SB 622: Local Agency Public Construction Act: Golden Gate Bridge, Highway and Transportation District.
- Session Year: 2017-2018
- House: Senate
- Latest Version Date: 2017-09-30
The Local Agency Public Construction Act requires a bridge and highway district to advertise for contracts in specified publications for all vessel repair, maintenance, and alteration work whenever the estimated expenditure exceeds $20,000 and for all other construction, repair, maintenance, and alteration work and for all insurance purchased by the district if the estimated expenditure exceeds $5,000. The act authorizes a bridge and highway district to contract without advertising or competitive bidding in case of emergency. The act requires a bridge and highway district to comply with specified emergency contracting procedures if the notice for bids to let a contract will not be given.
This bill would instead require a bridge and highway district to advertise for contracts for all vessel repair, maintenance, and alteration work if the estimated expenditure exceeds $1,000,000, and for all other construction, repair, maintenance, and alteration work, and all similar work, if the estimated expenditure exceeds $5,000, in at least one newspaper and one trade paper of general circulation, as specified. The bill would also authorize the district, at its discretion, to use informal bidding for a contract for construction, repair, maintenance, and alteration work, and all similar work, with an estimated expenditure that does not exceed $50,000, and for a contract for vessel repair, maintenance, and alteration work that does not exceed $1,000,000, if it enacts an ordinance that governs the selection of contractors, as specified.
Existing law requires the Golden Gate Bridge, Highway and Transportation District to award all contracts in excess of $20,000 for the hiring or purchase of equipment, supplies, or materials to the lowest responsible bidder, except that, if the required expenditure exceeds $100,000, the contract may be let, in the districts discretion, to the responsible bidder who submitted a proposal that provides the best value, as specified.
The bill would also authorize the Golden Gate Bridge, Highway and Transportation District to contract without competitive bidding with suppliers of goods and services by participating in contracts let by one or more specified public entities and any other entity that expends public funds.
The Local Agency Public Construction Act requires a bridge and highway district to advertise for contracts in specified publications for all vessel repair, maintenance, and alteration work whenever the estimated expenditure exceeds $20,000 and for all other construction, repair, maintenance, and alteration work and for all insurance purchased by the district if the estimated expenditure exceeds $5,000. The act authorizes a bridge and highway district to contract without advertising or competitive bidding in case of emergency. The act requires a bridge and highway district to comply with specified emergency contracting procedures if the notice for bids to let a contract will not be given.
This bill would instead require a bridge and highway district to advertise for contracts for all vessel repair, maintenance, and alteration work if the estimated expenditure exceeds $1,000,000, and for all other construction, repair, maintenance, and alteration work, and all similar work, if the estimated expenditure exceeds $5,000, in at least one newspaper and one trade paper of general circulation, as specified. The bill would also authorize the district, at its discretion, to use informal bidding for a contract for construction, repair, maintenance, and alteration work, and all similar work, with an estimated expenditure that does not exceed $50,000, and for a contract for vessel repair, maintenance, and alteration work that does not exceed $1,000,000, if it enacts an ordinance that governs the selection of contractors, as specified.
Existing law requires the Golden Gate Bridge, Highway and Transportation District to award all contracts in excess of $20,000 for the hiring or purchase of equipment, supplies, or materials to the lowest responsible bidder, except that, if the required expenditure exceeds $100,000, the contract may be let, in the districts discretion, to the responsible bidder who submitted a proposal that provides the best value, as specified.
The bill would also authorize the Golden Gate Bridge, Highway and Transportation District to contract without competitive bidding with suppliers of goods and services by participating in contracts let by one or more specified public entities and any other entity that expends public funds.
The Local Agency Public Construction Act requires a bridge and highway district to advertise for contracts in specified publications for all vessel repair, maintenance, and alteration work whenever the estimated expenditure exceeds $20,000 and for all other construction, repair, maintenance, and alteration work and for all insurance purchased by the district if the estimated expenditure exceeds $5,000. The act authorizes a bridge and highway district to contract without advertising or competitive bidding in case of emergency. The act requires a bridge and highway district to comply with specified emergency contracting procedures if the notice for bids to let a contract will not be given.
This bill would instead require a bridge and highway district to advertise for contracts for all vessel repair, maintenance, and alteration work if the estimated expenditure exceeds $1,000,000, and for all other construction, repair, maintenance, and alteration work, and all similar work, if the estimated expenditure exceeds $5,000, in at least one newspaper and one trade paper of general circulation, as specified. The bill would also authorize the district, at its discretion, to use informal bidding for a contract for construction, repair, maintenance, and alteration work, and all similar work, with an estimated expenditure that does not exceed $50,000, and for a contract for vessel repair, maintenance, and alteration work that does not exceed $1,000,000, if it enacts an ordinance that governs the selection of contractors, as specified.
Existing law requires the Golden Gate Bridge, Highway and Transportation District to award all contracts in excess of $20,000 for the hiring or purchase of equipment, supplies, or materials to the lowest responsible bidder, except that, if the required expenditure exceeds $100,000, the contract may be let, in the districts discretion, to the responsible bidder who submitted a proposal that provides the best value, as specified.
The bill would also authorize the Golden Gate Bridge, Highway and Transportation District to contract without competitive bidding with suppliers of goods and services by participating in contracts let by one or more specified public entities and any other entity that expends public funds.
The Local Agency Public Construction Act requires a bridge and highway district to advertise for contracts in specified publications for all vessel repair, maintenance, and alteration work whenever the estimated expenditure exceeds $20,000 and for all other construction, repair, maintenance, and alteration work and for all insurance purchased by the district if the estimated expenditure exceeds $5,000. The act authorizes a bridge and highway district to contract without advertising or competitive bidding in case of emergency. The act requires a bridge and highway district to comply with specified emergency contracting procedures if the notice for bids to let a contract will not be given.
This bill would instead, instead require a bridge and highway district to advertise for contracts for all vessel repair, maintenance, and alteration work if the estimated expenditure exceeds $1,000,000, and for all other construction, repair, maintenance, and alteration work, and all similar work, if the estimated expenditure exceeds $5,000, in at least one newspaper and one trade paper of general circulation, as specified. The bill would also authorize the district, at its discretion, to use informal bidding for a contract for construction, repair, maintenance, and alteration work, and all similar work, with an estimated expenditure that does not exceed $50,000, and to enact an informal bidding ordinance to govern if it enacts an ordinance that governs the selection of contractors, as specified. The
Existing law requires the Golden Gate Bridge, Highway and Transportation District to award all contracts in excess of $20,000 for the hiring or purchase of equipment, supplies, or materials to the lowest responsible bidder, except that, if the required expenditure exceeds $100,000, the contract may be let, in the districts discretion, to the responsible bidder who submitted a proposal that provides the best value, as specified.
The bill would also authorize the Golden Gate Bridge, Highway and Transportation District to contract without competitive bidding with suppliers of goods and services by participating in contracts let by one or more specified public entities and any other entity that expends public funds.
The Local Agency Public Construction Act requires a bridge and highway district to advertise for contracts for all vessel repair, maintenance, and alteration work whenever the estimated expenditure exceeds $20,000 and for all other construction, repair, maintenance, and alteration work and for all insurance purchased by the district if the estimated expenditure exceeds $5,000. The act authorizes a bridge and highway district to contract without advertising or competitive bidding in case of emergency. The act requires a bridge and highway district to comply with specified emergency contracting procedures if the notice for bids to let a contract will not be given.
This bill would repeal those requirements and authorization and, instead, require a bridge and highway district to publicize contracts for the construction of public works whenever the estimated expenditure exceeds $50,000. The bill would require a bridge and highway district to publish the notice requesting bids on the districts Internet Web site at least 10 days before bids are due. The bill would require the district to publish the notice in at least one newspaper and a trade paper of general circulation, as specified. advertise for contracts for all vessel repair, maintenance, and alteration work if the estimated expenditure exceeds $1,000,000, and for all other construction, repair, maintenance, and alteration work, and all similar work, if the estimated expenditure exceeds $5,000, in at least one newspaper and one trade paper of general circulation, as specified. The bill would also authorize the district, at its discretion, to use informal bidding for a contract for construction, repair, maintenance, and alteration work, and all similar work, with an estimated expenditure that does not exceed $50,000, and to enact an informal bidding ordinance to govern the selection of contractors, as specified. The bill would also authorize the Golden Gate Bridge, Highway and Transportation District to contract without competitive bidding with suppliers of goods and services by participating in contracts let by one or more specified public entities and any other entity that expends public funds.
The Local Agency Public Construction Act requires a bridge and highway district to advertise for contracts for all vessel repair, maintenance, and alteration work whenever the estimated expenditure exceeds $20,000 and for all other construction, repair, maintenance, and alteration work and for all insurance purchased by the district if the estimated expenditure exceeds $5,000. The act authorizes a bridge and highway district to contract without advertising or competitive bidding in case of emergency. The act would require requires a bridge and highway district to comply with specified emergency contracting procedures if the notice for bids to let a contract will not be given.
This bill would repeal those requirements and authorization and, instead, require a bridge and highway district to publicize contracts for the construction of facilities and public works whenever the estimated expenditure exceeds $100,000. $50,000. The bill would require a bridge and highway district to publish the notice requesting bids on the districts Internet Web site at least 10 days before bids are due. The bill would require the district to publish the notice in at least one newspaper and a trade paper of general circulation, as specified. The bill would also authorize the Golden Gate Bridge, Highway and Transportation District to contract without competitive bidding with suppliers of goods and services by participating in contracts let by one or more specified public entities and any other entity that expends public funds.
