2007 California Public Utilities Code Article 2. Contracts

CA Codes (puc:130220-130243)

130220.  The commission may make contracts and enter into
stipulations of any nature whatsoever either in connection with
eminent domain proceedings or otherwise, including, without limiting
the generality of the foregoing, contracts and stipulations to
indemnify and save harmless, to employ labor, and to do all acts
necessary and convenient for the full exercise of the powers granted
in this division.



130220.5.  (a) The commission has the power of eminent domain to
take any property necessary, incidental, or convenient to the
exercise of its powers pursuant to this division.
   (b) The commission may exercise the power of eminent domain to
acquire property outside its territorial limits for environmental
mitigation purposes only if otherwise authorized by law and only to
the extent so authorized, and only with the consent of the board of
supervisors of the county in which the mitigation will occur.
   (c) No action to acquire property by eminent domain within any
incorporated city or within the unincorporated area of any county
shall be commenced unless written notice is given to the legislative
body of the affected city or county, as the case may be, in
accordance with Section 1245.235 of the Code of Civil Procedure, and
the affected city or county, as the case may be, shall have the same
rights to a hearing before the commission as a person to whom notice
is otherwise required to be given under that section.



130221.  The commission may contract with any department or agency
of the United States of America, with any public agency (including,
but not limited to, the Department of Transportation, the multicounty
designated transportation planning agency, or any transit district,
county, or city), or with any person upon such terms and conditions
as the commission finds is in its best interest.



130231.  (a) The Los Angeles County Transportation Commission is
authorized to impose a transactions and use tax within the County of
Los Angeles pursuant to the approval by the voters of the commission'
s Ordinance No. 16 in 1980 and its Ordinance No. 49 in 1990, and has
the authority and power vested in the Southern California Rapid
Transit District to plan, design, and construct an exclusive public
mass transit guideway system in the County of Los Angeles, including,
but not limited to, Article 5 (commencing with Section 30630 of
Chapter 5 of Part 3 of Division 11).
   (b) The commission shall conform to this article in letting
contracts for the construction of that system.



130232.  (a) Except as provided in subdivision (f), purchase of all
supplies, equipment, and materials, and the construction of all
facilities and works, when the expenditure required exceeds
twenty-five thousand dollars (,000), shall be by contract let to
the lowest responsible bidder. Notice requesting bids shall be
published at least once in a newspaper of general circulation. The
publication shall be made at least 10 days before the date for the
receipt of the bids. The commission, at its discretion, may reject
any and all bids and readvertise.
   (b) Except as provided for in subdivision (f), whenever the
expected expenditure required exceeds one thousand dollars (,000),
but not twenty-five thousand dollars (,000), the commission shall
obtain a minimum of three quotations, either written or oral, that
permit prices and terms to be compared.
   (c) Where the expenditure required by the bid price is less than
fifty thousand dollars (,000), the executive director may act for
the commission.
   (d) All bids for construction work submitted pursuant to this
section shall be presented under sealed cover and shall be
accompanied by one of the following forms of bidder's security:
   (1) Cash.
   (2) A cashier's check made payable to the commission.
   (3) A certified check made payable to the commission.
   (4) A bidder's bond executed by an admitted surety insurer, made
payable to the commission.
   (e) Upon an award to the lowest bidder, the security of an
unsuccessful bidder shall be returned in a reasonable period of time,
but in no event shall that security be held by the commission beyond
60 days from the date that the award was made.
   (f) The following provisions apply only to the Los Angeles County
Metropolitan Transportation Authority:
   (1) The contract shall be let to the lowest responsible bidder or,
in the commission's discretion, to the responsible bidder who
submitted a proposal that provides the best value to the commission
on the basis of the factors identified in the solicitation when the
purchase price of all supplies, equipment, and materials exceeds one
hundred thousand dollars (0,000). "Best value" means the overall
combination of quality, price, and other elements of a proposal that,
when considered together, provide the greatest overall benefit in
response to requirements described in the solicitation documents. The
contract shall be let to the lowest responsible bidder when the
purchase price of the construction of all facilities exceeds
twenty-five thousand dollars (,000).
   (2) The commission shall obtain a minimum of three quotations,
either written or oral, that permit prices and terms to be compared
whenever the expected expenditure required exceeds two thousand five
hundred dollars (,500), but not one hundred thousand dollars
(0,000).


