Section § 120220

Explanation

This section allows the board to make any type of contracts or stipulations they need to support their activities, whether it's related to eminent domain (taking private property for public use) or something else. They can hire workers and take necessary actions to fully use their given powers.

The board 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.

Section § 120220.5

Explanation

This law allows the board overseeing a public transit system to create or hire a security force to enforce rules and maintain safety. They can do this by contracting with a public agency, hiring private security, or working with local police departments. The goal is to protect the transit system and ensure public peace and safety.

The board may provide and maintain by contract with a public agency or by other means, a security force to enforce its regulations, to preserve and protect any public transit system or project financed pursuant to this division, and to preserve and protect the public peace, health, and safety with respect to its system or projects. Alternatively, the board may contract with a private patrol operator licensed pursuant to Chapter 11.5 (commencing with Section 7580) of Division 3 of the Business and Professions Code, with the county sheriff and municipal police departments within the areas described in Section 120054, and with other transit development boards for security, police, and related services.

Section § 120221

Explanation
The board has the authority to make agreements with U.S. departments, public agencies, or individuals if it decides the terms are beneficial.
The board may contract with any department or agency of the United States of America, with any public agency, or with any person upon such terms and conditions as the board finds is in its best interest.

Section § 120221.5

Explanation

If a board wants to enter into a construction contract worth over $1 million, the company they hire must commit to using a skilled and trained workforce, unless one of three conditions is met. These exceptions are: 1) the board already has a project labor agreement in place covering all work; 2) the project is covered under an extended or renewed labor agreement from before 2017; or 3) the company has its own project labor agreement covering all subcontractors. 'Project labor agreement' is defined by another section of the law.

The board shall not enter into a construction contract over one million dollars ($1,000,000) with any entity unless the entity provides to the board an enforceable commitment that the entity and its subcontractors at every tier will use a skilled and trained workforce to perform all work on the project or a contract that falls within an apprenticeship occupation in the building and construction trades in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code.
(a)CA Public Utilities Code § 120221.5(a) This subdivision shall not apply if any of the following requirements are met:
(1)CA Public Utilities Code § 120221.5(a)(1) The board has entered into a project labor agreement that will bind all contractors and subcontractors performing work on the project or the board has contracted to use a skilled and trained workforce and the entity has agreed to be bound by that project labor agreement.
(2)CA Public Utilities Code § 120221.5(a)(2) The project or contract is being performed under the extension or renewal of a project labor agreement that was entered into by the board before January 1, 2017.
(3)CA Public Utilities Code § 120221.5(a)(3) The entity has entered into a project labor agreement that will bind the entity and all its subcontractors at every tier performing the project or the entity has contracted to use a skilled and trained workforce.
(b)CA Public Utilities Code § 120221.5(b) For purposes of subdivision (a), “project labor agreement” has the same meaning as defined in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code.

Section § 120222

Explanation

This law focuses on how a board should handle contracts to make sure they use available funds wisely. It allows flexible contracting to efficiently use public money, especially to attract more federal money.

The board must choose the lowest bidder for materials and equipment purchases above $150,000, with sales tax excluded from bid calculations, unless it needs a specific brand or in emergencies. For purchases and services between $5,000 and $150,000, at least three price quotes are required to ensure fair pricing. For service contracts over $150,000, bids must be competitive and written, unless there’s an emergency or they fall under a specific exemption.

Special rules apply for certain professional services like engineering or architectural work, which follow government code regulations. The board can adopt state or local procurement methods, and must follow guidelines for all purchases.

For federally funded contracts, there’s no negotiation on terms assisting disadvantaged business enterprises.