The Local Agency Public Construction Act requires a bridge and highway district to advertise for contracts for all vessel repair, maintenance, and alteration work whenever the estimated expenditure exceeds $20,000 and for all other construction, repair, maintenance, and alteration work and for all insurance purchased by the district if the estimated expenditure exceeds $5,000. The act authorizes a bridge and highway district to contract without advertising or competitive bidding in case of emergency. The act would require a bridge and highway district to comply with specified emergency contracting procedures if the notice for bids to let a contract will not be given.
This bill would repeal those requirements and authorization and, instead, require a bridge and highway district to publicize contracts for the construction of facilities and public works whenever the estimated expenditure exceeds $100,000. The bill would require a bridge and highway district to publish the notice requesting bids on the districts Internet Web site at least 10 days before bids are due. The bill would also authorize the Golden Gate Bridge, Highway and Transportation District to contract without competitive bidding with suppliers of goods and services by participating in contracts let by one or more specified public entities and any other entity that expends public funds.
(a)The district shall advertise, pursuant to Section 6066 of the Government Code, for contracts for all vessel repair, maintenance, and alteration work if the estimated expenditure exceeds one million dollars ($1,000,000), and for all other construction, repair, maintenance, and alteration work, and all similar work, if the estimated expenditure exceeds five thousand dollars ($5,000), in at least one newspaper and one trade paper of general circulation designated by the general manager, that are published in any one county or portion of a county within the district.
(b)The district shall publicly open the bids and award the contract to the lowest responsible bidder as follows:
(1)For public works contracts that are subject to subdivision (a).
(2)For vessel repair, maintenance, and alteration work contracts.
(c)Notwithstanding subdivision (a), the district may, at its discretion, use informal bidding for contracts as follows:
(1)For construction, repair, maintenance, and alteration work, and all similar work, with an estimated expenditure that does not exceed fifty thousand dollars ($50,000).
(2)For vessel repair, maintenance, and alteration work that does not exceed one million dollars ($1,000,000).
(d)The district shall enact an ordinance if it elects to use informal bidding pursuant to subdivision (c) that governs the selection of contractors to perform construction, repair, maintenance, and alteration work, and all similar work, by informal bid. The ordinance shall include all of the following:
(1)Notice to contractors shall be provided in a manner determined by the district.
(2)The notice inviting informal bids shall describe the project in general terms and how to obtain more detailed information about the project, and state the time and place for the submission of bids.
(e)Any contracts for vessel repair, maintenance, and alteration work that does not exceed one million dollars ($1,000,000) for which the informal bidding procedure adopted pursuant to subdivision (d) is not used shall be advertised pursuant to subdivision (a) and awarded pursuant to subdivision (b).
(f)In case of emergency, work may be contracted without advertising or competitive bidding, provided that the district complies with Chapter 2.5 (commencing with Section 22050).
SEC. 3.Section 20919 is added to the Public Contract Code, to read:20919.Notwithstanding Sections 20916 and 20916.1, the Golden Gate Bridge, Highway and Transportation District may, without further competitive bidding, contract with suppliers of goods and services by participating in contracts let by one or more city, county, city and county, district, school district, public authority, public agency, municipal corporation, or other political subdivision in the state, and to the extent provided by law, any other entity that expends public funds for the procurement of goods and services. This section is in addition to the authority granted in Sections 10298 and 10299. This section does not apply to construction contracts.
(a)The district shall advertise, pursuant to Section 6066 of the Government Code, for contracts for all vessel repair, maintenance, and alteration work if the estimated expenditure exceeds one million dollars ($1,000,000), and for all other construction, repair, maintenance, and alteration work, and all similar work, if the estimated expenditure exceeds five thousand dollars ($5,000), in at least one newspaper and one trade paper of general circulation designated by the general manager, that are published in any one county or portion of a county within the district.
(b)The district shall publicly open the bids and award the contract to the lowest responsible bidder as follows:
(1)For public works contracts that are subject to subdivision (a).
(2)For vessel repair, maintenance, and alteration work contracts.
(c)Notwithstanding subdivision (a), the district may, at its discretion, use informal bidding for contracts as follows:
(1)For construction, repair, maintenance, and alteration work, and all similar work, with an estimated expenditure that does not exceed fifty thousand dollars ($50,000).
(2)For vessel repair, maintenance, and alteration work that does not exceed one million dollars ($1,000,000).
(d)The district shall enact an ordinance if it elects to use informal bidding pursuant to subdivision (c) that governs the selection of contractors to perform construction, repair, maintenance, and alteration work, and all similar work, by informal bid. The ordinance shall include all of the following:
(1)Notice to contractors shall be provided in a manner determined by the district.
(2)The notice inviting informal bids shall describe the project in general terms and how to obtain more detailed information about the project, and state the time and place for the submission of bids.
(e)Any contracts for vessel repair, maintenance, and alteration work that does not exceed one million dollars ($1,000,000) for which the informal bidding procedure adopted pursuant to subdivision (d) is not used shall be advertised pursuant to subdivision (a) and awarded pursuant to subdivision (b).
(f)In case of emergency, work may be contracted without advertising or competitive bidding, provided that the district complies with Chapter 2.5 (commencing with Section 22050).
SEC. 3.Section 20919 is added to the Public Contract Code, to read:20919.Notwithstanding Sections 20916 and 20916.1, the Golden Gate Bridge, Highway and Transportation District may, without further competitive bidding, contract with suppliers of goods and services by participating in contracts let by one or more city, county, city and county, district, school district, public authority, public agency, municipal corporation, or other political subdivision in the state, and to the extent provided by law, any other entity that expends public funds for the procurement of goods and services. This section is in addition to the authority granted in Sections 10298 and 10299. This section does not apply to construction contracts.
(a)The district shall advertise, pursuant to Section 6066 of the Government Code, for contracts for all vessel repair, maintenance, and alteration work if the estimated expenditure exceeds one million dollars ($1,000,000), and for all other construction, repair, maintenance, and alteration work, and all similar work, if the estimated expenditure exceeds five thousand dollars ($5,000), in at least one newspaper and one trade paper of general circulation designated by the general manager, that are published in any one county or portion of a county within the district.
(b)The district shall publicly open the bids and award the contract to the lowest responsible bidder for as follows:
(1)For public works contracts that are subject to subdivision (a).
(2)For vessel repair, maintenance, and alteration work contracts.
(c)Notwithstanding subdivision (a), the district may, at its discretion, use informal bidding for contracts for as follows:
(1)For construction, repair, maintenance, and alteration work, and all similar work, with an estimated expenditure that does not exceed fifty thousand dollars ($50,000).
(2)For vessel repair, maintenance, and alteration work that does not exceed one million dollars ($1,000,000).
(d)The district shall enact an ordinance if it elects to use informal bidding pursuant to subdivision (c) that governs the selection of contractors to perform construction, repair, maintenance, and alteration work, and all similar work, by informal bid. The ordinance shall include all of the following:
(1)Notice to contractors shall be provided in a manner determined by the district.
(2)The notice inviting informal bids shall describe the project in general terms and how to obtain more detailed information about the project, and state the time and place for the submission of bids.
(e)Any contracts for vessel repair, maintenance, and alteration work that does not exceed one million dollars ($1,000,000) for which the informal bidding procedure adopted pursuant to subdivision (d) is not used shall be advertised pursuant to subdivision (a) and awarded pursuant to subdivision (b).
(e)(f)In case of emergency, work may be contracted without advertising or competitive bidding, provided that the district complies with Chapter 2.5 (commencing with Section 22050).
SEC. 3.Section 20919 is added to the Public Contract Code, to read:20919.Notwithstanding Sections 20916 and 20916.1, the Golden Gate Bridge, Highway and Transportation District may, without further competitive bidding, contract with suppliers of goods and services by participating in contracts let by one or more city, county, city and county, district, school district, public authority, public agency, municipal corporation, or other political subdivision in the state, and to the extent provided by law, any other entity that expends public funds for the procurement of goods and services. This section is in addition to the authority granted in Sections 10298 and 10299. This section does not apply to construction contracts.
(a)The district shall advertise, pursuant to Section 6066 of the Government Code, for contracts for all vessel repair, maintenance, and alteration work if the estimated expenditure exceeds one million dollars ($1,000,000), and for all other construction, repair, maintenance, and alteration work, and all similar work, if the estimated expenditure exceeds five thousand dollars ($5,000), in at least one newspaper and one trade paper of general circulation designated by the general manager, that are published in any one county or portion of a county within the district.
(b)The district shall publicly open the bids and award the contract to the lowest responsible bidder for public works contracts that are subject to subdivision (a).
(c)Notwithstanding subdivision (a), the district may, at its discretion, use informal bidding for contracts for construction, repair, maintenance, and alteration work, and all similar work, with an estimated expenditure that does not exceed fifty thousand dollars ($50,000).
(d)A district that The district shall enact an ordinance if it elects to use informal bidding pursuant to subdivision (c) shall enact an ordinance to govern that governs the selection of contractors to perform construction, repair, maintenance, and alteration work, and all similar work, by informal bid. The ordinance shall include all of the following:
(1)Notice to contractors shall be provided in a manner determined by the district.
(2)The notice inviting informal bids shall describe the project in general terms and how to obtain more detailed information about the project, and state the time and place for the submission of bids.
(e)In case of emergency, work may be contracted without advertising or competitive bidding, provided that the district complies with Chapter 2.5 (commencing with Section 22050).
SEC. 3.Section 20919 is added to the Public Contract Code, to read:20919.Notwithstanding Sections 20916 and 20916.1, the Golden Gate Bridge, Highway and Transportation District may, without further competitive bidding, contract with suppliers of goods and services by participating in contracts let by one or more city, county, city and county, district, school district, public authority, public agency, municipal corporation, or other political subdivision in the state, and to the extent provided by law, any other entity that expends public funds for the procurement of goods and services. This section is in addition to the authority granted in Sections 10298 and 10299. This section does not apply to construction contracts.
