BILL NUMBER: AB 2548	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY   MAY 15, 2000
	AMENDED IN ASSEMBLY   APRIL 10, 2000

INTRODUCED BY   Assembly Member Cox
   (Coauthor:  Assembly  Member Steinberg  
Members Steinberg and Thomson  )
   (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 district 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, 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,  the term  "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 product warranties 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.