130233.  If, after rejecting bids received under Section 130232 the
commission determines and declares, by a two-thirds vote of all of
its members, that the supplies, equipment, or materials may be
purchased at a lower price in the open market, the commission may
proceed to purchase those supplies, equipment, or materials in the
open market without further observance of the provisions in this
article regarding contracts, bids, advertisement, or notice.



130234.  In case of any great public calamity, such as an
extraordinary fire,  flood, storm, epidemic, or other disaster, or
interruption of contracts essential to the provision of daily transit
service or catastrophic failure of revenue-producing equipment or
facilities, the commission may, by resolution passed by a two-thirds
vote of all its members, declare and determine that public interest
and necessity demand the immediate expenditure of public money to
safeguard life, health, or property, and thereupon proceed to expend
or enter into a contract involving the expenditure of any sum needed
in the emergency without observance of the provisions in this article
regarding contracts, bids, advertisement, or notice.




130235.  (a) Upon determining that immediate remedial measures to
avert or alleviate damage to property, or to replace, repair, or
restore damaged or destroyed property, of the commission are
necessary in order to ensure that the facilities of the commission
are available to serve the transportation needs of the general
public, and upon determining that available remedial measures,
including procurement or construction in compliance with Sections
130232, 130233, and 130234  are inadequate, the executive director
may authorize the expenditure of money previously appropriated
specifically by the commission for the direct purchases of goods and
services, without following those sections.
   (b) The executive director shall, after any such expenditure,
submit to the commission a full report explaining the necessity for
the action.



130236.  Notwithstanding Section 130232, and upon a finding by
two-thirds vote of all members of the commission that the proposed
purchase in compliance with Sections 130232 and 130233 does not
constitute a method of procurement adequate for the operation of
commission facilities or equipment, the commission may direct the
procurement of prototype equipment or modifications in an amount
sufficient to conduct and evaluate operational testing without
further observance of any provisions in this article regarding
contracts, bids, advertisements, or notice.




130237.  Notwithstanding Section 130232, the commission may direct
the purchase of any supply, equipment, or material without observance
of any provision in this article regarding contracts, bids,
advertisement, or notice upon a finding by two-thirds of all members
of the commission that there is only a single source of procurement
therefor and that the purchase is for the sole purpose of duplicating
or replacing supply, equipment, or material already in use.



130238.  (a) The Legislature finds and declares that (1) because of
the highly specialized and unique nature of all rail transit
equipment, (2) because of products and materials which are undergoing
rapid technological changes, and (3) for the introduction of new
technological changes into the operations of the commission, it may
be in the public interest to consider, in addition to price, factors
such as vendor financing, performance reliability, standardization,
life-cycle costs, delivery timetables, support logistics, and the
broadest possible range of competing products and materials
available, fitness of purchase, manufacturer's warranty, and similar
factors in the award of contracts for these vehicles and equipment.
   (b) This section applies only to the purchase by the commission of
(1) specialized rail transit equipment, including rail cars, and (2)
computers, telecommunications equipment, fare collections equipment,
microwave equipment, and other related electronic equipment and
apparatus.  This section does not apply to contracts for construction
or for the procurement of any product available in substantial
quantities to the general public.
   (c) The commission may, after finding by a two-thirds vote of all
of its members that a particular procurement qualifies under
subdivision (b), direct that the procurement be conducted through
competitive negotiation under this section.  For purposes of this
section, competitive negotiation includes, but is not limited to, all
of the following requirements:
   (1) The request for proposals shall be prepared and submitted to
an adequate number of qualified sources, as determined by the
commission, to permit reasonable competition consistent with the
nature and requirement of the procurement.
   (2) Notice of the request for proposals shall be published at
least twice in a newspaper of general circulation, at least 10 days
before the date for receipt of the proposals.
   (3) The commission shall make every effort to generate the maximum
feasible number of proposals from qualified sources and shall make a
finding to that effect before proceeding to negotiate if only a
single response to the request for proposals is received.
   (4) The request for proposals shall identify all significant
evaluation factors, including price, and their relative importance.
   (5) The commission shall provide reasonable procedures for
technical evaluation of the proposals received, identification of
qualified sources, and selection for contract award.
   (6) Award shall be made to the qualified proposer whose proposal
will be most advantageous to the commission with price and all other
factors considered.
   (7) If award is not made to the bidder whose proposal contains the
lowest price, the commission shall make a finding setting forth the
basis for the award.
   (d) The commission, at its discretion, may reject any and all
proposals and request new proposals.
   (e) A person who submits, or who plans to submit, a proposal may
protest any acquisition conducted in accordance with this section as
follows:
   (1) Protests based on the content of the request for proposals
shall be filed with the commission within 10 calendar days after the
request for proposals is first advertised in accordance with
subdivision (c).  The commission shall issue a written decision on
the protest prior to opening of proposals.  A protest may be renewed
by refiling the protest with the commission within 15 calendar days
after the mailing of the notice of the recommended award.
   (2) Any bidder may protest the recommended award on any ground not
based upon the content of the request for proposals by filing a
protest with the commission within 15 calendar days after the mailing
of the notice of the recommended award.
   (3) Any protest shall contain a full and complete written
statement specifying in detail the grounds of the protest and the
facts supporting the protest.  Protestors shall have an opportunity
to appear and be heard before the commission prior to the opening of
proposals in the case of protests based on the content of the request
for proposals, or prior to final award in the case of protests based
on other grounds or the renewal of protests based on the content of
the request for proposals.
   (f) Provisions in any contract concerning women and minority
business enterprises, which provisions are in accordance with the
request for proposals, shall not be subject to negotiation with the
successful bidder.


