FINAL BILL REPORT

SHB 186

                                  C 120 L 87

BYHouse Committee on Local Government (originally sponsored by Representatives Haugen, Brough, Nutley, May, Hine, L. Smith, Zellinsky, Braddock and Crane)

Increasing city and town labor limits and public bidding requirements.

House Committe on Local Government

Senate Committee on Governmental Operations

SYNOPSIS AS ENACTED

BACKGROUND:

First-class cities and code cities with a population of 20,000 or more may construct public works projects with their own day labor forces if the project is of a value of $10,000 or less, or $15,000 or less for water mains.  All public works projects in excess of these amounts must be put out to contract.  Any public works project within these limits may be put out to contract.  First-class city public works projects on their electrical generating or distribution systems are not subject to these restrictions.

Second-class cities, third-class cities, towns and code cities with a population of less than 20,000 may construct public works projects with their own labor forces if the project is of a value of $15,000 or less.  All public works projects in excess of this value must be put out to contract.  Any public works project within this limit may be put out to contract.

Second-class cities, third-class cities, towns and code cities with a population of less than 20,000 may make purchases of $2,000 or less without using competitive bidding procedures. Purchases of between $2,000 and $4,000 may be made using a modified competitive bidding procedure with prices solicited by telephone or in writing.  Purchases of $4,000 or more must be made through a formal competitive bidding procedure.

SUMMARY:

First-class cities and code cities with a population over 20,000 may construct public works projects in any budget period of up to 10 percent of the total public works construction budget.  If a city has public works performed by its day labor forces in excess of the permitted amount, the excess is reduced from the amount permitted in the next budget period.  If the city is still in excess after two years, 20 percent of the motor vehicle fuel tax distributions to the city are withheld until the amount of public works performed by city day labor forces has been adequately reduced.

First-class cities and code cities with a population of over 150,000 are restricted further in that a single public works project performed by city forces may not be in excess of $50,000 in value if the project involves more than a single trade or craft, nor in excess of $25,000 if the project involves a single trade or craft or involves street lighting or signalization.

First-class cities with a population of 150,000 and under, and code cities with a population of from 20,000 to 150,000 are restricted further in that a single public works project performed by city forces may not be in excess of $35,000 in value if the project involves more than a single trade or craft, nor in excess of $20,000 if the project involves a single trade or craft or involves street lighting or signalization.

These restrictions do not apply to first-class city public works projects on their electrical generating or distribution systems.

All other cities and towns have their existing single project day labor limit increased from $15,000 to $30,000 if the project involves more than a single trade or craft, and to $20,000 if the project involves a single trade or craft or involves street lighting or signalization.

Cities and towns are not permitted to divide public works projects to avoid the single project limitations.  The allocation of public works projects to be performed by city or town employees is not subject to collective bargaining.

First-class cities and code cities in excess of 20,000 population must prepare a report annually for the state auditor on their public works construction budget, the value of public works performed by their employees, and the amount over or under the 10 percent limitation.

The state auditor is required to prescribe a standard form to account for separate public works projects by any local governmental entity that are performed by public employees.

Second-class cities, third-class cities, towns and code cities under 20,000 population have their purchase bid limits increased, so that they:  (1) can make purchases of $7,500 and under without competitive bidding; (2) can make purchases of from $7,500 to $15,000 with a modified competitive bidding; and (3) must use formal competitive bidding for purchases over $15,000.

VOTES ON FINAL PASSAGE:

      House 68  26

      Senate    45     4

EFFECTIVE:July 26, 1987