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, the Midpeninsula Regional Open Space District, and the Sonoma County Agricultural Preservation and Open Space District with respect to the payment of amounts not exceeding $50,000.

This bill would instead make $50,000 the limit by which the general manager of any park or open space district, with district board approval, may bind the district, in accordance with board policy that has been adopted in an open meeting, and without advertising, for the payment for supplies, materials, labor, or other valuable consideration for any purpose. The bill would authorize the district, by action of the board in an open meeting, to increase the amount by which the general manager of the district may bind the district above that limit, as specified.

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, the Midpeninsula Regional Open Space District, and the Sonoma County Agricultural Preservation and Open Space District with respect to the payment of amounts not exceeding $50,000.

This bill would instead make $50,000 the limit by which the general manager of any park or open space district, with district board approval, may bind the district, in accordance with board policy that has been adopted in an open meeting, and without advertising, for the payment for supplies, materials, labor, or other valuable consideration for any purpose. The bill would authorize the district, by action of the board in an open meeting, to increase the amount by which the general manager of the district may bind the district above that limit, as specified.

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, the Midpeninsula Regional Open Space District, and the Sonoma County Agricultural Preservation and 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 Riverside County Regional Park and Open Space District. instead make $50,000 the limit by which the general manager of any park or open space district, with district board approval, may bind the district, in accordance with board policy that has been adopted in an open meeting, and without advertising, for the payment for supplies, materials, labor, or other valuable consideration for any purpose. The bill would authorize the district, by action of the board in an open meeting, to increase the amount by which the general manager of the district may bind the district above that limit, as specified.

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, the Midpeninsula Regional Open Space District, and the Sonoma County Agricultural Preservation and 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 Riverside County Regional Park and Open Space District.

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

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 2137

Author:(Mayes)

As Amended Ver:June 19, 2018

Majority vote

Original Committee Reference: L. GOV.

SUMMARY: Increases, from $25,000 to $50,000, the amount for which all regional park and open space districts may enter into contracts without a formal bid process.

The Senate amendments:

1. Expand the application of this bill from the Riverside County Regional Park and Open Space District (RPOSD) to include all regional park and open space districts.
2. Require a district board to adopt a policy allowing for this bill's authority in an open meeting.
3. Allow a district, by action of its board in an open meeting, to increase the amount by which the general manager may bind the district above the $50,000 limit by up to 2% for each fiscal year following the operative date of the last adjustment.

EXISTING LAW:

1. Generally 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.
2. Provides an exception to 1), above, by allowing the general manager of the East Bay Regional Park District (East Bay RPD), the Midpeninsula Regional Open Space District (Midpeninsula ROSD), and the Sonoma County Agricultural Preservation and Open Space District (Sonoma County APOSD), 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.

AS PASSED BY THE ASSEMBLY, this bill:

1. Authorized the general manager of the RPOSD, with the approval of the 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, including the new construction of a building, structure, or improvement, in amounts not exceeding $50,000.
2. Required all expenditures authorized pursuant to 1), above, to be reported to the District's board of directors 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 all regional park and open space districts may enter into contracts without a formal bid process. A policy for this authority must be adopted by a district's board in an open meeting. This bill also allows a district, by action of its board in an open meeting, to increase this amount by up to 2% for each fiscal year following the operative date of the last adjustment. This bill is sponsored by Riverside County.
2. Author's Statement. According to the author, "AB 2137 addresses the need to increase the no-bid threshold for a general manager of a park and open space district from $25,000 to $50,000. This solution would compensate for the rising general costs of a district, not to mention the amount of inflation since the early 1980s when the threshold was first set. Adjusting these contract limits to the current level of inflation is a long-term solution that will provide greater efficiency in local government resources by eliminating administrative costs for small projects."
3. Background. Riverside County RPOSD is a dependent special district. As such, the District is governed by the Riverside County Board of Supervisors, which is vested with all the powers and authority of the District. The District's mission is to acquire, protect, develop, manage, and interpret for the inspiration, use, and enjoyment of all people, a well-balanced system of areas of outstanding scenic, recreational, and historic importance. Many programs are operated under three of the County's bureaus, which include: Parks & Resources, Planning & Development, and Business Services. The District is led by the General Manager/Parks Director and its focus is to provide high-quality recreational opportunities and preserve important features of the County's natural, cultural, and historical heritage.
4. Park/Open Space District Bid Requirements. Park/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 RPD, Midpeninsula ROSD, and the Sonoma County APOSD. 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. However, two subsequent bills – AB 495 (Gordon), Chapter 149, Statutes of 2015, and SB 1082 (McGuire), Chapter 52, Statutes of 2016 – once again created exceptions for East Bay RPD, Midpeninsula ROSD, and the Sonoma County APOSD by raising their bid thresholds for both construction and non-construction contracts to $50,000.