(a)CA Public Utilities Code § 120222(a) The Legislature finds and declares that a compelling interest exists in ensuring that all federal, state, local, and private funds available to the board are captured and used in a timely manner. In order to maximize the use of federal, state, local, and private funds and to maintain a competitive posture in seeking supplemental federal funds, the board may establish and use a flexible contracting process to maximize its efficient use of public funds.
(b)CA Public Utilities Code § 120222(b) Except in cases when an article of a specified brand or trade name is the only article that will properly meet the needs of the board or in an emergency declared by the vote of two-thirds of the membership of the board, all contracts for the acquisition or lease of materials, supplies, or equipment in an amount of one hundred fifty thousand dollars ($150,000), or in excess of that amount as authorized by the board, shall be made or entered into with the lowest responsible bidder meeting specifications. For purposes of determining the lowest bid, the amount of sales tax shall be excluded from the total amount of the bid. When the expected purchase amount of the contract equals or exceeds five thousand dollars ($5,000) and is less than one hundred fifty thousand dollars ($150,000), the board shall seek a minimum of three quotations, either written or oral, to permit comparison of prices and other terms.
(c)CA Public Utilities Code § 120222(c) Except in cases of an emergency declared by the vote of two-thirds of the membership of the board, the board shall for all contracts for the acquisition of services that exceed one hundred fifty thousand dollars ($150,000), that will not be performed by an entity described in Section 120221.5, and that are not within a category of services defined in Section 4525 of the Government Code, solicit bids in writing and award the contract in a competitive procurement process that is in the best interest of the board, including, but not limited to, a negotiated procurement that may evaluate price as a consideration. When the expected amount of the service contract equals or exceeds five thousand dollars ($5,000) and does not exceed one hundred fifty thousand dollars ($150,000), the board shall seek a minimum of three quotations, either written or oral, to permit comparison of prices and other terms.
(d)CA Public Utilities Code § 120222(d) The board shall award contracts for architectural, landscape architectural, engineering, environmental, land surveying, and construction project management services that are in excess of one hundred fifty thousand dollars ($150,000) in accordance with Chapter 10 (commencing with Section 4525) of Division 5 of Title 1 of the Government Code.
(e)CA Public Utilities Code § 120222(e) Notwithstanding this chapter, the board may use any procurement method authorized for state or local agencies under state or federal law, including, but not limited to, a competitive negotiation process in accordance with the provisions of Article 7.5 (commencing with Section 20216) of Chapter 1 of Part 3 of Division 2 of the Public Contract Code. The board shall maintain acquisition and contracting guidelines and comply with those guidelines in the procurement of all goods and services.
(f)CA Public Utilities Code § 120222(f) Provisions in any federally funded contract concerning disadvantaged business enterprises that are in accordance with the request for proposals shall not be subject to negotiation with the successful bidder.

Section § 120223

Explanation

This section explains how a board can buy supplies, equipment, or materials from the open market instead of following usual bidding procedures. If the board thinks it can get a better price outside a formal bid process, it can choose to do so with a two-thirds vote. Additionally, if no acceptable bids are received after a formal solicitation, the board can vote by the majority to purchase in the open market without following standard contract rules.

(a)CA Public Utilities Code § 120223(a) If, after rejecting bids received under Section 120222, the board determines and declares by a two-thirds vote of all of its members that, in its opinion, the supplies, equipment, or materials may be purchased at a lower price in the open market, the board may proceed to purchase these supplies, equipment, or materials in the open market without further observance of the provisions regarding contracts, bids, or advertisements.
(b)CA Public Utilities Code § 120223(b) If, after solicitation of bids under Section 120222, the board determines and declares by a majority vote that it has not received a responsive bid, the board may proceed to purchase the supplies, equipment, or materials in the open market without further observance of the provisions regarding contracts, bids, or advertisements.

Section § 120224.1

Explanation

This law section allows the general manager or CEO to spend money without following normal purchasing rules when urgent repairs or actions are needed to protect transportation services or comply with regulations. This is only permitted if current options aren't enough. After spending, the manager or CEO must report back to the board, explaining why the emergency measures were necessary.

(a)CA Public Utilities Code § 120224.1(a) Upon determining that immediate remedial measures to avert or alleviate damage to, or to repair or restore damaged or destroyed property of, the board are necessary in order to insure that the facilities of the board are available to serve the transportation needs of the general public or to comply with any state or federal regulation with respect to the operation of public transportation services, and upon determining that available remedial measures, including procurement in compliance with Sections 120222, and 120223, are inadequate, the general manager or chief executive officer may authorize the expenditure of money previously appropriated by the board specifically for the direct purchases of goods and services, without observance of the provisions of those sections.
(b)CA Public Utilities Code § 120224.1(b) The general manager or chief executive officer, after the expenditure authorized under subdivision (a) has been made, shall submit to the board a full report explaining the necessity for that action.

