BILL ANALYSIS
SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: AB 1471
SENATOR ALAN LOWENTHAL, CHAIRMAN AUTHOR: Eng
VERSION: 5/4/09
Analysis by: Art Bauer FISCAL: Yes
Hearing date: July 7, 2009
SUBJECT:
Procurement: Los Angeles County Metropolitan Transportation
Authority
DESCRIPTION:
This bill corrects provisions governing Los Angeles County
Metropolitan Transportation Authority's (LACMTA) procurement
authority, delegates authority to LACMTA's Board of Directors
for specific procurement activities, and authorizes LACMTA to
participate in public auctions, such as those conducted on the
internet and with public agencies.
ANALYSIS:
Existing law:
1. Includes incorrect procurement language related to
LACMTA in sections of the Public Contract Code pertaining
to the Sacramento Regional Transit District and to the San
Diego Metropolitan Transit Development Board.
2. Authorizes the governing board of LACMTA to delegate to
management bid protest hearings, certain powers related to
eminent domain, and the approval of contracts, except for
labor contracts
This bill :
1. Deletes the incorrect reference to LACMTA in procurement
law related to the San Diego Metropolitan Transit
AB 1471 (ENG) Page 2
Development Board and the Sacramento Regional Transit
District.
2. Authorizes the governing board of LACMTA to delegate to
management, under terms established by the board, the
preparation of various supporting documents and findings
related to bid protests, hearings, actions required during
natural disasters, certain eminent domain procedures, and
related ministerial functions.
3. Authorizes LACMTA to purchase supplies, equipment, and
materials by public internet auctions.
4. Authorizes LACMTA to enter into cooperative procurement
agreements with a federal, state, or local public entity.
COMMENTS:
1. Purpose . According to the sponsor, the changes are
technical, aside from the authority to participate in
internet auctions and to engage in joint procurements. The
authorization to participate in internet auctions is for
the procurement of equipment. The authorization for
entering into joint procurements arrangements with other
public agencies is a frequent practice among public transit
agencies. Large joint procurements typically reduce per
unit costs to the participating public agencies due to the
economy of scale enjoyed by the vendor.
2. Proposed amendment . The author is proposing to amend the
bill in committee to increase the threshold requiring the
LACMTA to obtain a minimum of three quotations, either
verbally or written, from $2,500 to $3,000. The upper limit
remains at $100,000. This authorization is for the purchase
of supplies and materials. Another section of statute
governs the LACMTA's procurement of construction services.
Assembly Votes:
Floor: 77-0
Appr: 16-0
Trans: 13-0
POSITIONS: (Communicated to the Committee before noon on
Wednesday,
July 1, 2009)
SUPPORT: Los Angeles County Metropolitan Transportation
AB 1471 (ENG) Page 3
Authority (sponsor)
OPPOSED: None receive.