130239.  In order to facilitate the participation of minority-owned
and women-owned businesses and disadvantaged individuals in
activities and contracts of the commission, to the extent that the
provisions of Executive Order 11246 of September 24, 1965, as
amended, and Chapter 60 (commencing with Section 60.1) of Title 41
and Part  23 (commencing with Section 23.1) of Title 49 of the Code
of Federal Regulations are not applicable, the commission has the
authority to develop a program to implement similar provisions
applicable to its activities and contracts.




130240.  (a) "Transit" means as defined in Section 40005.
   (b) (1) The Orange County Transportation Authority may acquire,
construct, develop, lease, jointly develop, own, operate, maintain,
control, use, jointly use, or dispose of rights-of-way, rail lines,
monorails, guideways, buslines, stations, platforms, switches, yards,
terminals, parking lots, air rights, land rights, development
rights, entrances and exits, and any and all other facilities for,
incidental to, necessary for, or convenient for transit service,
including, but not limited to, facilities and structures physically
or functionally related to transit service, within or partly without
the county, underground, upon, or above the ground and under, upon or
over public streets, highways, bridges, or other public ways or
waterways, together with all physical structures necessary for,
incidental to, or convenient for the access of persons and vehicles
thereto, and may acquire, lease, sell, or otherwise contract with
respect to any interest in or rights to the use or joint use of any
or all of the foregoing.  However, installations on state freeways
are subject to the approval of the Department of Transportation and
installations in other state highways are subject to Article 2
(commencing with Section 670) of Chapter 3 of Division 1 of the
Streets and Highways Code.
   (2) With respect to the segment of State Highway Route 91 between
Interstate Highway Route 15 and State Highway Route 55 only, the
Orange County Transportation Authority may exercise all of the powers
contained in paragraph (1) that apply to streets, highways, bridges,
and connector roads.
   (3) The exercise of the powers provided to the Orange County
Transportation Authority in paragraph (2) is subject to approval by
the Board of Supervisors of Riverside County and the Riverside County
Transportation Commission and in consultation with the advisory
committee described in paragraph (1) of subdivision (h) as it relates
to the use of those powers in Riverside County under the terms of
the franchise agreement described in subdivision (c).
   (c) If the Orange County Transportation Authority requests, the
department shall approve the assignment to the Orange County
Transportation Authority of the Amended and Restated Development
Franchise Agreement, as amended, between the department and the
California Private Transportation Company, L.P. (CPTC) for the State
Highway Route 91 median improvements as authorized by Section 143 of
the Streets and Highways Code, subject to the requirement that
subdivisions (a) to (f), inclusive, of Section 2 of Article 3 of the
restated franchise agreement be deleted in their entirety in the
event that CPTC and the authority agree to the assignment of all of
CPTC's interests in the franchise agreement to the authority.
   (d) The Orange County Transportation Authority shall have the
authority to impose tolls for use of the State Highway Route 91
facilities as authorized by the franchise agreement.  After the bonds
issued pursuant to subdivision (f) are paid in their entirety or on
December 31, 2030, whichever occurs earlier, the Orange County
Transportation Authority shall have no further authority to impose or
to collect a toll  for the use of the segment of State Highway Route
91 between Interstate Highway Route 15 and State Highway Route 55.
   (e) Toll revenues from the use of State Highway Route 91
facilities between Interstate Highway Route 15 and State Highway
Route 55 shall only be used by the Orange County Transportation
Authority for capital and operating expenses, including payment of
purchase costs, debt service, and satisfaction of other covenants and
obligations relating to indebtedness, and for transportation related
to State Highway Route 91 between Interstate Highway Route 15 and
State Highway Route 55, excluding other toll roads.  Prior to July 1,
2003, the Orange County Transportation Authority, in consultation
with the department and the Riverside County Transportation
Commission, shall issue a plan and a proposed completion schedule for
