SB 304: Monterey-Salinas Transit District: public contracting.
- Session Year: 2023-2024
- House: Senate
- Latest Version Date: 2023-07-21
Current Status:
Passed
(2023-07-21: Chaptered by Secretary of State. Chapter 107, Statutes of 2023.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Enacted
What does this bill do?
This bill raises Monterey‑Salinas Transit District procurement thresholds so purchases over $150,000 must go to the lowest responsible bidder or, at the district’s choice, the bidder offering the best value (a mix of price, quality, and other factors). It also requires the district to get at least three quotes for purchases costing more than $5,000 and up to $150,000. Until January 1, 2030, those same rules also apply to contracts for services, excluding public construction and certain professional services.
The summary is provided by generative AI which can make mistakes. For original language, please view the details in the table below.
Existing law creates the Monterey-Salinas Transit District to include all of the County of Monterey, with specified powers and duties related to public transit service. Existing law requires the district to award contracts for the purchase of supplies, equipment, and materials in excess of $100,000 to the lowest responsible bidder, or to the responsible bidder that provides the best value, as provided. Existing law requires the district to obtain a minimum of 3 quotations, as provided, that permit prices and terms to be compared, whenever the expected expenditure required for the purchase of supplies, equipment, or materials exceeds $2,500 but does not exceed $100,000.
This bill would increase to $150,000 the monetary threshold for contracts above which the district is required to award contracts to the lowest responsible bidder, or to the responsible bidder that provides the best value, as provided. The bill would also require the district to obtain a minimum of 3 quotations, as provided, that permit prices and terms to be compared whenever the expected expenditure required for the purchase instead exceeds $5,000 but does not exceed $150,000. The bill would also, until January 1, 2030, apply those rules concerning monetary thresholds for contracts to contracts for the purchase of services, excluding services related to certain public construction projects and architectural, landscape architectural, engineering, environmental, land surveying, or construction project management services. To the extent these provisions impose new duties on the district, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing law creates the Monterey-Salinas Transit District to include all of the County of Monterey, with specified powers and duties related to public transit service. Existing law requires the district to award contracts for the purchase of supplies, equipment, and materials in excess of $100,000 to the lowest responsible bidder, or to the responsible bidder that provides the best value, as provided. Existing law requires the district to obtain a minimum of 3 quotations, as provided, that permit prices and terms to be compared, whenever the expected expenditure required for the purchase of supplies, equipment, or materials exceeds $2,500 but does not exceed $100,000.
This bill would increase to $150,000 the monetary threshold for contracts above which the district is required to award contracts to the lowest responsible bidder, or to the responsible bidder that provides the best value, as provided. The bill would also require the district to obtain a minimum of 3 quotations, as provided, that permit prices and terms to be compared whenever the expected expenditure required for the purchase instead exceeds $5,000 but does not exceed $150,000. The bill would also, until January 1, 2030, apply those rules concerning monetary thresholds for contracts to contracts for the purchase of services, excluding services related to certain public construction projects and architectural, landscape architectural, engineering, environmental, land surveying, or construction project management services. To the extent these provisions impose new duties on the district, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing law creates the Monterey-Salinas Transit District to include all of the County of Monterey, with specified powers and duties related to public transit service. Existing law requires the district to award contracts for the purchase of supplies, equipment, and materials in excess of $100,000 to the lowest responsible bidder, or to the responsible bidder that provides the best value, as provided. Existing law requires the district to obtain a minimum of 3 quotations, as provided, that permit prices and terms to be compared, whenever the expected expenditure required for the purchase of supplies, equipment, or materials exceeds $2,500 but does not exceed $100,000.
This bill would increase to $150,000 the monetary threshold for contracts above which the district is required to award contracts to the lowest responsible bidder, or to the responsible bidder that provides the best value, as provided. The bill would also require the district to obtain a minimum of 3 quotations, as provided, that permit prices and terms to be compared whenever the expected expenditure required for the purchase instead exceeds $10,000 $5,000 but does not exceed $150,000. The bill would also, until January 1, 2030, apply those rules concerning monetary thresholds for contracts to contracts for the purchase of services, excluding services related to certain public construction projects and architectural, landscape architectural, engineering, environmental, land surveying, or construction project management services. To the extent these provisions impose new duties on the district, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing law creates the Monterey-Salinas Transit District to include all of the County of Monterey, with specified powers and duties related to public transit service. Existing law requires the district to award contracts for the purchase of supplies, equipment, and materials in excess of $100,000 to the lowest responsible bidder, or to the responsible bidder that provides the best value, as provided. Existing law requires the district to obtain a minimum of 3 quotations, as provided, that permit prices and terms to be compared, whenever the expected expenditure required for the purchase of supplies, equipment, or materials exceeds $2,500 but does not exceed $100,000.
This bill would increase to $150,000 the monetary threshold for contracts above which the district is required to award contracts to the lowest responsible bidder, or to the responsible bidder that provides the best value, as provided. The bill would also require the district to obtain a minimum of 3 quotations, as provided, that permit prices and terms to be compared whenever the expected expenditure required for the purchase exceeds $10,000 but does not exceed $150,000. The bill would also also, until January 1, 2030, apply those rules concerning monetary thresholds for contracts to contracts for the purchase of services, as provided. excluding services related to certain public construction projects and architectural, landscape architectural, engineering, environmental, land surveying, or construction project management services. To the extent these provisions impose new duties on the district, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing law creates the Monterey-Salinas Transit District to include all of the County of Monterey, with specified powers and duties related to public transit service. Existing law requires the district to award contracts for the purchase of supplies, equipment, and materials in excess of $100,000 to the lowest responsible bidder, or to the responsible bidder that provides the best value, as provided. Existing law requires the district to obtain a minimum of 3 quotations, as provided, that permit prices and terms to be compared, whenever the expected expenditure required for the purchase of supplies, equipment, or materials exceeds $2,500 but does not exceed $100,000.
This bill would increase to $150,000 the monetary threshold for contracts above which the district is required to award contracts to the lowest responsible bidder, or to the responsible bidder that provides the best value, as provided. The bill would also require the district to obtain a minimum of 3 quotations, as provided, that permit prices and terms to be compared whenever the expected expenditure required for the purchase exceeds $10,000 but does not exceed $150,000. The bill would also apply those rules concerning monetary thresholds for contracts to contracts for the purchase of services, as provided. To the extent these provisions impose new duties on the district, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
(a)The purchase of all services, supplies, equipment, and materials, when the expenditure required exceeds one hundred fifty thousand dollars ($150,000), shall, by contract, be let to the lowest responsible bidder, or, in the districts discretion, to the responsible bidder who submitted a proposal that provides the best value to the district on the basis of the factors identified in the solicitation. Best value means the overall combination of quality, price, and other elements of a proposal that, when considered together, provide the greatest overall benefit in response to the requirements described in the solicitation documents.
