Existing law authorizes the general manager of any park or open-space district, with district board approval, to bind the district, in accordance with board policy, and without advertising, for the payment of amounts not exceeding $25,000 for supplies, materials, labor, or other valuable consideration for any purpose.

This bill would authorize the general managers of the East Bay Regional Park District and the Midpeninsula Regional Open Space District to bind those districts, with district board approval and in accordance with board policy, for the payment of supplies, materials, labor, or other valuable consideration for any purpose, in amounts not exceeding $50,000.

This bill would make legislative findings and declarations as to the necessity of a special statute for the East Bay Regional Park District and the Midpeninsula Regional Open Space District.

Existing law authorizes the general manager of any park or open-space district, with district board approval, to bind the district, in accordance with board policy, and without advertising, for the payment of amounts not exceeding $25,000 for supplies, materials, labor, or other valuable consideration for any purpose.

This bill would authorize the general managers of the East Bay Regional Park District and the Midpeninsula Regional Open Space District to bind those districts, with district board approval and in accordance with board policy, for the payment of supplies, materials, labor, or other valuable consideration for any purpose, in amounts not exceeding $50,000.

This bill would make legislative findings and declarations as to the necessity of a special statute for the East Bay Regional Park District and the Midpeninsula Regional Open Space District.

Existing law authorizes the general manager of any park or open-space district, with district board approval, to bind the district, in accordance with board policy, and without advertising, for the payment of amounts not exceeding $25,000 for supplies, materials, labor, or other valuable consideration for any purpose.

This bill would authorize the general managers of the East Bay Regional Park District and the Midpeninsula Regional Open Space District to bind those districts, with district board approval and in accordance with board policy, for the payment of supplies, materials, labor, or other valuable consideration for any purpose, in amounts not exceeding $50,000.

This bill would make legislative findings and declarations as to the necessity of a special statute for the East Bay Regional Park District and the Midpeninsula Regional Open Space District.

 THIRD READING  

Bill No: AB 495

Author: Gordon (D)

Introduced: 2/23/15

Vote: 21

SENATE GOVERNANCE & FIN. COMMITTEE: 7-0, 6/10/15

AYES: Hertzberg, Nguyen, Beall, Hernandez, Lara, Moorlach, Pavley

ASSEMBLY FLOOR: 79-0, 4/16/15 - See last page for vote

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

SOURCE: Author

DIGEST: This bill increases, from $25,000 to $50,000, the maximum value of contracts which two regional park and open space districts may enter into without using a formal bid process.

ANALYSIS:

Existing law:

1. Requires regional park and open space districts to advertise contracts for supplies, materials, labor, and construction and award them to the lowest responsible bidder.

2. Allows, with the board of directors’ approval, a district’s general manager to award smaller jobs without advertising and without written contracts and requires the manager to report this spending at the board’s next regular meeting.

3. Allows regional park and open space districts can spend up to $25,000 for non-construction supplies, materials, and labor, and up to $25,000 on new construction projects without going through a formal bidding process (AB 745, Levine, Chapter 42, Statutes of 2014).

This bill:

1. Allows the general manager of the East Bay Regional Park District (EBRPD) and the general manager of the Midpeninsula Regional Open Space District (MROSD), with the approval of the district’s board, to bind the district, in accordance with board policy, and without advertising, for the payment of supplies, materials, labor, or other valuable consideration for any purpose, including new construction of a building, structure, or improvement, in amounts not exceeding $50,000.

2. Requires that all expenditures must be reported to the board of directors at its next regular meeting.

Background

A $25,000 threshold for construction contracts has applied to all regional park and open space districts since 1983 (AB 746, Campbell, Chapter 48, Statutes of 1983). The bid threshold for non-construction contracts was increased from $10,000 to $25,000 for EBRPD in 1999 (AB 584, Aroner, Chapter 135, Statutes of 1999) and for MROSD in 2002 (AB 953, Simitian, Chapter 23, Statutes of 2002).

The EBRPD is a system of parklands and trails in Alameda and Contra Costa counties. The system comprises 119,000 acres in 65 parks, including over 1,250 miles of trails. The EBRPD acquires, manages, and preserves natural and cultural resources and is one of the largest park districts in the country.

