BILL ANALYSIS Ó
AB 495
Page 1
Date of Hearing: April 8, 2015
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Brian Maienschein, Chair
AB 495
(Gordon) - As Introduced February 23, 2015
SUBJECT: Regional park and open-space districts: general
manager: powers.
SUMMARY: Increases, from $25,000 to $50,000, the amount for
which the East Bay Regional Park District or the Midpeninsula
Regional Open Space District may enter into contracts without a
formal bid process. Specifically, this bill:
1)Authorizes the general manager of the East Bay Regional Park
District (EBRPD) or the Midpeninsula Regional Open Space
District (MROSD), with the approval of their respective
boards, to bind those districts, 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 a building,
structure, or improvement in amounts not exceeding $50,000.
2)Requires all expenditures authorized pursuant to 1), above, to
be reported to the respective district's board of directors at
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its next regular meeting.
EXISTING LAW 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 $25,000, and for the payment for supplies,
materials, or labor or other valuable consideration for new
construction of a building, structure, or improvement in amounts
not exceeding $25,000.
FISCAL EFFECT: None
COMMENTS:
1)Bill Summary. This bill increases the dollar amount for which
the EBRPD and the MROSD 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 EBRPD and the MROSD.
2)Author's Statement. According to the author, "AB 745 (Levine,
2014, CHP-42) raised the cap for non-bid maintenance contracts
for most Regional Parks and Open Space Districts from $10,000
to $25,000 to reflect inflation and the increased costs of
minor district maintenance activities. However, the two
largest districts did not similarly have their non-bid limits,
which were already at $25,000, increased proportionally. This
legislation would simply adjust these contract limits for the
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two districts from $25,000 to $50,000. Per MROSD, this
increase in purchasing authority would save the District
hundreds of hours of staff time and thousands of dollars each
year. Savings that can dedicate more resources to opening
preserves, trails, and other amenities to the public at a much
faster pace."
3)Background.
East Bay Regional Park District. The EBRPD is a system of
parklands and trails in Alameda and Contra Costa counties.
The system comprises 119,000 acres in 65 parks, including over
1,250 miles of trails. The EBRPD acquires, manages, and
preserves natural and cultural resources and is one of the
largest park districts in the country. The EBRPD operating
budget for 2015 is $173 million.
According to the EBRPD website, "Today, because of continued
urbanization, the need for a regional system of publicly owned
open space areas, recreational facilities and trails is
perhaps even greater than it was when the District was
originally established. And, as in 1934, the times are
uncertain. Like other public agencies, the District
continually faces the potential loss of essential revenues,
while the demand for recreational areas, facilities, programs
and services continues to grow. Economic uncertainty,
population growth, the increased ethnic and cultural diversity
of the East Bay, improved scientific knowledge in natural and
cultural resource management, and land use changes that could
create new Regional Parks in urban areas are among the key
challenges that will shape the East Bay Regional Park District
of the future."
Midpeninsula Regional Open Space District. The MROSD
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purchases, protects, and restores lands forming a regional
open space greenbelt; preserves unspoiled wilderness, wildlife
habitat, watershed, viewshed, and fragile ecosystems; and,
provides opportunities for low-intensity recreation and
environmental education. The MROSD works to form a continuous
greenbelt of permanently preserved open space by linking its
lands with other public parklands. The MROSD also
participates in cooperative efforts such as the Bay Trail,
Ridge Trail, and Skyline-to-the-Sea Trail, which are regional
trail systems in the Bay Area that include MROSD lands.
The MROSD has permanently preserved nearly 62,000 acres of
mountainous, foothill, and bayland open space, creating 26
open space preserves (24 of which are open to the public).
The MROSD covers an area of 550 square miles and includes 17
cities (Atherton, Cupertino, East Palo Alto, Half Moon Bay,
Los Altos, Los Altos Hills, Los Gatos, Menlo Park, Monte
Sereno, Mountain View, Palo Alto, Portola Valley, Redwood
City, San Carlos, Saratoga, Sunnyvale, and Woodside).
4)Park and Open Space District Bid Requirements. 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.
Prior law sets bid limits for these districts at $10,000 for
non-construction work, and $25,000 for construction contracts.
However, the Legislature allowed exceptions to these
thresholds for three districts: the EBRPD, MROSD, and the
Sonoma County Agricultural Preservation and Open Space
District. These districts were allowed to contract for any
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purpose for up to $25,000 without bidding. These exceptions
were based on 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.
Last year, AB 745 (Levine), Chapter 42, Statutes of 2014,
raised the limit to $25,000 for all park and open space
districts for all purposes, both construction and
non-construction, resulting in a uniform statute for all of
these districts.
This bill seeks to once again create an exception for the
EBRPD and the MROSD by raising their bid threshold for both
construction and non-construction contracts to $50,000.
5)Policy Considerations. The Committee may wish to consider the
following:
a) Keeping Things Consistent. As noted above, just last
year the Legislature raised the non-bid limit to $25,000
for all park and open space districts, resulting in a
uniform statute for all of the state's eight park/open
space districts. The Committee may wish to consider
whether to maintain this uniformity or whether to, once
again, allow a higher threshold for two of these districts.
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b) Adjusting for Inflation. According to the United States
Department of Labor Bureau of Labor Statistics' Consumer
Price Index (CPI) Inflation Calculator, $25,000 in 1999 has
the same buying power as about $35,000 today. Proponents
of this bill are requesting an increase to $50,000, well
above the change in dollar value due to inflation since
1999, when the $25,000 threshold was set for the EBRPD
(MROSD's $25,000 was set in 2002). The Committee may wish
to consider whether an increase to $50,000 is necessary to
adjust for inflation, or if a smaller increase would be
adequate.
c) Future Requests. The Legislature has now reviewed and
approved several requests to raise the non-bid threshold
for specified park or open space districts, based on
inflationary pressures. The Committee may wish to consider
whether to allow an inflationary adjustment in the statutes
governing these thresholds.
6)Previous Legislation. AB 745 (Levine), Chapter 42, Statutes
of 2014, raised the non-bid spending cap to $25,000 for all
park and open space districts for all purposes, both
construction and non-construction.
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
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the East Bay Regional Park District.
7)Arguments in Support. The EBRPD and the MROSD, sponsors of
this bill, state, "(The) EBRPD and the MROSD serve a combined
3.3 million constituents and are among the largest special
park districts in the nation. The $25,000 purchasing
authority limit has not been increased since 2002, while
inflation and project costs have increased substantially.
Authorizing this increase would allow both districts to
alleviate redundant report writing and process review time,
saving considerable taxpayer dollars. Improving
administrative efficiencies (is) important to fulfilling our
organizations' missions related to protecting natural
resources and offering enjoyable outdoor healthy recreation
opportunities. Changes to the authority limit will make both
districts more effective for our common park and open space
objectives."
8)Arguments in Opposition. None on file.
REGISTERED SUPPORT / OPPOSITION:
Support
East Bay Regional Park District [CO-SPONSOR]
Midpeninsula Regional Open Space District [CO-SPONSOR]
Opposition
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None on file
Analysis Prepared by:Angela Mapp / L. GOV. / (916) 319-3958