BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  AB 745
          Author:   Levine (D)
          Amended:  5/20/14 in Senate
          Vote:     21

           
           SENATE GOVERNANCE & FINANCE COMMITTEE  :  6-0, 5/14/14
          AYES:  Wolk, Beall, DeSaulnier, Hernandez, Liu, Walters
          NO VOTE RECORDED:  Knight
           
          ASSEMBLY FLOOR  :  75-0, 1/21/14 (Consent) - See last page for  
            vote


           SUBJECT  :    Regional park and open-space districts:  general  
          manager:  powers

           SOURCE  :     County of Marin


           DIGEST  :    This bill increases from $10,000 to $25,000 the  
          maximum value of non-construction contracts which any park or  
          open space district may enter into without a formal bid process.

           ANALYSIS  :    State law requires regional park and open space  
          districts to advertise contracts for supplies, materials, labor,  
          and construction and award them to the lowest responsible  
          bidder.  With the board of directors' approval, a district's  
          general manager can award smaller jobs without written contracts  
          and a formal bidding process.  Specifically, a district's  
          general manager can enter contracts for up to $10,000 of  
          maintenance or services, and up to $25,000 for new construction  
          projects, without the formal bid process.
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          This bill authorizes the general manager of any park or open  
          space district with the approval of their respective boards, in  
          accordance with board policy, for the payment up to $25,000 of  
          non-construction supplies, materials, labor, or other valuable  
          consideration without advertising for bids.  The general  
          managers must report all expenditures to the board of directors  
          at the next regular meeting.

           Background
           
          Several districts have asked the Legislature to raise the limit  
          on their maintenance and service contracts.  The Legislature has  
          allowed exemptions to these thresholds for three districts:  the  
          East Bay Regional Park District and the Midpeninsula Regional  
          Open Space District (AB 584, Aroner, Chapter 135, Statutes of  
          1999), and the Sonoma County Agricultural Preservation and Open  
          Space District 
          (AB 953, Simitian, Chapter 23, Statutes of 2002).  These  
          districts' general managers can enter into maintenance or  
          service contracts worth up to $25,000 without public bidding. 

          Marin County Open Space District and Napa County Regional Park  
          and Open Space District want to be added to the list of regional  
          park and open space districts that can enter into contracts for  
          up to $25,000 for maintenance and services, or non-construction  
          purposes, without the formal bid process. 

          The formal bidding process can be time consuming and costly due  
          to contract preparation and the need for additional staff and  
          resources.  Increasing the amount that districts can spend on  
          maintenance and service projects without a formal bid process  
          can significantly reduce the time required for project  
          implementation and can save thousands of dollars annually. The  
          Legislature adopted the $10,000 limit more than 30 years ago and  
          the amount has not been adjusted to inflation.  This bill  
          reflects current economic conditions and allows the districts to  
          carry out their mission in a more cost-effective and efficient  
          manner.

          There are eight open space districts in California governed by  
          the California Public Resource Code that establish the limits on  
          spending without a formal bid process.  Three of those districts  
          have the authority to spend $25,000 for non-construction  







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          purposes without the formal bid process.  

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

           SUPPORT  :   (Verified  5/21/14)

          County of Marin (source)
          Napa County Regional Park and Open Space District


           ARGUMENTS IN SUPPORT  :    This bill's sponsor states the current  
          $10,000 limit set forth in the California Public Resources Code  
          is over 30 years old and does not reflect cost increases that  
          have occurred since.  They also state the enactment of this bill  
          reduces the time required for project implementation, and save  
          the Open Space District and the County of Marin thousands of  
          dollars annually in the cost of staff time related to the  
          preparation and processing of contracts for Board of Directors  
          consideration.

           ASSEMBLY FLOOR  :  75-0, 1/21/14
          AYES:  Achadjian, Alejo, Allen, Atkins, Bigelow, Bloom,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  
            Calderon, Campos, Chau, Ch�vez, Chesbro, Conway, Cooley,  
            Dababneh, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,  
            Frazier, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell, Gray,  
            Hagman, Hall, Harkey, Roger Hern�ndez, Holden, Jones,  
            Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein,  
            Mansoor, Medina, Melendez, Morrell, Mullin, Muratsuchi,  
            Nazarian, Nestande, Olsen, Pan, Patterson, Perea, V. Manuel  
            P�rez, Quirk, Quirk-Silva, Rendon, Rodriguez, Salas, Skinner,  
            Stone, Ting, Wagner, Waldron, Weber, Wieckowski, Wilk, Yamada,  
            John A. P�rez
          NO VOTE RECORDED:  Ammiano, Beth Gaines, Grove, Ridley-Thomas,  
            Williams


          AB:k  5/21/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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