(b)To the extent practicable, the district shall obtain a minimum of three quotations, either written or oral, that permit prices and terms to be compared whenever the expected expenditure required for the purchase of services, supplies, equipment, or materials exceeds five thousand dollars ($5,000), but does not exceed one hundred fifty thousand dollars ($150,000).
(c)For purposes of this section, the term services shall not include construction of public projects, as defined in Section 22002 of the Public Contract Code, or those services described in Section 4525 of the Government Code.
(d)This section shall remain in effect only until January 1, 2030, and as of that date is repealed.
SEC. 2.Section 106057 is added to the Public Utilities Code, to read:106057.(a)The purchase of all supplies, equipment, and materials, when the expenditure required exceeds one hundred fifty thousand dollars ($150,000), shall, by contract, be let to the lowest responsible bidder, or, in the districts discretion, to the responsible bidder who submitted a proposal that provides the best value to the district on the basis of the factors identified in the solicitation. Best value means the overall combination of quality, price, and other elements of a proposal that, when considered together, provide the greatest overall benefit in response to the requirements described in the solicitation documents.
(b)To the extent practicable, the district shall obtain a minimum of three quotations, either written or oral, that permit prices and terms to be compared whenever the expected expenditure required for the purchase of supplies, equipment, or materials exceeds five thousand dollars ($5,000), but does not exceed one hundred fifty thousand dollars ($150,000).
(c)This section shall become operative on January 1, 2030.
SEC. 3.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
(a)The purchase of all services, supplies, equipment, and materials, when the expenditure required exceeds one hundred fifty thousand dollars ($150,000), shall, by contract, be let to the lowest responsible bidder, or, in the districts discretion, to the responsible bidder who submitted a proposal that provides the best value to the district on the basis of the factors identified in the solicitation. Best value means the overall combination of quality, price, and other elements of a proposal that, when considered together, provide the greatest overall benefit in response to the requirements described in the solicitation documents.
(b)To the extent practicable, the district shall obtain a minimum of three quotations, either written or oral, that permit prices and terms to be compared whenever the expected expenditure required for the purchase of services, supplies, equipment, or materials exceeds five thousand dollars ($5,000), but does not exceed one hundred fifty thousand dollars ($150,000).
(c)For purposes of this section, the term services shall not include construction of public projects, as defined in Section 22002 of the Public Contract Code, or those services described in Section 4525 of the Government Code.
(d)This section shall remain in effect only until January 1, 2030, and as of that date is repealed.
SEC. 2.Section 106057 is added to the Public Utilities Code, to read:106057.(a)The purchase of all supplies, equipment, and materials, when the expenditure required exceeds one hundred fifty thousand dollars ($150,000), shall, by contract, be let to the lowest responsible bidder, or, in the districts discretion, to the responsible bidder who submitted a proposal that provides the best value to the district on the basis of the factors identified in the solicitation. Best value means the overall combination of quality, price, and other elements of a proposal that, when considered together, provide the greatest overall benefit in response to the requirements described in the solicitation documents.
(b)To the extent practicable, the district shall obtain a minimum of three quotations, either written or oral, that permit prices and terms to be compared whenever the expected expenditure required for the purchase of supplies, equipment, or materials exceeds five thousand dollars ($5,000), but does not exceed one hundred fifty thousand dollars ($150,000).
(c)This section shall become operative on January 1, 2030.
SEC. 3.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
(a)The purchase of all services, supplies, equipment, and materials, when the expenditure required exceeds one hundred fifty thousand dollars ($150,000), shall, by contract, be let to the lowest responsible bidder, or, in the districts discretion, to the responsible bidder who submitted a proposal that provides the best value to the district on the basis of the factors identified in the solicitation. Best value means the overall combination of quality, price, and other elements of a proposal that, when considered together, provide the greatest overall benefit in response to the requirements described in the solicitation documents.
(b)To the extent practicable, the district shall obtain a minimum of three quotations, either written or oral, that permit prices and terms to be compared whenever the expected expenditure required for the purchase of services, supplies, equipment, or materials exceeds ten thousand dollars ($10,000), five thousand dollars ($5,000), but does not exceed one hundred fifty thousand dollars ($150,000).
(c)For purposes of this section, the term services shall not include construction of public projects, as defined in Section 22002 of the Public Contract Code, or those services described in Section 4525 of the Government Code.
(d)This section shall remain in effect only until January 1, 2030, and as of that date is repealed.
SEC. 2.Section 106057 is added to the Public Utilities Code, to read:106057.(a)The purchase of all supplies, equipment, and materials, when the expenditure required exceeds one hundred fifty thousand dollars ($150,000), shall, by contract, be let to the lowest responsible bidder, or, in the districts discretion, to the responsible bidder who submitted a proposal that provides the best value to the district on the basis of the factors identified in the solicitation. Best value means the overall combination of quality, price, and other elements of a proposal that, when considered together, provide the greatest overall benefit in response to the requirements described in the solicitation documents.
(b)To the extent practicable, the district shall obtain a minimum of three quotations, either written or oral, that permit prices and terms to be compared whenever the expected expenditure required for the purchase of supplies, equipment, or materials exceeds ten thousand dollars ($10,000), five thousand dollars ($5,000), but does not exceed one hundred fifty thousand dollars ($150,000).
(c)This section shall become operative on January 1, 2030.
SEC. 3.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
(a)The purchase of all services, supplies, equipment, and materials, when the expenditure required exceeds one hundred fifty thousand dollars ($150,000), shall, by contract, be let to the lowest responsible bidder, or, in the districts discretion, to the responsible bidder who submitted a proposal that provides the best value to the district on the basis of the factors identified in the solicitation. Best value means the overall combination of quality, price, and other elements of a proposal that, when considered together, provide the greatest overall benefit in response to the requirements described in the solicitation documents.
(b)To the extent practicable, the district shall obtain a minimum of three quotations, either written or oral, that permit prices and terms to be compared whenever the expected expenditure required for the purchase of services, supplies, equipment, or materials exceeds ten thousand dollars ($10,000), but does not exceed one hundred fifty thousand dollars ($150,000).
