SENATE BILL REPORT

HB 2183

As Reported By Senate Committee On:

Government Operations & Elections, April 4, 2003

Title: An act relating to the amount allowed for unbid sewer and water projects.

Brief Description: Adjusting the amount allowed for unbid sewer and water projects.

Sponsors: Representatives Ericksen and Romero.

Brief History:

Committee Activity: Government Operations & Elections: 3/26/03, 4/4/03 [DPA].

SENATE COMMITTEE ON GOVERNMENT OPERATIONS & ELECTIONS

Majority Report: Do pass as amended.

      Signed by Senators Roach, Chair; Stevens, Vice Chair; Kastama, McCaslin and Reardon.

Staff: Mac Nicholson (786-7445)

Background: A water-sewer district must let all public works projects with an estimated cost exceeding $5,000 by contract and competitive bidding. Alternatively, a district can use a small works roster to award public works contracts with an estimated cost of $200,000 or less, or the limited public works process for projects with an estimated cost less than $35,000.

Summary of Amended Bill: The monetary threshold for public works projects above which the work must be let by contract and competitive bidding is changed from $5,000 to $10,000.

Amended Bill Compared to Original Bill: The original bill raised the bid limit for public works projects to $20,000. The original bill also increased the bid limit for purchase contracts to $20,000.

Appropriation: None.

Fiscal Note: Not requested.

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

Testimony For: It is more cost effective to do small projects in house rather than putting them out to formal bid. Bid limits have not been raised since 1979 and should be updated.

Testimony Against: A low-bid limit ensures that the public is getting the most out of their money. The small works roster provides a way for districts to award contracts without putting them out to bid.

Testified: PRO: Representative Ericksen, prime sponsor; Steve Lindstrom, Sno-King Water Dist. Coalition; Pat Thompson, WA St. Council of County and City Employees; CON: Larry Stevens, National Electrical Contractors Assn.; Rick Slunaker, AGC.