BILL ANALYSIS
AB 2184
Page 1
Date of Hearing: May 5, 2010
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Cameron Smyth, Chair
AB 2184 (Arambula) - As Amended: April 22, 2010
SUBJECT : Public contracts: local agency: alternative bidding
procedures: notice.
SUMMARY : Requires any local agency that has opted in to the
Uniform Public Construction Cost Accounting Act (UPCCAA) to
provide the notice inviting formal bids in addition to other
publishing requirements to be sent electronically, if available,
by either facsimile or electronic mail and mailed to all the
construction trade journals specified by the California Uniform
Construction Cost Accounting Commission (Commission).
Specifically, this bill :
1)Requires the notice inviting formal bids in addition to other
publishing requirements to be sent electronically, if
available, by either facsimile or electronic mail and mailed
to all the construction trade journals specified by the
Commission.
2)Reduces the notice inviting formal bids to be sent to at least
15 calendar days from at least
30 calendar days before the date of opening the bids.
EXISTING LAW :
1)Authorizes local agencies to opt in to UPCCAA.
2)Requires notice inviting formal bids to be published at least
14 calendar days before the date of opening the bids in a
newspaper of general circulation printed and published in the
jurisdiction of the public agency.
3)Requires, if there is no newspaper printed and published
within the jurisdiction of the public agency, notice inviting
formal bids to be published at least 14 calendar days before
the date of opening the bids in a newspaper of general
circulation that is circulated within the jurisdiction of the
public agency.
4)Requires, if there is no newspaper of general circulation
AB 2184
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circulated within the jurisdiction of the public agency,
notice inviting formal bids to be published at least 14
calendar days before the date of opening the bids to be posted
in at least three places within the jurisdiction of the public
agency as has been designated by ordinance or regulation of
the public agency.
5)Requires the notice inviting formal bids also to be mailed to
all the construction trade journals specified by the
Commission.
6)Requires the notice inviting formal bids to be mailed at least
30 calendar days before the date of opening the bids.
FISCAL EFFECT : None
COMMENTS :
1)UPCCAA took effect in 1983. UPCCAA, which allows any city,
county, redevelopment agency, special district, school
district, and community college district to voluntarily opt
in, provides for a streamlined awards process so long as the
local agency follows the cost accounting procedures set forth
in the Cost Accounting Policies and Procedures Manual of the
Commission. UPCCAA's thresholds are $30,000 for force
account, $125,000 or less for informal bidding procedures, and
$125,000 or more for formal bidding procedures. As of June
10, 2009, 708 local agencies have opted in to UPCCAA. A local
agency can withdraw at any time from UPCCAA.
The Commission also provides the State Controller with
recommended policies and procedures for public projects. The
Commission membership is comprised of representatives from
both public agencies and private industry. Every five years,
the Commission reviews the informal bid limits for inflation
and other factors to determine when increases should be made.
The last limit increases were in July 1, 2005.
However, many local agencies operate under the Local Agency
Public Construction Act (LAPCA). LAPCA provides competitive
bidding thresholds that vary depending on the agency or kind
of work. In a few districts competitive bidding is required
for all contracts, regardless of threshold, and for others
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there is no competitive bidding required at all.
2)According to the author, AB 2184 is intended to update UPCCAA
by recognizing the existence and utility of electronic
communications, such as fax and email. With the speed of
electronic communications and their ability to reach wide
audiences, notice requirements for local agency public
projects do not need to be published for 30 days. For
instance, the author says one email noticing a project bid can
be sent to one trade journal and then on to 100 contractors
for no extra cost without waiting for a mail carrier.
Providing flexibility for notice requirement is critical for
local agencies that pursue public projects with tight,
unpredictable timelines.
3)Support Arguments : Supporters say AB 2184 makes UPCCAA a more
viable and attractive option for local agencies by providing
flexibility with notice requirements.
Opposition Arguments : The opposition might say shortening the
timeline for the notice requirement is unnecessary and will
make it more difficult for contractors to act on bids.
REGISTERED SUPPORT / OPPOSITION :
Support
Air Conditioning Sheet Metal Association
Air-conditioning & Refrigeration Contractors Association
CA Chapters of the National Electrical Contractors Association
CA Legislative Conference of the Plumbing, Heating and Piping
Industry
Construction Industry Force Account Council
AB 2184
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Fresno Metropolitan Flood Control District
Opposition
None on file
Analysis Prepared by : Jennifer R. Klein / L. GOV. / (916)
319-3958