BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                AB 946
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        CONCURRENCE IN SENATE AMENDMENTS
        AB 946 (Bonnie Lowenthal and Butler)
        As Amended  August 31, 2011
        2/3 vote.  Urgency
         
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        |ASSEMBLY:  |     |(April 11,      |SENATE: |40-0 |(September 6,  |
        |           |     |2011)           |        |     |2011)          |
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             (vote not relevant)


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        |COMMITTEE VOTE:  |9-0  |(September 8, 2011) |RECOMMENDATION: |concur    |
        |                 |     |                    |                |          |
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             (L.GOV.)

        Original Committee Reference:   REV. & TAX.  

         SUMMARY  :   Authorizes the Los Angeles Regional Interoperable 
        Communications System Authority (LA-RICS), a joint powers agency, 
        to procure a regional interoperable communications system by 
        utilizing a solicitation process to award a contract for the design 
        and build out of a regional interoperable communications system and 
        related infrastructure.

         The Senate amendments  delete the Assembly version of this bill, and 
        instead:

        1)Authorize the County of Los Angeles or the LA-RICS to solicit 
          proposals and enter into agreements with private entities for the 
          delivery of a regional interoperable communications system and 
          all related infrastructure to be used by public safety agencies 
          and emergency responders located in the County of Los Angeles, 
          including, but not limited to the:

           a)   Studying, planning, design, developing, and financing of 
             the system, the delivery and installation of equipment;

           b)   Architectural and engineering design of the improvements to 
             real property;

           c)   Construction of the improvements to real property; and,









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           d)   Maintenance, rebuilding, repair, or operation, or any 
             combination thereof, of the regional interoperable 
             communications system.

        2)Require the solicitation process to ensure that the contractor is 
          selected in compliance with the "procurement by competitive 
          proposals" process specified in applicable federal regulations 
          governing federal grants and cooperative agreements to state and 
          local governments. 

        3)Find and declare that a special law is necessary because of the 
          unique requirements for a regional interoperable communications 
          system in the County of Los Angeles.

        4)State that an urgency statute is necessary in order to allow the 
          County of Los Angeles and the Los Angeles Regional Interoperable 
          Communication System Authority to contract for a regional 
          interoperable communications system as soon as possible.




         EXISTING LAW  :  

         1)Requires the governmental agency soliciting proposals and 
          entering into agreements with private entities for the studying, 
          planning, design, developing, financing, construction, 
          maintenance, rebuilding, improvement, repair, or operation, or 
          any combination thereof, by private entities for fee-producing 
          infrastructure projects to ensure that the contractor is selected 
          pursuant to a competitive negotiation process.

        2)Requires the competitive negotiation process to utilize, as the 
          primary selection criteria, the demonstrated competence and 
          qualifications for the studying, planning, design, developing, 
          financing, construction, maintenance, rebuilding, improvement, 
          repair, or operation, or any combination thereof, of the 
          facility. 

        3)Requires the selection criteria to also ensure that the facility 
          be operated at fair and reasonable prices to the user of the 
          infrastructure facility services.

        4)Specifies that powers which may be exercised by a joint powers 
          agency (JPA) can be no greater than the powers shared by each of 








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          the agency's constituent members.

        5)Provides that for a JPA it shall not be necessary that any power 
          common to the contracting parties be exercisable by each such 
          contracting party with respect to the geographical area in which 
          such power is to be jointly exercised.

        6)Provides for a state strategic plan for establishing a statewide 
          integrated, interoperable public safety communications network.

        7)Governs, through the State Contract Act, contract practices 
          between state departments and private contractors.

        8)Establishes, under the Local Agency Public Construction Act, the 
          procedures local agencies are required to use when soliciting and 
          evaluating bids or proposals for the construction of a public 
          work or improvement.

         AS PASSED BY THE ASSEMBLY  , this bill consolidated into Revenue and 
        Taxation Code 
        Section 279 reference to the effective dates for eligibility of the 
        disabled veterans' exemption for specified situations.

         FISCAL EFFECT  :  None

         COMMENTS  :  In 2009, the Los Angeles Regional Interoperable 
        Communications System Authority (LA-RICS) was established as a 
        joint powers authority specifically to create the Los Angeles 
        Regional Tactical Communications Subsystem - a network that would 
        unite the region's 34,000 first responders through voice and data 
        communications.

        The need for emergency communications interoperability is 
        especially great in the Los Angeles region with over 50 law 
        enforcement agencies and 31 fire departments serving a 4,084 square 
        mile region and 10 million County residents.  After several years 
        of work and a contract that was about to be awarded to the 
        technology company Raytheon, the LA-RICS Authority was advised by 
        counsel of several issues that would require canceling its existing 
        procurement process and beginning a new one.  County counsel 
        recently raised concerns that the nearly completed contract 
        violated state rules on how contracts for publicly funded projects 
        must be structured and awarded.  In light of this, negotiations 
        with Raytheon were suspended.  It was found that not all of the 
        entities comprising the LA-RICS JPA have the statutory authority to 








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        enter into a contract using a solicitation process, yet the project 
        had been procured through one, all-encompassing solicitation meant 
        to lead to a single contract.  This bill would authorize the JPA to 
        proceed with the solicitation process on this project without 
        running afoul of state contracting laws and the limitations set 
        forth in the Joint Exercise of Powers Act.

        Under existing infrastructure financing laws, governmental 
        agencies, including counties, cities, school districts, public 
        districts, and joint powers authorities, are authorized to solicit 
        proposals and enter into contracts for the design, financing, 
        construction, maintenance, operation, or any combination thereof, 
        for fee-producing infrastructure projects.  This bill would allow 
        the use of a similar solicitation process for the LA-RICS project.


        According to the sponsor, the County of Los Angeles, the need for 
        urgency legislation is due in large measure to hundreds of millions 
        of dollars in federal grant funding that has already been allocated 
        for the LA-RICS Authority project.  To date, over $270.0 million in 
        federal grants have been budgeted for the project that are subject 
        to time limits. Last year, the U.S. Department of Commerce awarded 
        the Authority a Broadband Technology Opportunities Program grant of 
        $154.6 million to cover the infrastructure costs in deploying a 
        broadband public safety network for the project which alone is 
        estimated to generate 2,181 jobs, including jobs produced 
        indirectly from the project.  In addition, the project would create 
        a large, new market for public safety broadband software 
        applications, which could result in substantial innovation and 
        additional jobs that have not been quantified. 

        Support arguments:  According to the County of Los Angeles, this 
        urgency legislation is needed because over $270 million in federal 
        grant funding allocated for the LA-RICS Authority project must be 
        utilized within a specified time.  

        Opposition arguments:  Opposition could argue that traditional 
        procurement processes that all members of the JPA share should be 
        used instead of creating a separate procurement process just for 
        LA-RICS.  
         

        Analysis Prepared by  :    Katie Kolitsos / L. GOV. / (916) 319-3958 










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