The MROSD has permanently preserved nearly 62,000 acres of mountainous, foothill, and bay land open space, creating 26 open space preserves (24 of which are open to the public). The MROSD covers an area of 550 square miles and includes 17 cities, covering parts of Santa Clara County, San Mateo County, and a small portion of Santa Cruz County. In June 2014, more than 2/3 of the district’s voters approved a $300 million general obligation bond measure. Proceeds from bonds, which will be sold in a series over approximately the next 20-30 years, will be used to protect natural open space lands, open preserves or areas of preserves that are currently closed, construct public access improvements such as new trails and staging areas, and restore and enhance open space land, which includes forests, streams, watersheds, and coastal ranch areas.

The formal bid process for public contracts can be time consuming and costly. Because inflation has eroded the districts’ buying power since their $25,000 bid thresholds were enacted, EBRPD and MROSD must go through the effort and expense of seeking bids for relatively low-value contracts. EBRPD and MROSD officials want the Legislature to raise the dollar threshold at which they must seek formal bids for their construction, maintenance, and service contracts.

Comments

Purpose of the bill. The EBRPD reports that in 2014, the district went through a formal bidding process to award 75 contracts with a value that fell in the $25,000 to $50,0000 range. At an average administrative cost of $4,500 per contract, these contracts cost the district nearly $340,000. Similarly, MROSD anticipates that, as a result of expenditures on projects approved as part of its recent general obligation bond measure, the district will be entering into hundreds of contracts with values that fall in the $25,000 to $50,000 range. Avoiding a formal bid process for contracts worth less than $50,000 will allow EBRPD and MROSD to get many projects completed more quickly and reduce staff time and administrative costs associated with formal bidding. The savings that the districts will realize as a result of the higher bid threshold, AB 495 will allow the districts to devote more resources towards their core mission of preserving open space lands, protecting natural environments, and providing public access to nature preserves, trails, and other amenities.

Accountability and efficiency. State law regulating local contracting attempts to balance the goals of accountability and efficiency. Accountability asks public officials to spend the public’s money in full view, inviting bids and awarding contracts to the lowest possible bidder is an effective method of ensuring transparency for the expenditures of public funds. While increasing the limits on the amount for which districts may contract without the formal bid process, allows for greater efficiency in local government spending, it may also result in a loss of accountability and transparency on the use of public funds.

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

SUPPORT: (Verified 6/16/15)

East Bay Regional Park District

Midpeninsula Regional Open Space District

OPPOSITION: (Verified 6/16/15)

Construction Industry Force Account Council

ASSEMBLY FLOOR: 79-0, 4/16/15

AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O’Donnell, Olsen, Patterson, Perea, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins

NO VOTE RECORDED: Quirk

Prepared by: Brian Weinberger / GOV. & F. / (916) 651-4119

6/17/15 13:49:29

**** END ****

SENATE COMMITTEE ON GOVERNANCE AND FINANCE

Senator Robert M. Hertzberg, Chair

2015 - 2016 Regular

REGIONAL PARK AND OPEN SPACE DISTRICTS’ POWERS

Increases, from $25,000 to $50,000, the maximum value of contracts which two regional park and open space districts may enter into without using a formal bid process.

Background and Existing Law

Regional park and open space districts must 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 advertising and without written contracts. The manager must report this spending at the board's next regular meeting.

When the Legislature created regional park districts in 1933, the threshold for advertising bids was $500. Currently, Regional Park and open space districts can spend up to $25,000 for non-construction supplies, materials, and labor, and up to $25,000 on new construction projects without going through a formal bidding process (AB 745, Levine, Chapter 42, Statutes of 2014).

The $25,000 threshold for construction contracts has applied to all regional park and open space districts since 1983 (AB 746, Campbell, Chapter 48, Statutes of 1983). The bid threshold for non-construction contracts was increased from $10,000 to $25,000 for the East Bay Regional Park District (EBRPD) in 1999 (AB 584, Aroner, Chapter 135, Statutes of 1999) and for the Midpeninsula Regional Open Space District (MROSD) in 2002 (AB 953, Simitian, Chapter 23, Statutes of 2002).

