BILL ANALYSIS �
AB 2388
Page 1
Date of Hearing: April 18, 2012
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Cameron Smyth, Chair
AB 2388 (Beall) - As Amended: March 29, 2012
SUBJECT : Santa Clara County Open Space Authority: authorization
to contract.
SUMMARY : Increases, for the Santa Clara County Open Space
Authority (Authority), the thresholds for specified bidding
requirements, and makes other changes to the Authority's
enabling act. Specifically, this bill :
1)Modifies contracting requirements for the Authority, as
follows:
a) For a contract for any supplies, equipment, or
materials:
i) Increases the threshold from $10,000 to $25,000, for
a contract that exceeds this amount that is required to
be let to the lowest responsible bidder;
ii) Increases the threshold from $50,000 to $75,000, for
a contract that is this amount or less that may be let by
informal bidding procedures;
iii) Increases the threshold from $50,000 to $75,000, for
a contract that exceeds this amount that is required to
be let by formal bidding procedures.
b) Deletes provisions in the Authority's enabling act that
require the Authority to use existing bidding requirements
for contracts related to services.
c) Exempts the above thresholds in 1a) for contracts for
services including planning and other consulting services.
2)Finds and declares that a special statute is necessary because
of the unique circumstances applicable only to the Authority.
EXISTING LAW :
1)Requires the Authority, when a contract for any services,
AB 2388
Page 2
supplies, equipment or materials, except for legal or
appraisal services, or other services as specified, exceeds
$10,000, to be contracted for and let to the lowest
responsible bidder, allows contracts of $50,000 or less to be
let by informal bidding procedures, and requires contracts of
more than $50,000 to be let by formal bidding procedures.
2)Exempts legal or appraisal services, and contracts for
services authorized to be procured for public work and public
purchases, as specified, from bidding requirements for the
Authority.
FISCAL EFFECT : Unknown. This bill is keyed fiscal.
COMMENTS :
1)The Authority was established by SB 2028 (Mello), Chapter 822,
Statutes of 1992.
SB 2028 specified the duties, powers, and function of the
Authority relating to the acquisition, improvement,
maintenance and preservation of open-space lands. That bill
allowed the Authority to contract for property improvement,
supplies, and services and allowed contracts less than $10,000
to be let without bids; contracts between $10,000 and $50,000
were required to be let to the lowest bidder subsequent to an
information bidding procedure; and, contracts over $50,000
require formal competitive bids.
2)This bill, sponsored by the Authority, seeks to raise the
threshold for requiring bidding and board approval of the
lowest responsible bidder from $10,000 to $25,000. According
to the author and sponsor, the Authority's enabling act was
enacted 20 years ago, and at that time, no
cost-of-living-adjustment (COLA) was inserted into that
particular section. The sponsor notes that that threshold has
made it more difficult for the Authority to let contracts for
discreet projects of a minor nature without Board approval,
and this hampers the ability of the Authority and the General
Manager to efficiently perform ministerial and maintenance
tasks.
The bill also makes changes to the nature of contracts and the
applicability to the bidding requirement thresholds. Current
AB 2388
Page 3
law already exempts contracting requirements for the Authority
for legal or appraisal services, or services authorized to be
procured for public work and public purchases, as specified.
This bill additionally exempts all contracts for services,
"including, but not limited to planning, consulting, legal or
appraisal services, or to contracts for services authorized to
be procured for �public work and public purchases]". The net
effect is that the bill allows a wider range of services to be
exempted from bidding requirements.
According to the author, "having the Authority subject to the
lowest responsible bidder requirements for services, such as
planning or training, affects the ability of the Authority to
be more responsive to public needs." For instance, the
Authority is about to embark on strategic planning, but under
a strict reading of existing law, the Authority would have to
choose a strategic planning consultant that provides the
service for the lowest price, which the Authority believes is
not necessarily in the public interest. The author and
sponsor note that other open space agencies are not subject to
lowest responsible bidding requirements for services
generally.
The language in the bill that exempts services from the
bidding requirements specifies that the section "does not
apply to contracts for services, including but not limited
to ?."
The Committee may wish to consider whether this language is
too broad, and ask the author or sponsor if they anticipate
any other types of services that this section may apply to.
Existing law for the Authority specifically references what
types of services (in this case legal or appraisal services
and public work and public purchases) are exempt from bidding
requirements.
3)The author notes that similar open space agencies throughout
the state have for many years utilized the thresholds that are
contained in this bill, including East Bay Regional Park
District, Midpeninsula Regional Open Space District, and
Sonoma County Agricultural and Open Space District.
4)Support arguments : Supporters believe that this bill will
AB 2388
Page 4
help the Authority perform its functions in a far more
efficient manner, not only saving money, but ensuring that the
Authority is more responsive to public needs.
Opposition arguments : The Committee may wish to consider
whether language in the bill exempting services from bidding
requirements is too broad and should be narrowed.
REGISTERED SUPPORT / OPPOSITION :
Support
Santa Clara County Open Space Authority �SPONSOR]
East Bay Regional Park District
Marin County Parks
Midpeninsula Regional Open Space District
Peninsula Open Space Trust
Santa Clara County Board of Supervisors
Opposition
None on file
Analysis Prepared by : Debbie Michel / L. GOV. / (916)
319-3958