(c)For purposes of this section, the term services shall not include construction of public projects, as defined in Section 22002 of the Public Contract Code, or those services described in Section 4525 of the Government Code.
(d)This section shall remain in effect only until January 1, 2030, and as of that date is repealed.
SEC. 2.Section 106057 is added to the Public Utilities Code, to read:106057.(a)The purchase of all supplies, equipment, and materials, when the expenditure required exceeds one hundred fifty thousand dollars ($150,000), shall, by contract, be let to the lowest responsible bidder, or, in the districts discretion, to the responsible bidder who submitted a proposal that provides the best value to the district on the basis of the factors identified in the solicitation. Best value means the overall combination of quality, price, and other elements of a proposal that, when considered together, provide the greatest overall benefit in response to the requirements described in the solicitation documents.
(b)To the extent practicable, the district shall obtain a minimum of three quotations, either written or oral, that permit prices and terms to be compared whenever the expected expenditure required for the purchase of supplies, equipment, or materials exceeds ten thousand dollars ($10,000), but does not exceed one hundred fifty thousand dollars ($150,000).
(c)This section shall become operative on January 1, 2030.
SEC. 2.SEC. 3.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
(a)The purchase of all services, supplies, equipment, and materials, when the expenditure required exceeds one hundred fifty thousand dollars ($100,000), ($150,000), shall, by contract, be let to the lowest responsible bidder, or, in the districts discretion, to the responsible bidder who submitted a proposal that provides the best value to the district on the basis of the factors identified in the solicitation. Best value means the overall combination of quality, price, and other elements of a proposal that, when considered together, provide the greatest overall benefit in response to the requirements described in the solicitation documents.
(b)To the extent practicable, the district shall obtain a minimum of three quotations, either written or oral, that permit prices and terms to be compared whenever the expected expenditure required for the purchase of services, supplies, equipment, or materials exceeds two ten thousand five hundred dollars ($2,500), ($10,000), but does not exceed one hundred fifty thousand dollars ($100,000). ($150,000).
SEC. 2.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
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Date
|
Status
|
|---|---|
| Jul 21, 2023 | Chaptered by Secretary of State. Chapter 107, Statutes of 2023. |
| Jul 21, 2023 | Approved by the Governor. |
| Jul 11, 2023 | Enrolled and presented to the Governor at 11 a.m. |
| Jul 6, 2023 | Assembly amendments concurred in. (Ayes 40. Noes 0. Page 1916.) Ordered to engrossing and enrolling. |
| Jul 5, 2023 | Ordered to special consent calendar. |
| Jun 28, 2023 | In Senate. Concurrence in Assembly amendments pending. |
| Jun 27, 2023 | Read third time. Passed. (Ayes 78. Noes 0. Page 2427.) Ordered to the Senate. |
| Jun 22, 2023 | Read second time. Ordered to consent calendar. |
| Jun 21, 2023 | From committee: Do pass. Ordered to consent calendar. (Ayes 13. Noes 0.) (June 21). |
| Jun 13, 2023 | Read second time and amended. Re-referred to Com. on APPR. |
| Jun 12, 2023 | From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 8. Noes 0.) (June 7). |
| May 11, 2023 | Referred to Com. on L. GOV. |
| May 1, 2023 | In Assembly. Read first time. Held at Desk. |
| May 1, 2023 | Read third time. Passed. (Ayes 37. Noes 0. Page 961.) Ordered to the Assembly. |
| Apr 25, 2023 | Read second time. Ordered to consent calendar. |
| Apr 24, 2023 | From committee: Be ordered to second reading pursuant to Senate Rule 28.8 and ordered to consent calendar. |
| Apr 14, 2023 | Set for hearing April 24. |
| Apr 12, 2023 | From committee: Do pass and re-refer to Com. on APPR with recommendation: To consent calendar. (Ayes 16. Noes 0. Page 689.) (April 11). Re-referred to Com. on APPR. |
| Mar 21, 2023 | Set for hearing April 11. |
| Mar 20, 2023 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on TRANS. |
| Feb 15, 2023 | Referred to Com. on TRANS. |
| Feb 3, 2023 | From printer. May be acted upon on or after March 5. |
| Feb 2, 2023 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
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Date
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Description
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Location
|
Votes
|
|
|---|---|---|---|---|
| Jul 6, 2023 | Special Consent SB304 Laird | Senate Floor |
Passed |
|
| Jun 27, 2023 | SB 304 Laird Consent Calendar Second Day Regular Session | Assembly Floor |
Passed |
|
| Jun 21, 2023 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
|
| Jun 7, 2023 | Do pass as amended and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Local Government |
Passed |
|
| May 1, 2023 | Consent Calendar SB304 Laird | Senate Floor |
Passed |
|
| Apr 11, 2023 | Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar | Senate Standing Committee on Transportation |
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.
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Organization
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Position
|
Date
|
|---|---|---|
| City of Gonzales | ** Support | |
| City of King | ** Support | |
| City of Marina | ** Support | |
| City of Monterey | ** Support | |
| City Of Salinas | ** Support | |
| King City | ** Support | |
| Monterey County Board of Supervisors | ** Support | |
| Monterey-Salinas Transit District | ** Support | |
| Transportation Agency For Monterey County | ** Support |
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB 304 |
UNFINISHED BUSINESS
Bill No: SB 304
Author: Laird (D)
Amended: 6/13/23
Vote: 21
SENATE TRANSPORTATION COMMITTEE: 16-0, 4/11/23
AYES: Gonzalez, Niello, Allen, Archuleta, Becker, Blakespear, Cortese, Dahle, Dodd, Limón, McGuire, Newman, Nguyen, Seyarto, Umberg, Wahab
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SENATE FLOOR: 37-0, 5/1/23 (Consent)
AYES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener
NO VOTE RECORDED: Blakespear, Glazer, Wilk
ASSEMBLY FLOOR: 78-0, 6/27/23 (Consent) - See last page for vote
SUBJECT: Monterey-Salinas Transit District: public contracting
SOURCE: Monterey-Salinas Transit District
DIGEST:
This bill makes changes to the contracting requirements for the Monterey-Salinas Transit District (MST).
Assembly Amendments
change the bid thresholds that require MST to obtain a minimum of three quotations, as provided, whenever the expected expenditure required for the purchase of supplies, equipment, or materials from $10,000 to $5,000.
ANALYSIS:
Existing law:
- Creates MST to include all of the County of Monterey, with specified powers and duties related to public transit service.