(a)The district shall publicize contracts for the construction of public works whenever the estimated expenditure exceeds fifty thousand dollars ($50,000). The district shall publish the notice requesting bids on the districts Internet Web site at least 10 days before bids are due. The district shall also publish the notice advertise, pursuant to Section 6066 of the Government Code, for contracts for all vessel repair, maintenance, and alteration work if the estimated expenditure exceeds one million dollars ($1,000,000), and for all other construction, repair, maintenance, and alteration work, and all similar work, if the estimated expenditure exceeds five thousand dollars ($5,000), in at least one newspaper and a one trade paper of general circulation designated by the general manager in any one county or portion of a county within the district. The district shall publicly open the bids and award the contract to the lowest responsible bidder. manager, that are published in any one county or portion of a county within the district.
(b)The district shall publicly open the bids and award the contract to the lowest responsible bidder for public works contracts that are subject to subdivision (a).
(c)Notwithstanding subdivision (a), the district may, at its discretion, use informal bidding for contracts for construction, repair, maintenance, and alteration work, and all similar work, with an estimated expenditure that does not exceed fifty thousand dollars ($50,000).
(d)A district that elects to use informal bidding pursuant to subdivision (c) shall enact an ordinance to govern the selection of contractors to perform construction, repair, maintenance, and alteration work, and all similar work, by informal bid. The ordinance shall include all of the following:
(1)Notice to contractors shall be provided in a manner determined by the district.
(2)The notice inviting informal bids shall describe the project in general terms and how to obtain more detailed information about the project, and state the time and place for the submission of bids.
(b)(e)In case of emergency, work may be contracted without advertising or competitive bidding. The district shall comply bidding, provided that the district complies with Chapter 2.5 (commencing with Section 22050).
SEC. 3.Section 20919 is added to the Public Contract Code, to read:20919.Notwithstanding Sections 20916 and 20916.1, the Golden Gate Bridge, Highway and Transportation District may, without further competitive bidding, contract with suppliers of goods and services by participating in contracts let by one or more city, county, city and county, district, school district, public authority, public agency, municipal corporation, or other political subdivision in the state, and to the extent provided by law, any other entity that expends public funds for the procurement of goods and services. This section is in addition to the authority granted in Sections 10298 and 10299. This section does not apply to construction contracts.
(a)The district shall publicize contracts for the construction of facilities and public works whenever the estimated expenditure exceeds one hundred thousand dollars ($100,000). fifty thousand dollars ($50,000). The district shall publish the notice requesting bids on the districts Internet Web site at least 10 days before bids are due. The district shall also publish the notice in at least one newspaper and a trade paper of general circulation designated by the general manager in any one county or portion of a county within the district. The district shall publicly open the bids and award the contract to the lowest responsible bidder.
(b)In case of emergency, work may be contracted without advertising or competitive bidding. The district shall comply with Chapter 2.5 (commencing with Section 22050).
SEC. 3.Section 20919 is added to the Public Contract Code, to read:20919.Notwithstanding Sections 20916 and 20916.1, the Golden Gate Bridge, Highway and Transportation District may, without further competitive bidding, contract with suppliers of goods and services by participating in contracts let by one or more of a city, county, city and county, district, school district, public authority, public agency, municipal corporation, or other political subdivision in the state, and to the extent provided by law, any other entity that expends public funds for the procurement of goods and services. This section is in addition to the authority granted in Sections 10298 and 10299. This section does not apply to construction contracts.
(a)The district shall publicize contracts for the construction of facilities and public works whenever the estimated expenditure exceeds one hundred thousand dollars ($100,000). The district shall publish the notice requesting bids on the districts Internet Web site at least 10 days before bids are due. The district shall publicly open the bids and award the contract to the lowest responsible bidder.
(b)In case of emergency, work may be contracted without advertising or competitive bidding. The district shall comply with Chapter 2.5 (commencing with Section 22050).
SEC. 3.Section 20919 is added to the Public Contract Code, to read:20919.Notwithstanding Sections 20916 and 20916.1, the Golden Gate Bridge, Highway and Transportation District may, without further competitive bidding, contract with suppliers of goods and services by participating in contracts let by one or more of a city, county, city and county, district, school district, public authority, public agency, municipal corporation, or other political subdivision in the state, and to the extent provided by law, any other entity that expends public funds for the procurement of goods and services. This section is in addition to the authority granted in Sections 10298 and 10299. This section does not apply to construction contracts.
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Date
|
Status
|
|---|---|
| Sep 30, 2017 | Chaptered by Secretary of State. Chapter 396, Statutes of 2017. |
| Sep 30, 2017 | Approved by the Governor. |
| Sep 12, 2017 | Enrolled and presented to the Governor at 3 p.m. |
| Sep 7, 2017 | Assembly amendments concurred in. (Ayes 39. Noes 0.) Ordered to engrossing and enrolling. |
| Sep 6, 2017 | Ordered to special consent calendar. |
| Sep 5, 2017 | In Senate. Concurrence in Assembly amendments pending. |
| Sep 5, 2017 | Read third time. Passed. Ordered to the Senate. |
| Aug 31, 2017 | Read third time and amended. |
| Jul 12, 2017 | Read second time. Ordered to third reading. |
| Jul 11, 2017 | From committee: Do pass. (Ayes 14. Noes 0.) (July 10). |
| Jun 29, 2017 | From committee: Do pass and re-refer to Com. on TRANS. (Ayes 8. Noes 0.) (June 28). Re-referred to Com. on TRANS. |
| Jun 5, 2017 | Referred to Coms. on L. GOV. and TRANS. |
| May 23, 2017 | In Assembly. Read first time. Held at Desk. |
| May 22, 2017 | Read third time. Passed. (Ayes 37. Noes 0. Page 1148.) Ordered to the Assembly. |
| May 11, 2017 | Read second time and amended. Ordered to consent calendar. |
| May 10, 2017 | From committee: Do pass as amended. Ordered to consent calendar. (Ayes 13. Noes 0. Page 1021.) (May 9). |
| May 1, 2017 | Set for hearing May 9. |
| May 1, 2017 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on T. & H. |
| Apr 19, 2017 | Set for hearing April 25. |
| Apr 18, 2017 | April 18 hearing postponed by committee. |
| Apr 17, 2017 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on T. & H. |
| Apr 4, 2017 | Set for hearing April 18. |
| Mar 2, 2017 | Referred to Com. on T. & H. |
| Feb 21, 2017 | From printer. May be acted upon on or after March 23. |
| Feb 17, 2017 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
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Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Sep 7, 2017 | Special Consent Calendar # SB622 | Senate Floor |
Passed |
|
| Sep 5, 2017 | SB 622 Wiener Senate Third Reading By TING | Assembly Floor |
Passed |
|
| Jul 10, 2017 | Do pass. | Assembly Standing Committee on Transportation |
Passed |
|
| Jun 28, 2017 | Do pass and be re-referred to the Committee on [Transportation] | Assembly Standing Committee on Local Government |
Passed |
|
| May 22, 2017 | Consent Calendar 2nd SB622 Wiener et al. | Senate Floor |
Passed |
|
| May 9, 2017 | Do pass as amended, and be ordered to the Consent Calendar | Senate Standing Committee on Transportation and Housing |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Air Conditioning and Refrigeration Contractors Association | ** Against | Apr 13, 2017 |
| Air Conditioning Sheet Metal Association | ** Against | Apr 13, 2017 |
| California State Council Of Laborers | ** Against | Apr 13, 2017 |
| Construction Industry Force Account Council | ** Against | Apr 13, 2017 |
| Finishing Contractors Association Of Southern California | ** Against | Apr 13, 2017 |
| Golden Gate Bridge, Highway & Transportation District | ** Support | Sep 5, 2017 |
| golden gate bridge, highway, and transportation district [sponsor] | ** Support | Jun 27, 2017 |
| National Electrical Contractors Association | ** Against | Apr 13, 2017 |
| Northern California Allied Trades | ** Against | Apr 13, 2017 |
| State Building and Construction Trades Council | ** Support | Sep 5, 2017 |
| United Contractors | ** Against | Apr 13, 2017 |
| Wall and Ceiling Alliance | ** Against | Apr 13, 2017 |
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB |
UNFINISHED BUSINESS
Bill No: SB 622
:
SENATE TRANS. & HOUSING COMMITTEE: 13-0, 5/9/17
AYES: Beall, Cannella, Allen, Atkins, Bates, Gaines, McGuire, Mendoza, Morrell, Roth, Skinner, Wieckowski, Wiener
SENATE FLOOR: 37-0, 5/22/17 (Consent)
AYES: Allen, Atkins, Bates, Beall, Berryhill, Bradford, Cannella, De León, Dodd, Gaines, Galgiani, Glazer, Hernandez, Hertzberg, Hill, Hueso, Jackson, Lara, Leyva, McGuire, Mendoza, Mitchell, Monning, Moorlach, Morrell, Newman, Nguyen, Nielsen, Portantino, Roth, Skinner, Stern, Stone, Vidak, Wieckowski, Wiener, Wilk
NO VOTE RECORDED: Anderson, Fuller, Pan
ASSEMBLY FLOOR: 76-0, 9/5/17 - See last page for vote
DIGEST:
This bill makes various changes to the bidding threshold requirements for the Golden Gate Bridge, Highway, and Transportation District (District), as specified.
Assembly Amendments
permit the District to use informal bidding for contracts for vessel repair, maintenance, and alteration that does not exceed $1 million.