The EBRPD is a system of parklands and trails in Alameda and Contra Costa counties. The system comprises 119,000 acres in 65 parks, including over 1,250 miles of trails. The EBRPD acquires, manages, and preserves natural and cultural resources and is one of the largest park districts in the country.

The MROSD has permanently preserved nearly 62,000 acres of mountainous, foothill, and bay land open space, creating 26 open space preserves (24 of which are open to the public). The MROSD covers an area of 550 square miles and includes 17 cities, covering parts of Santa Clara County, San Mateo County, and a small portion of Santa Cruz County. In June, 2014, more than 2/3 of the district’s voters approved a $300 million general obligation bond measure. Proceeds from bonds, which will be sold in a series over approximately the next 20-30 years, will be used to protect natural open space lands, open preserves or areas of preserves that are currently closed, construct public access improvements such as new trails and staging areas, and restore and enhance open space land, which includes forests, streams, watersheds, and coastal ranch areas.

The formal bid process for public contracts can be time consuming and costly. Because inflation has eroded the districts’ buying power since their $25,000 bid thresholds were enacted, EBRPD and MROSD must go through the effort and expense of seeking bids for relatively low-value contracts. EBRPD and MROSD officials want the Legislature to raise the dollar threshold at which they must seek formal bids for their construction, maintenance, and service contracts.

Proposed Law

Assembly Bill 495 allows the general manager of the EBRPD and the general manager of the MROSD, with the approval of the district’s board, to bind the district, in accordance with board policy, and without advertising, for the payment of supplies, materials, labor, or other valuable consideration for any purpose, including new construction of a building, structure, or improvement, in amounts not exceeding $50,000.

AB 495 requires that all expenditures must be reported to the board of directors at its next regular meeting.

State Revenue Impact

No estimate.

Comments

1. Purpose of the bill. The East Bay Regional Park District reports that in 2014, the District went through a formal bidding process to award 75 contracts with a value that fell in the $25,000 to $50,0000 range. At an average administrative cost of $4,500 per contract, these contracts cost the district nearly $340,000. Similarly, MROSD anticipates that, as a result of expenditures on projects approved as part of its recent general obligation bond measure, the district will be entering into hundreds of contracts with values that fall in the $25,000 to $50,000 range. Avoiding a formal bid process for contracts worth less than $50,000 will allow EBRPD and MROSD to get many projects completed more quickly and reduce staff time and administrative costs associated with formal bidding. The savings that the districts will realize as a result of the higher bid threshold, in AB 495 will allow the districts to devote more resources towards their core mission of preserving open space lands, protecting natural environments, and providing public access to nature preserves, trails, and other amenities.

2. Accountability and efficiency. State law regulating local contracting attempts to balance the goals of accountability and efficiency. Accountability asks public officials to spend the public’s money in full view, inviting bids and awarding contracts to the lowest possible bidder is an effective method of ensuring transparency for the expenditures of public funds. While increasing the limits on the amount for which districts may contract without the formal bid process, allows for greater efficiency in local government spending, it may also result in a loss of accountability and transparency on the use of public funds.

3. Next in line? Just last year, AB 745 (Levine) raised the non-construction contract bid thresholds for several park and open space districts, bringing their thresholds up to the same $25,000 level that state law had previously granted only to a few districts. The Committee may wish to consider whether, by raising the bid thresholds for only two Regional Park and open space districts, AB 495 will invite legislative proposals to raise the threshold for the remaining districts sometime in the near future. As an alternative to the Legislature’s periodically adjusting and equalizing various districts’ bid thresholds, the Committee may wish to consider amending AB 495 to require that park and open space districts bid thresholds should be periodically adjusted to reflect increases in construction costs as measured by a specified inflation index. Using the Consumer Price Index (CPI) to adjust for inflation, the $25,000 threshold for construction contracts that was enacted in 1983 would be the equivalent of a $59,000 threshold in 2015. The $25,000 thresholds for non-construction contracts enacted in 1999 and 2002 would be the equivalent of roughly $36,000 and $33,000 thresholds, respectively, in 2015. However, using a measure other than CPI, like the California Construction Cost Index, may be a more appropriate method to ensure that district’s bid thresholds are adjusted accurately to reflect increasing costs.