- Requires public agencies to obtain competitively bid contracts for construction projects, and contracts for supplies, equipment, and materials above a specified cost threshold. This amount varies depending on the public agency and whether it is a city, county, special district, or school, and other variables.
- Requires MST to award contracts for the purchase of supplies, equipment, and materials in excess of $100,000 to the lowest responsible bidder, or to the responsible bidder that provides the best value, as provided.
- Requires MST to obtain a minimum of three quotations, as provided, that permit prices and terms to be compared, whenever the expected expenditure required for the purchase of supplies, equipment, or materials exceeds $2,500 but does not exceed $100,000.
This bill:
- Increases the existing bid threshold for MST to award contracts for the purchases of supplies, equipment, and materials from $100,000 to $150,000, as provided.
- Increases the existing bid thresholds that require MST to obtain a minimum of three quotations, as provided, whenever the expected expenditure required for the purchase of supplies, equipment, or materials from $2,500 to $5,000 and $100,000 to $150,000.
- Authorizes certain services, as specified, be subject to the bid thresholds. Stipulates that ‘services’ does not include public construction projects and architectural, landscape architectural, engineering, environmental, land surveying, or construction project management services.
- Requires the authorization for services contract thresholds to sunset on January 1, 2030.
- Declares that the bill may impose a state-mandated local program.
Comments
- Purpose of the bill. According to the author, “Existing law authorizes the Monterey-Salinas Transit District (MST) to streamline purchasing agreements for projects under $100,000. This threshold has not been updated since 2010, and rising costs from inflation have complicated and delayed MST projects.
“Senate Bill 304 updates MST’s expedited procurement threshold from $100,000 to $150,000 to reflect rising costs, and to align with the Federal Transit Administration’s established limit. This ensures MST can continue completing small projects efficiently while maintaining the best use of public funds.”
- MST. Monterey-Salinas Transit District was created by AB 644 (Caballero, Chapter 460, Statutes of 2009) and officially formed July 1, 2010. The district succeeded Monterey-Salinas Transit Joint Powers Agency formed in 1981 when the City of Salinas joined the Monterey Peninsula Transit Joint Powers Agency, which was formed in 1972.
MST consists of the cities of Carmel, Del Rey Oaks, Gonzales, Greenfield, King City, Marina, Monterey, Pacific Grove, Salinas, Sand City, Seaside, Soledad and Monterey County. A board of directors with a representative from each member jurisdiction governs the agency and appoints the general manager.
MST provides fixed route bus service on 34 routes to nearly 450,000 people in Monterey County. They operate 130 buses covering 159 square miles. MST also provides paratransit service through the MST Rides program for people who have a disability that prevents them from using MST's regular fixed route bus service.
- Costs are on the rise. SB 304 would increase from $100,000 to $150,000 the point at which purchases of supplies, equipment, and materials are required to go through a formal bid process. The bill also expands the authorization to include contracting for the acquisition of certain services. The authorization for services is restricted to not include public construction projects and architectural, landscape architectural, engineering, environmental, land surveying, or construction project management services and would sunset on January 1, 2030.
MST’s contract thresholds have not been updated for more than a decade and the increases contained in SB 304 are consistent with an inflationary adjustment.
Related/Prior Legislation
AB 2015 (Cooley, Chapter 182, Statutes of 2022) made various changes to the Sacramento Regional Transit District (SacRT) Act, including increasing certain bid thresholds.
AB 1833 (Ward, Chapter 100, Statutes of 2022) made changes to various bidding thresholds for the San Diego Metropolitan Transit System (MTS), the North County Transit District (NCTD), and the San Diego Association of Governments (SANDAG).
SB 333 (Eggman, Chapter 217, Statutes of 2021) increased the bid threshold for San Joaquin Regional Transit District’s (RTD) purchase of supplies, equipment and materials, from $50,000 to $75,000, and allowed the district to award a contract to the responsible bidder who submits a proposal that provides the best value to the district
AB 2711 (Eggman, 2020) – Was similar to SB 333. This bill was held in the Assembly Local Government Committee.
AB 1089 (Stone, Chapter 107, Statutes of 2019) increased the bid threshold for the purchase of supplies, equipment, and materials by the Santa Cruz Metropolitan Transit District and allowed the use of best value for these contracts, and altered appointments and reimbursements for the district’s board of directors.
AB 3177 (Chavez, Chapter 544, Statues of 2018) made various changes to certain bidding requirements for the NCTD, as specified.
AB 2030 (Mullin, Chapter 143, Statutes of 2016) changed specified bidding requirements for BART and the San Mateo County Transit District, including bid threshold increases for the purchase of supplies, equipment, and materials.
AB 644 (Caballero, Chapter 460, Statutes of 2009) enacted the Monterey-Salinas Transit District Act which dissolved the Monterey-Salinas Transit Joint Powers Agency and created the Monterey-Salinas Transit District within Monterey County to succeed to the rights, powers, duties, and obligations of the agency. The bill also created a board of directors to govern the district. The bill established thresholds for MST to award contracts for the purchase of supplies, equipment, and materials in excess of $100,000 to the lowest responsible bidder, or to the responsible bidder that provides the best value.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
According to the Assembly Appropriations Committee:
- Minor one-time costs to MST to make administrative updates regarding bid thresholds. These costs are potentially reimbursable by the state, subject to a determination by the Commission on State Mandates, but it is unlikely the district would submit a claim.
SUPPORT: (Verified 6/28/23)
Monterey-Salinas Transit District (source)
City of Gonzales
City of Marina
City of Monterey
City of Salinas
King City
Monterey County Board of Supervisors
Transportation Agency for Monterey County
OPPOSITION: (Verified 6/28/23)
None received
ARGUMENTS IN SUPPORT: According to Monterey-Salinas Transit District, the sponsors of the bill, “Over the last decade, the costs for supplies, equipment, and materials have risen significantly while MST’s procurement limits have remained constant. This means that minor repairs, projects or supply purchases (such as bus parts and facilities equipment) increasingly exceed the limits, requiring a lengthy formal bid process, adding more time and requiring more resources to conduct routine procurements. Additionally, MST has seen certain small services engagements, for things like a consultant to prepare a zero-emission bus transition plan, subjected to lengthy procurements that slow responsiveness and present operating challenges.”
