BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2184
                                                                  Page  1

          Date of Hearing:  May 5, 2010

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                                Cameron Smyth, Chair
                   AB 2184 (Arambula) - As Amended:  April 22, 2010
           
          SUBJECT  :  Public contracts: local agency: alternative bidding  
          procedures: notice.

           SUMMARY  :  Requires any local agency that has opted in to the  
          Uniform Public Construction Cost Accounting Act (UPCCAA) to  
          provide the notice inviting formal bids in addition to other  
          publishing requirements to be sent electronically, if available,  
          by either facsimile or electronic mail and mailed to all the  
          construction trade journals specified by the California Uniform  
          Construction Cost Accounting Commission (Commission).   
          Specifically,  this bill  :

          1)Requires the notice inviting formal bids in addition to other  
            publishing requirements to be sent electronically, if  
            available, by either facsimile or electronic mail and mailed  
            to all the construction trade journals specified by the  
            Commission.

          2)Reduces the notice inviting formal bids to be sent to at least  
            15 calendar days from at least 
          30 calendar days before the date of opening the bids.

           EXISTING LAW  :

          1)Authorizes local agencies to opt in to UPCCAA.

          2)Requires notice inviting formal bids to be published at least  
            14 calendar days before the date of opening the bids in a  
            newspaper of general circulation printed and published in the  
            jurisdiction of the public agency.

          3)Requires, if there is no newspaper printed and published  
            within the jurisdiction of the public agency, notice inviting  
            formal bids to be published at least 14 calendar days before  
            the date of opening the bids in a newspaper of general  
            circulation that is circulated within the jurisdiction of the  
            public agency. 

          4)Requires, if there is no newspaper of general circulation  








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            circulated within the jurisdiction of the public agency,  
            notice inviting formal bids to be published at least 14  
            calendar days before the date of opening the bids to be posted  
            in at least three places within the jurisdiction of the public  
            agency as has been designated by ordinance or regulation of  
            the public agency.

          5)Requires the notice inviting formal bids also to be mailed to  
            all the construction trade journals specified by the  
            Commission.

          6)Requires the notice inviting formal bids to be mailed at least  
            30 calendar days before the date of opening the bids.

           FISCAL EFFECT  :  None

           

          COMMENTS  :

          1)UPCCAA took effect in 1983.  UPCCAA, which allows any city,  
            county, redevelopment agency, special district, school  
            district, and community college district to voluntarily opt  
            in, provides for a streamlined awards process so long as the  
            local agency follows the cost accounting procedures set forth  
            in the Cost Accounting Policies and Procedures Manual of the  
            Commission.  UPCCAA's thresholds are $30,000 for force  
            account, $125,000 or less for informal bidding procedures, and  
            $125,000 or more for formal bidding procedures.  As of June  
            10, 2009, 708 local agencies have opted in to UPCCAA.  A local  
            agency can withdraw at any time from UPCCAA.

          The Commission also provides the State Controller with  
            recommended policies and procedures for public projects.  The  
            Commission membership is comprised of representatives from  
            both public agencies and private industry.  Every five years,  
            the Commission reviews the informal bid limits for inflation  
            and other factors to determine when increases should be made.   
            The last limit increases were in July 1, 2005.

          However, many local agencies operate under the Local Agency  
            Public Construction Act (LAPCA).  LAPCA provides competitive  
            bidding thresholds that vary depending on the agency or kind  
            of work.  In a few districts competitive bidding is required  
            for all contracts, regardless of threshold, and for others  








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            there is no competitive bidding required at all.

          2)According to the author, AB 2184 is intended to update UPCCAA  
            by recognizing the existence and utility of electronic  
            communications, such as fax and email.  With the speed of  
            electronic communications and their ability to reach wide  
            audiences, notice requirements for local agency public  
            projects do not need to be published for 30 days.  For  
            instance, the author says one email noticing a project bid can  
            be sent to one trade journal and then on to 100 contractors  
            for no extra cost without waiting for a mail carrier.   
            Providing flexibility for notice requirement is critical for  
            local agencies that pursue public projects with tight,  
            unpredictable timelines.  

           3)Support Arguments  :  Supporters say AB 2184 makes UPCCAA a more  
            viable and attractive option for local agencies by providing  
            flexibility with notice requirements.

           Opposition Arguments  :  The opposition might say shortening the  
            timeline for the notice requirement is unnecessary and will  
            make it more difficult for contractors to act on bids.

           











          REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Air Conditioning Sheet Metal Association
          Air-conditioning & Refrigeration Contractors Association
          CA Chapters of the National Electrical Contractors Association
          CA Legislative Conference of the Plumbing, Heating and Piping  
          Industry
          Construction Industry Force Account Council








                                                                  AB 2184
                                                                  Page  4

          Fresno Metropolitan Flood Control District

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Jennifer R. Klein / L. GOV. / (916)  
          319-3958