BILL ANALYSIS Ó AB 745 Page 1 Date of Hearing: January 15, 2014 ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT K.H. "Katcho" Achadjian, Chair AB 745 (Levine) - As Amended: January 6, 2014 SUBJECT : Regional park and open-space districts: general manager: powers. SUMMARY : Increases, from $10,000 to $25,000, the amount for which the Marin County Open Space District (MCOSD) may enter into contracts without a formal bid process for supplies, materials, labor, or other valuable consideration for any purpose. Specifically, this bill : 1)Authorizes the general manager of the MCOSD, with the approval of the MCOSD board, to bind the MCOSD, in accordance with board policy, and without advertising, for the payment for supplies, materials, labor, or other valuable consideration for any purpose, including the new construction of any building, structure, or improvement in amounts not exceeding $25,000. 2)Requires all expenditures authorized pursuant to 1), above, to be reported to the MCOSD board of directors at its next regular meeting. EXISTING LAW : 1)Allows the general manager of a park and/or open space district, with the approval of the district's board, to bind the district, in accordance with board policy, and without advertising, for the payment for supplies, materials, labor, or other valuable consideration for any purpose other than new construction of a building, structure, or improvement in amounts not exceeding $10,000, and for the payment for supplies, materials, or labor for new construction of a building, structure, or improvement in amounts not exceeding $25,000. 2)Authorizes the general managers of the East Bay Regional Park District, the Midpeninsula Regional Open Space District, and the Sonoma County Agricultural Preservation and Open Space District, with the approval of those districts' boards, to bind those districts, in accordance with board policy, and AB 745 Page 2 without advertising, for the payment for supplies, materials, labor, or other valuable consideration for any purpose, including the new construction of any building, structure, or improvement in amounts not exceeding $25,000. 3)Requires all expenditures authorized pursuant to 1) and 2), above, to be reported to the respective board of directors at its next regular meeting. FISCAL EFFECT : None COMMENTS : 1)This bill increases the dollar amount for which the MCOSD may contract, without a public bid, for supplies, materials, labor, or other valuable consideration for any purpose, be it for new construction or for non-construction/maintenance work. This bill is sponsored by the Marin County Board of Supervisors. 2)The MCOSD is the local government agency responsible for preserving public open space in Marin County. Its mission is to enhance the quality of life in Marin through the acquisition, protection, and responsible stewardship of ridge and bay lands and environmentally sensitive lands targeted for preservation in the Marin Countywide Plan. MCOSD lands represent examples of northern California environments including oak-bay woodlands, savanna, grasslands and salt marsh. These habitats are managed to protect and enhance their natural, undeveloped character while accommodating educational activities and trail-oriented uses such as hiking, horseback riding and mountain bicycling. The five members of the Marin County Board of Supervisors serve as the MCOSD Board of Directors. According to the MCOSD website, "Since its inception in 1972, the MCOSD has acquired and preserved nearly 16,000 acres of marshland, forests, creeks, and rolling hills that define the character and quality of life in Marin, promote health and wellness, and protect important natural habitats and ecosystem functions. These lands include over 200 miles of unpaved roads and trails that consist of former logging and ranch roads, fire roads that are shared use trails, narrow recreation trails, and wildlife trails. Over time, many of these trails have been improved and opened for use by hikers, AB 745 Page 3 dog walkers, equestrians, bird watchers, mountain bikers, and those who want to be immersed in nature in their recreation pursuits. "In addition to the recreation opportunities of the preserves, the preserves provide critical benefits to the ecosystem including carbon sequestration, the natural cleaning of our water and air, and the protection of wildlife. The roads and trails provide access for other agencies' community and emergency services (e.g., Marin County Fire, Marin Municipal Water District). "The demand for recreational use of the roads and trails grows every year, as do conflicts among user groups and impacts from use to the natural environment. Trails not sanctioned by the MCOSD have developed as a result of repetitive informal cross-country use, and the unauthorized construction of trails by private parties on the MCOSD lands. Roads and trails, especially unplanned informal trails, can have a number of undesirable effects on the natural environment. They can contribute sediment to streams, fragment habitat, provide opportunities for the influx or spread of invasive weeds, and create visual scars through once lushly vegetated areas. The MCOSD has struggled to keep up with the maintenance, mitigation, enforcement, and improvement of the formal and informal roads and trails system." 3)Park and/or open space districts generally must comply with state law requiring them to publicly bid new construction and maintenance work that will exceed specified costs. This is consistent with state law for all local agencies, based on policy that seeks to balance open and transparent use of public funds with efficient and cost-effective government operations. For park and/or open space districts, the thresholds under which a district may contract without public bidding are $25,000 for new construction, and $10,000 for non-construction work. The Legislature has allowed exceptions to these thresholds for three districts: the East Bay Regional Park District, the Midpeninsula Regional Open Space District, and the Sonoma County Agricultural Preservation and Open Space District. The general managers for these entities may contract without public bidding for supplies, material, labor and other items for work that isn't new construction costing up to $25,000. AB 745 Page 4 All such expenditures must be reported to the respective boards at their next regular meeting. These exceptions are rooted in a recognition that public bidding may not be cost-effective in all cases, particularly when the costs of time delays and resources expended on contract preparation and bidding are disproportionate to a contract's scope and total cost. This bill would extend this increased contracting authority to the MCOSD. 4)According to the Marin County Board of Supervisors, sponsor of this bill, "The current $10,000 limit set forth in the California Public Resources Code is over thirty years old and does not reflect cost increases that have occurred since?Enactment of this legislation would reduce the time required for project implementation, and save the Open Space District and the County of Marin thousands of dollars annually in the cost of staff time related to the preparation and processing of contracts for the Board of Directors consideration." 5)There is legislative precedent for this bill, including the following prior bills: AB 953 (Simitian), Chapter 23, Statutes of 2002, increased the non-bid spending cap for non-construction items to $25,000 for the Midpeninsula Regional Open Space District and the Sonoma County Agricultural Preservation and Open Space District. AB 584 (Aroner), Chapter 135, Statutes of 1999, raised the non-bid spending cap for non-construction items to $25,000 for the East Bay Regional Park District. 6)Support arguments : Supporters note that this bill will allow the MCOSD to carry out its mission in a more cost-effective and efficient manner. Opposition arguments : Opponents could argue that competitive bidding is the most effective method for ensuring prudent expenditures of public funds and that existing thresholds for non-bid contracts should remain in place. REGISTERED SUPPORT / OPPOSITION : Support AB 745 Page 5 Marin County Board of Supervisors [SPONSOR] Opposition None on file Analysis Prepared by : Angela Mapp / L. GOV. / (916) 319-3958