BP BHEAD INT S [atlas:bill]

AN ACT Relating to exemptions from formal competitive bidding procedures for goods and services; and adding a new chapter to Title 39 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. For the purposes of this chapter, the term "municipality" includes every city, county, town, district, or other public agency thereof that is authorized by law to require the execution of public work, except drainage districts, diking districts, diking and drainage improvement districts, drainage improvement districts, diking improvement districts, consolidated diking and drainage improvement districts, consolidated drainage improvement districts, consolidated diking improvement districts, irrigation districts, or any other districts as may from time to time be authorized by law for the reclamation or development of waste or undeveloped lands.

NEW SECTION. Sec. 2. (1) This section provides uniform exemptions to competitive bidding procedures utilized by municipalities when awarding contracts for purchases of goods and services. The statutes governing a specific type of municipality may also include other exemptions from competitive bidding procedures. The purpose of this section is to supplement and not to limit the current powers, requirements, or practices of any municipality to provide exemptions from competitive bidding procedures.

(2) Competitive bidding procedures may be waived by the governing body of the municipality for purchases in which the purchase price may be best established by direct negotiation, and:

(a) The purchases are clearly and legitimately limited to a single source of supply;

(b) The purchases involve special facilities or market conditions; or

(3) The waiver of competitive bidding procedures under subsection (2) of this section may be by resolution or by the terms of written policies adopted by the municipality, at the option of the governing body of the municipality. If the governing body elects to waive competitive bidding procedures by the terms of written policies adopted by the municipality, immediately after the award of any contract is made, the contract and the factual basis for the exception must be recorded and open to public inspection.

(4) If a resolution is adopted by a governing body to waive competitive bidding procedures under subsection (2) of this section, the resolution must recite the factual basis for the exception.

(5) Competitive bidding procedures may be waived for purchases of goods and services in the event of an emergency under section 3 of this act.

NEW SECTION. Sec. 3. (1) The governing body of the municipality may designate by resolution a person or persons who shall declare that an emergency situation exists for the purpose of waiving competitive bidding requirements and awarding all necessary contracts for purchases of goods and services on behalf of the municipality to address the emergency situation.

(2) A written finding of the existence of an emergency must be made by the governing body or its designee and duly entered of record.

(3) For emergency purchases of goods and services of less than fifty thousand dollars, the governing body or its designee shall contact at least three vendors to the extent practicable under the circumstances and provide them with a scope of work. The governing body or its designee shall award the purchase to the vendor who best meets the needs of the municipality as outlined in the scope of work. The designee, if designated, shall make a quarterly report to the governing body setting forth for each emergency purchase, the name of the vendor, a summary of the goods provided, the amount of the emergency purchase, and a summary of the written finding made pursuant to subsection (2) of this section.

(4) In addition to the requirements of subsection (3) of this section, for emergency purchases that have a value of fifty thousand dollars or more, the designee shall, within three working days of the declaration of the emergency, report to the governing body the emergency purchases and estimate the time during which emergency contracting procedures will be used to provide relief from the emergency.

(5) Beginning on July 1, 1999, and on July 1st of each succeeding odd-numbered year, the dollar limits specified in this section shall be adjusted as follows: The office of financial management shall calculate such limits by adjusting the previous biennium's limits by the appropriate federal inflationary index reflecting the rate of inflation for the previous biennium. Such amounts shall be rounded to the nearest one hundred dollars.

(6) An emergency is defined for purposes of this chapter as a situation in which the public interest or property of the municipality would suffer material injury or damage by delay.

NEW SECTION. Sec. 4. Sections 1 through 3 of this act constitute a new chapter in Title 39 RCW.