Existing law:
- Requires the District to advertise for contracts for all vessel repair, maintenance, and alteration work whenever the expenditure exceeds $20,000.
- Requires the District to advertise for contracts for all construction, repair, maintenance, and alteration work and for all insurance purchased if the expenditure exceeds $5,000.
- Requires the District to advertise the contract in at least one newspaper and two consecutive insertions in a trade paper of general circulation, as specified.
This bill:
- Allows the District to increase the bid threshold for vessel repair, maintenance, and alteration work from $20,000 to $1,000,000.
- Allows the District to remove the bid thresholds for insurance procurements.
- Increases, for the District, the informal bidding threshold for construction, repair, maintenance, and alteration work from $5,000 to $50,000.
- Requires the District to enact an informal bidding ordinance for contracted work under $50,000, as specified.
- Provides that that the District is to award a public works contract to the lowest responsible bidder for contracts that exceed $50,000.
- Requires the District to advertise in at least one newspaper and one trade paper, as specified, for contracts that exceed $1,000,000 for vessel work and $5,000 for all other public works projects. If the District uses an informal bidding procedure for vessel repair, maintenance, and alteration work that does not exceed $1 million, then the availability of those contracts must be advertised.
Comments
- Author’s statement. According to the author, “Senate Bill 622 would update contracting codes governing the Golden Gate Bridge Highway and Transportation District (GGBH&TD) by modifying statutory bidding thresholds for routine vessel maintenance, construction work, and insurance.
Under current law, GGBH&TD must seek and obtain bids from contractors on even minor construction and repair projects. These procedures often prove counterproductive; for example, as there is only one shipyard in the Bay Area capable of performing certain types of ferry maintenance, accepting bids for such a project is counterproductive. The proposed revisions in SB 622 allow GGBH&TD to streamline bidding on projects, revise impractical thresholds, and bring procedures in line with those of comparable transit agencies.”
- What are existing practices? Current law requires the District to advertise for bids on contracts for vessel repair, maintenance, and alteration work above $20,000. For contracts below $20,000, a less formal procurement method is practiced where the District obtains three quotes prior to awarding work. Similarly, the District uses the informal three quote bidding process for all other construction, maintenance, and insurance procurements under $5,000. Currently, anything above this amount must be advertised with the contract being awarded to the lowest responsible bidder.
- Other agencies. For transportation agencies, bidding thresholds vary throughout the state. The author points out that the San Francisco Municipal Transportation Agency has a $600,000 threshold, while the San Diego Metropolitan Transit System maintains a threshold of $100,000. Examples from other agencies across the state include the Santa Clara Valley Transportation Authority (VTA), which has a $25,000 bidding threshold for construction and maintenance contracts, Bay Area Rapid Transit (BART) ($10,000), Sacramento Regional Transit ($5,000), and the Altamont Corridor Express commuter rail ($3,000). Furthermore, it’s important to note that while many transportation agencies have statutory bidding thresholds; other agencies have established their bidding thresholds by adopting a policy approved by their Board of Directors.
- Rising costs. The author introduced this bill on behalf of the District to make existing statutory bidding thresholds consistent with the rising cost of materials and services. The District argues that the low bidding limits have become an obstacle and increases the cost of executing contracts for routine work and the District’s existing bidding thresholds are outdated. Several routine projects that exceed existing thresholds for the District include, station parking lot repairs ($20,000), station roof repairs ($5,000), and toll plaza gutter replacements ($8,000). Another example, for vessel projects, in 2016 the District executed six dry-docking contracts which all ranged from $100,000 to $300,000.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
Golden Gate Bridge, Highway & Transportation District
State Building and Construction Trades Council
None received
ASSEMBLY FLOOR: 76-0, 9/5/17
AYES: Acosta, Aguiar-Curry, Travis Allen, Arambula, Baker, Berman, Bigelow, Bloom, Bocanegra, Bonta, Brough, Burke, Caballero, Calderon, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dababneh, Dahle, Daly, Eggman, Flora, Fong, Frazier, Friedman, Gallagher, Cristina Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Rodriguez, Rubio, Salas, Santiago, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon
NO VOTE RECORDED: Eduardo Garcia, Ridley-Thomas, Steinorth
9/5/17 18:50:50
**** END ****
SENATE THIRD READING
STR Bill Id:SB 622
Author:(Wiener)
As Amended Ver:August 31, 2017
Majority vote
SENATE VOTE: 37-0
Committee | Votes | Ayes | Noes |
Local Government | 8-0 | Aguiar-Curry, Waldron, Bloom, Caballero, Grayson, Lackey, Ridley-Thomas, Voepel |
|
Transportation | 14-0 | Frazier, Fong, Aguiar-Curry, Baker, Berman, Bocanegra, Chu, Daly, Friedman, Harper, Mathis, Medina, Nazarian, O'Donnell |
|
SUMMARY: Makes various changes to the bidding threshold requirements for the Golden Gate Bridge, Highway, and Transportation District (District). Specifically, this bill:
- Increases the bid threshold for vessel repair, maintenance, and alteration work from $20,000 to $1 million.
- Removes the bid thresholds for insurance procurements.
- Increases the informal bidding threshold for construction, repair, maintenance, and alteration work and all similar work from $5,000 to $50,000.
- Allows the District to use informal bidding for contracts for vessel repair, maintenance, and alteration work that does not exceed $1 million.
- Requires the District to enact an ordinance if it elects to use informal bidding for construction, repair, maintenance, and alteration work that does not exceed $50,000 and for vessel repair, maintenance, and alteration work that does not exceed $1 million and requires the ordinance to include all of the following:
- Notice to contractors shall be provided in a manner determined by the District; and,
- The notice inviting informal bids shall describe the project in general terms and how to obtain more detailed information about the project, and state the time and place for the submission of bids.
- Requires the District to publicly open bids and award contracts to the lowest responsible bidder for construction, repair, maintenance, and alteration work that does not exceed $50,000 and for vessel repair, maintenance, and alteration work.
- Requires the District to advertise in at least one newspaper and one trade paper, as specified, for contracts that exceed $1 million for vessel work and $5,000 for all other public works projects.
- Requires any contracts for vessel repair, maintenance, and alteration work that does not exceed $1 million for which the informal bidding procedure adopted pursuant to 5), above, is not used to be advertised pursuant to 7), above, and awarded pursuant to 6), above.
- Allows the District, without competitive bidding, to contract with suppliers of goods and services by participating in contracts let by one or more city, county, city and county, district, school district, public authority, public agency, municipal corporation, or other political subdivision in the state, and any other entity that expends public funds for the procurement of goods and services, as specified. This provision does not apply to construction contracts.
EXISTING LAW:
- Requires the District to advertise for contracts for all vessel repair, maintenance, and alteration work whenever the expenditure exceeds $20,000.
- Requires the District to advertise for contracts for all construction, repair, maintenance, and alteration work and for all insurance purchased if the expenditure exceeds $5,000.
- Requires the District to advertise the contract in at least one newspaper and two consecutive insertions in a trade paper of general circulation, as specified.
- Requires the District to publicly open bids and award to the lowest responsible bidder the contracts specified in 1) and 2), above.
- Requires the District to award all contracts in excess of $20,000 for the hiring or purchase of equipment, supplies, or materials to the lowest responsible bidder, but also allows the District to award contracts for equipment, supplies, or materials that exceed $100,000 to the responsible bidder who provides the best value, as specified.
FISCAL EFFECT: None
COMMENTS:
- Bill Summary. This bill makes the following changes to the District's bidding requirements:
- Increases the bid threshold for vessel repair, maintenance, and alteration work from $20,000 to $1 million;
- Removes the bid thresholds for insurance procurements;
- Increases the informal bidding threshold for construction, repair, maintenance, and alteration work from $5,000 to $50,000;
- Allows the District to use informal bidding for contracts for vessel repair, maintenance, and alteration work that does not exceed $1 million;
- Requires the District to enact an informal bidding ordinance for construction, repair, maintenance, and alteration work that does not exceed $50,000 and for vessel repair, maintenance, and alteration work that does not exceed $1 million, as specified;
- Requires the District to publicly open bids and award contracts to the lowest responsible bidder for construction, repair, maintenance, and alteration work that does not exceed $50,000 and for vessel repair, maintenance, and alteration work;
- Requires the District to advertise in at least one newspaper and one trade paper, as specified, for contracts that exceed $1 million for vessel work and $5,000 for all other public works projects;
- Requires any contracts for vessel repair, maintenance, and alteration work that does not exceed $1 million for which the informal bidding procedure is not used to be advertised and awarded pursuant to the District's formal bid procedures; and
- Allows the District, without competitive bidding, to contract with suppliers of goods and services by participating in contracts let by other specified government agencies or other entities that expend public funds for the procurement of goods and services, as specified.
This bill is sponsored by the District.
- Author's Statement. According to the author, "Senate Bill 622 would update contracting codes governing the District by modifying statutory bidding thresholds for routine vessel maintenance, construction work, and insurance. Under current law, the District must seek and obtain bids from contractors on even minor construction and repair projects. These procedures often prove counterproductive; for example, as there is only one shipyard in the Bay Area capable [of] performing certain types of ferry maintenance, accepting bids for such a project is needlessly burdensome. SB 622 would allow the District to streamline bidding on projects, revise impractical thresholds, and bring procedures in line with those of comparable transit agencies."
