BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
                              Senator Jim Beall, Chair
                                2015 - 2016  Regular 

          Bill No:          AB 2196           Hearing Date:     June 14,  
          2016
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          |Author:   |Low                                                   |
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          |Version:  |6/8/2016                                              |
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          |Urgency:  |No                     |Fiscal:      |No              |
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          |Consultant|Manny Leon                                            |
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          SUBJECT:  Santa Clara Valley Transportation Authority


            DIGEST:  This bill makes a number of non-substantive changes to  
          the enabling statutes for the Santa Clara Valley Transportation  
          Authority (VTA). Additionally, this bill changes the bid  
          thresholds for contracts related to supplies, equipment, and  
          materials, as specified. 

          ANALYSIS:
          
          Existing law:
          
          1)Creates the Santa Clara Valley Transit District and the VTA  
            with various duties relative to transportation projects,  
            planning and services, and the operation of public transit in  
            the County of Santa Clara.

          2)Defines the Santa Clara Valley Transit District as meaning the  
            Santa Clara Valley Transportation Authority.   

          3)Designates that the governing board of the district shall  
            consist of 12 members, with two representatives of the county  
            who shall be members of the board of supervisors, five  
            representatives of the city of San Jose who shall be city  
            council members, and five council members selected from among  
            the cities in the county other than the City of San Jose.

          4)Requires VTA to let contracts for the purchase of supplies,  







          AB 2196 (Low)                                       Page 2 of ?
          
          
            equipment, and materials 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.

          5)Requires VTA to obtain at least three quotations that permit  
            prices and terms to be compared whenever the expected  
            procurement is expected to cost between $2,500 and does not  
            exceed $100,000 for supplies, equipment, or materials.


          This bill:

          1)Clarifies that the mayor of a city is authorized to serve on  
            VTA's board of directors (Board of Directors) in the same  
            manner as city councilmembers.  


          2)Prohibits VTA from levying any tax unless approved by electors  
            voting on the measure in accordance with Article XIII C of the  
            California Constitution at a special election called for that  
            purpose by the Board of Directors.  


          3)Replaces references to the authority or district with VTA.  


          4)Replaces references to VTAs executive director with general  
            manager.  


          5)Deletes obsolete and outdated provisions of law regarding  
            reorganization and labor disputes.  


          6)Increases the bid threshold, from $100,000 to $150,000, above  
            which VTA must award contracts for supplies, equipment and  
            materials to the lowest responsible bidder or to the bidder  
            who submits a proposal that provides best value, as defined.


          7)Increases, from $100,000 to $150,000, the maximum procurement  
            amount for supplies, equipment, or materials under which VTA  
            must obtain at least three quotations that permit prices and  
            terms to be compared.









          AB 2196 (Low)                                       Page 3 of ?
          
          

          8)Increases, from $2,000 to $3,500, the minimum procurement  
            amount for supplies, equipment or materials above which VTA  
            must obtain at least three quotations that permit prices and  
            terms to be compared.


          9)Makes other technical and conforming changes.  


          COMMENTS:

          1)Purpose.  The author asserts, "A comprehensive review and  
            clean-up of the underlying state statutes governing VTA has  
            not been done since the reorganization occurred more than 20  
            years ago.  Therefore, AB 2196 has been introduced to make a  
            series of technical, non-substantive, clean-up changes to  
            VTA's enabling statutes that are intended to update provisions  
            that are outdated, delete provisions that are obsolete or  
            inoperable, and modify provisions that are unclear or  
            inconsistent."


          2)A brief history of VTA.  The Santa Clara County Transit  
            District was created through state legislation in 1969 to  
            provide public transit service for the communities of Santa  
            Clara County.  In 1989, the Santa Clara County Congestion  
            Management Agency was created to implement the county's  
            congestion management program.  Additionally, in the 1980s,  
            the Santa Clara County Traffic Authority was established to  
            oversee Measure A, a voter-approved half-cent sales tax  
            measure.  In the mid-1990s Santa Clara County reorganized the  
            various transportation agencies and created the VTA to manage  
            and operate the county's transit system, serve as the  
            congestion management agency, develop the county's  
            transportation plan, and implement local sales tax measures  
            approved by voters.  


          3)Federal conformity. The Simplified Acquisition Threshold (SAT)  
            is set by the federal government for its Simplified  
            Acquisition Procedures (SAP), which are designed to help  
            federal agencies meet their small business procurement  
            targets.  SAPs employ streamlined contracting procedures for  
            contracts valued between $2,500 and $150,000, such as allowing  








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            quotations (including oral quotations) instead of requiring  
            full-blown bids, requiring less stringent reporting, and  
            setting simpler rules for subcontracting.  Federal acquisition  
            thresholds are adjusted every five years and published in the  
            Federal Register.  The latest adjustment in 2015 raised the  
            micro-purchase threshold to $3,500. The SAT ceiling remained  
            the same, at $150,000.  This bill increases VTA's existing bid  
            thresholds for supplies, equipment, and materials to bring the  
            authority in alignment with federal regulations. 


          4)Technical clean-up.  AB 2196 is a clean-up bill, making  
            various non-substantive changes to current VTA statues.  A  
            comprehensive review and clean-up of the underlying statues  
            governing VTA has not been done since the reorganization of  
            the agency occurred.  This bill is intended to update  
            provisions that are outdated, delete provisions that are  
            obsolete or inoperable, and modify provisions that are  
            inconsistent.    


          Related Legislation:
          
          SB 1305 (Morrell) - consolidates a number of local  
          transportation entities in San Bernardino County into the San  
          Bernardino County Transportation Authority. This bill is  
          currently in the Assembly Transportation Committee.

          AB 1889 (Mullin) - deletes obsolete provisions of law creating  
          the Peninsula Rail Transit District. This bill will also be  
          heard in the Senate Transportation and Housing Committee today. 

          Assembly Votes:

               Floor:         79-0
               Approps:            9-0
               Trans:         16-0
          

          FISCAL EFFECT:  Appropriation:  No    Fiscal Com.:  No    Local:  
           No


            
          POSITIONS:  (Communicated to the committee before noon on  








          AB 2196 (Low)                                       Page 5 of ?
          
          
          Wednesday,
                          June 8, 2016.)
          
            SUPPORT:  

          Santa Clara Valley Transportation Authority (Sponsor)
          Santa Clara County Board of Supervisors

          OPPOSITION:

          None recieved



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