Existing law generally 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 for supplies, materials, labor, or other valuable consideration for any purpose in amounts not exceeding $25,000. However, existing law grants that authority to the general managers of the East Bay Regional Park District and the Midpeninsula Regional Open Space District with respect to the payment of amounts not exceeding $50,000.

This bill would also grant that authority with respect to the payment of amounts not exceeding $50,000 to the general manager of the Sonoma County Agricultural Preservation and Open Space District.

This bill would make legislative findings and declarations as to the necessity of a special statute for the Sonoma County Agricultural Preservation and Open Space District.

Existing law generally 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 for supplies, materials, labor, or other valuable consideration for any purpose in amounts not exceeding $25,000. However, existing law grants that authority to the general managers of the East Bay Regional Park District and the Midpeninsula Regional Open Space District with respect to the payment of amounts not exceeding $50,000.

This bill would also grant that authority with respect to the payment of amounts not exceeding $50,000 to the general manager of the Sonoma County Agricultural Preservation and Open Space District.

This bill would make legislative findings and declarations as to the necessity of a special statute for the Sonoma County Agricultural Preservation and Open Space District.

Existing law, the California Ocean Protection Act, establishes the California Ocean Protection Council and prescribes the membership and functions and duties of the council with regard to the protection, conservation, and restoration of coastal waters and ocean resources.

This bill would make various nonsubstantive changes in provisions prescribing the functions and duties of the council.

SENATE THIRD READING

STR Bill Id:SB 1082

Author:(McGuire)

As Amended Ver:March 28, 2016

Majority vote

SENATE VOTE: 39-0

SUMMARY: Increases, from $25,000 to $50,000, the amount for which the Sonoma County Agricultural Preservation and Open Space District (SCAPOSD) may enter into contracts without a formal bid process for supplies, materials, labor, or other valuable consideration for any purpose. Specifically, this bill:

1. Allows, with the approval of the board of directors (board), the general manager of SCAPOSD 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 all expenditures authorized above to be reported to the board at its next regular meeting.
3. Finds and declares that a special law is necessary and that a general law cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique financial situation of the districts affected by this bill.

FISCAL EFFECT: None

COMMENTS:

1. Bill Summary. This bill increases, from $25,000 to $50,000, the amount for which SCAPOSD may enter into contracts without a formal bid process for supplies, materials, labor, or other valuable consideration for any purpose, including construction. This bill is sponsored by the author.
2. Author's Statement. According to the author, "Since 2002, the SCAPOSD has been designated as an open space district with a $25,000 threshold for entering into contracts without a formal bidding process… The Sonoma County Board of Supervisors recently passed a resolution to raise the threshold, from $25,000 to $50,000, for all departments under their jurisdiction for entering into contracts without a formal bidding process. The purpose of SB 1082 is to keep the SCAPOSD consistent with all other departments in Sonoma County. Furthermore, AB 745 [(Levine), Chapter 42, Statutes 2014] (Levine, 2014), recognized the impact of inflation and rising costs of doing business by raising the threshold for all parks and open space districts statewide from $10,000 to $25,000. However, the SCAPOSD did not receive a proportional raise. SB 1082 will not only create consistency across Sonoma County, but also save the County hundreds of hours of staff time and thousands of dollars each year. These resources will be spent on opening more trails, protecting vulnerable ecosystems, and preserving open spaces for parks and wildlife."
3. Background. SCAPOSD was created in 1990 to permanently protect the greenbelts, scenic viewsheds, farms and ranches and natural areas of Sonoma County. To date, SCAPOSD has acquired or protected 106,000 acres of farmland and open space. A quarter cent sales tax, authorized through 2031, supports the majority of SCAPOSD's roughly $36 million annual budget.

In 2015, SCAPOSD issued five non-construction contracts that cost between $25,000 and $50,000, and has or expects to issue another three contracts in this price range as of June 30, 2016. SCAPOSD cites an average administrative cost of $7,360 per contract for projects in this price range. SCAPOSD has been using the California Uniform Public Construction Cost Accounting Act for construction projects costing less than $45,000.

1. 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 East Bay Regional Park District (EBRPD), Midpeninsula Regional Open Space District (MROSD), and SCAPOSD. 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.