4. Special legislation. The California Constitution prohibits special legislation when a general law can apply (Article IV, §16). Assembly Bill 495 contains findings and declarations explaining the need for legislation that applies only to the East Bay Regional Park District and the Midpeninsula Open Space District.

Assembly Actions

Assembly Local Government Committee: 9-0

Assembly Floor: 79-0

Support and Opposition

(6/4/15)

Support: East Bay Regional Park District; Midpeninsula Regional Open Space District.

Opposition: Unknown.

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 495

Author:(Gordon)

As Introduced Ver:February 23, 2015

Majority vote

SUMMARY: Increases, from $25,000 to $50,000, the amount for which the East Bay Regional Park District (EBRPD) or the Midpeninsula Regional Open Space District (MROSD) may enter into contracts without a formal bid process. Specifically, this bill:

1. Authorizes the general manager of the EBRPD or the MROSD, with the approval of their respective boards, to bind those districts, in accordance with board policy, and without advertising, for the payment for supplies, materials, labor, or other valuable consideration for any purpose, including the new construction of a building, structure, or improvement in amounts not exceeding $50,000.

2. Requires all expenditures authorized pursuant to 1), above, to be reported to the respective district's board of directors at its next regular meeting.

EXISTING LAW: Allows the general manager of a park and/or open space district, with the approval of the district's board, to bind the district, in accordance with board policy, and without advertising, for the payment for supplies, materials, labor, or other valuable consideration for any purpose other than new construction of a building, structure, or improvement in amounts not exceeding $25,000, and for the payment for supplies, materials, or labor or other valuable consideration for new construction of a building, structure, or improvement in amounts not exceeding $25,000.

FISCAL EFFECT: None

COMMENTS:

1. Bill Summary. This bill increases the dollar amount for which the EBRPD and the MROSD may contract, without a public bid, for supplies, materials, labor, or other valuable consideration for any purpose, be it for new construction or for non-construction/maintenance work. This bill is sponsored by the EBRPD and the MROSD.

2. Author's Statement. According to the author, "AB 745 (Levine), Chapter 42, Statutes of 2014, raised the cap for non-bid maintenance contracts for most Regional Parks and Open Space Districts from $10,000 to $25,000 to reflect inflation and the increased costs of minor district maintenance activities. However, the two largest districts did not similarly have their non-bid limits, which were already at $25,000, increased proportionally. This legislation would simply adjust these contract limits for the two districts from $25,000 to $50,000. Per MROSD, this increase in purchasing authority would save the District hundreds of hours of staff time and thousands of dollars each year. Savings that can dedicate more resources to opening preserves, trails, and other amenities to the public at a much faster pace."
   
   
   

3. Background:

East Bay Regional Park District. The EBRPD is a system of parklands and trails in Alameda and Contra Costa counties. The system comprises 119,000 acres in 65 parks, including over 1,250 miles of trails. The EBRPD acquires, manages, and preserves natural and cultural resources and is one of the largest park districts in the country. The EBRPD operating budget for 2015 is $173 million.

According to the EBRPD Web site, "Today, because of continued urbanization, the need for a regional system of publicly owned open space areas, recreational facilities and trails is perhaps even greater than it was when the District was originally established. And, as in 1934, the times are uncertain. Like other public agencies, the District continually faces the potential loss of essential revenues, while the demand for recreational areas, facilities, programs and services continues to grow. Economic uncertainty, population growth, the increased ethnic and cultural diversity of the East Bay, improved scientific knowledge in natural and cultural resource management, and land use changes that could create new Regional Parks in urban areas are among the key challenges that will shape the East Bay Regional Park District of the future."

Midpeninsula Regional Open Space District. The MROSD purchases, protects, and restores lands forming a regional open space greenbelt; preserves unspoiled wilderness, wildlife habitat, watershed, viewshed, and fragile ecosystems; and, provides opportunities for low-intensity recreation and environmental education. The MROSD works to form a continuous greenbelt of permanently preserved open space by linking its lands with other public parklands. The MROSD also participates in cooperative efforts such as the Bay Trail, Ridge Trail, and Skyline-to-the-Sea Trail, which are regional trail systems in the Bay Area that include MROSD lands.