This bill reestablishes uniformity for all regional park and open space districts by allowing all of them to let contracts of $50,000 or less without formal bidding. It also allows districts to adjust this bid amount by 2% in future years.

1. Arguments in Support. Riverside County, the sponsor of this measure, states, "If granted in increase in the no-bid purchasing authority of up to $50,000, the District could put the administrative costs now going toward bid preparation to better use in support of the District's mission. AB 2137 would offer administrative and financial relief to regional and open parks districts statewide."
2. Arguments in Opposition. None on file.

Analysis Prepared by: Angela Mapp / L. GOV. / (916) 319-3958 FN: 0003585

 THIRD READING  

Bill No: AB 2137

Author:

:

Vote:

SENATE GOVERNANCE & FIN. COMMITTEE: 7-0, 6/13/18

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

ASSEMBLY FLOOR: 72-0, 4/19/18 - See last page for vote

SUBJECT:

SOURCE: County of Riverside

DIGEST:

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

ANALYSIS:

Existing law:

1. Allows, generally, 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.
2. Provides an exception to 1), above, by allowing the general manager of the East Bay Regional Park District (East Bay RPD), the Midpeninsula Regional Open Space District (Midpeninsula ROSD), and the Sonoma County Agricultural Preservation and Open Space District (Sonoma County APOSD), 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.

This bill:

1. Increases, from $25,000 to $50,000, the maximum value of contracts which regional park and open space districts may enter into without using a formal bid process.
2. Requires the board to adopt a policy allowing for this type of contracting in an open meeting.
3. Allows a district, by action of the board in an open meeting, to increase the amount by which the general manager may bind the district above the $50,000 by up to 2% annually above the prior year’s limit.

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, Chapter 42, Statutes of 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 RPD in 1999 (AB 584, Aroner, Chapter 135, Statutes of 1999) and for the Midpeninsula ROSD in 2002 (AB 953, Simitian, Chapter 23, Statues of 2002). In 2015, AB 495 (Gordon, Chapter 149) 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. The Legislature subsequently increased the bid threshold to $50,000 for an additional open space district in 2016: the Sonoma County APOSD.

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, regional park and open space districts must go through the effort and expense of seeking bids for relatively low-value contracts. Riverside 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. The Riverside County Regional Park and Open Space District reports that in 2017, the district went through a formal bidding process to award three contracts with values that fell in the $25,000 to $50,000 range. At an average administrative cost of $8,459 per contract, these contracts cost the district over $25,000. Avoiding a formal bid process for contracts worth less than $50,000 will allow regional park districts throughout the state, including the Riverside County Regional Park and Open Space District, to complete numerous projects more quickly and reduce staff time and administrative costs associated with formal bidding. AB 2137 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 AB 2137 will allow regional park districts to devote more resources to preserving open space.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT: (Verified 6/20/18)

County of Riverside (source)

California Special Districts Association

East Bay Regional Park District

OPPOSITION: (Verified 6/20/18)

None received

ASSEMBLY FLOOR: 72-0, 4/19/18

AYES: Acosta, Aguiar-Curry, Travis Allen, Arambula, Baker, Berman, Bigelow, Bloom, Bonta, Brough, Burke, Caballero, Carrillo, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dahle, Daly, Eggman, Flora, Fong, Frazier, Friedman, Gallagher, Eduardo Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Quirk-Silva, Reyes, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon

NO VOTE RECORDED: Calderon, Cristina Garcia, Kamlager-Dove, Melendez, Mullin, Quirk

Prepared by:

6/20/18 15:12:19

**** END ****

SENATE COMMITTEE ON GOVERNANCE AND FINANCE

Senator Mike McGuire, Chair

2017 - 2018 Regular

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

Increases, from $25,000 to $50,000, the maximum value of contracts which the Riverside County Regional Park 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. The Legislature subsequently increased the bid threshold to $50,000 for an additional open space district in 2016: the Sonoma County Agricultural Preservation and Open Space District.

