Bill Text: CA SB118 | 2011-2012 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: State Controller's Office: reimbursement for expenses.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2012-09-23 - Chaptered by Secretary of State. Chapter 488, Statutes of 2012. [SB118 Detail]

Download: California-2011-SB118-Introduced.html
BILL NUMBER: SB 118	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Yee

                        JANUARY 20, 2011

   An act to amend Section 4217.12 of the Government Code, relating
to public contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 118, as introduced, Yee. Public contracts: energy service
contracts: competitive bidding requirements.
   Existing law requires public agencies to adhere to competitive
bidding requirements and procedures when entering into public works
contracts, subject to various exceptions based on the size and cost
of the project, among other factors. One exception from these bidding
requirements provides the authority for a public agency to enter
into energy service contracts and related facility ground leases, as
defined, if the governing body makes a determination at a public
hearing that specified cost savings and benefits of the project are
in the public agency's best interests.
   This bill, on and after January 1, 2012, would authorize a public
agency, notwithstanding any other law, to enter into an energy
service contract and any necessarily related facility ground lease
only if its contracting process is in accordance with competitive
bidding requirements and procedures for public contracts, as
specified.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  It is the intent of the Legislature to require public
agencies entering into energy service contracts that are subject to
Section 4217.12 of the Government Code to follow competitive bidding
procedures.
  SEC. 2.  Section 4217.12 of the Government Code is amended to read:

   4217.12.  (a) Notwithstanding any other provision of law  and
except as provided in subdivision (c)  , a public agency may
enter into an energy service contract and any necessarily related
facility ground lease on terms that its governing body determines are
in the best interests of the public agency if the determination is
made at a regularly scheduled public hearing, public notice of which
is given at least two weeks in advance, and if the governing body
finds:
   (1) That the anticipated cost to the public agency for thermal or
electrical energy or conservation services provided by the energy
conservation facility under the contract will be less than the
anticipated marginal cost to the public agency of thermal,
electrical, or other energy that would have been consumed by the
public agency in the absence of those purchases.
   (2) That the difference, if any, between the fair rental value for
the real property subject to the facility ground lease and the
agreed rent, is anticipated to be offset by below-market energy
purchases or other benefits provided under the energy service
contract.
   (b) State agency heads may make  these  findings
 pursuant to subdivision (a)  without holding a public
hearing. 
   (c) On and after January 1, 2012, notwithstanding any other
provision of law, a public agency may enter into an energy service
contract and any necessarily related facility ground lease only if
its contracting process is in accordance with the competitive bidding
requirements and procedures set forth in the Public Contract Code.

            
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