ASSEMBLY FLOOR: 78-0, 6/27/23
AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wood, Rendon
NO VOTE RECORDED: Wilson, Zbur
Prepared by: Melissa White / TRANS. / (916) 651-4121
6/28/23 14:24:37
**** END ****
Date of Hearing: June 21, 2023
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Chris Holden, Chair
SBPCA Bill Id:SB 304
Author:(Laird) – As Amended Ver:June 13, 2023
Policy Committee: | Local Government | Vote: | 8 - 0 |
|
| ||
|
|
Urgency: No State Mandated Local Program: Yes Reimbursable: Yes
SUMMARY:
This bill updates Monterey-Salinas Transit District’s (MST’s) expedited procurement thresholds and includes the purchase of services in these thresholds.
Specifically, this bill:
- Increases, from $100,000 to $150,000, the bid threshold for MST’s purchase of supplies, equipment, and materials.
- Increases, from $2,500 to $5,000, the cost threshold requiring MST to obtain a minimum of three quotations for the purchase of supplies, equipment, or materials costing less than $150,000.
- Includes the purchase of services in the thresholds specified above, until January 1, 2030.
- Specifies that “services” for the purposes of 3), above, does not include construction of public projects, as defined, or architectural, landscape architectural, engineering, environmental, land surveying, or construction project management services.
FISCAL EFFECT:
Minor one-time costs to MST to make administrative updates regarding bid thresholds. These costs are potentially reimbursable by the state, subject to a determination by the Commission on State Mandates, but it is unlikely the district would submit a claim.
COMMENTS:
- Purpose. The author intends this bill to improve the operational efficiency of MST by updating the district’s procurement methods and bid thresholds. This bill is sponsored by MST. According to the author:
Existing law authorizes MST to streamline purchasing agreements for projects under $100,000. This threshold has not been updated since 2010, and rising costs from inflation have complicated and delayed MST projects. [This bill] updates MST’s expedited procurement threshold from $100,000 to $150,000 to reflect rising costs, and to align with the Federal Transit Administration’s established limit. This ensures MST can continue completing small projects efficiently while maintaining the best use of public funds.
- Background. MST provides fixed route bus service on 34 routes to nearly 450,000 people in Monterey County. The district operates 130 buses covering 159 square miles. MST also provides paratransit service through the MST Rides program for any person who has a disability that prevents them from using MST's regular fixed route bus service.
MST consists of the cities of Carmel, Del Rey Oaks, Gonzales, Greenfield, King City, Marina, Monterey, Pacific Grove, Salinas, Sand City, Seaside, and Soledad and Monterey County. A board of directors with a representative from each member jurisdiction governs the agency and appoints the general manager.
Existing law requires MST to purchase all supplies, equipment, and materials by contract to the lowest responsible bidder, or by best value, through a formal bidding process when the expenditure required exceeds $100,000. This threshold allows small, routine purchases under the $100,000 threshold to be carried out expeditiously without going through a formal bid process, allowing MST to conserve time and resources. According to MST:
Over the last decade, the costs for supplies, equipment, and materials have risen significantly while MST’s procurement limits have remained constant. This means that minor repairs, projects or supply purchases (such as bus parts and facilities equipment) increasingly exceed the limits, requiring a lengthy formal bid process, adding more time and requiring more resources to conduct routine procurements. Additionally, MST has seen certain small services engagements, for things like a consultant to prepare a zero-emission bus transition plan, subjected to lengthy procurements that slow responsiveness and present operating challenges.
Existing law also requires MST to obtain a minimum of three quotes for the purchase of supplies, equipment, or materials expected to cost more than $2,500, but less than the $100,000 formal bid threshold.
MST has not updated its bid thresholds for solicitation of supplies, equipment, and materials since its inception in 2010. To adjust for inflation, this bill increases the formal bid threshold to $150,000 and, for purchases costing less than the formal bid threshold, increases the minimum cost threshold requiring multiple quotes to $5,000. This bill also adds the purchase of services to these contracting requirements, similar to provisions in other transit districts’ procurement statutes.
- Prior Legislation. AB 2015 (Cooley), Chapter 182, Statutes of 2022, made various changes to the Sacramento Regional Transit District Act, including increasing certain bid thresholds.
AB 1833 (Ward), Chapter 100, Statutes of 2022, made changes to bid thresholds for the San Diego Metropolitan Transit System, the North County Transit District, and the San Diego Association of Governments.
Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081
Date of Hearing: June 7, 2023
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Cecilia Aguiar-Curry, Chair
SBPCA Bill Id:SB 304
Author:(Laird) – As Amended Ver:March 20, 2023
SENATE VOTE: 37-0
SUBJECT: Monterey-Salinas Transit District: public contracting.
SUMMARY: Changes requirements for the purchase of services, supplies, equipment and materials by the Monterey-Salinas Transit District (MST). Specifically, this bill:
- Increases the bid threshold for MST to award contracts for the purchases of supplies, equipment, and materials, from $100,000 to $150,000, and makes conforming changes.
- Increases the threshold that requires MST to obtain a minimum of three quotations for the purchase of supplies, equipment, or materials costing less than $150,000, from $2,500 to $10,000, as specified.
- Includes the purchase of services in the thresholds specified above, until January 1, 2030.
- Specifies that “services” for the purposes of 3), above, shall not include construction of public projects, as defined, or architectural, landscape architectural, engineering, environmental, land surveying, or construction project management services.
- Provides that, if the Commission on State Mandates determines that this bill contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to existing law governing state mandated local costs.
EXISTING LAW:
- Creates MST to include all of the County of Monterey, with specified powers and duties related to public transit service. [Public Utilities Code (PUC) §§ 106000-106064]
- Requires public agencies to obtain competitively bid contracts for construction projects, and contracts for supplies, equipment, and materials above a specified cost threshold. This amount varies depending on the public agency and whether it is a city, county, special district, or school, and other variables. (Public Contract Code, various sections)
- Requires MST to award contracts for the purchase of supplies, equipment, and materials in excess of $100,000 to the lowest responsible bidder, or to the responsible bidder that provides the best value, as specified. (PUC § 106057)
- Requires MST to obtain a minimum of three quotations, as specified, whenever the expected expenditure required for the purchase of supplies, equipment, or materials exceeds $2,500 but does not exceed $100,000. (PUC § 106057)
FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS:
- Bill Summary. This bill increases, from $100,000 to $150,000, the amount that requires MST to purchase supplies, equipment, and materials through a formal bid process. This bill also increases, from $2,500 to $10,000, the amount that requires MST to obtain a minimum of three quotations for the purchase of supplies, equipment, or materials that are expected to cost less than $150,000 and are, therefore, not subject to formal bidding procedures.
