AB 2548 Assembly Bill

BILL NUMBER: AB 2548	AMENDED
	BILL TEXT

	AMENDED IN SENATE   AUGUST 8, 2000
	AMENDED IN SENATE   JUNE 26, 2000
	AMENDED IN ASSEMBLY   MAY 15, 2000
	AMENDED IN ASSEMBLY   APRIL 10, 2000

INTRODUCED BY   Assembly Member Cox
   (Coauthors:  Assembly Members Steinberg and Thomson)
   (Coauthors: Senators Johannessen, Johnston, and Ortiz)

                        FEBRUARY 24, 2000

   An act to add  Section 12751.3 to   and
repeal Section 12751.3 of  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 at
the lowest cost acquisition, as defined.  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  on or before January 1, 2004  .  
   This  
   The  bill would require  a district to ensure  that
all businesses have a fair and equitable opportunity to compete for,
and participate in, district contracts awarded pursuant to its
provisions and would prohibit discrimination in the award and
performance of those contracts.  
   The provisions of the bill would be repealed on January 1, 2005.

   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 at the lowest cost
acquisition policies adopted by the board pursuant to this section.
   (b) The best value at the lowest cost 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" means any factor or
criterion established by a district to ensure that its business
needs and goals are effectively met and that the district obtains the
most value for an authorized acquisition.  The term "best value at
the lowest cost 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.  
   (11) The economic benefits to the general community, including,
but not limited to, job creation or retention. 
   (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   Legislature on or before January 1, 2004
 .  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   .
The report shall also include statistics showing the number of
contracts awarded to small, minority-owned businesses and the number
of years each contract awardee had been in business.  The report
shall also include an analysis of the effects  of best value
procurement practices on  small   these 
businesses, the nature of any disputes arising from the use of best
value procurement practices, and the status of those disputes.

   (e) For purposes of this section, a district shall ensure
 
   (e) The district shall ensure  that all businesses have a
fair and equitable opportunity to compete for, and participate in,
district contracts and shall also ensure that discrimination in the
award and performance of contracts does not occur on the basis of
race, color, sex, national origin, marital status, sexual preference,
creed, ancestry, medical condition, or retaliation for having filed
a discrimination complaint in the performance of district contractual
obligations.  
   (f) This section shall remain in effect only until January 1,
2005, and as of that date is repealed, unless a later enacted statute
that is enacted before January 1, 2005, deletes or extends that
date.