BILL REQ. #:  H-1089.3 

Read first time 02/02/09.   Referred to Committee on Local Government & Housing.

     AN ACT Relating to diking districts; amending RCW 85.38.190; and adding new sections to chapter 85.38 RCW.

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

Sec. 1   RCW 85.38.190 and 1987 c 298 s 4 are each amended to read as follows:
     ((Any proposed improvement or part thereof, not exceeding five thousand dollars in cost, may be constructed by district employees: PROVIDED, That this shall not restrict)) (1) Except as provided under this section, diking district construction and maintenance contracts require three or more formal bids when the total cost of the project is equal to or greater than fifty thousand dollars. Formal bids must be made in writing and must be filed in the official records of the district. This subsection (1) does not apply to projects that have a total cost of less than five thousand dollars or to contract solicitations for which three bidders are not available.
     (2) This section does not restrict a ((special)) diking district from: (a) Using volunteer labor and equipment on improvements((,)) and providing reimbursement for actual expenses; or (b) entering into an interlocal agreement for district construction, maintenance, or other work with a county, city, or other governmental entity.

NEW SECTION.  Sec. 2   A new section is added to chapter 85.38 RCW to read as follows:
     (1) Except as provided under subsection (4) of this section, contracts for construction or maintenance, or for labor or materials used in the construction or maintenance of any improvement authorized by the diking district, may only be awarded through a public bidding process that complies with the following:
     (a) Notices calling for sealed bid proposals must be published in at least one newspaper of general circulation in the district. These notices must be published at least once fourteen or more days before the deadline for submitting bid proposals; and
     (b) Bid proposals: (i) Must be in writing, filed at the location specified in the notice, and opened and read in public by the governing body or designee at a time and location also specified in the notice; (ii) must be filed in the official records of the district and available for public inspection; and (iii) must be accompanied by a bid proposal deposit equaling five percent of the total cost of the project. Bid proposal deposits may be in the form of cash, a certified check, a cashier's check, or a surety bond.
     (2) If the successful bidder fails to enter into a contract and fails to furnish a satisfactory performance bond within time specifications established by the district, the bid proposal deposit will be forfeited to the district.
     (3) The contract must be awarded to the lowest and best responsible bidder, except that the governing body may reject any and all bids. If the district rejects one or more bids, the district must submit a new notice calling for sealed bid proposals that complies with subsection (1)(a) of this section.
     (4) If a satisfactory bid is not received under this section, the district may complete the project by an agreed price or force account.

NEW SECTION.  Sec. 3   A new section is added to chapter 85.38 RCW to read as follows:
     (1) Contiguous territory outside of a diking district that receives services from the district may be annexed into the district using the following method:
     (a) The governing body must adopt a resolution of its intent to annex the territory. The resolution must: (i) Include a map and description of the subject territory; (ii) indicate which service or services the territory is receiving from the district; (iii) specify the proposed system of assessment; and (iv) set a date and time for a public hearing on the annexation proposal;
     (b) The district must publish notice of the hearing in a newspaper of general circulation in the district and must notify, by mail, all property owners as determined by the records of the county assessor. The notice required under this subsection (1)(b) must be published and mailed at least twenty-one days, but not more than twenty-eight days, before the public hearing. This subsection (1)(b) does not restrict or prevent a district from publishing or mailing notices that are in addition to the required notice;
     (c) After the public hearing, which may be continued from time to time, the governing body must decide whether to recommend the annexation to the legislative authority of the county in which the territory proposed for annexation is located. If the governing body recommends the annexation, it must adopt a resolution of the recommendation within forty-five days of its decision and forward a copy of the resolution, together with a draft annexation ordinance, to the applicable legislative authority;
     (d) The county legislative authority, by resolution, must set a date and time for a public hearing on the annexation proposal. The date of the hearing must be within ninety days after the county receives the recommendation resolution and draft annexation ordinance from the diking district;
     (e) After the public hearing, which may be continued from time to time, the county legislative authority must decide whether to approve, modify, or reject the annexation proposal. The legislative authority may remove territory from the proposal, but it may not add territory without holding an additional public meeting and providing meeting notice to the property owners affected by the addition that conforms with the notice requirements of (b) of this subsection; and
     (f) If the county legislative authority approves the annexation proposal in its original or a modified form, it must do so by ordinance. Approved annexations are effective on the first day of the following January.
     (2) For the purposes of this section, territory bounded by a river, lake, or other body of water is contiguous to a district that is also bounded by the same river, lake, or other body of water.