BILL NUMBER: AB 1471	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 4, 2009
	AMENDED IN ASSEMBLY  APRIL 20, 2009

INTRODUCED BY   Assembly Member Eng

                        FEBRUARY 27, 2009

   An act to amend Sections 20321 and 20341 of the Public Contract
Code, and to amend Sections 130051.11 and 130232 of the Public
Utilities Code, relating to procurement.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1471, as amended, Eng. Procurement: Los Angeles County
Metropolitan Transportation Authority.
   The County Transportation Commissions Act provides for the
creation of county transportation commissions and authorities in 5
counties, including the Los Angeles County Metropolitan
Transportation Authority, with specified powers and duties relative
to transportation planning, programming, and operations. Existing law
specifies certain procurement procedures applicable to these
agencies, with certain procedures applicable solely to the Los
Angeles County Metropolitan Transportation Authority.
   Existing law generally provides that purchase by the Los Angeles
County Metropolitan Transportation Authority or another county
transportation commission of all supplies, equipment, and materials,
and the construction of all facilities and works, when the
expenditure required exceeds $25,000, shall be by contract let to the
lowest responsible bidder, with certain exceptions.
   This bill would delete a duplicate provision relating to the Los
Angeles County Metropolitan Transportation Authority in a provision
of the Public Contract Code governing the contracting procedures of
the Sacramento Regional Transit District. The bill would delete an
unnecessary reference to the authority in a provision of the Public
Contract Code governing the contracting procedures of 2 transit
development boards in San Diego County.
   This bill would also authorize the Los Angeles County Metropolitan
Transportation Authority to purchase supplies, equipment, and
materials from a public auction sale using the procedures established
for all other participants in the auction. The bill would authorize
the authority to participate in a cooperative procurement agreement
with other public agencies under specified conditions.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 20321 of the Public Contract Code is amended to
read:
   20321.  Contracts for the construction of transit works or transit
facilities in excess of five thousand dollars ($5,000) shall be
awarded to the lowest responsible bidder after competitive bidding,
except in emergency declared by four-fifths vote of the board of the
district.
  SEC. 2.  Section 20341 of the Public Contract Code is amended to
read:
   20341.  (a)  Contracts for construction in excess of fifty
thousand dollars ($50,000) shall be awarded to the lowest responsible
bidder submitting a responsive bid after competitive bidding, except
in emergency declared by the vote of two-thirds of the membership of
the board. If the expected construction contract exceeds one
thousand dollars ($1,000) and does not exceed fifty thousand dollars
($50,000), the board shall seek a minimum of three quotations, either
written or oral, that permit prices and other terms to be compared,
and the board shall award the contract to the bidder who submitted
the lowest quotation.
   (b) If no bids are received, the project may be performed by a
negotiated contract.
  SEC. 3.  Section 130051.11 of the Public Utilities Code is amended
to read:
   130051.11.  (a) The Los Angeles County Metropolitan Transportation
Authority may determine its organizational structure, which may
include, but is not limited to, the establishment of departments,
divisions, subsidiary units, or similar entities. Any department,
division, subsidiary unit, or similar entity established by the
authority shall be referred to in this chapter as an "organizational
unit." The authority shall, at a minimum, establish the following
organizational units:
   (1) A transit construction organizational unit to assume the
construction responsibilities for all exclusive public mass transit
guideway construction projects in Los Angeles County.
   (2) An operating organizational unit with the following
responsibilities:
   (A) The operating responsibilities of the former Southern
California Rapid Transit District on all exclusive public mass
transit guideway projects in the County of Los Angeles.
   (B) The operation of bus routes operated by the former Southern
California Rapid Transit District, and all the duties, obligations,
and liabilities of the district relating to those bus routes.
   (3) A transportation planning and programming organizational unit
with all planning responsibilities previously performed by the former
Southern California Rapid Transit District and the former Los
Angeles County Transportation Commission.
   (b) Nothing in this section shall be construed to require specific
bus routes to be operated. The authority or the operating
organizational unit may make any adjustment with respect to bus
routes, bus services, or both, which is within the power of the
former Los Angeles County Transportation Commission, or the former
Southern California Rapid Transit District.
   (c) Any obligations of the former Southern California Rapid
Transit District arising out of a collective bargaining agreement
entered into by the district shall be the exclusive obligations of
the Los Angeles County Metropolitan Transportation Authority. It is
