SB 331, as amended, Mendoza. Public contracts: local agencies: negotiations.
Existing law relating to public contracts requires local agencies, including cities and counties, to comply with specified procedures for public contracting for public construction.
The Meyers-Milias-Brown Act requires the governing body of a local public agency to meet and confer in good faith regarding wages, hours, and other terms and conditions of employment with representatives of a recognized employee organization.
This bill would enact the Civic Reporting Openness in Negotiations Efficiency Act to establish specific procedures for the negotiation and approval ofbegin insert certainend insert contracts valued at $50,000 or more for goods or services by cities, counties, cities and counties, or special districts
that have adopted a civic openness in negotiations ordinance, or COIN ordinance, defined as an ordinance imposing specified requirements as part of any collective bargaining process undertaken pursuant to the Meyers-Milias-Brown Act. The act would require thebegin delete appointmentend deletebegin insert designationend insert of an independent auditor to review and report on the cost of any proposed contract. The act would require a city, county, city and county, or special district to disclose prescribed information relating to the contract and contract negotiations on its Internet Web site. The act would prohibit a final determination by the governing body regarding approval of any contract until the matter has been heard at a minimum of 2 public meetings of the governing body. By imposing new requirements on cities, counties, cities and counties, and special
districts, this bill would impose a state-mandated local program.
The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.
This bill would make legislative findings to that effect.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Chapter 4.5 (commencing with Section 22175)
2is added to Part 3 of Division 2 of the Public Contract Code, to
3read:
4
This chapter shall be known, and may be cited, as the
8Civic Reporting Openness in Negotiations Efficiency Act, or
9CRONEY.
As used in this chapter, “civic openness in negotiations
11ordinance” or “COIN ordinance” means an ordinance adopted by
12a city, county, city and county, or special district that requires any
13of the following as a part of any collective bargaining process
14undertaken pursuant to the Meyers-Milias-Brown Act (Chapter
P3 110 (commencing with Section 3500) of Division 4 of Title 1 of
2the Government Code):
3(a) The preparation of an independent economic analysis
4describing the fiscal costs of benefit and pay components currently
5provided to members of a recognized employee organization, as
6defined in Section 3501 of the Government Code.
7(b) The completion of the independent economic analysis prior
8to the presentation of an opening proposal by the public employer.
9(c) Availability for review by the public of the independent
10economic analysis before presentation of an opening proposal by
11the public employer.
12(d) Updating of the independent economic analysis to reflect
13the annual or cumulative costs of each proposal made by the public
14employer or recognized employee organization.
15(e) Updating of the independent economic analysis to reflect
16any absolute amount or change from the current actuarially
17computed unfunded liability associated with the pension or
18postretirement health benefits.
19(f) The report from a closed session of a meeting of the public
20employer’s governing body of offers, counteroffers, or supposals
21made by the public employer or the recognized employee
22organization and communicated during that closed session.
23(g) The report from a closed session of a meeting of the public
24employer’s governing body of any list of names of persons in
25attendance during any negotiations session, the date of the session,
26the length of the session, the location of the session, or pertinent
27facts regarding the negotiations that occurred during a session.
This chapter applies only to a city, county, city and
29county, or special district that has adopted a COIN ordinance,
30which is effective and operative. This chapter shall not apply if
31the city, county, city and county, or special district suspends,
32repeals, or revokes its COIN ordinance.
(a) This chapter shall apply to any contracts with a
34value of at least fifty thousand dollars ($50,000), and to any
35contracts with a person or entity, or related person or entity, with
36a cumulative value of at least fifty thousand dollars ($50,000)
37within the fiscal year of the city, county, city and county, or special
38district, being negotiated between the city, county, city and county,
39or special district, and anybegin delete privateend delete person or entity that seeks to
40provide services or goods to the city, county, city and county, or
P4 1specialbegin delete district.end deletebegin insert
district, in the following areas: accounting,
2financing, hardware and software maintenance, healthcare, human
3resources, human services, information technology,
4telecommunications, janitorial maintenance, legal services,
5lobbying, marketing, office equipment maintenance, passenger
6vehicle maintenance, property leasing, public relations, public
7safety, social services, transportation, or waste removal.end insert
8(b) The city, county, city and county, or special district shall
9begin delete appointend deletebegin insert designateend insert an unbiased independent auditor to review the
10cost of any proposed contract. The independent auditor shall
11prepare a report on the cost of the contract and provide the report
12to all parties
and make it available to the public before the
13governing body takes any action to approve or disapprove the
14contract. The report shall comply with the following:
15(1) The report shall include a recommendation regarding the
16viability of the contract, including any supplemental data upon
17which the report is based, and shall determine the fiscal impacts
18attributable to each term and condition of the contract.
19(2) The report shall be made available to the public at least 30
20days before the issue can be heard before the governing body and
21at least 60 days before any action to approve or disapprove the
22contract by the governing body.
23(3) Any proposed changes to the contract after it has been
24approved by the governing body shall
adhere to the same approval
25requirements as the original contract. The changes shall not go
26into effect until all of the requirements of this subdivision are met.
27(c) The city, county, city and county, or special district shall
28disclose all offers and counteroffers to the public within 24 hours
29on its Internet Web site.
30(d) Before approving any contract, the city, county, city and
31county, or special district shall release a list of names of all persons
32in attendance, whether in person or by electronic means, during
33any negotiation session regarding the contract, the date of the
34session, the length of the session, the location where the session
35took place, and any pertinent facts regarding the negotiations that
36occurred in that session.
37(e) Representatives of the governing body shall advise the
38governing body of all offers, counteroffers, information, or
39statements of position discussed by the contracting person or entity
P5 1and city, county, city and county, or special district representatives
2participating in negotiations regarding any contract.
3(f) Each governing body member and staff members of
4governing body offices shall disclose publicly all verbal, written,
5electronic, or other communications regarding a subject matter
6related to the negotiations or pending negotiations they have had
7with any official or unofficial representative of the private entity
8within 24 hours after the communication occurs.
9(g) A final governing body determination regarding approval
10of any contract shall be undertaken
only after the matter has been
11heard at a minimum of two meetings of the governing body
12wherein the public has had the opportunity to review and comment
13on the matter.
The Legislature finds and declares that Section 1 of
15this act, which adds Chapter 4.5 (commencing with Section 22175)
16to Part 3 of Division 2 of the Public Contract Code, furthers, within
17the meaning of paragraph (7) of subdivision (b) of Section 3 of
18Article I of the California Constitution, the purposes of that
19constitutional section as it relates to the right of public access to
20the meetings of local public bodies or the writings of local public
21officials and local agencies. Pursuant to paragraph (7) of
22subdivision (b) of Section 3 of Article I of the California
23Constitution, the Legislature makes the following findings:
24This act ensures that members of
the public have the opportunity
25to be informed of, and meaningfully participate in, the negotiation
26and approval of contracts for goods and services by a city, county,
27city and county, or special district that has adopted a civic openness
28in negotiations (COIN) ordinance, thereby furthering the purposes
29of Section 3 of Article I of the California Constitution.
No reimbursement is required by this act pursuant to
31Section 6 of Article XIII B of the California Constitution because
32the only costs that may be incurred by a local agency or school
33district under this act would result from a legislative mandate that
34is within the scope of paragraph (7) of subdivision (b) of Section
353 of Article I of the California Constitution.
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