Section § 120224.2

Explanation

This statute allows the board, with a two-thirds vote from its members, to buy prototype equipment or make modifications for testing without following the usual processes of getting contracts, bids, or advertising if those methods aren't suitable for their needs.

Notwithstanding Section 120222 and upon a finding by two-thirds of all members of the board that a purchase in compliance with Sections 120222 and 120223 does not constitute a method of procurement adequate for the operation of board facilities or equipment, the board 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 requiring contracts, bids, or advertisements.

Section § 120224.3

Explanation

This law allows the board to buy supplies, equipment, or materials without following the usual rules for contracts and bids. However, this is only allowed if two-thirds of the board members agree there is only one source to get what they need. It applies when the purchase is specifically for duplicating, fixing, or replacing items, including upgrading or updating proprietary technology.

Notwithstanding Section 120222, the board may direct the purchase of any supply, equipment, or materials without observance of any provision requiring contracts, bids, or advertisements upon a finding by two-thirds of all members of the board that there is only a single source of procurement therefor and that the purchase is for the sole purpose of duplicating, repairing, or replacing supply, equipment, or materials that are in use, including upgrades or migrations of proprietary intellectual property.

Section § 120224.4

Explanation

If you're submitting a proposal for a procurement by a public utility, you can formally protest the process. To challenge the details of the procurement ad, file your complaint within 10 days of its posting, and a decision will be made before bids are opened. You may renew this protest within 15 days after the intent to award is announced. If your protest is about something other than the procurement details, file it within 15 days after the notice of intent to award. Your protest should clearly state your reasons and supporting facts, and you'll have a chance to present your case in person.

The board's written decision on your protest is the final administrative ruling, which you can appeal to court if needed.

(a)CA Public Utilities Code § 120224.4(a) A person who submits, or who plans to submit, a proposal in response to a procurement solicitation may protest any acquisition conducted in accordance with Sections 120222 and 120223 as follows:
(1)CA Public Utilities Code § 120224.4(a)(1) Protests based on the content of the procurement solicitation shall be filed with the board within 10 calendar days after the procurement solicitation is first advertised. The general manager or the chief executive officer, or the designee of the general manager or chief executive officer, shall issue a written decision on the protest prior to opening of the procurement solicitation. A protest may be renewed by refiling the protest with the board within 15 calendar days after the mailing of the notice of the intent to award.
(2)CA Public Utilities Code § 120224.4(a)(2) Any bidder may protest the intent to award on any ground not based upon the content of the procurement solicitation by filing a protest with the board within 15 calendar days after the mailing of the notice of the intent to award.
(3)CA Public Utilities Code § 120224.4(a)(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 board prior to the opening of the procurement solicitation in the case of protests based on the content of the procurement solicitation, 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 procurement solicitation.
(b)CA Public Utilities Code § 120224.4(b) The decision of the protest by the board shall be in writing and constitutes a final administrative decision for purposes of judicial review pursuant to Section 1094.6 of the Code of Civil Procedure.

Section § 120225

Explanation

This section allows the board responsible for a system—likely a public utility system—to buy insurance that covers accidents or damage to any part of that system. Additionally, the board can offer insurance as outlined in Part 6 of the Government Code, which provides more detailed insurance provisions.

The board may insure against any accident or destruction of the system or any part thereof. The board may also provide insurance as provided in Part 6 (commencing with Section 989), Division 3.6, Title 1 of the Government Code.

Section § 120226

Explanation

This law allows the board to hire independent contractors for their services.

The board may contract for the services of independent contractors.

Section § 120227

Explanation

This law requires the board of a transit district to make a contract with the Public Employees’ Retirement System to include all its officers and employees as members. However, board members themselves and certain officers and employees excluded under another law are exceptions.

The board and the Board of Administration of the Public Employees’ Retirement System shall enter into a contract, and the board shall make all of its officers and employees members of the system, except as follows:
(a)CA Public Utilities Code § 120227(a) Members of the board.
(b)CA Public Utilities Code § 120227(b) Officers and employees excluded pursuant to Section 20492 of the Government Code.

Section § 120228

Explanation

This law allows the board to partner with other entities to run special public mass transit systems, as long as they follow certain conditions outlined in another section.

Subject to Section 120260, the board may enter into joint powers agreements to operate exclusive public mass transit guideways.