Riverside County Regional Park and Open Space District (RCRPOSD) is a dependent special district. As such, RCRPOSD is governed by the Riverside County Board of Supervisors, which is vested with all the powers and authority of the district. The RCRPOSD’s mission is to acquire, protect, develop, manage, and interpret for the inspiration, use, and enjoyment of all people, a well-balanced system of areas of outstanding scenic, recreational, and historic importance. The district is led by the General Manager/Parks Director, and its focus is to provide high-quality recreational opportunities and preserve important features of the County’s natural, cultural, and historical heritage.

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

Proposed Law

Assembly Bill 2137 allows the general manager of RCRPOSD, 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. AB 2137 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 Riverside County Regional Park and Open Space District reports that in 2017, the district went through a formal bidding process to award three contracts with values that fell in the $25,000 to $50,000 range. At an average administrative cost of $8,459 per contract, these contracts cost the district over $25,000. Avoiding a formal bid process for contracts worth less than $50,000 will allow RCRPOSD to complete numerous projects more quickly and reduce staff time and administrative costs associated with formal bidding. Moreover, the Riverside County Board of Supervisors has set the bid threshold for other departments and affiliated agencies within the county at $50,000. Since the Board of Supervisors serves as the board of the district, they want to also increase the threshold for RCRPOSD, but state law prevents them from doing so. AB 2137 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. This bill was quickly followed by AB 495 (Gordon, 2015), which 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, and SB 1082 (McGuire, 2016), which established the same threshold for Sonoma County’s open space district. AB 2137 adds yet another exception to this list, and other districts—including some with larger budgets than RCRPOSD—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 $63,360 threshold in 2018. The $25,000 thresholds for non-construction contracts enacted in 1999 and 2002 would be the equivalent of $37,715 and $34,990 thresholds, respectively, in 2018. As an alternative to the Legislature’s periodically adjusting and equalizing various districts’ bid thresholds, the Committee may wish to consider amending AB 2137 to raise bid thresholds for all districts to $50,000 and provide for regular, automatic adjustments 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). AB 2137 contains findings and declarations explaining the need for legislation that applies only to the Riverside County Regional Park and Open Space District.

Assembly Actions

Assembly Local Government: 9-0

Assembly Floor: 72-0

Support and Opposition

(6/7/18)

Support: County of Riverside (sponsor); California Special Districts Association; East Bay Regional Park District.

Opposition: Unknown.

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 2137

Author:(Mayes)

As Introduced Ver:February 12, 2018

Majority vote

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

1. Authorizes the general manager of the Riverside County Regional Park and Open Space District (Riverside County RPOSD), with the approval of the 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, 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 District's board of directors at its next regular meeting.

EXISTING LAW:

1. Generally 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.
2. Provides an exception to 1), above, by allowing the general manager of the East Bay Regional Park District (East Bay RPD), the Midpeninsula Regional Open Space District (Midpeninsula ROSD), and the Sonoma County Agricultural Preservation and Open Space District (Sonoma County APOSD), 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.

FISCAL EFFECT: None

COMMENTS:

1. Bill Summary. This bill increases, from $25,000 to $50,000, the amount for which the Riverside County RPOSD may enter into contracts without a formal bid process. This bill is sponsored by Riverside County.
2. Author's Statement. According to the author, "(The District) was the first special district in the State of California to receive accreditation by the National Recreation and Park Association for demonstrating the highest standards of ethical and professional practices in the delivery of park and recreation programs. (The District's) award-winning park and open space system features more than 75,000 acres and includes camping, parks, fishing, historic sites, ecological reserves, and 169 miles of trails, as well as a state-of-the-art sports park and several actively-managed ecological habitats and environmentally sensitive areas. Park facilities are open year round enriching the lives of all patrons with a special focus on families, seniors, veterans, and people with disabilities.