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. In 2015, AB 495 (Gordon), Chapter 149, Statutes of 2015, increased the limit to $50,000 for EBRPD and MROSD. This bill raises the bid threshold for SCAPOSD to match the authority of EBRPD and MROSD.

1. Arguments in Support. The Sonoma County Agricultural Preservation and Open Space District, in support, writes, "The current limit of $25,000 was established through legislation more than 30 years ago. Since then, inflation has significantly reduced the size and scope of projects this limit allows. With an average administrative cost of $7,360 per contract in the $25,000 to $50,000 range, the proportion of resources spent on administration is well beyond what is reasonable for these relatively small projects. In 2015 the District spent $44,160 on the administration of six projects. These funds are better spent on necessary improvements by the District."
2. Arguments in Opposition. None on file.

Analysis Prepared by: Angela Mapp / L. GOV. / (916) 319-3958 FN: 0003467

Date of Hearing: June 15, 2016

ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT

Susan Talamantes Eggman, Chair

SBPCA Bill Id:SB 1082

Author:(McGuire) – As Amended Ver:March 28, 2016

SENATE VOTE: 39-0

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

SUMMARY: Increases, from $25,000 to $50,000, the amount for which the Sonoma County Agricultural Preservation and Open Space District may enter into contracts without a formal bid process for supplies, materials, labor, or other valuable consideration for any purpose. Specifically, this bill:

1. Allows, with the approval of the board of directors (board), the general manager of the Sonoma County Agricultural Preservation and Open Space District (SCAPOSD) 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 all expenditures authorized above to be reported to the board at its next regular meeting.
3. Finds and declares that a special law is necessary and that a general law cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique financial situation of the districts affected by this bill.

EXISTING LAW:

1. Generally 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 for supplies, materials, labor, or other valuable consideration for any purpose in amounts not exceeding $25,000.
2. Allows, with the approval of the board, the general manager of the East Bay Regional Park District (EBRPD) and the general manager of the Midpeninsula Regional Open Space District (MROSD) to bind those districts, 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.
3. Requries all expenditures authorized above to be reported to the respective board at its next regular meeting.

FISCAL EFFECT: None

COMMENTS:

1. Bill Summary. This bill increases, from $25,000 to $50,000, the amount for which SCAPOSD may enter into contracts without a formal bid process for supplies, materials, labor, or other valuable consideration for any purpose, including construction. This bill is sponsored by the author.
2. Author's Statement. According to the author, "Under the authority of the Sonoma County Board of Supervisors, the Sonoma County Agricultural Preservation and Open Space District (SCAPOSD) is a local government agency that oversees projects that protect Sonoma County’s small town character and natural habitats. Since 2002, the SCAPOSD has been designated as an open space district with a $25,000 threshold for entering into contracts without a formal bidding process…The Sonoma County Board of Supervisors recently passed a resolution to raise the threshold, from $25,000 to $50,000, for all departments under their jurisdiction for entering into contracts without a formal bidding process. The purpose of SB 1082 is to keep the SCAPOSD consistent with all other departments in Sonoma County.

"Furthermore, AB 745 (Levine, 2014), recognized the impact of inflation and rising costs of doing business by raising the threshold for all parks and open space districts statewide from $10,000 to $25,000. However, the SCAPOSD did not receive a proportional raise. SB 1082 will not only create consistency across Sonoma County, but also save the County hundreds of hours of staff time and thousands of dollars each year. These resources will be spent on opening more trails, protecting vulnerable ecosystems, and preserving open spaces for parks and wildlife."

1. Background. SCAPOSD was created in 1990 to permanently protect the greenbelts, scenic viewsheds, farms and ranches and natural areas of Sonoma County. To date, SCAPOSD has acquired or protected 106,000 acres of farmland and open space. A quarter cent sales tax, authorized through 2031, supports the majority of SCAPOSD's roughly $36 million annual budget. The Sonoma County Board of Supervisors serves as the governing board of SCAPOSD. The district’s activities include acquisition, protection, and maintenance of open space and agricultural lands, conservation planning to identify high-priority lands for protection or acquisition, and administration of a grant program.

In 2015, SCAPOSD issued five non-construction contracts that cost between $25,000 and $50,000, and has or expects to issue another three contracts in this price range as of June 30, 2016. SCAPOSD cites an average administrative cost of $7,360 per contract for projects in this price range. SCAPOSD has been using the California Uniform Public Construction Cost Accounting Act for construction projects costing less than $45,000.