This bill also includes the purchase of services in the contracting requirements outlined above. However, the purchase of services does not include the construction of public projects or architectural, landscape architectural, engineering, environmental, land surveying, or construction project management services. The inclusion of services sunsets on January 1, 2030.
This bill is sponsored by MST.
- Author’s Statement. According to the author, “Existing law authorizes the Monterey-Salinas Transit District (MST) to streamline purchasing agreements for projects under $100,000. This threshold has not been updated since 2010, and rising costs from inflation have complicated and delayed MST projects. Senate Bill 304 updates MST’s expedited procurement threshold from $100,000 to $150,000 to reflect rising costs, and to align with the Federal Transit Administration’s established limit. This ensures MST can continue completing small projects efficiently while maintaining the best use of public funds.”
- Background. MST was created by AB 644 (Caballero), Chapter 460, Statutes of 2009, and officially formed July 1, 2010. The district succeeded the Monterey-Salinas Transit Joint Powers Agency, which formed in 1981 when the City of Salinas joined the Monterey Peninsula Transit Joint Powers Agency (originally formed in 1972).
MST consists of the cities of Carmel, Del Rey Oaks, Gonzales, Greenfield, King City, Marina, Monterey, Pacific Grove, Salinas, Sand City, Seaside, Soledad and Monterey County. A board of directors with a representative from each member jurisdiction governs the agency and appoints the general manager.
MST provides fixed route bus service on 34 routes to nearly 450,000 people in Monterey County. They operate 130 buses covering 159 square miles. MST also provides paratransit service through the MST Rides program for people who have a disability that prevents them from using MST's regular fixed route bus service.
- Policy Consideration and Committee Amendment. MST’s contract thresholds have not been updated for more than a decade. Most of the increases contained in this bill are consistent with an inflationary adjustment. However, the increase in the dollar amount that requires MST to obtain at least three quotations for purchases under the formal bid threshold – from $2,500 to $10,000 – is much higher than an inflationary adjustment would be. The Committee may wish to change this threshold to $5,000 (instead of $10,000).
- Previous Legislation. AB 2015 (Cooley), Chapter 182, Statutes of 2022, made various changes to the Sacramento Regional Transit District Act, including increasing certain bid thresholds.
AB 1833 (Ward), Chapter 100, Statutes of 2022, made changes to various bidding thresholds for the San Diego Metropolitan Transit System, the North County Transit District (NCTD), and the San Diego Association of Governments.
SB 333 (Eggman), Chapter 217, Statutes of 2021, increased the bid threshold for San Joaquin Regional Transit District’s purchase of supplies, equipment and materials, from $50,000 to $75,000, and allowed the district to award a contract to the responsible bidder who submits a proposal that provides the best value to the district.
AB 2711 (Eggman) of 2020 was similar to SB 333. AB 2711 was held in the Assembly Local Government Committee.
AB 1089 (Stone), Chapter 107, Statutes of 2019, increased the bid threshold for the purchase of supplies, equipment, and materials by the Santa Cruz Metropolitan Transit District and allowed the use of best value for these contracts, and altered appointments and reimbursements for the district’s board of directors.
AB 3177 (Chavez), Chapter 544, Statutes of 2018, made various changes to certain bidding requirements for the NCTD, as specified.
AB 2030 (Mullin), Chapter 143, Statutes of 2016, changed specified bidding requirements for the Bay Area Rapid Transit District and the San Mateo County Transit District, including bid threshold increases for the purchase of supplies, equipment, and materials.
AB 644 (Caballero), Chapter 460, Statutes of 2009, enacted the MST Act which dissolved the Monterey-Salinas Transit Joint Powers Agency and created MST within Monterey County to succeed to the rights, powers, duties, and obligations of the agency. The bill established thresholds for MST to award contracts for the purchase of supplies, equipment, and materials.
- Arguments in Support. The Monterey-Salinas Transit District, sponsor of this measure, writes, “Under Section 106057 of the Public Utilities Code, MST is currently required to purchase all supplies, equipment, and materials by contract, let to the lowest responsible bidder, or by best value, through a formal solicitation when the expenditure required exceeds $100,000. This threshold allows small, routine purchases under the $100,000 threshold to be carried out expeditiously without the necessity of going through a formal bid process, allowing MST to conserve time and resources. Over the last decade, the costs for supplies, equipment, and materials have risen significantly while MST’s procurement limits have remained constant. This means that minor repairs, projects or supply purchases (such as bus parts and facilities equipment) increasingly exceed the limits, requiring a lengthy formal bid process, adding more time and requiring more resources to conduct routine procurements. Additionally, MST has seen certain small services engagements, for things like a consultant to prepare a zero-emission bus transition plan, subjected to lengthy procurements that slow responsiveness and present operating challenges.
“This bill would increase, from $100,000 to $150,000, the point at which purchases of supplies, equipment, and materials are subjected to a formal bid process. This threshold is in-line with Federal Transit Administration (FTA) procurement standards and mirrors similar provisions in other transit districts’ procurement statutes. The bill’s revised threshold also keeps pace with inflationary adjustments, tracking closely with CPI over the last 12 years. This bill also raises the requirement for MST to obtain at least three quotations on smaller purchases to anything exceeding $10,000 (up from the current level of $2,500). Finally, the bill would subject the procurement of any “services” obtained valued at less than $150,000 to the streamlined process. We firmly believe that modernizing MST’s procurement practices will provide parity with its federal partners, while achieving time and cost savings.”
- Arguments in Opposition. None on file.
REGISTERED SUPPORT / OPPOSITION:
Support
Monterey-Salinas Transit District [SPONSOR]
City of Gonzales
City of King
City of Marina
City of Monterey
City of Salinas
Monterey County Board of Supervisors
Transportation Agency for Monterey County
Opposition
None on file
Analysis Prepared by: Angela Mapp / L. GOV. / (916) 319-3958
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB 304 |
CONSENT
Bill No: SB 304
Author: Laird (D)
Amended: 3/20/23
Vote: 21
SENATE TRANSPORTATION COMMITTEE: 16-0, 4/11/23
AYES: Gonzalez, Niello, Allen, Archuleta, Becker, Blakespear, Cortese, Dahle, Dodd, Limón, McGuire, Newman, Nguyen, Seyarto, Umberg, Wahab
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SUBJECT: Monterey-Salinas Transit District: public contracting
SOURCE: Monterey-Salinas Transit District
DIGEST:
This bill makes changes to the contracting requirements for the Monterey-Salinas Transit District (MST).
