BILL ANALYSIS Ó AB 2196 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 2196 (Low) As Amended June 8, 2016 Majority vote -------------------------------------------------------------------- |ASSEMBLY: | 79-0 |(May 5, 2016) |SENATE: | 37-0 |(June 30, 2016) | | | | | | | | | | | | | | | -------------------------------------------------------------------- Original Committee Reference: TRANS. SUMMARY: Makes non-substantive changes to the enabling statutes for the Santa Clara Valley Transportation Authority (VTA) and additionally changes the bid thresholds for contracts related to supplies, equipment, and materials, as specified. The Senate amendments: 1)Increase 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. 2)Increase, 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 Page 2 3)Increase, 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. EXISTING LAW: 1)Creates the Santa Clara Valley Transit District and the Santa Clara Valley Transportation Authority with various and 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 consists 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. AB 2196 Page 3 FISCAL EFFECT: Unknown. This bill is keyed non-fiscal by the Legislative Counsel. COMMENTS: 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 the 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. According to the author, this bill 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. Additionally, the bill changes the bid thresholds for contracts related to supplies, equipment, and materials to be consistent with federal acquisition thresholds updated in 2015. Analysis Prepared by: Melissa White / TRANS. / (916) 319-2093 FN: 0003495 AB 2196 Page 4