The MROSD has permanently preserved nearly 62,000 acres of mountainous, foothill, and bayland open space, creating 26 open space preserves (24 of which are open to the public). The MROSD covers an area of 550 square miles and includes 17 cities (Atherton, Cupertino, East Palo Alto, Half Moon Bay, Los Altos, Los Altos Hills, Los Gatos, Menlo Park, Monte Sereno, Mountain View, Palo Alto, Portola Valley, Redwood City, San Carlos, Saratoga, Sunnyvale, and Woodside).

4. Park and Open Space District Bid Requirements. Park and/or open space districts generally must comply with state law requiring them to publicly bid new construction and maintenance work that will exceed specified costs. This is consistent with state law for all local agencies, based on policy that seeks to balance open and transparent use of public funds with efficient and cost-effective government operations.

Prior law sets bid limits for these districts at $10,000 for non-construction work, and $25,000 for construction contracts. However, the Legislature allowed exceptions to these thresholds for three districts: the EBRPD, MROSD, and the Sonoma County Agricultural Preservation and Open Space District. These districts were allowed to contract for any purpose for up to $25,000 without bidding. These exceptions were based on a recognition that public bidding may not be cost-effective in all cases, particularly when the costs of time delays and resources expended on contract preparation and bidding are disproportionate to a contract's scope and total cost.

Last year, AB 745, raised the limit to $25,000 for all park and open space districts for all purposes, both construction and non-construction, resulting in a uniform statute for all of these districts.

This bill seeks to once again create an exception for the EBRPD and the MROSD by raising their bid threshold for both construction and non-construction contracts to $50,000.

5. Policy Considerations. The Legislature may wish to consider the following:

   1. Keeping Things Consistent. As noted above, just last year the Legislature raised the non-bid limit to $25,000 for all park and open space districts, resulting in a uniform statute for all of the state's eight park/open space districts. The Legislature may wish to consider whether to maintain this uniformity or whether to, once again, allow a higher threshold for two of these districts.

   2. Adjusting for Inflation. According to the United States Department of Labor Bureau of Labor Statistics' Consumer Price Index (CPI) Inflation Calculator, $25,000 in 1999 has the same buying power as about $35,000 today. Proponents of this bill are requesting an increase to $50,000, well above the change in dollar value due to inflation since 1999, when the $25,000 threshold was set for the EBRPD (MROSD's $25,000 was set in 2002). The Legislature may wish to consider whether an increase to $50,000 is necessary to adjust for inflation, or if a smaller increase would be adequate.

   3. Future Requests. The Legislature has now reviewed and approved several requests to raise the non-bid threshold for specified park or open space districts, based on inflationary pressures. The Legislature may wish to consider whether to allow an inflationary adjustment in the statutes governing these thresholds.

6. Previous Legislation. AB 745 raised the non-bid spending cap to $25,000 for all park and open space districts for all purposes, both construction and non-construction. AB 953 (Simitian), Chapter 23, Statutes of 2002, increased the non-bid spending cap for non-construction items to $25,000 for the Midpeninsula Regional Open Space District and the Sonoma County Agricultural Preservation and Open Space District. AB 584 (Aroner), Chapter 135, Statutes of 1999, raised the non-bid spending cap for non-construction items to $25,000 for the East Bay Regional Park District.

7. Arguments in Support. The EBRPD and the MROSD, sponsors of this bill, state, "(The) EBRPD and the MROSD serve a combined 3.3 million constituents and are among the largest special park districts in the nation. The $25,000 purchasing authority limit has not been increased since 2002, while inflation and project costs have increased substantially. Authorizing this increase would allow both districts to alleviate redundant report writing and process review time, saving considerable taxpayer dollars. Improving administrative efficiencies (is) important to fulfilling our organizations' missions related to protecting natural resources and offering enjoyable outdoor healthy recreation opportunities. Changes to the authority limit will make both districts more effective for our common park and open space objectives."

