BILL ANALYSIS Ó
AB 482
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 482 (Williams)
As Amended June 14, 2012
Majority vote
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|ASSEMBLY: |74-0 |(January 23, |SENATE: |36-0 |(June 18, |
| | |2012) | | |2012) |
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Original Committee Reference: L. GOV.
SUMMARY : Authorizes the Ventura Port District (District) to
contract for dredging work within District boundaries without
competitive bidding in certain specified circumstances.
The Senate amendments strike the urgency clause.
EXISTING LAW :
1)Authorizes port districts to provide all services consistent
with specified provisions contained in the Harbors and
Navigation Code, including the powers to own property and
acquire, construct, operate, develop and regulate land and
facilities for the operation of ports, including real estate,
property management, marketing and accounting services, and
Harbor Patrol, maintenance and dredging programs.
2)Requires, for port districts, that contracts for new
construction work, the cost of which exceeds $10,000, or the
purchasing of supplies, the cost of which exceeds $25,000, or
projects involving maintenance of buildings and improvements,
the cost of which exceeds $10,000, must be let by the board of
the district upon competitive bidding.
3)Requires notice of the proposed letting of a contract to be
given by publication pursuant to existing law in the county in
which the district is located, at least five days before the
time fixed for opening bids, as follows:
a) Bidding shall be by sealed proposals filed with the
district, upon forms furnished by it, and under such rules
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and regulations as the board may prescribe; and,
b) All bids shall be publicly opened and declared under
procedures established by the board, and the award of the
contract shall be made in open session of the board to the
lowest and best responsible bidder.
4)Authorizes, in the case of an emergency, the board of a port
district to, by resolution passed by a four-fifths vote of all
of its members, declare and determine that public interest and
necessity demand the immediate expenditure of public money to
safeguard life, health, or property, and thereupon proceed to
expend any sum or enter into a contract involving the
expenditure of any sum needed in the emergency without
observance of the provisions requiring contracts, bids, or
notice, as specified.
AS PASSED BY THE ASSEMBLY , this bill:
1)Authorized the District to award a contract for the
performance of dredging work within the District's boundaries
without competitive bidding, provided that both of the
following apply:
a) The dredging contract was selected through a federal
competitive bidding process for a federal dredging project
then underway in the County of Ventura; and,
b) The District's board makes written findings, based on
substantial evidence in the record, that the contract
awarded is likely to cost less than a contract awarded
pursuant to provisions of existing law.
2)Made findings and declarations that a special law is necessary
and that a general law cannot be made applicable because of
the unique existence of an existing federal competitive
bidding process for federal dredging projects in the County of
Ventura, which may be utilized for preselecting dredging
contractors for dredging work within the District.
FISCAL EFFECT : None
COMMENTS : This bill allows the District to award a contract for
dredging work without competitive bidding, provided that both
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the dredging contractor has been selected through a competitive
bidding process for a federal dredging project then underway in
Ventura County and that the board of the district makes certain
written findings regarding likely cost savings that will be
achieved by such a contract.
Current law requires competitive bidding for the District for
contracts for construction work over $10,000, the purchase of
supplies over $25,000, or projects involving maintenance of
buildings and improvements costing over $10,000. Current law
additionally establishes the notification and procedures
involved in the competitive bidding process for port districts.
The Ventura Port District was formed in 1952 as an independent
special district with nearly similar boundaries to the City of
San Buenaventura. Ventura Harbor is currently used for multiple
recreational activities as well as a commercial fishing small
craft harbor. A five-member Board of Port Commissioners governs
the District and commissioners are appointed to fixed four-year
terms of office by the Mayor of the City of San Buenaventura
with the approval of the City Council.
The District is self-supported through fees in addition to
receiving a pro-rata share of property taxes levied within the
District's boundaries, and functions as an enterprise district
that manages and maintains its properties and manages Ventura
Harbor.
The District is responsible for ensuring that the Ventura Harbor
and related waterways are kept open and that the breakwaters and
jetties are maintained. The federal government, through the
U.S. Army Corps of Engineers, is a major financial participant
with the District in the maintenance of dredging of the Ventura
Harbor and related waterways and in breakwater/jetty repair.
The District has a legal obligation to keep the channel open
because of a judgment known as the "Ellison Judgment." The
Ellison Judgment stems back from the late 1970s, and requires
certain maintenance work to be performed. The judgment also
requires the District to budget, establish and maintain a
reserve account for the purpose of funding maintenance dredging
and/or sand bypassing. Funds in the reserve account are
required to be used by the District to maintain the navigation
and drainage easements as defined specifically in the Ellison
Judgment.
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According to the District, the sponsor of this bill, maintenance
dredging is a very costly endeavor and requires specialized
large equipment and operational expertise. The District notes
that a significant cost component of maintenance dredging is
mobilization costs - the cost of moving the equipment from other
locations around the country to the Ventura Harbor. In the
District's case, mobilization costs can greatly exceed the
actual costs of the dredging and deposition of dredged material
itself.
The District notes that the mouth of the Ventura Harbor is a
federally-authorized dredging project carried out by the U.S.
Army Corps of Engineers on an annual basis, but this dredging
project does not include the areas of the inner harbor that the
District is responsible for maintaining. The District, in order
to take advantage of the existing contract and avoid
mobilization costs, wants the Legislature to allow them under
their public contracting requirements to contract with the
dredging company carrying out the Army Corps of Engineers
contracts in Ventura County. In order to accomplish this, the
District will need to be granted an exception from the
competitive bidding requirements contained in current law.
According to the Army Corps of Engineers, the federal process
for awarding contracts for dredging projects is one of full and
open competition, generally responded to by sealed bid. The
Army Corps of Engineers issues a request for proposal (RFP)
which is listed on the Federal Business Opportunities Web site.
Applicants have 30 days to respond to the RFP through the sealed
bid process contained in the Federal Acquisition Regulation
(FAR), which is the principal set of rules in the Federal
Acquisition Regulation System. Usually when a government agency
like the Army Corps of Engineers issues a contract or proposal,
it specifies a list of FAR provisions that apply to that
particular contract. Sealed bids are opened and reviewed, and
then the contract is awarded to the lowest bidder after the bid
is analyzed to make sure it meets the requirements of the RFP.
Support arguments: According to the Ventura Port District, this
bill is critical to assuring the District's ability to contract
for needed dredging services in a timely and cost-efficient
manner and will result in decreased mobilization costs to the
District.
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Opposition arguments: While this bill allows the District to
tag on to the existing federal competitive bidding process, it
does take away one avenue for the public to participate in the
competitive bidding process that would otherwise be required
under current law.
Analysis Prepared by : Debbie Michel / L. GOV. / (916)
319-3958
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