S-2234.1          _______________________________________________

 

                            SUBSTITUTE SENATE BILL 5408

                  _______________________________________________

 

State of Washington              54th Legislature             1995 Regular Session

 

By Senate Committee on Education (originally sponsored by Senators McAuliffe, Johnson, Quigley and Long; by request of Office of Financial Management)

 

Read first time 03/01/95.

 

Changing school bus purchasing procedures.



     AN ACT Relating to school bus acquisitions; amending RCW 28A.160.200 and 43.19.637; adding a new section to chapter 28A.160 RCW; creating a new section; providing an effective date; and declaring an emergency.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON

 

     NEW SECTION.  Sec. 1.  It is the intent of the legislature to establish a state contract using a sealed competitive process for the purchase of student transportation vehicles (school buses).  The goals of this process are:

     (1) To reduce the cost of school bus purchases by promoting competition among school bus vendors and by purchasing in volume; and

     (2) To establish the state reimbursement rate for the replacement of buses by school districts and educational service districts.

 

     NEW SECTION.  Sec. 2.  A new section is added to chapter 28A.160 RCW to read as follows:

     (1) The superintendent of public instruction shall annually review school bus purchasing requirements and estimate the number of school buses to be purchased by districts during the following school year.

     (2) The superintendent shall establish a minimum number of school bus categories considering the capacity and type of vehicles required by school districts in Washington.  The superintendent shall establish competitive specifications for each category of school bus.  The competitive specifications shall meet federal motor vehicle safety standards and minimum state specifications for school buses.  Minimum state specifications shall be established by rule adopted by the superintendent.  Options shall not be included in the state reimbursement rate. 

     (3) After establishing school bus categories and competitive specifications, the superintendent of public instruction shall notify districts and shall solicit district commitments for school bus purchases from the state contract.  The superintendent of public instruction shall secure commitments for purchases of at least thirty percent of all estimated school bus purchases in the state for the following school year.  The thirty percent shall include commitments for at least fifteen percent of estimated school bus purchases in each category for the following school year.  If a district does not fulfill a commitment to purchase from the state contract, the superintendent shall reduce the district's transportation vehicle reimbursement allocations by twenty-five percent of the amount of the unfulfilled purchase commitment.

     (4) After the superintendent secures commitments for purchases, the department of general administration shall, under chapter 43.19 RCW, solicit bids or proposals from school bus vendors and select the lowest responsible bid that meets the competitive specifications for each school bus category.

     (5) The selected contract price shall be used by the superintendent of public instruction as the state reimbursement rate for reimbursement under RCW 28A.160.200.

     (6) The superintendent of public instruction shall adopt rules necessary to implement this section.

     (7) As used in this section and RCW 28A.160.200, "districts" means school districts and educational service districts.

     (8) Student transportation vehicles purchased under this section are exempt from the requirements of RCW 43.19.637.

 

     Sec. 3.  RCW 28A.160.200 and 1990 c 33 s 146 are each amended to read as follows:

     (1) The superintendent shall determine the vehicle acquisition allocation ((in the following manner:

     (1) By May 1st of each year, the superintendent shall develop preliminary categories of student transportation vehicles to ensure adequate student transportation fleets for districts.  The superintendent shall take into consideration the types of vehicles purchased by individual school districts in the state.  The categories shall include, but not be limited to, variables such as vehicle capacity, type of chassis, type of fuel, engine and body type, special equipment, and life of vehicle.  The categories shall be developed in conjunction with the local districts and shall be applicable to the following school year.  The categories shall be designed to produce minimum long-range operating costs, including costs of equipment and all costs incurred in operating the vehicles.  Each category description shall include the estimated state-determined purchase price, which shall be based on the actual costs of the vehicles purchased for that comparable category in the state during the preceding twelve months and the anticipated market price for the next school fiscal year.  By June 15th of each year, the superintendent shall notify districts of the preliminary vehicle categories and state-determined purchase price for the ensuing school year.  By October 15th of each year, the superintendent shall finalize the categories and the associated state-determined purchase price and shall notify districts of any changes.  While)) under section 2 of this act and under this section.  It is the responsibility of each district to select and pay for each student transportation vehicle ((to be)) purchased by the district((, each district shall be paid a sum)).  Any district may purchase vehicles from the state contract established under section 2 of this act, however, purchase commitments made before the state contract shall be given first priority.

