BILL ANALYSIS                                                                                                                                                                                                    



                                                                AB 117
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        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)


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        |COMMITTEE VOTE:  |7-0  |(August 15, 2008)   |RECOMMENDATION: |concur    |
        |(Local           |     |                    |                |          |
        |Government)      |     |                    |                |          |
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        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
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          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  








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        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


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