BILL ANALYSIS Ó
SB 1082
Page 1
SENATE THIRD READING
SB
1082 (McGuire)
As Amended March 28, 2016
Majority vote
SENATE VOTE: 39-0
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|Committee |Votes|Ayes |Noes |
| | | | |
| | | | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Local |9-0 |Eggman, Waldron, | |
|Government | |Alejo, Bonilla, Chiu, | |
| | |Cooley, | |
| | | | |
| | | | |
| | |Beth Gaines, Gordon, | |
| | |Linder | |
| | | | |
| | | | |
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SUMMARY: Increases, from $25,000 to $50,000, the amount for
which the Sonoma County Agricultural Preservation and Open Space
District (SCAPOSD) may enter into contracts without a formal bid
process for supplies, materials, labor, or other valuable
consideration for any purpose. Specifically, this bill:
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1)Allows, with the approval of the board of directors (board),
the general manager of 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.
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.
FISCAL EFFECT: None
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, "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
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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), Chapter 42, Statutes
2014] (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 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.
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
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requiring them to publicly bid new construction and
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 East Bay Regional Park
District (EBRPD), Midpeninsula Regional Open Space District
(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
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
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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.
Analysis Prepared by:
Angela Mapp / L. GOV. / (916) 319-3958 FN:
0003467