"The County is seeking to increase (the District's) General Manager purchasing limits to match other county division head limits. Over time, general cost increases have effectively reduced the District's purchasing power. Further, the District estimates that it sees, on average, five bids annually that exceed the $25,000 threshold. Each bid costs an average of $8,459 in associated administrative and processing functions. If granted an increase in the no-bid purchasing authority up to $50,000, the District could put the administrative costs now going toward bid preparation to better use in support of (the District's) mission."

1. Background. Riverside County RPOSD is a dependent special district. As such, the District is governed by the Riverside County Board of Supervisors, which is vested with all the powers and authority of the District. The District's mission is to acquire, protect, develop, manage, and interpret for the inspiration, use, and enjoyment of all people, a well-balanced system of areas of outstanding scenic, recreational, and historic importance. Many programs are operated under three of the County's bureaus, which include: Parks & Resources, Planning & Development, and Business Services. The District is led by the General Manager/Parks Director and its focus is to provide high-quality recreational opportunities and preserve important features of the County's natural, cultural, and historical heritage.
2. Park/Open Space District Bid Requirements. Park/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 RPD, Midpeninsula ROSD, and the Sonoma County APOSD. 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. However, two subsequent bills – AB 495 (Gordon), Chapter 149, Statutes of 2015, and SB 1082 (McGuire), Chapter 52, Statutes of 2016 – once again created exceptions for East Bay RPD, Midpeninsula ROSD, and the Sonoma County APOSD by raising their bid thresholds for both construction and non-construction contracts to $50,000.

This bill for the first time adds a fourth park/open space district to the group of districts that enjoy an exception to the general bid threshold rule of $25,000, by granting the Riverside County RPOSD a bid threshold of $50,000.

1. Policy Considerations. The Legislature may wish to consider the following:
   1. Keeping Things Consistent? As noted above, the Legislature in 2014 set the bid threshold at $25,000 for all park and open space districts, resulting in a uniform statute for all of the state's park/open space districts. The Legislature may wish to consider whether to continue allowing exceptions for specified districts or whether uniformity is a policy goal it wishes to reassert.
   2. Who Gets What, and Why? With this bill, four of the state's park/open space districts have now come forward asking for an exception to the general rule reestablished in 2014 governing bid thresholds for these districts. The Legislature may wish to consider what criteria should be weighed to determine which districts must follow the general rule and which districts merit an exception.
   3. Adjusting for Inflation? The Legislature has reviewed and approved several requests to raise the bid threshold for specified park/open space districts based on inflationary pressures. While the proponents of this bill have not raised this issue specifically, the Legislature may wish to consider whether to allow for automatic inflationary adjustments to these bid limits.
2. Arguments in Support. Riverside County, the sponsor of this measure, states, "AB 2137 is a narrowly drafted measure that would offer needed administrative and financial relief to the County."
3. Arguments in Opposition. None on file.

Analysis Prepared by: Angela Mapp / L. GOV. / (916) 319-3958 FN: 0002698

Date of Hearing: April 11, 2018

ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT

Cecilia Aguiar-Curry, Chair

ABPCA Bill Id:AB 2137 (

Author:Mayes) – As Introduced Ver:February 12, 2018

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

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

1. Authorizes the general manager of the Riverside County Regional Park and Open Space District (Riverside County RPOSD), with the approval of the 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, 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 District's board of directors at its next regular meeting.

EXISTING LAW:

1. Generally 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.
2. Provides an exception to 1), above, by allowing the general manager of the East Bay Regional Park District (East Bay RPD), the Midpeninsula Regional Open Space District (Midpeninsula ROSD), and the Sonoma County Agricultural Preservation and Open Space District (Sonoma County APOSD), 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.