the improvements on State Highway Route 91 between Interstate
Highway Route 15 and State Highway Route 55.  The Orange County
Transportation Authority shall update the plan on an annual basis
until all improvements described in the plan have been completed.
   (f) The Orange County Transportation Authority may incur
indebtedness and obligations, and may issue bonds, refund bonds, and
assume existing bonds for purposes authorized by this section for a
period not to extend beyond the year 2030.  Indebtedness and bonds
issued under this section do not constitute a debt or liability of
the state or any other public agency, other than the authority, or a
pledge of the faith and credit of the state or any other public
agency, other than the authority.  Bonds issued under this section
shall not be deemed to constitute a debt or liability of the state or
any political subdivision thereof, other than the bank and the
authority, or a pledge of the faith and credit of the state or of any
political subdivision, but shall be payable solely from the revenues
and assets pledged to the repayment of the bonds.  All bonds issued
under this section shall contain on the face of the bond a statement
to the same effect.
   (g) Notwithstanding Section 143 of the Streets and Highways Code,
the State Highway Route 91 facility constructed and operated under
the authority of a franchise agreement approved pursuant to that
section shall revert to the state at the expiration of the lease or
termination of the franchise agreement at no cost to the state.
   (h) (1) An advisory committee shall be created to review issues
and make recommendations to the Orange County Transportation
Authority regarding the transportation facilities acquired from CPTC,
including tolls imposed, operations, maintenance, and use of toll
revenues, and improvements in the area of State Highway Route 91
between Interstate Highway Route 15 and State Highway Route 55,
including the identification and siting of alternative highways.  The
committee shall consist of 10 voting members and three nonvoting
members, as follows:
   (A) Five members of the board of directors of the Orange County
Transportation Authority appointed by that board.
   (B) Five members of the Riverside County Transportation Commission
appointed by that commission.
   (C) One member of the San Bernardino Associated Governments
appointed by that body and the district directors of Districts 8 and
12 of the Department of Transportation, all of whom shall be
nonvoting members.
   (2) When reviewing the initial toll structure proposed by the
Orange County Transportation Authority or any changes to the toll
structure, the advisory committee shall place an information item on
a regularly scheduled agenda for due public comment and consideration
of the advisory committee.
   (3) The Orange County Transportation Authority shall conduct an
audit on an annual basis of the toll revenues collected and
expenditures made during the term of franchise agreement.  The audit
shall review revenues and expenditures for consistency with the
provisions of this section and shall be provided to the advisory
committee.
   (4) The Orange County Transportation Authority shall pay all costs
associated with the requirements of this subdivision.
   (i) The Orange County Transportation Authority shall not impose
tolls for the use of nor construct and operate State Highway Route 91
facilities in the County of Riverside without prior approval by the
Board of Supervisors of the County of Riverside, the Riverside County
Transportation Commission, and the advisory committee.
   (j) The Orange County Transportation Authority shall not sell or
assign its interest in the franchise agreement without approval by
the Legislature by enactment of a statute provided that approval
shall not be required in connection with granting rights and remedies
to lenders under Article 16 of the restated franchise agreement.
   (k) After the bonds issued pursuant to this section are paid off
in their entirety, or on December 31, 2030, whichever occurs earlier,
that segment of State Highway Route 91 between Interstate Highway
Route 15 and State Highway Route 55 shall revert to the department.
   (l) In the event that the Orange County Transportation Authority
decides to sell or assign its interest in the franchise agreement,
the Orange County Transportation Authority shall provide written
notice at least 90 days in advance of the date they submit their
request for approval by the department pursuant to this subdivision.
The written notice shall be provided to the advisory committee and
the Riverside County Transportation Commission.



