BILL ANALYSIS Ó
SB 1082
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Date of Hearing: June 15, 2016
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Susan Talamantes Eggman, Chair
SB
1082 (McGuire) - As Amended March 28, 2016
SENATE VOTE: 39-0
SUBJECT: Regional park and open-space districts: general
manager: powers.
SUMMARY: Increases, from $25,000 to $50,000, the amount for
which the Sonoma County Agricultural Preservation and Open Space
District may enter into contracts without a formal bid process
for supplies, materials, labor, or other valuable consideration
for any purpose. Specifically, this bill:
1)Allows, with the approval of the board of directors (board),
the general manager of the Sonoma County Agricultural
Preservation and Open Space District (SCAPOSD) to bind the
district, in accordance with board policy, and without
advertising, for the payment of supplies, materials, labor, or
other valuable consideration for any purpose, including new
construction of a building, structure, or improvement, in
amounts not exceeding $50,000.
2)Requires all expenditures authorized above to be reported to
the board at its next regular meeting.
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3)Finds and declares that a special law is necessary and that a
general law cannot be made applicable within the meaning of
Section 16 of Article IV of the California Constitution
because of the unique financial situation of the districts
affected by this bill.
EXISTING LAW:
1)Generally authorizes the general manager of any park or
open-space district, with district board approval, to bind the
district, in accordance with board policy, and without
advertising, for the payment for supplies, materials, labor,
or other valuable consideration for any purpose in amounts not
exceeding $25,000.
2)Allows, with the approval of the board, the general manager of
the East Bay Regional Park District (EBRPD) and the general
manager of the Midpeninsula Regional Open Space District
(MROSD) to bind those districts, in accordance with board
policy, and without advertising, for the payment of supplies,
materials, labor, or other valuable consideration for any
purpose, including new construction of a building, structure,
or improvement, in amounts not exceeding $50,000.
3)Requries all expenditures authorized above to be reported to
the respective board at its next regular meeting.
FISCAL EFFECT: None
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COMMENTS:
1)Bill Summary. This bill increases, from $25,000 to $50,000,
the amount for which SCAPOSD may enter into contracts without
a formal bid process for supplies, materials, labor, or other
valuable consideration for any purpose, including
construction. This bill is sponsored by the author.
2)Author's Statement. According to the author, "Under the
authority of the Sonoma County Board of Supervisors, the
Sonoma County Agricultural Preservation and Open Space
District (SCAPOSD) is a local government agency that oversees
projects that protect Sonoma County's small town character and
natural habitats. Since 2002, the SCAPOSD has been designated
as an open space district with a $25,000 threshold for
entering into contracts without a formal bidding process?The
Sonoma County Board of Supervisors recently passed a
resolution to raise the threshold, from $25,000 to $50,000,
for all departments under their jurisdiction for entering into
contracts without a formal bidding process. The purpose of SB
1082 is to keep the SCAPOSD consistent with all other
departments in Sonoma County.
"Furthermore, AB 745 (Levine, 2014), recognized the impact of
inflation and rising costs of doing business by raising the
threshold for all parks and open space districts statewide
from $10,000 to $25,000. However, the SCAPOSD did not receive
a proportional raise. SB 1082 will not only create
consistency across Sonoma County, but also save the County
hundreds of hours of staff time and thousands of dollars each
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year. These resources will be spent on opening more trails,
protecting vulnerable ecosystems, and preserving open spaces
for parks and wildlife."
3)Background. SCAPOSD was created in 1990 to permanently
protect the greenbelts, scenic viewsheds, farms and ranches
and natural areas of Sonoma County. To date, SCAPOSD has
acquired or protected 106,000 acres of farmland and open
space. A quarter cent sales tax, authorized through 2031,
supports the majority of SCAPOSD's roughly $36 million annual
budget. The Sonoma County Board of Supervisors serves as the
governing board of SCAPOSD. The district's activities include
acquisition, protection, and maintenance of open space and
agricultural lands, conservation planning to identify
high-priority lands for protection or acquisition, and
administration of a grant program.
In 2015, SCAPOSD issued five non-construction contracts that
cost between $25,000 and $50,000, and has or expects to issue
another three contracts in this price range as of June 30,
2016. SCAPOSD cites an average administrative cost of $7,360
per contract for projects in this price range. SCAPOSD has
been using the California Uniform Public Construction Cost
Accounting Act for construction projects costing less than
$45,000.
4)Park and Open Space District Bid Requirements. Park and/or
open space districts generally must comply with state law
requiring them to publicly bid new construction and
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maintenance work that will exceed specified costs. This is
consistent with state law for all local agencies, based on
policy that seeks to balance open and transparent use of
public funds with efficient and cost-effective government
operations.
Prior law sets bid limits for these districts at $10,000 for
non-construction work, and $25,000 for construction contracts.
However, the Legislature allowed exceptions to these
thresholds for three districts: the EBRPD, MROSD, and
SCAPOSD. These districts were allowed to contract for any
purpose for up to $25,000 without bidding. These exceptions
were based on a recognition that public bidding may not be
cost-effective in all cases, particularly when the costs of
time delays and resources expended on contract preparation and
bidding are disproportionate to a contract's scope and total
cost.
AB 745 (Levine), Chapter 42, Statutes of 2014, raised the
limit to $25,000 for all park and open-space districts for all
purposes, both construction and non-construction, resulting in
a uniform statute for all of these districts. In 2015, AB 495
(Gordon), Chapter 149, Statutes of 2015, increased the limit
to $50,000 for EBRPD and MROSD. This bill raises the bid
threshold for SCAPOSD to match the authority of EBRPD and
MROSD.
5)Arguments in Support. The Sonoma County Agricultural
Preservation and Open Space District, in support, writes, "The
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current limit of $25,000 was established through legislation
more than 30 years ago. Since then, inflation has
significantly reduced the size and scope of projects this
limit allows. With an average administrative cost of $7,360
per contract in the $25,000 to $50,000 range, the proportion
of resources spent on administration is well beyond what is
reasonable for these relatively small projects. In 2015 the
District spent $44,160 on the administration of six projects.
These funds are better spent on necessary improvements by the
District."
6)Arguments in Opposition. None on file.
REGISTERED SUPPORT / OPPOSITION:
Support
California Special Districts Association
County of Sonoma
Sonoma County Agricultural Preservation and Open Space District
Opposition
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None on file
Analysis Prepared by:Angela Mapp / L. GOV. / (916)
319-3958