BILL ANALYSIS AB 117 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 117 (Beall) As Amended July 7, 2008 Majority vote ----------------------------------------------------------------- |ASSEMBLY: | |(June 4, 2007) |SENATE: |34-2 |(August 5, | | | | | | |2008) | ----------------------------------------------------------------- (vote not relevant) ------------------------------------------------------------------------ |COMMITTEE VOTE: |7-0 |(August 15, 2008) |RECOMMENDATION: |concur | |(Local | | | | | |Government) | | | | | ------------------------------------------------------------------------ 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 AB 117 Page 2 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. 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 AB 117 Page 3 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 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. Analysis Prepared by : Katie Kolitsos / L. GOV. / (916) 319-3958 FN: 0007142