130240.1.  (a) The Orange County Transportation Authority may enter
into agreements for the joint use or joint development of any
property or rights by the authority and any city, public agency, or
public utility operating transit facilities or nontransit facilities,
or both, or any other person, firm, corporation, association,
organization, or other entity, public or private, either, in whole or
in part, within or outside the county, for the joint use or
development of any property of the authority or of the city, public
agency, public utility, person, firm, corporation, association,
organization, or other entity, public or private, for the
establishment of through routes, joint fares, station cost-sharing,
connector fees, or land, air, or development rights, sales or
leasing, transfer of passengers, pooling arrangements, or for any
other purpose necessary for, incidental to, or convenient for the
full exercise of the powers granted in this chapter.  As to any
service which the authority is authorized to perform pursuant to this
chapter, the authority may contract for the performance of the
service by any city, county, or public utility the territory of which
is, in whole or in part, within the county.
   (b) "Joint development" includes, but is not limited to,
agreements with any person, firm, corporation, association,
organization, or other entity, public or private, to develop or to
engage in the planning, financing, construction, or operation of
authority facilities or development projects adjacent, or physically
or functionally related, to authority facilities.
   (c) "Nontransit facilities," as used in this section, includes any
land, buildings, or equipment, or interest therein, which is used
primarily for the production of transit revenue not arising from the
operation of a transit system.


130241.  All the provisions of the Orange County Transit District
Act of 1965 (Part 4 (commencing with Section 40000) of Division 10),
regarding the powers and functions of the Orange County Transit
District shall be equally applicable to the Orange County
Transportation Authority as if set forth herein, and shall be in
addition to the powers and functions set forth in this division.  The
authority shall determine which provisions are applicable to the
authority.


130242.  (a) In addition to the other powers it possesses, the
authority may enter into contracts with private entities, the scope
of which may combine within a single contract all or some of the
planning, design, permitting, development, joint development,
construction, construction management, acquisition, leasing,
installation, and warranty of all or components of (1) transit
systems, including, without limitation, passenger loading or
intermodal station facilities, and (2) facilities on real property
owned or to be owned by the authority.
   (b) The authority may award contracts pursuant to subdivision (a)
after a finding, by a two-thirds vote of the members of the
authority, that awarding the contract under this section will achieve
for the authority, among other things, certain private sector
efficiencies in the integration of design, project work, and
components.
   (c) A contract awarded pursuant to this section may include
operation and maintenance elements, if the inclusion of those
elements (1) is necessary, in the reasonable judgment of the
authority, to assess vendor representations and warranties,
performance guarantees, or life cycle efficiencies, and (2) does not
conflict with collective bargaining agreements to which the authority
is a party.
   (d) Any construction, alteration, demolition, repairs or other
works of improvement performed under a contract awarded pursuant to
this section shall be considered a public works project subject to
Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of
the Labor Code, and shall be enforced by the Department of Industrial
Relations in the same way it carries out this responsibility under
the Labor Code.
   (e) A contract under this section shall be let to the lowest
responsible bidder whose bid is responsive to the criteria set forth
in the invitation for bids.  Notice requesting bids shall be
published at least once in a newspaper of general circulation.  The
publication shall be made at least 60 days before the receipt of the
bids.  The authority, at its discretion, may reject any and all bids,
and may readvertise.  All bids submitted pursuant to this section
shall be presented under sealed cover and shall be accompanied by one
of the following forms of bidder security:  (1) cash, (2) a cashier'
s check made payable to the authority, (3) a certified check made
payable to the authority, or (4) a bidder's bond executed by an
admitted surety insurer, made payable to the authority.  Upon an
award to the lowest responsible bidder, the security of each
unsuccessful bidder shall be returned in a reasonable period of time,
but in no event shall that security be held by the authority beyond
60 days from the time the award is made.



130243.  The Los Angeles County Metropolitan Transportation
Authority shall adopt a change order procedure for contracts awarded
by the authority that includes each of the following requirements:
   (a) When a change order is proposed, the contract administrator of
the authority shall be notified and shall determine whether a change
order is required. After consulting with the general counsel of the
authority and appropriate technical advisers, the contract
administrator shall either approve or disapprove the proposed
contract change order.
   (b) The general counsel of the authority shall be consulted on the
proposed change order at the earliest possible time to consider and
render advice on the legal implications of the proposed change. The
contract administrator shall not approve a proposed change order
unless the general counsel recommends changing the terms of the
contract.
   (c) The contract administrator shall require the contractor to
submit certified cost and pricing data for the proposed change, and
shall require an internal fiscal audit of any proposed change order
when cost and pricing data would be required under federal
acquisition regulations contained in Subpart 15.4 of Part 15 of
Subchapter C of Chapter 1 of Title 48 of the Code of Federal
Regulations.
   (d) The opinions of informed individuals working on the contract
who oppose the adoption of a proposed change order shall be
documented and be taken into consideration by the authority's change
control board when determining whether a contract change is
warranted.