1      (1) procedures for submitting proposals, the criteria for 
  5.2   evaluation of proposals including a description of the proposed 
  5.3   grading system, and the procedures for making awards, including 
  5.4   a reference to the requirements of this section and any 
  5.5   implementation procedures adopted by the county board under 
  5.6   subdivision 4; 
  5.7      (2) the proposed terms and conditions for the design-build 
  5.8   contract; 
  5.9      (3) the design criteria package; 
  5.10     (4) the qualifications required of the design-builder; 
  5.11     (5) a schedule of the project from beginning to end; 
  5.12     (6) affirmative action, disadvantaged business, small 
  5.13  business, or set-aside goals or requirements for the 
  5.14  design-build contract, if any; 
  5.15     (7) requirements for performance bonds, warranties, payment 
  5.16  bonds, insurance, and statutorily required performance and 
  5.17  payment bonds; 
  5.18     (8) a description of the drawings, specifications, or other 
  5.19  submittals to be submitted with the design proposal, with 
  5.20  guidance as to the form and level of completeness of the 
  5.21  drawings, specifications, or submittals that are acceptable; and 
  5.22     (9) identification of any other material information 
  5.23  available from the county or designer selection committee, 
  5.24  including, but not limited to, surveys, soil reports, drawings 
  5.25  or models of existing structures, environmental studies, 
  5.26  photographs, and public records. 
  5.27     (c) Notice of requests for proposals must be advertised in 
  5.28  the same manner that bids are solicited under section 471.345. 
  5.29     Subd. 8.  [EVALUATION OF PROPOSALS.] (a) The county board 
  5.30  must solicit and evaluate proposals and select a design-builder 
  5.31  in two phases. 
  5.32     (b) In phase one, the county board must evaluate and 
  5.33  qualify potential design-builders for phase two of the selection 
  5.34  process based on each design-builder's experience, technical 
  5.35  competence, capability to perform, the past performance of the 
  5.36  design-builder and its employees and proposed subcontractors for 
  6.1   the project, and other appropriate information submitted by it 
  6.2   in response to the request for proposals.  The county board must 
  6.3   not consider cost-related or price-related evaluation factors in 
  6.4   phase one. 
  6.5      (c) In phase two, the county board must evaluate 
  6.6   design-builders as described in subdivision 10 for best value 
  6.7   selection. 
  6.8      (d) In both phase one and phase two, the county board may 
  6.9   require clarifications or further information from 
  6.10  design-builders to ensure conformance of proposals with the 
  6.11  design criteria package. 
  6.12     Subd. 9.  [EVALUATION; REJECTION; NEW PROPOSALS.] (a) After 
  6.13  obtaining and evaluating proposals from each design-builder 
  6.14  according to the criteria and procedures set forth in the 
  6.15  requests for proposals, the county board must evaluate all 
  6.16  proposals for the most advantageous and best value to the public.
  6.17     (b) The county board may reject any or all proposals, but 
  6.18  must not do so to evade the other provisions and policies of 
  6.19  this section.  
  6.20     (c) If the county board rejects all proposals, it may then 
  6.21  solicit new proposals after making appropriate modifications to 
  6.22  performance criteria, budget constraints, or qualifications. 
  6.23     (d) The county board must not select a design-builder in 
  6.24  which a member of the designer selection committee has a current 
  6.25  financial interest. 
  6.26     Subd. 10.  [BEST VALUE SELECTION.] (a) Design-builders 
  6.27  selected to submit phase-two proposals must submit design 
  6.28  proposals as required by the request for proposals, consisting 
  6.29  of: 
  6.30     (1) plans and specifications, renderings, and models as may 
  6.31  be required in the request for proposals in sufficient detail to 
  6.32  describe the character, quality, and scope of the project; 
  6.33     (2) a cost-loaded design and construction schedule; 
  6.34     (3) the price at which the design-builder will complete the 
  6.35  project if selected; and 
  6.36     (4) other materials the county determines are necessary to 
  7.1   fix the design, schedule, and cost of the project. 
  7.2      (d) Design proposals must be sealed and must not be opened 
  7.3   until the expiration time established for making proposals as 
  7.4   set forth in the request for proposals. 
  7.5      (e) Design proposals must identify each person with whom 
  7.6   the design-builder proposes to enter into subcontracts for 
  7.7   primary design and construction obligations under the 
  7.8   design-build contract.  If persons so identified are replaced 
  7.9   without the approval of the county, the county may revoke the 
  7.10  award and impose liquidated damages. 
  7.11     (f) Design proposals must establish a cost not to be 
  7.12  exceeded if the design proposal is accepted without change.  
  7.13  After a design proposal is accepted, the maximum cost in the 
  7.14  design proposal shall be converted to fixed prices by negotiated 
  7.15  agreement between the county and the design-builder.  A 
  7.16  design-build contract may be conditioned upon later refinements 
  7.17  in scope and price, and may permit the county to make changes in 
  7.18  the scope of the project without invalidating the design-build 
  7.19  contract. 
  7.20     (g) The amount and type of design services submitted to the 
  7.21  county for phase-two proposals must not exceed those requested 
  7.22  by the county in order to facilitate the evaluation process. 
  7.23     (h) The county may require each design-builder to submit 
  7.24  with its phase-two proposal, a cash deposit, letter of credit, 
  7.25  or bid bond not to exceed five percent of the maximum cost of 
  7.26  the design-build contract as established by the proposal. 
  7.27     (i) The county board must accept the proposal it considers 
  7.28  to be the most advantageous and best value to the public based 
  7.29  on the evaluation criteria set forth in the request for 
  7.30  proposal.  The rationale for the selection of the proposal must 
  7.31  be stated at the time of the contract award. 
  7.32     Subd. 11.  [EXPIRATION.] This section expires December 31, 
  7.33  2004, and applies to design-build contracts entered into on or 
  7.34  before January 1, 2005. 
  7.35     Sec. 2.  [EFFECTIVE DATE.] 
  7.36     This act is effective upon compliance with the local 
  8.1   approval requirement set out in Minnesota Statutes, section 
  8.2   645.021, subdivision 3, by the governing body of Hennepin county.