SENATE BILL REPORT

ESHB 1844

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Majority Report: Do pass as amended.

Signed by Senators King, Chair; Fain, Vice Chair; Hobbs, Ranking Minority Member; Liias, Assistant Ranking Minority Member; Cleveland, Ericksen, Habib, Litzow, Miloscia, Pedersen, Rivers and Sheldon.

Background: The Washington State Ferries (WSF) division of the Washington State Department of Transportation (WSDOT) operates and maintains ferry vessels and terminals, constructs terminals, and acquires vessels. The system serves eight Washington counties and one Canadian province through 23 vessels and 20 terminals.

Current law limits the dollar amount of state highway work that WSDOT may complete using state workers to $60,000. Anything above this amount must be contracted out. The ferry system is considered part of the state highway system and is also subject to this requirement; however, the 2013-15 transportation budget provided a temporary increase for ferry vessel and terminal work that may be completed by state works to $120,000. This temporary increase expires in June 2015.

Since 2010 the Legislature has provided several temporary increases to the dollar threshold for completing work on ferry vessels and terminals using state workers to $120,000.

Summary of Bill (Recommended Amendments): The dollar threshold for work that may be performed on ferry vessels and terminals by state forces is permanently increased to $100,000. Work on vessels and terminals between $100,000 and $200,000 in value must be offered to contractors on WSDOT's Small Works Roster to gauge their interest and availability to do the work. The contractors have 72 hours to respond to WSDOT. If any contractor is interested and capable to do the work, WSDOT must follow the Small Works Roster procedures. If no qualified contractors respond with interest and availability, WSDOT may follow their regular contracting procedures. Additionally, if the Secretary of Transportation determines that the work to be completed is an emergency, then WSDOT procedures governing emergencies apply.

EFFECT OF CHANGES MADE BY TRANSPORTATION COMMITTEE (Recommended Amendments): The dollar threshold for work that may be performed on ferry vessels and terminals by state forces is permanently increased to $100,000. Work on vessels and terminals between $100,000 and $200,000 in value must be offered to contractors on WSDOT's Small Works Roster to gauge their interest and availability to do the work. The contractors have 72 hours to respond to WSDOT. If any contractor is interested and capable to do the work, WSDOT must follow the Small Works Roster procedures. If no qualified contractors respond with interest and availability, WSDOT may follow their regular contracting procedures.

Staff Summary of Public Testimony on Engrossed Substitute House Bill: PRO: This bill would give contractors the option to do work within the threshold, otherwise it would be completed by state workers. The small works roster helps veterans and minority and women's businesses. This would raise the limit on the small works roster from $100,000 to $240,000. The state can still bid this work out if they are unable to do it.

CON: We would like this work to be completed by the private sector. This work is the bread and butter work of the private sector.

Persons Testifying: PRO: Representative Moscoso, prime sponsor; Gordon Baxter, Puget Sound Metal Trades Council.

CON: Larry Stevens, National Electrical Contractors Assn., Mechanical Contractors Assn.

Persons Signed in to Testify But Not Testifying: No one.