FINAL BILL REPORT

                           SSB 5048

                          C 198 L 93

                      SYNOPSIS AS ENACTED

Brief Description:  Revising bidding practices of municipalities.

SPONSORS: Senate Committee on Government Operations (originally sponsored by Senator Haugen)

SENATE COMMITTEE ON GOVERNMENT OPERATIONS

HOUSE COMMITTEE ON LOCAL GOVERNMENT

BACKGROUND:

In 1991, the Legislature prepared legislation establishing a uniform process for local governments to award contracts for public works projects from a small works roster, and a uniform process for local governments to award small contracts for purchases in lieu of competitive bidding.  When enacted, however, the new law only applied to counties because the bill was amended onto a bill that applied only to counties.

Under current law:

Fire districts are not authorized to award public works contracts from a small works roster;

Hospital districts are not authorized to award public works contracts from a small works roster, nor may they make purchases without using a formal sealed bid procedure;

Water districts and sewer districts may dispose of surplus property with a value of $500 or less without using formal notice and sale procedures, whereas the limit for counties and port districts is $2,500;

Water districts and sewer districts must try to sell surplus property at 90 percent or more of its appraised value for 180 days before it can be sold at public auction to the highest bidder; and

Notice requirements for the letting of contracts or disposal of surplus equipment vary between local governments.

SUMMARY:

The procedures for awarding public works projects from a small works roster and for awarding small contracts for purchases are made applicable to cities, fire districts, public utility districts, port districts, sewer districts, water districts and hospital districts.

Fire districts may use a small works roster to award contracts for public works with an estimated value between $2,500 and $10,000.

Hospital districts may use a small works roster to award contracts for public works with an estimated value between $5,000 and $50,000.  Hospital districts may also use the uniform process for awarding contracts for purchases between $5,000 and $15,000 in lieu of competitive bidding.

The threshold for water districts and sewer districts to dispose of surplus property without using formal notice and sale requirements is raised from $500 to $2,500.

The amount of time which a water district or sewer district must try to sell surplus property at 90 percent or more of its appraised value before it can be sold for the highest price at public auction is reduced from 180 days to 120 days.

Local governments must publish advertisements for bids at least once at least 13 days before the last date upon which bids will be received.  Local governments must publish notice of intention to sell surplus property at least once a week for two consecutive weeks.  Local governments must publish notice of the existence of a small works roster at least twice a year.

A municipality may invite proposals from all contractors on the small works roster at the same time.  A county must award contracts for purchases to the lowest responsible bidder when competitive bidding is used.

Service contracts are excluded from regulations on county purchasing departments.

Technical changes are made to existing competitive bidding laws.

VOTES ON FINAL PASSAGE:

Senate    45   0

House     98   0    (House amended)

Senate    41   0    (Senate concurred)

EFFECTIVE:July 25, 1993