- Background. The District was formed under the authority of the Golden Gate Bridge and Highway Act of 1923 and incorporated in 1928 to include within its boundaries the City and County of San Francisco, the counties of Marin, Sonoma, Del Norte, most of Napa county, and part of Mendocino county. The District is governed by a 19-member Board of Directors that is appointed by the elected representatives of their constituent counties. Today, the District, based in San Francisco, operates the Golden Gate Bridge, the regional Golden Gate Transit bus service connecting Sonoma, Marin, San Francisco, and Contra Costa counties, and the Golden Gate Ferry system, which links Marin and San Francisco counties. The District employs 802 people.
The District is unique in the San Francisco Bay Area in that its operations and administration are not supported by direct sales tax measures or dedicated general funds. Primary sources of revenues are derived from the operation itself (bridge tolls and transit fares), supplemented by government grant programs, investments and capital contributions, along with limited revenue programs such as transit advertising, concessions, and leases. The District's Fiscal Year 2015/2016 programs and services were based upon an adopted operating budget of $200.4 million and a capital budget of $46.8 million. The disbursement of funds received by the District is controlled by statute and by provisions of various grant contracts entered into with the federal government, the State of California, and other local governments.
Current law requires the District to advertise for bids on contracts for vessel repair, maintenance, and alteration work above $20,000. For contracts below $20,000, a less formal procurement method is practiced where the District obtains three quotes prior to awarding work. Similarly, the District uses the informal three-quote bidding process for all other construction, maintenance, and insurance procurements under $5,000. Currently, anything above this amount must be advertised with the contract being awarded to the lowest responsible bidder.
The District argues that its existing bidding thresholds are outdated, and the low bidding limits have become an obstacle that increase the cost of executing contracts for routine work. Several routine projects that exceed existing thresholds for the District include station parking lot repairs ($20,000), station roof repairs ($5,000), and toll plaza gutter replacements ($8,000). Examples for vessel projects in 2016 include six dry-docking contracts, all of which ranged from $100,000 to $300,000. The District is also seeking the ability to join procurement contracts awarded by other agencies, known as cooperative procurement, to leverage the benefits of volume purchases (such as for busses), delivery and supply chain advantages, best practices, and the reduction of administrative time and expenses.
- Arguments in Support. The District, sponsor of this measure, states, "The unusually low bidding limit has become an obstacle that increases costs and has forced the District to defer maintenance. For example, the District has deferred completing small repair work, such as roof repairs and replacing gutters, because the costs of the work nearly doubles when the cost of advertising and developing specification documents are factored in. In the past, the District has deferred repairs until enough projects can be bundled into a single cost effective contract.
"In addition, the most routine vessel repair work far exceeds the current thresholds. Responses to these contracts usually results in only two bidders, and only on contracts exceeding $1 million does the District receive three or more bidders. While other ferry operators are not subject to a bidding threshold for vessel contracts, the thresholds set in SB 622 would enable the District to implement a far more efficient informal bidding process for projects less than the threshold amount.
"While existing law provides the District the authority to complete works using its own workforce, this can place a strain on staff resources, particularly when contracting out work might be the most efficient option. SB 622 proposes revisions to allow the District to streamline bidding on projects, revise impractical thresholds, and bring the District's procedures in line with those of comparable transit agencies. These are changes that are long overdue."
- Arguments in Opposition. None on file.
Analysis Prepared by: Angela Mapp / L. GOV. / (916) 319-3958 FN: 0001569
SENATE THIRD READING
STR Bill Id:SB 622
Author:(Wiener)
As Amended Ver:May 11, 2017
Majority vote
SENATE VOTE: 37-0
Committee | Votes | Ayes | Noes |
Local Government | 8-0 | Aguiar-Curry, Waldron, Bloom, Caballero, Grayson, Lackey, Ridley-Thomas, Voepel | |
Transportation | 14-0 | Frazier, Fong, Aguiar-Curry, Baker, Berman, Bocanegra, Chu, Daly, Friedman, Harper, Mathis, Medina, Nazarian, O'Donnell |
SUMMARY: Makes various changes to the bidding threshold requirements for the Golden Gate Bridge, Highway, and Transportation District (District). Specifically, this bill:
- Increases the bid threshold for vessel repair, maintenance, and alteration work from $20,000 to $1 million.
- Removes the bid thresholds for insurance procurements.
- Increases the informal bidding threshold for construction, repair, maintenance, and alteration work and all similar work from $5,000 to $50,000.
- Requires the District to enact an ordinance if it elects to use informal bidding for contracted work under $50,000, and requires the ordinance to include all of the following:
- Notice to contractors shall be provided in a manner determined by the District; and,
- The notice inviting informal bids shall describe the project in general terms and how to obtain more detailed information about the project, and state the time and place for the submission of bids.
- Requires the District to publicly open bids and award contracts to the lowest responsible bidder for contracts that exceed $50,000.
- Requires the District to advertise in at least one newspaper and one trade paper, as specified, for contracts that exceed $1 million for vessel work and $5,000 for all other public works projects.
- Allows the District, without competitive bidding, to contract with suppliers of goods and services by participating in contracts let by one or more city, county, city and county, district, school district, public authority, public agency, municipal corporation, or other political subdivision in the state, and any other entity that expends public funds for the procurement of goods and services, as specified. This provision does not apply to construction contracts.
EXISTING LAW:
- Requires the District to advertise for contracts for all vessel repair, maintenance, and alteration work whenever the expenditure exceeds $20,000.
- Requires the District to advertise for contracts for all construction, repair, maintenance, and alteration work and for all insurance purchased if the expenditure exceeds $5,000.
- Requires the District to advertise the contract in at least one newspaper and two consecutive insertions in a trade paper of general circulation, as specified.
- Requires the District to award all contracts in excess of $20,000 for the hiring or purchase of equipment, supplies, or materials to the lowest responsible bidder, but also allows the District to award contracts for equipment, supplies, or materials that exceed $100,000 to the responsible bidder who provides the best value, as specified.
FISCAL EFFECT: None
COMMENTS:
- Bill Summary. This bill makes the following changes to the District's bidding requirements:
- Increases the bid threshold for vessel repair, maintenance, and alteration work from $20,000 to $1 million;
- Removes the bid thresholds for insurance procurements;
- Increases the informal bidding threshold for construction, repair, maintenance, and alteration work from $5,000 to $50,000;
- Requires the District to enact an informal bidding ordinance for contracted work under $50,000, as specified;
- Requires the District to publicly open bids and award contracts to the lowest responsible bidder for contracts that exceed $50,000;
- Requires the District to advertise in at least one newspaper and one trade paper, as specified, for contracts that exceed $1 million for vessel work and $5,000 for all other public works projects; and,
- Allows the District, without competitive bidding, to contract with suppliers of goods and services by participating in contracts let by other specified government agencies or other entities that expend public funds for the procurement of goods and services, as specified.
This bill is sponsored by the District.
- Author's Statement. According to the author, "Senate Bill 622 would update contracting codes governing the District by modifying statutory bidding thresholds for routine vessel maintenance, construction work, and insurance. Under current law, the District must seek and obtain bids from contractors on even minor construction and repair projects. These procedures often prove counterproductive; for example, as there is only one shipyard in the Bay Area capable [of] performing certain types of ferry maintenance, accepting bids for such a project is needlessly burdensome. SB 622 would allow the District to streamline bidding on projects, revise impractical thresholds, and bring procedures in line with those of comparable transit agencies."
- Background. The District was formed under the authority of the Golden Gate Bridge and Highway Act of 1923 and incorporated in 1928 to include within its boundaries the City and County of San Francisco, the counties of Marin, Sonoma, Del Norte, most of Napa county, and part of Mendocino county.
The District is governed by a 19-member Board of Directors that is appointed by the elected representatives of their constituent counties. Today, the District, based in San Francisco, operates the Golden Gate Bridge, the regional Golden Gate Transit bus service connecting Sonoma, Marin, San Francisco, and Contra Costa counties, and the Golden Gate Ferry system, which links Marin and San Francisco counties. The District employs 802 people.
The District is unique in the San Francisco Bay Area in that its operations and administration are not supported by direct sales tax measures or dedicated general funds. Primary sources of revenues are derived from the operation itself (bridge tolls and transit fares), supplemented by government grant programs, investments and capital contributions, along with limited revenue programs such as transit advertising, concessions, and leases. The District's fiscal year (FY) 2015/2016 programs and services were based upon an adopted operating budget of $200.4 million and a capital budget of $46.8 million. The disbursement of funds received by the District is controlled by statute and by provisions of various grant contracts entered into with the federal government, the State of California, and other local governments.
Current law requires the District to advertise for bids on contracts for vessel repair, maintenance, and alteration work above $20,000. For contracts below $20,000, a less formal procurement method is practiced where the District obtains three quotes prior to awarding work. Similarly, the District uses the informal three-quote bidding process for all other construction, maintenance, and insurance procurements under $5,000. Currently, anything above this amount must be advertised with the contract being awarded to the lowest responsible bidder.
Bidding thresholds vary for transportation agencies throughout the state. The author notes that the San Francisco Municipal Transportation Agency has a $600,000 threshold, while the San Diego Metropolitan Transit System maintains a threshold of $100,000. Examples from other agencies include the Santa Clara Valley Transportation Authority, which has a $25,000 bidding threshold for construction and maintenance contracts, Bay Area Rapid Transit ($10,000), Sacramento Regional Transit ($5,000), and the Altamont Corridor Express commuter rail ($3,000). While many transportation agencies have statutory bidding thresholds, other agencies have established their bidding thresholds by adopting a policy approved by their Board of Directors.
The District argues that its existing bidding thresholds are outdated, and the low bidding limits have become an obstacle that increase the cost of executing contracts for routine work. Several routine projects that exceed existing thresholds for the District include station parking lot repairs ($20,000), station roof repairs ($5,000), and toll plaza gutter replacements ($8,000). Examples for vessel projects in 2016 include six dry-docking contracts, all of which ranged from $100,000 to $300,000.
