HOUSE BILL REPORT

                  HB 1066

             As Reported By House Committee On:

                      Local Government

Title:  An act relating to awarding contracts by water or sewer districts.

Brief Description:  Contracting by water and sewer districts.

Sponsors:  Representatives Bray, Edmondson and H. Myers.

Brief History:

  Reported by House Committee on:

Local Government, January 28, 1993, DP.

HOUSE COMMITTEE ON LOCAL GOVERNMENT

Majority Report:  Do pass.  Signed by 12 members:  Representatives H. Myers, Chair; Bray, Vice Chair; Edmondson, Ranking Minority Member; Reams, Assistant Ranking Minority Member; Dunshee; R. Fisher; Horn; Rayburn; Romero; Springer; Van Luven; and Zellinsky.

Staff:  Bill Lynch (786-7092).

Background:  Water districts and sewer districts are required to let all contract projects equal to or in excess of $50,000 by competitive bidding.

The board of commissioners of a water district or sewer district is authorized to reject all bids and re-advertise the work if in the opinion of the board, all the bids are unsatisfactory.  It is suggested that the language authorizing water and sewer districts to reject bids should be revised to provide that bids may only be rejected for good cause.

Summary of Bill:  The language authorizing a water district or sewer district to reject bids is revised to provide that bids may only be rejected for good cause.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  This will make it easier to reject a poor contractor because the objective standard of "good cause" will be used instead of a subjective standard.  It maintains the objective criteria for selection of a contractor.

Testimony Against:  None.

Witnesses:  (pro):  Joe Daniels and Bert Lysen, Water/Wastewater Districts; David Foster, Washington State Association of Sewer Districts; Dick Ducharme, Utility Contractors Association of Washington; and Duke Schaub, Associated General Contractors.