Bill Text: CA AB2690 | 2015-2016 | Regular Session | Chaptered
Bill Title: Los Angeles County Metropolitan Transportation
Sponsorship: Partisan Bill (Democrat 1)
Status: (Passed) 2016-08-26 - Chaptered by Secretary of State - Chapter 204, Statutes of 2016. [AB2690 Detail]
Download: California-2015-AB2690-Chaptered.html
BILL NUMBER: AB 2690 CHAPTERED
BILL TEXT
CHAPTER 204
FILED WITH SECRETARY OF STATE AUGUST 26, 2016
APPROVED BY GOVERNOR AUGUST 26, 2016
PASSED THE SENATE AUGUST 11, 2016
PASSED THE ASSEMBLY APRIL 25, 2016
AMENDED IN ASSEMBLY APRIL 12, 2016
INTRODUCED BY Assembly Member Ridley-Thomas
FEBRUARY 19, 2016
An act to amend Section 130232 of the Public Utilities Code,
relating to transportation.
LEGISLATIVE COUNSEL'S DIGEST
AB 2690, Ridley-Thomas. Los Angeles County Metropolitan
Transportation Authority: contracting.
Existing law creates the Los Angeles County Metropolitan
Transportation Authority (LACMTA), with various powers and duties
with respect to transportation planning, programming, construction,
and operations.
Existing law authorizes LACMTA to provide for a small business
preference of 5% of the lowest responsible bidder meeting
specifications, with respect to contracts in construction, the
construction component of a design-build team, the procurement of
goods, or the delivery of services. Existing law also authorizes
LACMTA to establish a subcontracting participation goal for small
businesses on certain contracts financed with nonfederal funds and to
grant a preference of 5% to the lowest responsible bidders that meet
that goal.
This bill would also authorize LACMTA to establish disabled
veteran business enterprise participation goals, and would define
"disabled veteran business enterprise" for these purposes.
Existing law imposes various requirements on bidders relative to
contracts involving small business enterprise goals.
This bill would delete those requirements and instead authorize
LACMTA to require bidders to comply with small business enterprise
and disabled veteran business enterprise goals and requirements
established by LACMTA relative to contracts financed with nonfederal
funds. The bill would also authorize LACMTA to award contracts under
certain circumstances to small business enterprises with respect to
work that is set aside for competition among certified small business
enterprises, and would require the authority to report to the
Legislature by December 31, 2017, regarding any contracts awarded in
this regard.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 130232 of the Public Utilities Code is amended
to read:
130232. (a) Except as provided in subdivision (f), purchase of
all supplies, equipment, and materials, and the construction of all
facilities and works, when the expenditure required exceeds
twenty-five thousand dollars ($25,000), shall be by contract let to
the lowest responsible bidder. Notice requesting bids shall be
published at least once in a newspaper of general circulation. The
publication shall be made at least 10 days before the date for the
receipt of the bids. The commission, at its discretion, may reject
any and all bids and readvertise.
(b) Except as provided for in subdivision (f), whenever the
expected expenditure required exceeds one thousand dollars ($1,000),
but not twenty-five thousand dollars ($25,000), the commission shall
obtain a minimum of three quotations, either written or oral, that
permit prices and terms to be compared.
(c) Where the expenditure required by the bid price is less than
fifty thousand dollars ($50,000), the executive director may act for
the commission.
(d) All bids for construction work submitted pursuant to this
section shall be presented under sealed cover and shall be
accompanied by one of the following forms of bidder's security:
(1) Cash.
(2) A cashier's check made payable to the commission.
(3) A certified check made payable to the commission.
(4) A bidder's bond executed by an admitted surety insurer, made
payable to the commission.
(e) Upon an award to the lowest bidder, the security of an
unsuccessful bidder shall be returned in a reasonable period of time,
but in no event shall that security be held by the commission beyond
60 days from the date that the award was made.
