BILL ANALYSIS Ó AB 2388 Page 1 Date of Hearing: May 2, 2012 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 2388 (Beall) - As Amended: March 29, 2012 Policy Committee: Business and Professions Vote: 9-0 Local Government 8-0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill increases the Santa Clara County Open Space Authority's thresholds for determining the method of letting contracts for supplies, equipment or materials. Specifically, this bill: 1)Increases the authority's expenditure thresholds for determining how contracts for supplies, equipment or materials are put to bid, as follows: a) From $10,000 to $25,000, before the contract must be put out to bid and let to the lowest responsible bidder. b) From $50,000 to $75,000, to allow contracts less than this amount to be let by informal bidding procedures. c) From $50,000 to $75,000, before contracts exceeding this amount are required to be let by formal bidding procedures. 2)Exempts service contracts let out by the authority from bidding requirements. FISCAL EFFECT Negligible fiscal impact to the state. COMMENTS 1)Purpose of this bill . According to the author, this bill raises the threshold for requiring bidding and board approval. AB 2388 Page 2 The author notes the threshold was enacted 20 years ago, and no cost-of-living adjustment was included. The author argues the threshold has made it more difficult for the authority to let contracts for modest projects of a minor nature without board approval and following bidding procedures and this hampers the ability of the authority to efficiently perform ministerial and maintenance tasks. 2)Support . According to the authority, the sponsor, AB 2388, would raise bidding thresholds consistent with other open space districts in the Bay Area. The authority argues this bill will ensure that the authority is able to administer its routine services, maintenance and small projects in a more cost-effective and efficient manner because it will have the needed flexibility to choose consultants for services that best meet the needs of the agency and the public. Analysis Prepared by : Roger Dunstan / APPR. / (916) 319-2081