BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2196


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          CONCURRENCE IN SENATE AMENDMENTS
          AB  
          2196 (Low)


          As Amended  June 8, 2016


          Majority vote


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          |ASSEMBLY:  |79-0  |(May 5, 2016)  |SENATE: |37-0  |(June 30, 2016)  |
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          |COMMITTEE      |     |August 15,     |RECOMMENDATION:  |concur     |
          |VOTE:          |15-0 |2016           |                 |           |
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          Trans.




          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.  









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          The Senate amendments add language to increase the bid  
          thresholds for VTA for the purchase of supplies, equipment and  
          materials consistent with federal guidelines.  Specifically, 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.


          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  








                                                                    AB 2196


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            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.


          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 1980's 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  








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          inoperable, and modify provisions that are inconsistent.   


          Additionally, the Senate amendments update the bid thresholds  
          for VTA contracts related to supplies, equipment, and materials  
          to be consistent with federal acquisition thresholds updated in  
          2015.  Specifically, 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.


          Analysis Prepared by:                                             
                          Melissa White / TRANS. / (916) 319-2093  FN:  
          0004218