BILL ANALYSIS �
AB 482
Page 1
Date of Hearing: January 11, 2012
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Cameron Smyth, Chair
AB 482 (Williams) - As Amended: January 4, 2012
SUBJECT : Ventura Port District: dredging contracts.
SUMMARY : Authorizes the Ventura Port District (District) to
contract for dredging work within District boundaries without
competitive bidding in certain specified circumstances.
Specifically, this bill :
1)Authorizes the District to award a contract for the
performance of dredging work within the District's boundaries
without competitive bidding, provided that both of the
following apply:
a) The dredging contract was selected through a federal
competitive bidding process for a federal dredging project
then underway in the County of Ventura; and,
b) The District's board finds, based on substantial
evidence in the record, that the contract awarded is likely
to cost less than a contract awarded pursuant to provisions
of existing law.
2)Makes findings and declarations that a special law is
necessary and that a general law cannot be made applicable
because of the unique existence of an existing federal
competitive bidding process for federal dredging projects in
the County of Ventura, which may be utilized for preselecting
dredging contractors for dredging work within the District.
EXISTING LAW :
1)Authorizes port districts to provide all services consistent
with specified provisions contained in the Harbors &
Navigation Code, including the powers to own property and
acquire, construct, operate, develop and regulate land and
facilities for the operation of ports, including real estate,
property management, marketing and accounting services, and
Harbor Patrol, maintenance and dredging programs.
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2)Requires, for port districts, that contracts for new
construction work, the cost of which exceeds ten thousand
dollars ($10,000), or the purchasing of supplies, the cost of
which exceeds twenty-five thousand dollars ($25,000), or
projects involving maintenance of buildings and improvements,
the cost of which exceeds ten thousand dollars ($10,000), must
be let by the board of the district upon competitive bidding.
3)Requires notice of the proposed letting of a contract to be
given by publication pursuant to existing law in the county in
which the district is located, at least five days before the
time fixed for opening bids, as follows:
a) Bidding shall be by sealed proposals filed with the
district, upon forms furnished by it, and under such rules
and regulations as the board may prescribe; and,
b) All bids shall be publicly opened and declared under
procedures established by the board, and the award of the
contract shall be made in open session of the board to the
lowest and best responsible bidder.
4)Authorizes, in the case of an emergency, the board of a port
district to, by resolution passed by a four-fifths vote of all
of its members, declare and determine that public interest and
necessity demand the immediate expenditure of public money to
safeguard life, health, or property, and thereupon proceed to
expend any sum or enter into a contract involving the
expenditure of any sum needed in the emergency without
observance of the provisions requiring contracts, bids, or
notice, as specified.
FISCAL EFFECT : None
COMMENTS :
1)This bill allows the District to award a contract for dredging
work without competitive bidding, provided that both the
dredging contractor has been selected through a competitive
bidding process for a federal dredging project then underway
in Ventura County and that the Board of the District makes
certain findings regarding likely cost savings that will be
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achieved by such a contract.
Current law requires competitive bidding for the District for
contracts for construction work over $10,000, the purchase of
supplies over $25,000, or projects involving maintenance of
buildings and improvements costing over $10,000. Current law
additionally establishes the notification and procedures
involved in the competitive bidding process for port
districts.
2)The Ventura Port District was formed in 1952 as an independent
special district with nearly similar boundaries to the City of
San Buenaventura. Ventura Harbor is currently used for
multiple recreational activities as well as a commercial
fishing small craft harbor. A five-member Board of Port
Commissioners governs the District and commissioners are
appointed to fixed four-year terms of office by the Mayor of
the City of San Buenaventura with the approval of the City
Council.
The District is self-supported through fees in addition to
receiving a pro-rata share of property taxes levied within the
District's boundaries, and functions as an enterprise district
that manages and maintains its properties and manages Ventura
Harbor.
3)The District is responsible for ensuring that the Ventura
Harbor and related waterways are kept open and that the
breakwaters and jetties are maintained. The federal
government, through the U.S. Army Corps of Engineers, is a
major financial participant with the District in the
maintenance of dredging of the Ventura Harbor and related
waterways and in breakwater/jetty repair.
The District has a legal obligation to keep the channel open
because of a judgment known as the "Ellison Judgment." The
Ellison Judgment stems back from the late 1970s, and requires
certain maintenance work to be performed. The judgment also
requires the District to budget, establish and maintain a
reserve account for the purpose of funding maintenance
dredging and/or sand bypassing. Funds in the reserve account
are required to be used by the District to maintain the
navigation and drainage easements as defined specifically in
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the Ellison Judgment.
4)According to the District, the sponsor of this bill,
maintenance dredging is a very costly endeavor and requires
specialized large equipment and operational expertise. The
District notes that a significant cost component of
maintenance dredging is mobilization costs - the cost of
moving the equipment from other locations around the country
to the Ventura Harbor. In the District's case, mobilization
costs can greatly exceed the actual costs of the dredging and
deposition of dredged material itself.
The District notes that the mouth of the Ventura Harbor is a
federally-authorized dredging project carried out by the U.S.
Army Corps of Engineers on an annual basis, but this dredging
project does not include the areas of the inner harbor that
the District is responsible for maintaining. The District, in
order to take advantage of the existing contract and avoid
mobilization costs, wants the Legislature to allow them under
their public contracting requirements to contract with the
dredging company carrying out the Army Corps of Engineers
contracts in Ventura County. In order to accomplish this, the
District will need to be granted an exception from the
competitive bidding requirements contained in current law.
According to the Army Corps of Engineers, the federal process
for awarding contracts for dredging projects is one of full
and open competition, generally responded to by sealed bid.
The Army Corps of Engineers issues a request for proposal
(RFP) which is listed on the Federal Business Opportunities
website. Applicants have 30 days to respond to the RFP
through the sealed bid process contained in the Federal
Acquisition Regulation (FAR), which is the principal set of
rules in the Federal Acquisition Regulation System. Usually
when a government agency like the Army Corps of Engineers
issues a contract or proposal, it specifies a list of FAR
provisions that apply to that particular contract. Sealed
bids are opened and reviewed, and then the contract is awarded
to the lowest bidder after the bid is analyzed to make sure it
meets the requirements of the RFP.
5)The Author has urgency and technical amendments. These
amendments:
a) Add an urgency clause to the bill; and,
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b) Clarify language in subdivision (b) of Section 1 to
require the Board of the District to make written findings:
(b) The board makes written findings finds , based on
substantial evidence in the record, that the contract
awarded pursuant to this section is likely to cost less
than a contract awarded pursuant to Section 20751.
6)Support arguments: According to the Ventura Port District,
this bill is critical to assuring the District's ability to
contract for needed dredging services in a timely and
cost-efficient manner and will result in decreased
mobilization costs to the District.
Opposition arguments: While this bill allows the District to
tag on to the existing federal competitive bidding process, it
does take away one avenue for the public to participate in the
competitive bidding process that would otherwise be required
under current law.
REGISTERED SUPPORT / OPPOSITION :
Support
Ventura Port District �SPONSOR]
California Marine Affairs and Navigation Conference
California-Nevada Conference of Operating Engineers
Opposition
None on file
Analysis Prepared by : Debbie Michel / L. GOV. / (916)
319-3958