BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2388
                                                                  Page  1

          Date of Hearing:   May 2, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    AB 2388 (Beall) - As Amended:  March 29, 2012 

          Policy Committee:                              Business and 
          Professions  Vote:                            9-0
                         Local Government                     8-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              

           SUMMARY  

          This bill increases the Santa Clara County Open Space 
          Authority's thresholds for determining the method of letting 
          contracts for supplies, equipment or materials.  Specifically, 
          this bill: 

          1)Increases the authority's expenditure thresholds for 
            determining how contracts for supplies, equipment or materials 
            are put to bid, as follows:

             a)   From $10,000 to $25,000, before the contract must be put 
               out to bid and let to the lowest responsible bidder.

             b)   From $50,000 to $75,000, to allow contracts less than 
               this amount to be let by informal bidding procedures.

             c)   From $50,000 to $75,000, before contracts exceeding this 
               amount are required to be let by formal bidding procedures.

          2)Exempts service contracts let out by the authority from 
            bidding requirements. 

           FISCAL EFFECT  

          Negligible fiscal impact to the state.

           COMMENTS  

           1)Purpose of this bill  .  According to the author, this bill 
            raises the threshold for requiring bidding and board approval. 








                                                                  AB 2388
                                                                  Page  2

             The author notes the threshold was enacted 20 years ago, and 
            no cost-of-living adjustment was included.  The author argues 
            the threshold has made it more difficult for the authority to 
            let contracts for modest projects of a minor nature without 
            board approval and following bidding procedures and this 
            hampers the ability of the authority to efficiently perform 
            ministerial and maintenance tasks.

           2)Support  .  According to the authority, the sponsor, AB 2388, 
            would raise bidding thresholds consistent with other open 
            space districts in the Bay Area.  The authority argues this 
            bill will ensure that the authority is able to administer its 
            routine services, maintenance and small projects in a more 
            cost-effective and efficient manner because it will have the 
            needed flexibility to choose consultants for services that 
            best meet the needs of the agency and the public. 

           Analysis Prepared by  :    Roger Dunstan / APPR. / (916) 319-2081