8. Arguments in Opposition. There is no opposition on file.

Analysis Prepared by: Angela Mapp / L. GOV. / (916) 319-3958 FN: 0000120

Date of Hearing: April 8, 2015

ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT

Brian Maienschein, Chair

ABPCA Bill Id:AB 495

Author:(Gordon) – As Introduced Ver:February 23, 2015

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

SUMMARY: Increases, from $25,000 to $50,000, the amount for which the East Bay Regional Park District or the Midpeninsula Regional Open Space District may enter into contracts without a formal bid process. Specifically, this bill:

1. Authorizes the general manager of the East Bay Regional Park District (EBRPD) or the Midpeninsula Regional Open Space District (MROSD), with the approval of their respective boards, to bind those districts, in accordance with board policy, and without advertising, for the payment for supplies, materials, labor, or other valuable consideration for any purpose, including the new construction of a building, structure, or improvement in amounts not exceeding $50,000.

2. Requires all expenditures authorized pursuant to 1), above, to be reported to the respective district's board of directors at its next regular meeting.

EXISTING LAW allows the general manager of a park and/or open space district, with the approval of the district's board, to bind the district, in accordance with board policy, and without advertising, for the payment for supplies, materials, labor, or other valuable consideration for any purpose other than new construction of a building, structure, or improvement in amounts not exceeding $25,000, and for the payment for supplies, materials, or labor or other valuable consideration for new construction of a building, structure, or improvement in amounts not exceeding $25,000.

FISCAL EFFECT: None

COMMENTS:

1. Bill Summary. This bill increases the dollar amount for which the EBRPD and the MROSD may contract, without a public bid, for supplies, materials, labor, or other valuable consideration for any purpose, be it for new construction or for non-construction/ maintenance work. This bill is sponsored by the EBRPD and the MROSD.

2. Author's Statement. According to the author, "AB 745 (Levine, 2014, CHP-42) raised the cap for non-bid maintenance contracts for most Regional Parks and Open Space Districts from $10,000 to $25,000 to reflect inflation and the increased costs of minor district maintenance activities. However, the two largest districts did not similarly have their non-bid limits, which were already at $25,000, increased proportionally. This legislation would simply adjust these contract limits for the two districts from $25,000 to $50,000. Per MROSD, this increase in purchasing authority would save the District hundreds of hours of staff time and thousands of dollars each year. Savings that can dedicate more resources to opening preserves, trails, and other amenities to the public at a much faster pace."

3. Background.

East Bay Regional Park District. The EBRPD is a system of parklands and trails in Alameda and Contra Costa counties. The system comprises 119,000 acres in 65 parks, including over 1,250 miles of trails. The EBRPD acquires, manages, and preserves natural and cultural resources and is one of the largest park districts in the country. The EBRPD operating budget for 2015 is $173 million.

According to the EBRPD website, "Today, because of continued urbanization, the need for a regional system of publicly owned open space areas, recreational facilities and trails is perhaps even greater than it was when the District was originally established. And, as in 1934, the times are uncertain. Like other public agencies, the District continually faces the potential loss of essential revenues, while the demand for recreational areas, facilities, programs and services continues to grow. Economic uncertainty, population growth, the increased ethnic and cultural diversity of the East Bay, improved scientific knowledge in natural and cultural resource management, and land use changes that could create new Regional Parks in urban areas are among the key challenges that will shape the East Bay Regional Park District of the future."

Midpeninsula Regional Open Space District. The MROSD purchases, protects, and restores lands forming a regional open space greenbelt; preserves unspoiled wilderness, wildlife habitat, watershed, viewshed, and fragile ecosystems; and, provides opportunities for low-intensity recreation and environmental education. The MROSD works to form a continuous greenbelt of permanently preserved open space by linking its lands with other public parklands. The MROSD also participates in cooperative efforts such as the Bay Trail, Ridge Trail, and Skyline-to-the-Sea Trail, which are regional trail systems in the Bay Area that include MROSD lands.

