BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 117
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 117 (Beall)
          As Amended July 7, 2008
          Majority vote
           
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          |ASSEMBLY:  |     |(June 4, 2007)  |SENATE: |34-2 |(August 5,     |
          |           |     |                |        |     |2008)          |
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               (vote not relevant)

          Original Committee Reference:    TRANS.  

           SUMMARY  :  Revises the procurement requirements for the purchase  
          of supplies, equipment, and materials by the Santa Clara Valley  
          Transportation Authority (SCVTA), the Alameda-Contra Costa  
          Transit District (AC Transit), the San Mateo County Transit  
          District (SAMTRAN), and the Golden Gate Bridge, Highway and  
          Transportation District (GG District).  

           The Senate amendments  delete the Assembly version of this bill,  
          and instead:  

          1)Increase, from $25,000 to $100,000, the expenditure threshold  
            that requires SCVTA, AC Transit, and SAMTRAN to contract for  
            purchasing supplies, equipment, or materials. 

          2)Authorize, at the discretion of SCVTA, AC Transit, SAMTRAN, or  
            GG District, to let a contract to either the lowest bidder or  
            the responsible bidder who submitted a proposal that provides  
            "best value," defined as the overall combination of quality,  
            price, and other elements of a proposal that, when considered  
            together, provide the greatest overall benefit in response to  
            the bid solicitation documents.

          3)Require SCVTA, AC Transit, and SAMTRAN to obtain a minimum of  
            three quotations, either written or oral, that permit price  
            comparison for contracts with a value of $2,500 to   $100,000,  
            and requires the GG District to do this to the extent  
            practicable.  

          4)Increase, from $50,000 to $100,000, the contract amount the  
            general manager of SAMTRAN can approve on behalf of the  
            SAMTRAN board and requires notification to the SAMTRAN board,  
            as specified.








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          5)Remove state-mandated costs.

           EXISTING LAW  :

          1)Requires, for SCVTA, AC Transit, and SAMTRAN, that the  
            purchase of all supplies, equipment, and materials, when the  
            expenditure required exceeds $25,000, be by contract let to  
            the lowest responsible bidder.

          2)Specifies that when the expenditure exceeds $10,000 for the  
            construction of facilities and works, AC Transit shall enter  
            into contract let to the lowest responsible bidder.

          3)States that SAMTRAN's contracts for the purchase of supplies,  
            equipment, and materials in excess of $25,000 shall be awarded  
            to the lowest responsible bidder after competitive bidding,  
            except in an emergency declared by the vote of seven members  
            of the SAMTRAN board.

          4)Provides that when the contract is for less than $50,000, the  
            SAMTRAN board may authorize the general manager to act for the  
            SAMTRAN board.

          5)States that all contracts in excess of $20,000 for equipment,  
            supplies, or materials, entered into by the GG District must  
            be awarded to the lowest responsible bidder. 

           AS PASSED BY THE ASSEMBLY  , this bill authorized Santa Clara  
          County to collect an additional $2 penalty assessment for every  
          $10 in base fines for certain violations, for purposes of  
          funding local traffic safety programs.

           FISCAL EFFECT  :  None

           COMMENTS  :  This bill affords similar procurement options to  
          SCVTA, AC Transit, SAMTRAN, and the GG District as those that  
          were provided to the Bay Area Rapid Transit District (BART) and  
          the Los Angeles Metropolitan Transportation Authority (LAMTA)  
          with the passage of SB 1687 (Murray), Chapter 814, Statutes of  
          2006.

          For contracts with a value of less than $100,000, this bill  
          would not authorize sole source procurement of supplies,  
          equipment, and materials.  The bill does establish a less  








                                                                  AB 117
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          formal, but still competitive process for the procurement of  
          relatively small contracts.  This process would result in  
          moderate cost savings due to decreased advertising,  
          reprographics, and staff costs for these smaller contracts.

          The provisions of this bill have not been heard in an Assembly  
          policy committee this legislative session.


           Analysis Prepared by  :    Katie Kolitsos / L. GOV. / (916)  
          319-3958 


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