BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                   AB 482|
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                                    CONSENT


          Bill No:  AB 482
          Author:   Williams (D)
          Amended:  6/14/12 in Senate
          Vote:     21

           
           SENATE TRANSPORTATION & HOUSING COMMITTEE :  9-0, 6/12/12
          AYES:  DeSaulnier, Gaines, Harman, Kehoe, Lowenthal, 
            Pavley, Rubio, Simitian, Wyland

           ASSEMBLY FLOOR  :  74-0, 1/23/12 - See last page for vote


           SUBJECT  :    Ventura Port District:  dredging contracts

           SOURCE  :     Ventura Port District


           DIGEST  :    This bill authorizes the Ventura Port District 
          (District) to award a dredging contract for maintaining the 
          interior of Ventura Harbor without a competitive bid.

           ANALYSIS  :    

           Existing law  :
           
            1. Authorizes port districts to engage in a variety of 
             activities, including acquiring and owning property, 
             constructing, operating, developing, regulating land and 
             facilities, and dredging channels and slips for boats. 

           2. Requires that ports award contracts for projects 
             costing more than $10,000 through competitive bidding to 
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             the lowest responsible bidder. 

           3. Allows a port district governing board to waive the 
             competitive bidding requirement in the case of 
             emergencies by a 4/5 vote.

          This bill authorizes the District to award a contract for 
          dredging without competitive bidding, provided that both of 
          the following apply:

          1.The Army Corps of Engineers, through a competitive 
            bidding process, selected the contractor for a federal 
            dredging project presently underway in the County of 
            Ventura. 

          2.The District's board makes written findings, based on 
            substantial evidence in the record, that the contract to 
            be awarded without competitive bidding is likely to cost 
            less than a contract awarded through competitive bidding.

           Background

           The District was formed in 1952 as an independent special 
          district with nearly similar boundaries to the City of 
          Ventura.  Ventura Harbor is currently used for multiple 
          recreational activities including a small craft harbor.  A 
          five-member Board of Port Commissioners governs the 
          District.  The commissioners are appointed to fixed 
          four-year terms 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 it functions as an 
          enterprise district that manages and maintains Ventura 
          Harbor and related facilities.  

          The Army Corps of Engineers regularly awards a three-year 
          contract to a firm to conduct annual maintenance dredging 
          of the Ventura Harbor entrance.  This operation involves 
          large-scale, high capacity dredging equipment.  Because of 
          Ventura's location, the cost of setting up a dredging 
          operation is expensive for a firm from outside the area.  
          The District believes that awarding a sole source contract 

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          to a dredging firm previously selected by the Army Corps of 
          Engineers provides the best value. 

          The District does not want to jointly procure the dredging 
          firm because the Corps would require the District to share 
          in the set-up cost.  Should the District award a contract 
          after the Corps' procurement, the firm will not charge a 
          set-up cost to the District. 

           Comments
           
          The purpose of this bill is to enable the District to award 
          a contract to dredge the inner portions of Ventura Harbor 
          to a firm previously selected, through a competitive 
          procurement, by the Army Corps of Engineers (Corps) to 
          dredge the mouth of the harbor beyond the breakwater.  The 
          District is a small enterprise and argues that competitive 
          procurement is expensive because there are no nearby 
          dredging firms.  The lack of proximity to qualified firms 
          results in high cost because firms must bring in equipment 
          from outside of the area.  Utilizing a contractor 
          previously retained through a competitive procurement by 
          the Corps and already on site would create a savings to the 
          District.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   
          Local:  No

           SUPPORT  :   (Verified  6/14/12)

          Ventura Port District (source)
          California Marine Affairs and Navigation Conference
          California Special District Association
          California-Nevada Conference of Operating Engineers
          City of Ventura

           ASSEMBLY FLOOR  :  74-0, 1/23/12
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, 
            Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, 
            Brownley, Buchanan, Butler, Charles Calderon, Campos, 
            Carter, Chesbro, Conway, Cook, Dickinson, Donnelly, Eng, 
            Feuer, Fletcher, Fong, Furutani, Beth Gaines, Galgiani, 
            Garrick, Gatto, Gordon, Grove, Hagman, Hall, Harkey, 
            Hayashi, Roger Hern�ndez, Hill, Huber, Hueso, Huffman, 

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            Jeffries, Jones, Knight, Lara, Logue, Bonnie Lowenthal, 
            Ma, Mansoor, Mendoza, Miller, Mitchell, Monning, Morrell, 
            Nestande, Nielsen, Norby, Olsen, Pan, Perea, V. Manuel 
            P�rez, Portantino, Silva, Skinner, Solorio, Swanson, 
            Torres, Valadao, Wagner, Wieckowski, Williams, Yamada, 
            John A. P�rez
          NO VOTE RECORDED:  Cedillo, Davis, Fuentes, Gorell, 
            Halderman, Smyth

          JJA:do  6/14/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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