(f) The following provisions apply only to the Los Angeles County
Metropolitan Transportation Authority:
(1) The contract shall be let to the lowest responsible bidder or,
in the authority's discretion, to the person who submitted a
proposal that provides the best value to the commission on the basis
of the factors identified in the solicitation when the purchase price
of all supplies, equipment, and materials exceeds one hundred fifty
thousand dollars ($150,000). "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 requirements described in the solicitation documents. The
contract shall be let to the lowest responsible bidder when the
purchase price of the construction of all facilities exceeds
twenty-five thousand dollars ($25,000).
(2) The authority shall obtain a minimum of three quotations,
either written or oral, that permit prices and terms to be compared
whenever the expected expenditure required exceeds three thousand
dollars ($3,000), but not one hundred fifty thousand dollars
($150,000).
(3) The authority may purchase supplies, equipment, and materials
from a public auction sale, including public auctions held via the
Internet, using the procedures established for all other participants
in the public auction.
(4) The authority may participate in a procurement agreement
involving other public entities that is identified by a procuring
public entity or entities as a cooperative procuring agreement from
which other public entities may make purchases or enter into
contracts, and the authority may procure, and enter into contracts
for, items purchased pursuant to that procurement agreement,
notwithstanding that the authority may not be the procuring public
entity, provided the procurement agreement is awarded or entered into
by either of the following:
(A) One or more public entities or an organization of public
entities, which may include the authority.
(B) A federal, state, or local public entity.
(5) (A) Notwithstanding any other provision of law requiring the
authority to award contracts to the lowest responsible bidder, the
authority may, except as to contracts for professional services
involving private architectural, landscape architectural,
engineering, environmental, land surveying, or construction
management as defined in Sections 4525 and 4529.10 of the Government
Code, do any of the following in facilitating contract awards with
small business enterprises and disabled veteran business enterprises:
(i) Provide for a small business preference in construction, the
construction component of a design-build team, the procurement of
goods, or the delivery of services. The preference to a small
business shall be 5 percent of the lowest responsible bidder meeting
specifications that provides for small business participation.
(ii) Establish a subcontracting participation goal for small
business enterprises on contracts financed with nonfederal funds and
grant a preference of 5 percent to the lowest responsible bidders who
meet the goal.
(iii) Require bidders, prior to the time bids are opened, to
comply with the small business enterprise and disabled veteran
business enterprise goals and requirements established by the
authority on contracts financed with nonfederal funds.
(iv) In awarding contracts to the lowest responsible bidder, award
the contract to the lowest responsible bidder meeting the small
business enterprise and disabled veteran business enterprise goals.
(v) Set aside work for competition among certified small business
enterprises and award a contract to the lowest responsible bidder
whenever the expected expenditure required exceeds five thousand
dollars ($5,000) but is less than three million dollars ($3,000,000),
as long as price quotations are obtained by the authority from three
or more certified small business enterprises. If the authority
awards contracts under this clause, the authority, for purposes of
legislative oversight, shall, on or before December 31, 2017, prepare
and submit a report to the Legislature regarding contracts awarded
pursuant to this clause. The report shall be submitted in compliance
with Section 9795 of the Government Code.
(B) A small business enterprise recommended for a contract award
through use of a set aside shall be performing a commercially useful
function. A small business enterprise shall be presumed to be
performing a commercially useful function if it performs and
exercises responsibility of at least 30 percent of the total cost of
the contract work with its own workforce.
(C) "Small business enterprise" as used in this paragraph, means a
business enterprise that is classified as a small business under
United States Small Business Administration rules and meets the
current small business enterprise size standards found in Part 121 of
Title 13 of the Code of Federal Regulations appropriate to the type
of work the enterprise seeks to perform. The authority may establish
limitations regarding the average annual gross receipts of a small
business over the previous three fiscal years and establish
limitations regarding the personal net worth of the owner of the
small business, exclusive of the value of the owner's personal
residence.
(D) "Disabled veteran business enterprise" as used in this
paragraph has the meaning as defined in Section 999 of the Military
and Veterans Code.
(E) "Goal" as used in this paragraph means a numerically expressed
objective that bidders are required to achieve.