FISCAL EFFECT: None

COMMENTS:

1. Bill Summary. This bill increases, from $25,000 to $50,000, the amount for which the Riverside County RPOSD may enter into contracts without a formal bid process. This bill is sponsored by Riverside County.
2. Author's Statement. According to the author, "(The District) was the first special district in the State of California to receive accreditation by the National Recreation and Park Association for demonstrating the highest standards of ethical and professional practices in the delivery of park and recreation programs. (The District's) award-winning park and open space system features more than 75,000 acres and includes camping, parks, fishing, historic sites, ecological reserves, and 169 miles of trails, as well as a state-of-the-art sports park and several actively-managed ecological habitats and environmentally sensitive areas. Park facilities are open year round enriching the lives of all patrons with a special focus on families, seniors, veterans, and people with disabilities.

"The County is seeking to increase (the District's) General Manager purchasing limits to match other county division head limits. Over time, general cost increases have effectively reduced the District’s purchasing power. Further, the District estimates that it sees, on average, five bids annually that exceed the $25,000 threshold. Each bid costs an average of $8,459 in associated administrative and processing functions. If granted an increase in the no-bid purchasing authority up to $50,000, the District could put the administrative costs now going toward bid preparation to better use in support of (the District's) mission."

1. Background. Riverside County RPOSD is a dependent special district. As such, the District is governed by the Riverside County Board of Supervisors, which is vested with all the powers and authority of the District. The District's mission is to acquire, protect, develop, manage, and interpret for the inspiration, use, and enjoyment of all people, a well-balanced system of areas of outstanding scenic, recreational, and historic importance. Many programs are operated under three of the County's bureaus, which include: Parks & Resources, Planning & Development, and Business Services. The District is led by the General Manager/Parks Director and its focus is to provide high-quality recreational opportunities and preserve important features of the County’s natural, cultural, and historical heritage.
2. Park/Open Space District Bid Requirements. Park/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 RPD, Midpeninsula ROSD, and the Sonoma County APOSD. 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. However, two subsequent bills – AB 495 (Gordon), Chapter 149, Statutes of 2015, and SB 1082 (McGuire), Chapter 52, Statutes of 2016 – once again created exceptions for East Bay RPD, Midpeninsula ROSD, and the Sonoma County APOSD by raising their bid thresholds for both construction and non-construction contracts to $50,000.

This bill for the first time adds a fourth park/open space district to the group of districts that enjoy an exception to the general bid threshold rule of $25,000, by granting the Riverside County RPOSD a bid threshold of $50,000.

1. Policy Considerations. The Committee may wish to consider the following:
   1. Keeping Things Consistent? As noted above, the Legislature in 2014 set the bid threshold at $25,000 for all park and open space districts, resulting in a uniform statute for all of the state's park/open space districts. The Committee may wish to consider whether to continue allowing exceptions for specified districts or whether uniformity is a policy goal it wishes to reassert.
   2. Who Gets What, and Why? With this bill, four of the state's park/open space districts have now come forward asking for an exception to the general rule reestablished in 2014 governing bid thresholds for these districts. The Committee may wish to consider what criteria should be weighed to determine which districts must follow the general rule and which districts merit an exception.
   3. Adjusting for Inflation? The Legislature has reviewed and approved several requests to raise the bid threshold for specified park/open space districts based on inflationary pressures. While the proponents of this bill have not raised this issue specifically, the Committee may wish to consider whether to allow for automatic inflationary adjustments to these bid limits.
2. Previous Legislation. SB 1082 (McGuire), Chapter 52, Statutes of 2016, raised the bid threshold for all purposes, both construction and non-construction, to $50,000 for the Sonoma County APOSD.

AB 495 (Gordon), Chapter 149, Statutes of 2015, raised the bid threshold for all purposes, both construction and non-construction, to $50,000 for the East Bay RPD and the Midpeninsula ROSD.

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

AB 953 (Simitian), Chapter 23, Statutes of 2002, raised the bid threshold for non-construction items to $25,000 for the Midpeninsula ROSD and the Sonoma County APOSD.

AB 584 (Aroner), Chapter 135, Statutes of 1999, raised the bid threshold for non-construction items to $25,000 for the East Bay RPD.

1. Arguments in Support. Riverside County, the sponsor of this measure, states, "AB 2137 is a narrowly drafted measure that would offer needed administrative and financial relief to the County."
2. Arguments in Opposition. None on file.

REGISTERED SUPPORT / OPPOSITION:

Support

Riverside County [SPONSOR]

Opposition

None on file

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