The District is also seeking the ability to join procurement contracts awarded by other agencies, known as cooperative procurement, to leverage the benefits of volume purchases (such as for busses), delivery and supply chain advantages, best practices, and the reduction of administrative time and expenses.
- Arguments in Support. The District, sponsor of this measure, states, "The unusually low bidding limit has become an obstacle that increases costs and has forced the District to defer maintenance. For example, the District has deferred completing small repair work, such as roof repairs and replacing gutters, because the costs of the work nearly doubles when the cost of advertising and developing specification documents are factored in. In the past, the District has deferred repairs until enough projects can be bundled into a single cost effective contract.
"In addition, the most routine vessel repair work far exceeds the current thresholds. Responses to these contracts usually results in only two bidders, and only on contracts exceeding $1 million does the District receive three or more bidders. While other ferry operators are not subject to a bidding threshold for vessel contracts, the thresholds set in SB 622 would enable the District to implement a far more efficient informal bidding process for projects less than the threshold amount.
"While existing law provides the District the authority to complete works using its own workforce, this can place a strain on staff resources, particularly when contracting out work might be the most efficient option. SB 622 proposes revisions to allow the District to streamline bidding on projects, revise impractical thresholds, and bring the District's procedures in line with those of comparable transit agencies. These are changes that are long overdue."
- Arguments in Opposition. None on file.
Analysis Prepared by: Angela Mapp / L. GOV. / (916) 319-3958 FN: 0001129
Date of Hearing: July 10, 2017
ASSEMBLY COMMITTEE ON TRANSPORTATION
Jim Frazier, Chair
SBPCA Bill Id:SB 622
Author:(Wiener) – As Amended Ver:May 11, 2017
SENATE VOTE: 37-0
SUBJECT: Local Agency Public Construction Act: Golden Gate Bridge, Highway and Transportation District
SUMMARY: Makes various changes to the bidding threshold requirements for the Golden Gate Bridge, Highway, and Transportation District (District). Specifically, this bill:
- Increases the bid threshold for vessel repair, maintenance, and alteration work from $20,000 to $1 million.
- Removes the bid thresholds for insurance procurements.
- Increases the informal bidding threshold for construction, repair, maintenance, and alteration work and all similar work from $5,000 to $50,000.
- Requires the District to enact an ordinance if it elects to use informal bidding for contracted work under $50,000, and requires the ordinance to include all of the following:
- The notice to contractors shall be provided in a manner determined by the District; and,
- The notice inviting informal bids shall describe the project in general terms and how to obtain more detailed information about the project, and state the time and place for the submission of bids.
- Requires the District to publicly open bids and award contracts to the lowest responsible bidder for contracts that exceed $50,000.
- Requires the District to advertise in at least one newspaper and one trade paper, as specified, for contracts that exceed $1 million for vessel repair, maintenance, and alteration work and $5,000 for all other public works projects.
- Allows the District, without competitive bidding, to contract with suppliers of goods and services by participating in contracts let by one or more city, county, city and county, district, school district, public authority, public agency, municipal corporation, or other political subdivision in the state, and any other entity that expends public funds for the procurement of goods and services, as specified. This provision does not apply to construction contracts.
EXISTING LAW:
- Requires the District to advertise for contracts for all vessel repair, maintenance, and alteration work whenever the expenditure exceeds $20,000.
- Requires the District to advertise for contracts for all construction, repair, maintenance, and alteration work and for all insurance purchased if the expenditure exceeds $5,000.
- Requires the District to advertise the contract in at least one newspaper and not more than three newspapers and two consecutive insertions in a trade paper of general circulation, as specified.
- Requires the District to award all contracts in excess of $20,000 for the hiring or purchase of equipment, supplies, or materials to the lowest responsible bidder, but also allows the District to award contracts for equipment, supplies, or materials that exceed $100,000 to the responsible bidder who provides the best value, as specified.
FISCAL EFFECT: None. This bill was keyed non-fiscal by the Legislative Counsel.
COMMENTS: The District is based in San Francisco and operates the Golden Gate Bridge and two public transit systems, Golden Gate Transit Buses and the Golden Gate Ferry. In 1969, the District was authorized to develop a mass transportation plan for the U.S. Highway 101 Golden Gate Corridor. The plan was meant to manage traffic congestion across the bridge, which had reached capacity. To that end, the District began operating ferry service between Sausalito and San Francisco in 1970 and the existing regional bus service was provided by Greyhound Lines. However, Greyhound abandoned the routes and in 1971 the Legislature authorized the District to develop a long-range mass transit program. The District created a multi-modal system of buses and ferries to serve the communities and reduce congestion. Currently, the Golden Gate Bus service connects Sonoma, Marin, San Francisco, and Contra Costa counties with 26 fixed bus routes. The Golden Gate ferry system links Marin and San Francisco counties and operates three fixed routes.
The District is unique among San Francisco Bay Area transit operators because it provides transit services without support from local sales tax measures or dedicated general funds. The District does not have the authority to levy taxes, so operation of the bridge and the transit system are funded directly by bridge toll revenue and transit fares. Other revenue is derived from federal, state and local grant funds, coupled with advertising, concessions, and leases. Additionally, both the transit and ferry systems are recipients of funds from the State Transit Assistance (STA) program to support statewide transit operations and capital needs.
Current law requires the District to advertise for bids on contracts for vessel repairs, maintenance, and alteration work over $20,000. For contracts below $20,000, a less formal bid procurement method is utilized where the District obtains three quotes prior to awarding work. For all other types of work, including construction, maintenance, and insurance procurements, the District is able to use a similar informal bid process for contacts under $5,000. Anything above this amount must be advertised with the contract being awarded to the lowest responsible bidder.
According to the author, “SB 622 would update contracting codes governing the District by modifying statutory bidding thresholds for routine vessel maintenance, construction work, and insurance. Under current law, the District must seek and obtain bids from contractors on even minor construction and repair projects. These procedures often prove counterproductive; for example, as there is only one shipyard in the Bay Area capable performing certain types of ferry maintenance, accepting bids for such a project is needlessly burdensome. SB 622 would allow the District to streamline bidding on projects, revise impractical thresholds, and bring procedures in line with those of comparable transit agencies.”
Specially, this bill increases the informal bidding threshold for construction, repair, maintenance, and alteration work from $5,000 to $50,000. The bill also requires the District to enact an ordinance to govern the informal bid process moving forward, including details of what future notices must include. As the sponsor of the bill the District notes that, "the unusually low bidding limit has become an obstacle that increases costs and has forced the District to defer maintenance. For example, the District has deferred completing small repair work, such as roof repairs and replacing gutters, because the costs of the work nearly doubles when the cost of advertising and developing specification documents are factored in. In the past, the District has deferred repairs until enough projects can be bundled into a single cost effective contract.”
Transportation agencies throughout the state have varying bid thresholds. For example, the San Francisco Municipal Transportation Agency has a $600,000 threshold, while the San Diego Metropolitan Transit System maintains a threshold of $100,000. Other examples include Sacramento Regional Transit District that has a threshold of $5,000 and the Orange County Transportation Authority’s threshold is $25,000.
This bill also increases the bid threshold for vessel repair, maintenance, and alteration work from $20,000 to $1 million. According to the District, "the most routine vessel repair work far exceeds the current thresholds. Responses to these contracts usually results in only two bidders, and only on contracts exceeding $1 million does the District receive three or more bidders. While other ferry operators are not subject to a bidding threshold for vessel contracts, the thresholds set in SB 622 would enable the District to implement a far more efficient informal bidding process for projects less than the threshold amount.” According to information provided by the District, the same two companies have been the only bidders in nearly all of their recent work, except for a project totaling $3.1 million.
This bill would also authorize the District to join procurement contracts awarded by other agencies, known as cooperative procurement, to leverage the benefits of volume purchases (such as for busses), delivery and supply chain advantages, best practices, and the reduction of administrative time and expenses. This is a common practice among the state’s transit providers.
Double referral: This bill passed out of the Assembly Committee on Local Government on June 28, 2017, with an 8-0 vote.
REGISTERED SUPPORT / OPPOSITION:
Support
Golden Gate Bridge, Highway and Transportation District (Sponsor)
State Building and Construction Trades Council of California
Opposition
None on file
Analysis Prepared by: Melissa White / TRANS. / (916) 319-2093
Date of Hearing: June 28, 2017
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Cecilia Aguiar-Curry, Chair
SBPCA Bill Id:SB 622
Author:(Wiener) – As Amended Ver:May 11, 2017
SENATE VOTE: 37-0
SUBJECT: Local Agency Public Construction Act: Golden Gate Bridge, Highway and Transportation District.
SUMMARY: Makes various changes to the bidding threshold requirements for the Golden Gate Bridge, Highway, and Transportation District (District). Specifically, this bill:
- Increases the bid threshold for vessel repair, maintenance, and alteration work from $20,000 to $1 million.
- Removes the bid thresholds for insurance procurements.
- Increases the informal bidding threshold for construction, repair, maintenance, and alteration work and all similar work from $5,000 to $50,000.
- Requires the District to enact an ordinance if it elects to use informal bidding for contracted work under $50,000, and requires the ordinance to include all of the following:
- Notice to contractors shall be provided in a manner determined by the District; and,
- The notice inviting informal bids shall describe the project in general terms and how to obtain more detailed information about the project, and state the time and place for the submission of bids.
- Requires the District to publicly open bids and award contracts to the lowest responsible bidder for contracts that exceed $50,000.
