BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2184
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 2184 (Arambula)
          As Amended  April 22, 2010
          Majority vote 

           LOCAL GOVERNMENT    9-0                                         
           
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          |Ayes:|Smyth, Torlakson,         |     |                          |
          |     |Arambula, Bradford,       |     |                          |
          |     |Davis, Knight, Logue,     |     |                          |
          |     |Solorio, Fong             |     |                          |
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           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  








                                                                  AB 2184
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            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  
            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  :  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  








                                                                  AB 2184
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          work.  In a few districts competitive bidding is required for  
          all contracts, regardless of threshold, and for others there is  
          no competitive bidding required at all.

          According to the author, this bill 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.  

          Support Arguments:  Supporters say this bill 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.


           Analysis Prepared by  :    Jennifer R. Klein / L. GOV. / (916)  
          319-3958

                                                                FN: 0004242