ANALYSIS:
Existing law:
- Creates MST to include all of the County of Monterey, with specified powers and duties related to public transit service.
- Requires public agencies to obtain competitively bid contracts for construction projects, and contracts for supplies, equipment, and materials above a specified cost threshold. This amount varies depending on the public agency and whether it is a city, county, special district, or school, and other variables.
- Requires MST to award contracts for the purchase of supplies, equipment, and materials in excess of $100,000 to the lowest responsible bidder, or to the responsible bidder that provides the best value, as provided.
- Requires MST to obtain a minimum of three quotations, as provided, that permit prices and terms to be compared, whenever the expected expenditure required for the purchase of supplies, equipment, or materials exceeds $2,500 but does not exceed $100,000.
This bill:
- Increases the existing bid threshold for MST to award contracts for the purchases of supplies, equipment, and materials from $100,000 to $150,000, as provided.
- Increases the existing bid thresholds that require MST to obtain a minimum of three quotations, as provided, whenever the expected expenditure required for the purchase of supplies, equipment, or materials from $2,500 to $10,000 and $100,000 to $150,000.
- Authorizes certain services, as specified, be subject to the bid thresholds. Stipulates that ‘services’ does not include public construction projects and architectural, landscape architectural, engineering, environmental, land surveying, or construction project management services.
- Requires the authorization for services contract thresholds to sunset on January 1, 2030.
- Declares that the bill may impose a state-mandated local program.
Comments
- Purpose of the bill. According to the author, “Existing law authorizes the Monterey-Salinas Transit District (MST) to streamline purchasing agreements for projects under $100,000. This threshold has not been updated since 2010, and rising costs from inflation have complicated and delayed MST projects.
“Senate Bill 304 updates MST’s expedited procurement threshold from $100,000 to $150,000 to reflect rising costs, and to align with the Federal Transit Administration’s established limit. This ensures MST can continue completing small projects efficiently while maintaining the best use of public funds.”
- MST. Monterey-Salinas Transit District was created by AB 644 (Caballero, Chapter 460, Statutes of 2009) and officially formed July 1, 2010. The district succeeded Monterey-Salinas Transit Joint Powers Agency formed in 1981 when the City of Salinas joined the Monterey Peninsula Transit Joint Powers Agency, which was formed in 1972.
MST consists of the cities of Carmel, Del Rey Oaks, Gonzales, Greenfield, King City, Marina, Monterey, Pacific Grove, Salinas, Sand City, Seaside, Soledad and Monterey County. A board of directors with a representative from each member jurisdiction governs the agency and appoints the general manager.
MST provides fixed route bus service on 34 routes to nearly 450,000 people in Monterey County. They operate 130 buses covering 159 square miles. MST also provides paratransit service through the MST Rides program for people who have a disability that prevents them from using MST's regular fixed route bus service.
- Costs are on the rise. SB 304 increases from $100,000 to $150,000 the point at which purchases of supplies, equipment, and materials are required to go through a formal bid process. This bill also expands the authorization to include contracting for the acquisition of certain services. The authorization for services is restricted to not include public construction projects and architectural, landscape architectural, engineering, environmental, land surveying, or construction project management services and would sunset on January 1, 2030.
MST’s contract thresholds have not been updated for more than a decade and the increases contained in SB 304 are consistent with an inflationary adjustment.
Related/Prior Legislation
AB 2015 (Cooley, Chapter 182, Statutes of 2022) made various changes to the Sacramento Regional Transit District Act, including increasing certain bid thresholds.
AB 1833 (Ward, Chapter 100, Statutes of 2022) made changes to various bidding thresholds for the San Diego Metropolitan Transit System, the North County Transit District (NCTD), and the San Diego Association of Governments.
SB 333 (Eggman, Chapter 217, Statutes of 2021) increased the bid threshold for San Joaquin Regional Transit District’s purchase of supplies, equipment and materials, from $50,000 to $75,000, and allowed the district to award a contract to the responsible bidder who submits a proposal that provides the best value to the district
AB 2711 (Eggman, 2020) was similar to SB 333. The bill was held in the Assembly Local Government Committee.
AB 1089 (Stone, Chapter 107, Statutes of 2019) increased the bid threshold for the purchase of supplies, equipment, and materials by the Santa Cruz Metropolitan Transit District and allowed the use of best value for these contracts, and altered appointments and reimbursements for the district’s board of directors.
AB 3177 (Chavez, Chapter 544, Statues of 2018) made various changes to certain bidding requirements for the NCTD, as specified.
AB 2030 (Mullin, Chapter 143, Statutes of 2016) changed specified bidding requirements for BART and the San Mateo County Transit District, including bid threshold increases for the purchase of supplies, equipment, and materials.
AB 644 (Caballero, Chapter 460, Statutes of 2009) enacted the Monterey-Salinas Transit District Act which dissolved the Monterey-Salinas Transit Joint Powers Agency and created the Monterey-Salinas Transit District within Monterey County to succeed to the rights, powers, duties, and obligations of the agency. The bill also created a board of directors to govern the district. The bill established thresholds for MST to award contracts for the purchase of supplies, equipment, and materials in excess of $100,000 to the lowest responsible bidder, or to the responsible bidder that provides the best value.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
SUPPORT: (Verified 4/24/23)
Monterey-Salinas Transit District (source)
City of Gonzales
City of Marina
City of Monterey
City of Salinas
King City
Monterey County Board of Supervisors
Transportation Agency for Monterey County
OPPOSITION: (Verified 4/24/23)
None received
ARGUMENTS IN SUPPORT: According to MST, the sponsors of this bill, “Over the last decade, the costs for supplies, equipment, and materials have risen significantly while MST’s procurement limits have remained constant. This means that minor repairs, projects or supply purchases (such as bus parts and facilities equipment) increasingly exceed the limits, requiring a lengthy formal bid process, adding more time and requiring more resources to conduct routine procurements. Additionally, MST has seen certain small services engagements, for things like a consultant to prepare a zero-emission bus transition plan, subjected to lengthy procurements that slow responsiveness and present operating challenges.”
Prepared by: Melissa White / TRANS. / (916) 651-4121
4/26/23 15:11:37
**** END ****
SENATE COMMITTEE ON TRANSPORTATION
Senator Lena Gonzalez, Chair
2023 - 2024 Regular
Bill No: SB 304 Hearing Date: 4/11/2023
Author: | Laird | ||
Version: | 3/20/2023 Amended | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Melissa White | ||
SUBJECT: Monterey-Salinas Transit District: public contracting
DIGEST: This bill makes changes to the contracting requirements for the Monterey-Salinas Transit District (MST).