1. 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 SCAPOSD. 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.

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. In 2015, AB 495 (Gordon), Chapter 149, Statutes of 2015, increased the limit to $50,000 for EBRPD and MROSD. This bill raises the bid threshold for SCAPOSD to match the authority of EBRPD and MROSD.

1. Arguments in Support. The Sonoma County Agricultural Preservation and Open Space District, in support, writes, "The current limit of $25,000 was established through legislation more than 30 years ago. Since then, inflation has significantly reduced the size and scope of projects this limit allows. With an average administrative cost of $7,360 per contract in the $25,000 to $50,000 range, the proportion of resources spent on administration is well beyond what is reasonable for these relatively small projects. In 2015 the District spent $44,160 on the administration of six projects. These funds are better spent on necessary improvements by the District."
2. Arguments in Opposition. None on file.

REGISTERED SUPPORT / OPPOSITION:

Support

California Special Districts Association

County of Sonoma

Sonoma County Agricultural Preservation and Open Space District

Opposition

None on file

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

 THIRD READING  

Bill No: SB 1082

Author:

:

Vote:

SENATE GOVERNANCE & FIN. COMMITTEE: 6-0, 4/13/16

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

NO VOTE RECORDED: Nguyen

SUBJECT:

SOURCE: Sonoma County Agricultural Preservation and Open Space District

DIGEST: This bill increases, from $25,000 to $50,000, the maximum value of contracts which the Sonoma County Agricultural Preservation and Open Space District (SCAPOSD) 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).
4. Allows the general manager of the East Bay Regional Park District 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 (AB 495, Gordon, Chapter 149, Statutes of 2015).

This bill:

1. Allows the general manager of SCAPOSD, with the approval of its board of directors, 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.

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

Background

The $25,000 threshold for construction contracts has applied to all 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 in 1999 (AB 584, Aroner, Chapter 135, Statutes of 1999) and for MROSD in 2002 (AB 953, Simitian, Chapter 23, Statutes of 2002). In 2015, AB 495 (Gordon) allowed those two districts to sign contracts for any purpose of up to $50,000 without bidding. In addition to being subject to board approval, AB 495 required any expenditures in this manner to be reported to the board.

Sonoma County voters authorized the creation of SCAPOSD in 1990 to permanently protect the greenbelts, scenic viewsheds, farms and ranches and natural areas of Sonoma County. To date, SCAPOSD has acquired or protected 106,000 acres of farmland and open space. A quarter cent sales tax, authorized through 2031, supports the majority of the district’s roughly $36 million annual budget. The Sonoma County Board of Supervisors serves as the governing board of SCAPOSD. The district’s activities include acquisition, protection, and maintenance of open space and agricultural lands, conservation planning to identify high-priority lands for protection or acquisition, and administration of a grant program.

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, SCAPOSD must go through the effort and expense of seeking bids for relatively low-value contracts. Sonoma County officials want the Legislature to raise the dollar threshold at which the district must seek formal bids on contracts.

Comments

Purpose of the bill. SCAPOSD reports that in 2015, the district went through a formal bidding process to award six contracts with values that fell in the $25,000 to $50,000 range. At an average administrative cost of $7,360 per contract, these contracts cost the district over $44,000. Avoiding a formal bid process for contracts worth less than $50,000 will allow SCAPOSD to complete numerous projects more quickly and reduce staff time and administrative costs associated with formal bidding. Moreover, the Sonoma County Board of Supervisors increased the bid threshold for other departments and affiliated agencies within the county on March 15, 2016. Since the Board of Supervisors serves as the board of the district, they want to also increase the threshold for SCAPOSD, but state law prevents them from doing so. SB 1082 makes the necessary change to allow this to occur, and the savings that the district will realize as a result of the higher bid threshold in SB 1082 will allow the district to devote more resources towards its core mission of preserving open space and agricultural lands.

Accountability and efficiency. State law regulating local contracting attempts to balance the goals of accountability and efficiency. For decisions to be accountable, public officials must 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: Fiscal Com.: Local:

SUPPORT: (Verified 4/14/16)

Sonoma County Agricultural Preservation and Open Space District (source)

Sonoma County Board of Supervisors

OPPOSITION: (Verified 4/14/16)

None received

Prepared by:

4/15/16 14:10:38

**** END ****

SENATE COMMITTEE ON GOVERNANCE AND FINANCE

Senator Robert M. Hertzberg, Chair

2015 - 2016 Regular

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

Increases, from $25,000 to $50,000, the maximum value of contracts which the Sonoma County Agricultural Preservation and Open Space District may enter into without using a formal bid process.

