Amended in Assembly April 26, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 2030


Introduced by Assembly Member Mullin

(Coauthor: Assembly Member Bonilla)

February 16, 2016


An act to amendbegin delete Sectionsend deletebegin insert Sectionend insert 20221begin delete and 20331end delete of the Public Contract Code, and to amend Section 103222 of the Public Utilities Code, relating to transportation.

LEGISLATIVE COUNSEL’S DIGEST

AB 2030, as amended, Mullin. Transportation districts: contracts.

(1) Existing law requires contracts of the San Francisco Bay Areabegin insert Rapidend insert Transit District for the purchase of supplies, equipment, and materials to be let to the lowest responsible bidder or to the bidder who submits a proposal that provides best value, as defined, if the amount of the contract exceeds $100,000 and requires the district to obtain a minimum of 3 quotations for those contracts between $2,500 and $100,000. Existing law requires the district, if the contract is for the construction of facilities and works, to let the contract to the lowest responsible bidder if the amount of the contract exceeds $10,000 and to obtain a minimum of 3 quotations for those contracts between $2,500 and $10,000.

This bill would instead impose those bidding requirements with respect to district contracts for the purchase of supplies, equipment, and materials if the amount of thebegin delete contractsend deletebegin insert contractend insert exceeds $150,000 and would require a minimum of 3 quotations for those contracts between $5,000 and $150,000. The bill would alsobegin delete impose those bidding requirementsend deletebegin insert require,end insert with respect to district contracts for the construction of facilities begin deleteor equipment if the amount of the contract exceeds $100,000 and would requireend deletebegin insert and works,end insert a minimum of 3 quotations for those contracts between $5,000 andbegin delete $100,000.end deletebegin insert $10,000.end insert

(2) Existing law requires contracts of the San Mateo County Transit District for the purchase of supplies, equipment, and materials to be let to the lowest responsible bidder or to the bidder who submits a proposal that provides best value, as defined, if the amount of the contract exceeds $100,000 and requires the district, to the extent practicable, to obtain a minimum of 3 quotations for those contracts between $2,500 and $100,000.

This bill would instead impose those bidding requirements if the amount of the contracts exceeds $150,000 and would require a minimum of 3 quotations for contracts between $5,000 and $150,000. The bill would require thatbegin insert theend insert $5,000 thresholdbegin delete toend delete be adjusted to reflect changes in the Consumer Price Index.

begin delete

Existing law requires the district, if the contract is for the construction of transit works or transit facilities, to let the contract to the lowest responsible bidder, except as provided, if the amount of the contract exceeds $10,000.

end delete
begin delete

The bill would instead impose that bidding requirement if the amount of the contract exceeds $100,000 and would require that $100,000 threshold to be adjusted to reflect changes in the Consumer Price Index.

end delete

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 20221 of the Public Contract Code is
2amended to read:

3

20221.  

(a) The purchase of all supplies, equipment, and
4materials when the expenditure required exceeds one hundred fifty
5thousand dollars ($150,000) shall be by contract let to the lowest
6responsible bidder or, in the district’s discretion, to the responsible
7bidder who submitted a proposal that provides the best value to
8the district on the basis of the factors identified in the solicitation.
9“Best value” means the overall combination of quality, price, and
10other elements of a proposal that, when considered together,
11provide the greatest overall benefit in response to requirements
12described in the solicitation documents. The construction of
13facilities and works when the expenditure required exceedsbegin delete one
P3    1hundredend delete
begin insert tenend insert thousand dollarsbegin delete ($100,000)end deletebegin insert ($10,000)end insert shall be by
2contract let to the lowest responsible bidder. Notice requesting
3bids shall be published at least once in a newspaper of general
4circulation. This publication shall be made at least 10 days before
5the bids are received. The board may reject any and all bids and
6readvertise in its discretion.

7(b) Whenever the expected procurement required exceeds five
8thousand dollars ($5,000) and, in the case of the construction of
9facilities and works, does not exceedbegin delete one hundredend deletebegin insert tenend insert thousand
10dollarsbegin delete ($100,000)end deletebegin insert ($10,000)end insert or, in the case of the purchase of
11supplies, equipment, or materials, does not exceed one hundred
12fifty thousand dollars ($150,000), the district shall obtain a
13minimum of three quotations, either written or oral, that permit
14prices and terms to be compared.

15(c) Where the expenditure required by the bid price is less than
16one hundred thousand dollars ($100,000), the general manager
17may act for the board. When acting pursuant to this subdivision,
18the general manager shall, in each instance, promptly notify the
19board of the action taken.

begin delete
20

SEC. 2.  

Section 20331 of the Public Contract Code is amended
21to read:

22

20331.  

(a) Contracts for the construction of transit works or
23transit facilities in excess of one hundred thousand dollars
24($100,000) shall be awarded to the lowest responsible bidder after
25competitive bidding, except in emergency declared by the vote of
26seven members of the board. In the case of an emergency, if notice
27for bids to let contracts will not be given, the board shall comply
28with Chapter 2.5 (commencing with Section 22050).

29(b) The amount specified in subdivision (a) shall be adjusted
30on January 1, 2018, to reflect the percentage change since January
311, 2016, in the California Consumer Price Index, and shall be
32adjusted each January 1 thereafter to reflect the annual percentage
33change in the California Consumer Price Index.

end delete
34

begin deleteSEC. 3.end delete
35
begin insertSEC. 2.end insert  

Section 103222 of the Public Utilities Code is amended
36to read:

37

103222.  

(a) The purchase of all supplies, equipment, and
38materials, when the expenditure required exceeds one hundred
39fifty thousand dollars ($150,000), shall be by contract let to the
40lowest responsible bidder, or, in the district’s discretion, to the
P4    1responsible bidder who submitted a proposal that provides the best
2value to the district on the basis of the factors identified in the
3solicitation. “Best value” means the overall combination of quality,
4price, and other elements of a proposal that, when considered
5together, provide the greatest overall benefit in response to the
6requirements described in the solicitation documents.

7(b) To the extent practicable, the district shall obtain a minimum
8of three quotations, either written or oral, that permit prices and
9terms to be compared whenever the expected expenditure required
10for the purchase of supplies, equipment, or materials exceeds five
11thousand dollars ($5,000), but does not exceed one hundred fifty
12thousand dollars ($150,000).

13(c) Notice requesting bids required bybegin delete theend deletebegin insert thisend insert section shall be
14published at least once in a newspaper of general circulation and
15on the district’s procurement Internet Webbegin delete site, which publicationend delete
16begin insert site. These publicationsend insert shall be made at least 10 days before the
17bids are received. The board may reject any and all bids and
18readvertise at its discretion.

19(d) This section applies solely to the procurement of supplies,
20equipment, and materials, and shall not apply to construction
21contracts.

22(e) The five-thousand-dollar ($5,000) amount specified in
23subdivisionbegin delete (a)end deletebegin insert (b)end insert shall be adjusted on January 1, 2018, to reflect
24the percentage change since January 1, 2016, in the California
25Consumer Price Index, and shall be adjusted each January 1
26thereafter to reflect the annual percentage change in the California
27Consumer Price Index.



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