     (2) The superintendent shall reimburse districts based ((only)) on the ((amount of the state-determined purchase price and)) category of vehicle, anticipated lifetime of vehicles of this category, and state reimbursement rate for the category plus inflation as recognized by the reimbursement schedule established in this section as set by the superintendent ((for the category of vehicle purchased)).  Categories and reimbursement rates of vehicles shall be those established under section 2 of this act.

     (((2))) (3) The superintendent shall develop a reimbursement schedule to pay districts for the cost of student transportation vehicles purchased after September 1, 1982.  The accumulated value of the payments and the potential investment return thereon shall be designed to be equal to the replacement ((value)) cost of the vehicle less its salvage value at the end of its anticipated lifetime.  The superintendent shall revise at least annually the reimbursement payments based on the current and anticipated future cost of comparable categories of transportation equipment.  Reimbursements to school districts for approved transportation equipment shall be placed in a separate ((vehicle)) transportation vehicle fund established for each school district under RCW 28A.160.130.  However, educational service districts providing student transportation services pursuant to RCW 28A.310.180(4) and receiving moneys generated pursuant to this section shall establish and maintain a separate ((vehicle)) transportation vehicle account in the educational service district's general expense fund for the purposes and subject to the conditions under RCW 28A.160.130 and 28A.320.300.

     (((3))) (4) In the 1995-96 school year and each year thereafter, state reimbursement payments shall commence only after the state reimbursement rate has been set under section 2 of this act.

     (5) To the extent possible, districts shall operate vehicles acquired under this section not less than the number of years or useful lifetime now, or hereafter, assigned to the ((class)) category of vehicles by the superintendent.  School districts shall properly maintain the transportation equipment acquired under the provisions of this section, in accordance with rules established by the office of the superintendent of public instruction.  If a district fails to follow generally accepted standards of maintenance and operation, the superintendent of public instruction shall penalize the district by deducting from future reimbursements under this section an amount equal to the original cost of the vehicle multiplied by the fraction of the useful lifetime or miles the vehicle failed to operate.

     (((4))) (6) The superintendent shall annually develop a depreciation schedule to recognize the cost of depreciation to districts contracting with private carriers for student transportation.  Payments on this schedule shall be a straight line depreciation based on the original cost of the appropriate category of vehicle.

 

     Sec. 4.  RCW 43.19.637 and 1991 c 199 s 213 are each amended to read as follows:

     (1) At least thirty percent of all new vehicles purchased through a state contract shall be clean-fuel vehicles.

     (2) The percentage of clean-fuel vehicles purchased through a state contract shall increase at the rate of five percent each year.

     (3) In meeting the procurement requirement established in this section, preference shall be given to vehicles designed to operate exclusively on clean fuels.  In the event that vehicles designed to operate exclusively on clean fuels are not available or would not meet the operational requirements for which a vehicle is to be procured, conventionally powered vehicles may be converted to clean fuel or dual fuel use to meet the requirements of this section.

     (4) Fuel purchased through a state contract shall be a clean fuel when the fuel is purchased for the operation of a clean-fuel vehicle.

     (5)(a) Weight classes are established by the following motor vehicle types:

     (i) Passenger cars;

     (ii) Light duty trucks, trucks with a gross vehicle weight rating by the vehicle manufacturer of less than eight thousand five hundred pounds;

     (iii) Heavy duty trucks, trucks with a gross vehicle weight rating by the vehicle manufacturer of eight thousand five hundred pounds or more.

     (b) This subsection does not place an obligation upon the state or its political subdivisions to purchase vehicles in any number or weight class other than to meet the percent procurement requirement.

     (6) This section does not apply to student transportation vehicles purchased under RCW 28A.160.200.

     (7) For the purposes of this section, "clean fuels" and "clean-fuel vehicles" shall be those fuels and vehicles meeting the specifications provided for in RCW 70.120.210.

 

     NEW SECTION.  Sec. 5.  (1) Section 2 of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.

     (2) Section 3 of this act shall take effect September 1, 1995.

 


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