The MROSD has permanently preserved nearly 62,000 acres of mountainous, foothill, and bayland open space, creating 26 open space preserves (24 of which are open to the public). The MROSD covers an area of 550 square miles and includes 17 cities (Atherton, Cupertino, East Palo Alto, Half Moon Bay, Los Altos, Los Altos Hills, Los Gatos, Menlo Park, Monte Sereno, Mountain View, Palo Alto, Portola Valley, Redwood City, San Carlos, Saratoga, Sunnyvale, and Woodside).

4. Park and Open Space District Bid Requirements. Park and/or open space districts generally must comply with state law requiring them to publicly bid new construction and maintenance work that will exceed specified costs. This is consistent with state law for all local agencies, based on policy that seeks to balance open and transparent use of public funds with efficient and cost-effective government operations.

Prior law sets bid limits for these districts at $10,000 for non-construction work, and $25,000 for construction contracts. However, the Legislature allowed exceptions to these thresholds for three districts: the EBRPD, MROSD, and the Sonoma County Agricultural Preservation and Open Space District. These districts were allowed to contract for any purpose for up to $25,000 without bidding. These exceptions were based on a recognition that public bidding may not be cost-effective in all cases, particularly when the costs of time delays and resources expended on contract preparation and bidding are disproportionate to a contract's scope and total cost.

Last year, AB 745 (Levine), Chapter 42, Statutes of 2014, raised the limit to $25,000 for all park and open space districts for all purposes, both construction and non-construction, resulting in a uniform statute for all of these districts.

This bill seeks to once again create an exception for the EBRPD and the MROSD by raising their bid threshold for both construction and non-construction contracts to $50,000.

5. Policy Considerations. The Committee may wish to consider the following:

   1. Keeping Things Consistent. As noted above, just last year the Legislature raised the non-bid limit to $25,000 for all park and open space districts, resulting in a uniform statute for all of the state's eight park/open space districts. The Committee may wish to consider whether to maintain this uniformity or whether to, once again, allow a higher threshold for two of these districts.

   2. Adjusting for Inflation. According to the United States Department of Labor Bureau of Labor Statistics' Consumer Price Index (CPI) Inflation Calculator, $25,000 in 1999 has the same buying power as about $35,000 today. Proponents of this bill are requesting an increase to $50,000, well above the change in dollar value due to inflation since 1999, when the $25,000 threshold was set for the EBRPD (MROSD's $25,000 was set in 2002). The Committee may wish to consider whether an increase to $50,000 is necessary to adjust for inflation, or if a smaller increase would be adequate.

   3. Future Requests. The Legislature has now reviewed and approved several requests to raise the non-bid threshold for specified park or open space districts, based on inflationary pressures. The Committee may wish to consider whether to allow an inflationary adjustment in the statutes governing these thresholds.

6. Previous Legislation. AB 745 (Levine), Chapter 42, Statutes of 2014, raised the non-bid spending cap to $25,000 for all park and open space districts for all purposes, both construction and non-construction.

AB 953 (Simitian), Chapter 23, Statutes of 2002, increased the non-bid spending cap for non-construction items to $25,000 for the Midpeninsula Regional Open Space District and the Sonoma County Agricultural Preservation and Open Space District.

AB 584 (Aroner), Chapter 135, Statutes of 1999, raised the non-bid spending cap for non-construction items to $25,000 for the East Bay Regional Park District.

7. Arguments in Support. The EBRPD and the MROSD, sponsors of this bill, state, "(The) EBRPD and the MROSD serve a combined 3.3 million constituents and are among the largest special park districts in the nation. The $25,000 purchasing authority limit has not been increased since 2002, while inflation and project costs have increased substantially. Authorizing this increase would allow both districts to alleviate redundant report writing and process review time, saving considerable taxpayer dollars. Improving administrative efficiencies (is) important to fulfilling our organizations' missions related to protecting natural resources and offering enjoyable outdoor healthy recreation opportunities. Changes to the authority limit will make both districts more effective for our common park and open space objectives."

8. Arguments in Opposition. None on file.

REGISTERED SUPPORT / OPPOSITION:

Support

East Bay Regional Park District [CO-SPONSOR]

Midpeninsula Regional Open Space District [CO-SPONSOR]

Opposition

None on file

Analysis Prepared by: Angela Mapp / L. GOV. / (916) 319-3958