ANALYSIS:
Existing law:
- Creates MST to include all of the County of Monterey, with specified powers and duties related to public transit service.
- Requires public agencies to obtain competitively bid contracts for construction projects, and contracts for supplies, equipment, and materials above a specified cost threshold. This amount varies depending on the public agency and whether it is a city, county, special district, or school, and other variables.
- Requires MST to award contracts for the purchase of supplies, equipment, and materials in excess of $100,000 to the lowest responsible bidder, or to the responsible bidder that provides the best value, as provided.
- Requires MST to obtain a minimum of three quotations, as provided, that permit prices and terms to be compared, whenever the expected expenditure required for the purchase of supplies, equipment, or materials exceeds $2,500 but does not exceed $100,000.
This bill:
- Increases the existing bid threshold for MST to award contracts for the purchases of supplies, equipment, and materials from $100,000 to $150,000, as provided.
- Increases the exiting bid thresholds that require MST to obtain a minimum of 3 quotations, as provided, whenever the expected expenditure required for the purchase of supplies, equipment, or materials from $2,500 to $10,000 and $100,000 to $150,000.
- Authorizes certain services, as specified, be subject to the bid thresholds. Stipulates that ‘services’ does not include public construction projects and architectural, landscape architectural, engineering, environmental, land surveying, or construction project management services.
- Requires the authorization for services contract thresholds to sunset on January 1, 2030.
- Declares that the bill may impose a state-mandated local program.
COMMENTS:
- Purpose of the bill. According to the author, “Existing law authorizes the Monterey-Salinas Transit District (MST) to streamline purchasing agreements for projects under $100,000. This threshold has not been updated since 2010, and rising costs from inflation have complicated and delayed MST projects.
“Senate Bill 304 updates MST’s expedited procurement threshold from $100,000 to $150,000 to reflect rising costs, and to align with the Federal Transit Administration’s established limit. This ensures MST can continue completing small projects efficiently while maintaining the best use of public funds.”
- MST. Monterey-Salinas Transit District was created by AB 644 (Caballero, Chapter 460, Statutes of 2009) and officially formed July 1, 2010. The district succeeded Monterey-Salinas Transit Joint Powers Agency formed in 1981 when the City of Salinas joined the Monterey Peninsula Transit Joint Powers Agency, which was formed in 1972.
MST consists of the cities of Carmel, Del Rey Oaks, Gonzales, Greenfield, King City, Marina, Monterey, Pacific Grove, Salinas, Sand City, Seaside, Soledad and Monterey County. A board of directors with a representative from each member jurisdiction governs the agency and appoints the general manager.
MST provides fixed route bus service on 34 routes to nearly 450,000 people in Monterey County. They operate 130 buses covering 159 square miles. MST also provides paratransit service through the MST Rides program for people who have a disability that prevents them from using MST's regular fixed route bus service.
- Costs are on the rise. SB 304 would increase from $100,000 to $150,000 the point at which purchases of supplies, equipment, and materials are required to go through a formal bid process. The bill also expands the authorization to include contracting for the acquisition of certain services. The authorization for services is restricted to not include public construction projects and architectural, landscape architectural, engineering, environmental, land surveying, or construction project management services and would sunset on January 1, 2030.
MST’s contract thresholds have not been updated for more than a decade and the increases contained in SB 304 are consistent with an inflationary adjustment.
According to MST, the sponsors of the bill, “Over the last decade, the costs for supplies, equipment, and materials have risen significantly while MST’s procurement limits have remained constant. This means that minor repairs, projects or supply purchases (such as bus parts and facilities equipment) increasingly exceed the limits, requiring a lengthy formal bid process, adding more time and requiring more resources to conduct routine procurements. Additionally, MST has seen certain small services engagements, for things like a consultant to prepare a zero-emission bus transition plan, subjected to lengthy procurements that slow responsiveness and present operating challenges.”
Related/PREVIOUS Legislation:
AB 2015 (Cooley, Chapter 182, Statutes of 2022) – Made various changes to the Sacramento Regional Transit District (SacRT) Act, including increasing certain bid thresholds.
AB 1833 (Ward, Chapter 100, Statutes of 2022) – Made changes to various bidding thresholds for the San Diego Metropolitan Transit System (MTS), the North County Transit District (NCTD), and the San Diego Association of Governments (SANDAG).
SB 333 (Eggman, Chapter 217, Statutes of 2021) – Increased the bid threshold for San Joaquin Regional Transit District’s (RTD) purchase of supplies, equipment and materials, from $50,000 to $75,000, and allowed the district to award a contract to the responsible bidder who submits a proposal that provides the best value to the district
AB 2711 (Eggman, 2020) – Was similar to SB 333. This bill was held in the Assembly Local Government Committee.
AB 1089 (Stone, Chapter 107, Statutes of 2019) – Increased the bid threshold for the purchase of supplies, equipment, and materials by the Santa Cruz Metropolitan Transit District and allowed the use of best value for these contracts, and altered appointments and reimbursements for the district’s board of directors.
AB 3177 (Chavez, Chapter 544, Statues of 2018) – Made various changes to certain bidding requirements for the NCTD, as specified.
AB 2030 (Mullin, Chapter 143, Statutes of 2016) – Changed specified bidding requirements for BART and the San Mateo County Transit District, including bid threshold increases for the purchase of supplies, equipment, and materials.
AB 644 (Caballero, Chapter 460, Statutes of 2009) – Enacted the Monterey-Salinas Transit District Act which dissolved the Monterey-Salinas Transit Joint Powers Agency and created the Monterey-Salinas Transit District within Monterey County to succeed to the rights, powers, duties, and obligations of the agency. The bill also created a board of directors to govern the district. The bill established thresholds for MST to award contracts for the purchase of supplies, equipment, and materials in excess of $100,000 to the lowest responsible bidder, or to the responsible bidder that provides the best value.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
Unknown
POSITIONS: (Communicated to the committee before noon on Wednesday,
April 5, 2023.)
SUPPORT:
Monterey-Salinas Transit District (Sponsor)
City of Gonzales
City of King
City of Marina
City of Monterey
City of Salinas
Monterey County Board of Supervisors
Transportation Agency for Monterey County (TAMC)
OPPOSITION:
None received
-- END --
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