BILL NUMBER: AB 2548 AMENDED BILL TEXT AMENDED IN ASSEMBLY APRIL 10, 2000 INTRODUCED BY Assembly Member Cox (Coauthor: Assembly Member Steinberg) (Coauthors: Senators Johannessen, Johnston, and Ortiz) FEBRUARY 24, 2000 An act to add Section 12751.3 to the Public Utilities Code, relating to public utilities. LEGISLATIVE COUNSEL'S DIGEST AB 2548, as amended, Cox. Municipal utility districts: purchases. The Municipal Utility District Act generally requires the purchase of supplies and materials by a municipal utility district to be let by contract to the lowest responsible bidder when the expenditure is in excess of $25,000, or, in any district with a population of 250,000 or more, in excess of $50,000, with annual adjustments to those dollar limits. This bill would authorize the board of a districtthat has owned and operated an electric distribution system for at least 8 years and has a population of 250,000 or more,to provide for the purchase of supplies and materials, when the expenditure required exceeds $50,000, by contract let in accordance with best value acquisition, as defined, policies adopted by the board. The bill would require a district that elects to purchase supplies and materials by contract let in accordance with those policies to submit a specified report to the Legislature, as prescribed. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 12751.3 is added to the Public Utilities Code, to read:12751.3. (a) Notwithstanding Section 12751, the board of a district that has owned and operated an electric distribution system for at least eight years and has a population of 250,000 or more may provide for the12751.3. (a) Notwithstanding Section 12751, a district may provide for the purchase of supplies and materials, when the expenditure required exceeds fifty thousand dollars ($50,000), by contract let in accordance with best value acquisition policies adopted by the board pursuant to this section. The board may authorize the general manager to act for the board in determining a best value bidder in accordance with best value acquisition policies and to award a contract to that bidder. (b) The best value acquisition policies adopted pursuant to subdivision (a) shall consider, but not be limited to, all of the following: (1) Price and service level proposals that reduce the district's overall operating costs. (2) Supplies and materials standards that support the district's strategic supplies and materials acquisition and management program direction. (3) A procedure for protest and resolution. (4) Any other factors the board determines to be relevant. (c) For purposes of this section, "best value acquisition" means a competitive procurement process whereby the award of a contract for supplies and materials may take into consideration any of the following factors: (1) The total cost to the district of its use or consumption of supplies and materials. (2) The operational cost or benefit incurred by the district as a result of contract award. (3) The value to the district of vendor-added services. (4) The quality, effectiveness, and innovation of supplies, materials, and services. (5) The reliability of delivery or installation schedules. (6) The terms and conditions of productwarranteeswarranties and vendor guarantees. (7) The financial stability of the vendor. (8) The vendor's quality assurance program. (9) The vendor's experience with the provision of supplies, material, and services. (10) The consistency of the vendor's proposed supplies, materials, and services with the district's overall supplies and materials procurement program. (d) If a district elects to purchase supplies and materials by contract, let in accordance with best value acquisition policies adopted by the board pursuant to this section, the district shall submit a report to the Legislature not later than three years from the date on which the district commences those procurement practices. The district shall include in the report a summary of the costs and benefits of best value acquisition compared to traditional low bid procurement practices, the effect of best value procurement practices on small businesses, the nature of any disputes arising from the use of best value procurement practices, and the status of those disputes.