SENATE BILL REPORT

HB 2735

As Reported by Senate Committee On:

Ways & Means, February 21, 2012

Title: An act relating to intermediate capital projects and minor works.

Brief Description: Regarding intermediate capital projects and minor works.

Sponsors: Representatives Wylie, