2005 California Public Utilities Code Sections 12751-12753 Article 3. Purchases

12751.  (a) Except as specified in Section 12751.5, the purchase of
all supplies and materials, when the expenditure required exceeds
twenty-five thousand dollars ($25,000), or in a district that has a
population of 250,000 or more, when the expenditure required exceeds
fifty thousand dollars ($50,000), shall be by contract let to the
lowest responsible bidder.  Notice requesting bids shall be published
pursuant to Section 6061 of the Government Code at least 10 days
before bids are received.  The district may reject any and all bids
and readvertise in its discretion.  The board may authorize the
general manager to determine, in the discretion of the general
manager, whether to reject all bids and whether, after the bids have
been rejected, to readvertise.
   (b) The dollar limit identified in subdivision (a) shall annually
be adjusted upward or downward to reflect the percentage change in
the Implicit Price Deflator for State and Local Government Purchases
of Goods and Services for the United States, as published by the U.S.
Department of Commerce.  The annual adjustments shall be rounded to
the nearest one thousand dollars ($1,000).
12751.1.  Notwithstanding Section 12751, the board of a district
which has owned and operated an electric distribution system for at
least eight years and has a population of 250,000 or more may
authorize the general manager to determine the lowest responsible
bidder and to award a contract to that bidder.
12751.2.  Notwithstanding Section 12751, the board of a district
which has owned and operated water distribution or sewage disposal
systems for at least eight years and has a population of 250,000 or
more may authorize the general manager to act for the board in
determining the lowest responsible bidder and awarding a contract to
that bidder where the expenditure required by the bid price is less
than one hundred thousand dollars ($100,000).  When acting pursuant
to this section, the general manager shall, in each instance,
promptly notify the board of the action taken.
12751.3.  (a) The purpose of this section is to provide affected
districts with an alternative acquisition process that will result in
reduced costs to ratepayers.  Notwithstanding Section 12751, when
the expenditure for the purchase of supplies and materials exceeds
fifty thousand dollars ($50,000) and the district determines that
ratepayers reasonably can expect a net benefit in the cost of
district services, the district may provide for the purchase of the
supplies and materials 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 Legislative Analyst on or before January 1,
2006.  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 report shall also include
statistics showing the number of contracts awarded to small
businesses, minority-owned businesses, and new 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 these businesses, the nature of any disputes
arising from the use of best value procurement practices, and the
status of those disputes.  On or before April 1, 2006, the
Legislative Analyst shall report to the Legislature on the use of
"best value at lowest cost acquisition" procurement practices used by
municipal utility districts.  The report may include recommendations
for modifying the provisions of this section and extending the
operation of this section beyond January 1, 2007.
   (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,
2007, and as of that date is repealed, unless a later enacted statute
that is enacted before January 1, 2007, deletes or extends that
date.
12752.  If after the bids have been rejected, the board determines
and declares by a four-fifths vote of all the members of a five-ward
district, or by a five-sevenths vote of all the members of a
seven-ward district, that in its opinion the materials and supplies
may be purchased at a lower price in the open market, the board may
proceed, or may authorize the general manager to proceed, to purchase
the supplies and materials in the open market without further
observance of the provisions requiring contracts, bids, or notice.
12753.  In case of any great emergency, the board may, by resolution
passed by a four-fifths vote of all the members of a five-ward
district, or by a five-sevenths vote of all the members of a
seven-ward district, declare and determine that such emergency
exists, and thereupon proceed to expend sums or enter into contracts
involving the expenditure of any sums needed in such emergency
without observance of the provisions requiring contracts, bids, or
notice.