- Requires the District to advertise in at least one newspaper and one trade paper, as specified, for contracts that exceed $1 million for vessel work and $5,000 for all other public works projects.
- Allows the District, without competitive bidding, to contract with suppliers of goods and services by participating in contracts let by one or more city, county, city and county, district, school district, public authority, public agency, municipal corporation, or other political subdivision in the state, and any other entity that expends public funds for the procurement of goods and services, as specified. This provision does not apply to construction contracts.
EXISTING LAW:
- Requires the District to advertise for contracts for all vessel repair, maintenance, and alteration work whenever the expenditure exceeds $20,000.
- Requires the District to advertise for contracts for all construction, repair, maintenance, and alteration work and for all insurance purchased if the expenditure exceeds $5,000.
- Requires the District to advertise the contract in at least one newspaper and two consecutive insertions in a trade paper of general circulation, as specified.
- Requires the District to award all contracts in excess of $20,000 for the hiring or purchase of equipment, supplies, or materials to the lowest responsible bidder, but also allows the District to award contracts for equipment, supplies, or materials that exceed $100,000 to the responsible bidder who provides the best value, as specified.
FISCAL EFFECT: None
COMMENTS:
- Bill Summary. This bill makes the following changes to the District's bidding requirements:
- Increases the bid threshold for vessel repair, maintenance, and alteration work from $20,000 to $1 million;
- Removes the bid thresholds for insurance procurements;
- Increases the informal bidding threshold for construction, repair, maintenance, and alteration work from $5,000 to $50,000;
- Requires the District to enact an informal bidding ordinance for contracted work under $50,000, as specified;
- Requires the District to publicly open bids and award contracts to the lowest responsible bidder for contracts that exceed $50,000;
- Requires the District to advertise in at least one newspaper and one trade paper, as specified, for contracts that exceed $1 million for vessel work and $5,000 for all other public works projects; and,
- Allows the District, without competitive bidding, to contract with suppliers of goods and services by participating in contracts let by other specified government agencies or other entities that expend public funds for the procurement of goods and services, as specified.
This bill is sponsored by the District.
- Author's Statement. According to the author, "Senate Bill 622 would update contracting codes governing the District by modifying statutory bidding thresholds for routine vessel maintenance, construction work, and insurance. Under current law, the District must seek and obtain bids from contractors on even minor construction and repair projects. These procedures often prove counterproductive; for example, as there is only one shipyard in the Bay Area capable [of] performing certain types of ferry maintenance, accepting bids for such a project is needlessly burdensome. SB 622 would allow the District to streamline bidding on projects, revise impractical thresholds, and bring procedures in line with those of comparable transit agencies."
- Background. The District was formed under the authority of the Golden Gate Bridge and Highway Act of 1923 and incorporated in 1928 to include within its boundaries the City and County of San Francisco, the counties of Marin, Sonoma, Del Norte, most of Napa county, and part of Mendocino county.
The District is governed by a 19-member Board of Directors that is appointed by the elected representatives of their constituent counties. Today, the District, based in San Francisco, operates the Golden Gate Bridge, the regional Golden Gate Transit bus service connecting Sonoma, Marin, San Francisco, and Contra Costa counties, and the Golden Gate Ferry system, which links Marin and San Francisco counties. The District employs 802 people.
The District is unique in the San Francisco Bay Area in that its operations and administration are not supported by direct sales tax measures or dedicated general funds. Primary sources of revenues are derived from the operation itself (bridge tolls and transit fares), supplemented by government grant programs, investments and capital contributions, along with limited revenue programs such as transit advertising, concessions, and leases. The District’s FY 2015/2016 programs and services were based upon an adopted operating budget of $200.4 million and a capital budget of $46.8 million. The disbursement of funds received by the District is controlled by statute and by provisions of various grant contracts entered into with the federal government, the State of California, and other local governments.
Current law requires the District to advertise for bids on contracts for vessel repair, maintenance, and alteration work above $20,000. For contracts below $20,000, a less formal procurement method is practiced where the District obtains three quotes prior to awarding work. Similarly, the District uses the informal three-quote bidding process for all other construction, maintenance, and insurance procurements under $5,000. Currently, anything above this amount must be advertised with the contract being awarded to the lowest responsible bidder.
Bidding thresholds vary for transportation agencies throughout the state. The author notes that the San Francisco Municipal Transportation Agency has a $600,000 threshold, while the San Diego Metropolitan Transit System maintains a threshold of $100,000. Examples from other agencies include the Santa Clara Valley Transportation Authority, which has a $25,000 bidding threshold for construction and maintenance contracts, Bay Area Rapid Transit ($10,000), Sacramento Regional Transit ($5,000), and the Altamont Corridor Express commuter rail ($3,000). While many transportation agencies have statutory bidding thresholds, other agencies have established their bidding thresholds by adopting a policy approved by their Board of Directors.
The District argues that its existing bidding thresholds are outdated, and the low bidding limits have become an obstacle that increase the cost of executing contracts for routine work. Several routine projects that exceed existing thresholds for the District include station parking lot repairs ($20,000), station roof repairs ($5,000), and toll plaza gutter replacements ($8,000). Examples for vessel projects in 2016 include six dry-docking contracts, all of which ranged from $100,000 to $300,000.
The District is also seeking the ability to join procurement contracts awarded by other agencies, known as cooperative procurement, to leverage the benefits of volume purchases (such as for busses), delivery and supply chain advantages, best practices, and the reduction of administrative time and expenses.
- Arguments in Support. The District, sponsor of this measure, states, "The unusually low bidding limit has become an obstacle that increases costs and has forced the District to defer maintenance. For example, the District has deferred completing small repair work, such as roof repairs and replacing gutters, because the costs of the work nearly doubles when the cost of advertising and developing specification documents are factored in. In the past, the District has deferred repairs until enough projects can be bundled into a single cost effective contract.
"In addition, the most routine vessel repair work far exceeds the current thresholds. Responses to these contracts usually results in only two bidders, and only on contracts exceeding $1 million does the District receive three or more bidders. While other ferry operators are not subject to a bidding threshold for vessel contracts, the thresholds set in
SB 622 would enable the District to implement a far more efficient informal bidding process for projects less than the threshold amount.
"While existing law provides the District the authority to complete works using its own workforce, this can place a strain on staff resources, particularly when contracting out work might be the most efficient option. SB 622 proposes revisions to allow the District to streamline bidding on projects, revise impractical thresholds, and bring the District's procedures in line with those of comparable transit agencies. These are changes that are long overdue."
- Arguments in Opposition. None on file.
- Double-Referral. This bill is double-referred to the Transportation Committee.
REGISTERED SUPPORT / OPPOSITION:
Support
Golden Gate Bridge, Highway, and Transportation District [SPONSOR]
State Building and Construction Trades Council
Opposition
None on file
Analysis Prepared by: Angela Mapp / L. GOV. / (916) 319-3958
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB |
CONSENT
Bill No: SB 622
:
SENATE TRANS. & HOUSING COMMITTEE: 13-0, 5/9/17
AYES: Beall, Cannella, Allen, Atkins, Bates, Gaines, McGuire, Mendoza, Morrell, Roth, Skinner, Wieckowski, Wiener
DIGEST:
This bill makes various changes to the bidding threshold requirements for the Golden Gate Bridge, Highway, and Transportation District (District), as specified.
Existing law:
- Requires the District to advertise for contracts for all vessel repair, maintenance, and alteration work whenever the expenditure exceeds $20,000.
- Requires the District to advertise for contracts for all construction, repair, maintenance, and alteration work and for all insurance purchased if the expenditure exceeds $5,000.
- Requires the District to advertise the contract in at least one newspaper and two consecutive insertions in a trade paper of general circulation, as specified.
This bill, specifically for the District:
- Increases the bid threshold for vessel repair, maintenance, and alteration work from $20,000 to $1,000,000.
- Removes the bid thresholds for insurance procurements.
- Increases the informal bidding threshold for construction, repair, maintenance, and alteration work from $5,000 to $50,000.
- Requires the District to enact an informal bidding ordinance for contracted work under $50,000, as specified.
- Provides that that the District is to award a public works contract to the lowest responsible bidder for contracts that exceed $50,000.
- Requires the District to advertise in at least one newspaper and one trade paper, as specified, for contracts that exceed $1,000,000 for vessel work and $5,000 for all other public works projects.
Comments
- Author’s statement. According to the author, “Senate Bill 622 would update contracting codes governing the Golden Gate Bridge Highway and Transportation District (GGBH&TD) by modifying statutory bidding thresholds for routine vessel maintenance, construction work, and insurance.
Under current law, GGBH&TD must seek and obtain bids from contractors on even minor construction and repair projects. These procedures often prove counterproductive; for example, as there is only one shipyard in the Bay Area capable of performing certain types of ferry maintenance, accepting bids for such a project is counterproductive. The proposed revisions in SB 622 allow GGBH&TD to streamline bidding on projects, revise impractical thresholds, and bring procedures in line with those of comparable transit agencies.”
- What are existing practices? Current law requires the District to advertise for bids on contracts for vessel repair, maintenance, and alteration work above $20,000. For contracts below $20,000, a less formal procurement method is practiced where the District obtains three quotes prior to awarding work. Similarly, the District uses the informal three quote bidding process for all other construction, maintenance, and insurance procurements under $5,000. Currently, anything above this amount must be advertised with the contract being awarded to the lowest responsible bidder.