Background

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 open space districts in 1933, the threshold for advertising bids was $500. Currently, nearly all 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, 2014).

The $25,000 threshold for construction contracts has applied to all open space districts since 1983 (AB 746, Campbell, 1983). The bid threshold for non-construction contracts was increased from $10,000 to $25,000 for the East Bay Regional Park District in 1999 (AB 584, Aroner, 1999) and for the Midpeninsula Regional Open Space District in 2002 (AB 953, Simitian, 2002). In 2015, AB 495 (Gordon) allowed those two districts to sign contracts for any purpose of up to $50,000 without bidding. In addition to being subject to board approval, AB 495 required any expenditures in this manner to be reported to the board.

Sonoma County voters authorized the creation of the Sonoma County Agricultural Preservation and Open Space District (SCAPOSD) in 1990 to permanently protect the greenbelts, scenic viewsheds, farms and ranches and natural areas of Sonoma County. To date, SCAPOSD has acquired or protected 106,000 acres of farmland and open space. A quarter cent sales tax, authorized through 2031, supports the majority of the district’s roughly $36 million annual budget. The Sonoma County Board of Supervisors serves as the governing board of SCAPOSD. The district’s activities include acquisition, protection, and maintenance of open space and agricultural lands, conservation planning to identify high-priority lands for protection or acquisition, and administration of a grant program.

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, SCAPOSD must go through the effort and expense of seeking bids for relatively low-value contracts. Sonoma County officials want the Legislature to raise the dollar threshold at which the district must seek formal bids on contracts.

Proposed Law

Senate Bill 1082 allows the general manager of SCAPOSD, with the approval of its board of directors, 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.

SB 1082 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 Sonoma County Agricultural Preserve and Open Space District reports that in 2015, the district went through a formal bidding process to award 6 contracts with values that fell in the $25,000 to $50,000 range. At an average administrative cost of $7,360 per contract, these contracts cost the district over $44,000. Avoiding a formal bid process for contracts worth less than $50,000 will allow SCAPOSD to complete numerous projects more quickly and reduce staff time and administrative costs associated with formal bidding. Moreover, the Sonoma County Board of Supervisors increased the bid threshold for other departments and affiliated agencies within the county on March 15, 2016. Since the Board of Supervisors serves as the board of the district, they want to also increase the threshold for SCAPOSD, but state law prevents them from doing so. SB 1082 makes the necessary change to allow this to occur, and the savings that the district will realize as a result of the higher bid threshold in SB 1082 will allow the district to devote more resources towards its core mission of preserving open space and agricultural lands.

2. Accountability and efficiency. State law regulating local contracting attempts to balance the goals of accountability and efficiency. For decisions to be accountable, public officials must 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? In 2014, 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. Just last year, AB 495 (Gordon, 2015) raised the threshold for the East Bay Regional Park District and the Midpeninsula Regional Open Space District to $50,000 for all types of contracts. Other districts may follow suit in asking for the same authority. Moreover, inflation has eroded the value of the amounts that open space districts may contract for without bidding. For example, using the Consumer Price Index to adjust for inflation, the $25,000 threshold for construction contracts that was enacted in 1983 would be the equivalent of a $62,000 threshold in 2016. The $25,000 thresholds for non-construction contracts enacted in 1999 and 2002 would be the equivalent of roughly $37,000 and $33,500 thresholds, respectively, in 2015. As an alternative to the Legislature’s periodically adjusting and equalizing various districts’ bid thresholds, the Committee may wish to consider amending SB 1082 to automatically adjust bid thresholds periodically to reflect increases in construction costs as measured by a specified inflation index.

4. Special legislation. The California Constitution prohibits special legislation when a general law can apply (Article IV, §16). SB 1082 contains findings and declarations explaining the need for legislation that applies only to the Sonoma County Agricultural Preservation and Open Space District.

Support and Opposition

(4/7/16)

Support: Sonoma County Agricultural Preservation and Open Space District (sponsor); Sonoma County Board of Supervisors.

Opposition: Unknown.

-- END --