BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 2196| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- CONSENT Bill No: AB 2196 Author: Low (D) Amended: 6/8/16 in Senate Vote: 21 SENATE TRANS. & HOUSING COMMITTEE: 11-0, 6/14/16 AYES: Beall, Cannella, Allen, Bates, Gaines, Galgiani, Leyva, McGuire, Mendoza, Roth, Wieckowski ASSEMBLY FLOOR: 79-0, 5/5/16 (Consent) - See last page for vote SUBJECT: Santa Clara Valley Transportation Authority SOURCE: 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. AB 2196 Page 2 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, 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. AB 2196 Page 3 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. 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." AB 2196 Page 4 2)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 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. 3)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. FISCAL EFFECT: Appropriation: No Fiscal Com.:NoLocal: No SUPPORT: (Verified6/17/16) Santa Clara Valley Transportation Authority (source) Santa Clara County Board of Supervisors OPPOSITION: (Verified6/17/16) AB 2196 Page 5 None received ASSEMBLY FLOOR: 79-0, 5/5/16 AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon NO VOTE RECORDED: Beth Gaines Prepared by:Manny Leon / T. & H. / (916) 651-4121 6/17/16 15:03:37 **** END ****