the intent of the Legislature that the rights or obligations under
any collective bargaining agreement in existence on January 1, 1993,
not be enlarged or diminished by this section or any other provision
of the act which added this section.
   (d) No collective bargaining agreement entered into by the former
Southern California Rapid Transit District on or after January 1,
1993, shall be effective unless approved by the Los Angeles County
Metropolitan Transportation Authority. The authority's approval of an
agreement shall cause the agreement to be binding upon the
authority.
   (e) On and after April 1, 1993, any reference to the former
Southern California Rapid Transit District in Article 10 (commencing
with Section 30750) of Chapter 5 of Part 3 of Division 10 is deemed
to refer to the Los Angeles County Metropolitan Transportation
Authority.
   (f) The Los Angeles County Metropolitan Transportation Authority
may administratively delegate to an organizational unit or to its
chief executive officer any powers and duties it deems appropriate.
Powers and duties which may be delegated to an organizational unit
include, but are not limited to, the following:
   (1) The power of eminent domain.
   (2) Approval of contracts, except the final approval of labor
contracts.
   (3) Hearing and resolving bid protests.
   (4) Preparation of supporting documents and findings, and approval
of contracts, under Sections 130233, 130234, 130236, and 
132237   130237  within guidelines adopted by the
board of directors.
   (g) The Los Angeles County Metropolitan Transportation Authority
shall establish a citizens' advisory council pursuant to subdivision
(d) of Section 130105.
  SEC. 4.  Section 130232 of the Public Utilities Code is amended to
read:
   130232.  (a) Except as provided in subdivision (f), purchase of
all supplies, equipment, and materials, and the construction of all
facilities and works, when the expenditure required exceeds
twenty-five thousand dollars ($25,000), shall be by contract let to
the lowest responsible bidder. Notice requesting bids shall be
published at least once in a newspaper of general circulation. The
publication shall be made at least 10 days before the date for the
receipt of the bids. The commission, at its discretion, may reject
any and all bids and readvertise.
   (b) Except as provided for in subdivision (f), whenever the
expected expenditure required exceeds one thousand dollars ($1,000),
but not twenty-five thousand dollars ($25,000), the commission shall
obtain a minimum of three quotations, either written or oral, that
permit prices and terms to be compared.
   (c) Where the expenditure required by the bid price is less than
fifty thousand dollars ($50,000), the executive director may act for
the commission.
   (d) All bids for construction work submitted pursuant to this
section shall be presented under sealed cover and shall be
accompanied by one of the following forms of bidder's security:
   (1) Cash.
   (2) A cashier's check made payable to the commission.
   (3) A certified check made payable to the commission.
   (4) A bidder's bond executed by an admitted surety insurer, made
payable to the commission.
   (e) Upon an award to the lowest bidder, the security of an
unsuccessful bidder shall be returned in a reasonable period of time,
but in no event shall that security be held by the commission beyond
60 days from the date that the award was made.
   (f) The following provisions apply only to the Los Angeles County
Metropolitan Transportation Authority:
   (1) The contract shall be let to the lowest responsible bidder or,
in the authority's discretion, to the responsible bidder who
submitted a proposal that provides the best value to the commission
on the basis of the factors identified in the solicitation when the
purchase price of all supplies, equipment, and materials exceeds one
hundred thousand dollars ($100,000). "Best value" means the overall
combination of quality, price, and other elements of a proposal that,
when considered together, provide the greatest overall benefit in
response to requirements described in the solicitation documents. The
contract shall be let to the lowest responsible bidder when the
purchase price of the construction of all facilities exceeds
twenty-five thousand dollars ($25,000).
   (2) The authority shall obtain a minimum of three quotations,
either written or oral, that permit prices and terms to be compared
whenever the expected expenditure required exceeds two thousand five
hundred dollars ($2,500), but not one hundred thousand dollars
($100,000).
   (3) The authority may purchase supplies, equipment, and materials
from a public auction sale, including public auctions held via the
Internet, using the procedures established for all other participants
in the public auction.
   (4) The authority may participate in a procurement agreement
involving other public entities that is identified by a procuring
public entity or entities as a cooperative procuring agreement from
which other public entities may make purchases or enter into
contracts, and the authority may procure, and enter into contracts
for, items purchased pursuant to that procurement agreement,
notwithstanding that the authority may not be the procuring public
entity, provided the procurement agreement is awarded or entered into
by either of the following:
   (A) One or more public entities or an organization of public
entities, which may include the authority.
   (B) A federal, state, or local public entity.