- Other agencies. For transportation agencies, bidding thresholds vary throughout the state. The author points out that the San Francisco Municipal Transportation Agency has a $600,000 threshold, while the San Diego Metropolitan Transit System maintains a threshold of $100,000. Examples from other agencies across the state include the Santa Clara Valley Transportation Authority, which has a $25,000 bidding threshold for construction and maintenance contracts, Bay Area Rapid Transit ($10,000), Sacramento Regional Transit ($5,000), and the Altamont Corridor Express commuter rail ($3,000). Furthermore, it’s important to note that while many transportation agencies have statutory bidding thresholds; other agencies have established their bidding thresholds by adopting a policy approved by their Board of Directors.
- Rising costs. The author introduced this bill on behalf of the District to make existing statutory bidding thresholds consistent with the rising cost of materials and services. The District argues that the low bidding limits have become an obstacle and increases the cost of executing contracts for routine work and the District’s existing bidding thresholds are outdated. Several routine projects that exceed existing thresholds for the District include, station parking lot repairs ($20,000), station roof repairs ($5,000), and toll plaza gutter replacements ($8,000). Another example, for vessel projects, in 2016 the District executed six dry-docking contracts which all ranged from $100,000 to $300,000.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
Golden Gate Bridge, Highway, and Transportation District
State Building and Construction Trades Council
OPPOSITION: (Verified 5/11/17)
None received
5/17/17 16:54:15
SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
Senator Jim Beall, Chair
2017 - 2018 Regular
Bill No: Hearing Date: 5/9/2017
Author: | Wiener | ||
Version: | 5/1/2017 | ||
Urgency: | No | Fiscal: | No |
Consultant: | Manny Leon | ||
SUBJECT: .
DIGEST: This bill makes various changes to the bidding threshold requirements for the Golden Gate Bridge, Highway, and Transportation District (District), as specified.
ANALYSIS:
Existing law:
- Requires the District to advertise for contracts for all vessel repair, maintenance, and alteration work whenever the expenditure exceeds $20,000.
- Requires the District to advertise for contracts for all construction, repair, maintenance, and alteration work and for all insurance purchased if the expenditure exceeds $5,000.
- Requires the District to advertise the contract in at least one newspaper and two consecutive insertions in a trade paper of general circulation, as specified.
This bill:
Specifically for the District:
- Increase the bid threshold for vessel repair, maintenance, and alteration work from $20,000 to $1,000,000.
- Removes the bid thresholds for insurance procurements.
- Increases the informal bidding threshold for construction, repair, maintenance, and alteration work from $5,000 to $50,000.
- Requires the District to enact an informal bidding ordinance for contracted work under $50,000, as specified.
- Provides that that the District is to award a public works contract to the lowest responsible bidder for contracts that exceed $50,000.
- Requires the District to advertise in at least one newspaper and one trade paper, as specified, for contracts that exceed $1,000,000 for vessel work and $5,000 for all other public works projects.
COMMENTS:
- Author’s statement. According to the author, “Senate Bill 622 would update contracting codes governing the Golden Gate Bridge Highway and Transportation District (GGBH&TD) by modifying statutory bidding thresholds for routine vessel maintenance, construction work, and insurance.
Under current law, GGBH&TD must seek and obtain bids from contractors on even minor construction and repair projects. These procedures often prove counterproductive; for example, as there is only one shipyard in the Bay Area capable of performing certain types of ferry maintenance, accepting bids for such a project is counterproductive. The proposed revisions in SB 622 allow GGBH&TD to streamline bidding on projects, revise impractical thresholds, and bring procedures in line with those of comparable transit agencies.”
- What are existing practices? Current law requires the District to advertise for bids on contracts for vessel repair, maintenance, and alteration work above $20,000. For contracts below $20,000, a less formal procurement method is practiced where the District obtains three quotes prior to awarding work. Similarly, the District uses the informal three quote bidding process for all other construction, maintenance, and insurance procurements under $5,000. Currently, anything above this amount must be advertised with the contract being awarded to the lowest responsible bidder.
- Other agencies. For transportation agencies, bidding thresholds vary throughout the state. The author points out that the San Francisco Municipal Transportation Agency has a $600,000 threshold, while the San Diego Metropolitan Transit System maintains a threshold of $100,000. Examples from other agencies across the state include the Santa Clara Valley Transportation Authority (VTA), which has a $25,000 bidding threshold for construction and maintenance contracts, Bay Area Rapid Transit (BART) ($10,000), Sacramento Regional Transit ($5,000), and the Altamont Corridor Express commuter rail ($3,000). Furthermore, it’s important to note that while many transportation agencies have statutory bidding thresholds; other agencies have established their bidding thresholds by adopting a policy approved by their Board of Directors.
- Rising costs. The author introduced this bill on behalf of the District to make existing statutory bidding thresholds consistent with the rising cost of materials and services. The District argues that the low bidding limits have become an obstacle and increases the cost of executing contracts for routine work and the District’s existing bidding thresholds are outdated. Several routine projects that exceed existing thresholds for the District include, station parking lot repairs ($20,000), station roof repairs ($5,000), and toll plaza gutter replacements ($8,000). Another example, for vessel projects, in 2016 the District executed six dry-docking contracts which all ranged from $100,000 to $300,000.
- Technical amendment. The amendments introduced on May 1, 2017 contained a drafting error in subdivision (d) on page 3, line 11. The author has agreed to take the technical amendment to specifically reference the District in developing the informal bidding ordinance.
FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No
POSITIONS: (Communicated to the committee before noon on Wednesday,
May 3, 2017.)
SUPPORT:
Golden Gate Bridge, Highway, and Transportation District
State Building and Construction Trades Council
OPPOSITION:
None received.
-- END --
SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
Senator Jim Beall, Chair
2017 - 2018 Regular
Bill No: Hearing Date: 4/18/2017
Author: | Wiener | ||
Version: | 4/17/2017 | ||
Urgency: | No | Fiscal: | No |
Consultant: | Manny Leon | ||
SUBJECT: .
DIGEST: This bill raises the bid threshold requirements for the Golden Gate Bridge, Highway, and Transportation District (District) to advertise for public works contracts at or above $50,000. This bill repeals the District’s bidding thresholds for vessel repair and maintenance and insurance procurements.
ANALYSIS:
Existing law:
- Requires a bridge and highway district to advertise for contracts for all vessel repair, maintenance, and alteration work whenever the expenditure exceeds $20,000.
- Requires a bridge and highway district to advertise for contracts for all construction, repair, maintenance, and alteration work and for all insurance purchased if the expenditure exceeds $5,000.
- Requires the District to advertise the contract in at least one newspaper and two consecutive insertions in a trade paper of general circulation, as specified.
This bill:
Specifically for the District:
- Removes the bid thresholds for vessel repair, maintenance, and alteration work.
- Removes the bid thresholds for insurance procurements.
- Raises the bid threshold from $5,000 to $50,000 for all other public works projects.
- Reduces the required number of bid advertisements to one newspaper and one trade paper of general circulation.
COMMENTS:
- Author’s statement. According to the author, “Senate Bill 622 would update contracting codes governing the Golden Gate Bridge Highway and Transportation District (GGBH&TD) by modifying statutory bidding thresholds for routine vessel maintenance, construction work, and insurance.
Under current law, GGBH&TD must seek and obtain bids from contractors on even minor construction and repair projects. These procedures often prove counterproductive; for example, as there is only one shipyard in the Bay Area capable of performing certain types of ferry maintenance, accepting bids for such a project is counterproductive. The proposed revisions in SB 622 allow GGBH&TD to streamline bidding on projects, revise impractical thresholds, and bring procedures in line with those of comparable transit agencies.”
- What are existing practices? Current law requires the District to advertise for bids on contracts for vessel repair, maintenance, and alteration work above $20,000. For contracts below $20,000, a less formal procurement method is practiced where the District obtains three quotes prior to awarding work. Similarly, the District uses the informal three quote bidding process for all other construction, maintenance, and insurance procurements under $5,000. Currently, anything above this amount must be advertised with the contract being awarded to the lowest responsible bidder.
- Other agencies. For transportation agencies, bidding thresholds vary throughout the state. The author points out that the San Francisco Municipal Transportation Agency has a $600,000 threshold, while the San Diego Metropolitan Transit System maintains a threshold of $100,000. Examples from other agencies across the state include the Santa Clara Valley Transportation Authority (VTA), which has a $25,000 bidding threshold for construction and maintenance contracts, Bay Area Rapid Transit (BART) ($10,000), Sacramento Regional Transit ($5,000), and the Altamont Corridor Express commuter rail ($3,000). Furthermore, it’s important to note that while many transportation agencies have statutory bidding thresholds, other agencies have established their bidding thresholds by adopting a policy approved by their Board of Directors.
- Rising costs. The author introduced this bill on behalf of the District to make existing statutory bidding thresholds consistent with the rising cost of materials and services. The District argues that the low bidding limits have become an obstacle and increases the cost of executing contracts for routine work and the District’s existing bidding thresholds are outdated. Several routine projects that exceed existing thresholds for the District include, station parking lot repairs ($20,000), station roof repairs ($5,000), and toll plaza gutter replacements ($8,000).
FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No
POSITIONS: (Communicated to the committee before noon on Wednesday,
April 12, 2017.)
SUPPORT:
Golden Gate Bridge, Highway, and Transportation District
OPPOSITION:
Air conditioning and Refrigeration Contractors Association
Air Conditioning Sheet Metal Association
California Legislative Conference of the Plumbing, Heating, and Piping Industry
California State Council of Laborers
Construction Industry Force Account Council
Finishing Contractors Association of Southern California
National Electrical Contractors Association
Northern California Allied Trades
United Contractors
Wall and Ceiling Alliance
-- END --
Discussed in Hearing
1MIN
Assembly Floor
1MIN
Assembly Floor
7MIN
Assembly Standing Committee on Transportation
2MIN
Assembly Standing Committee on Local Government
Bill Author
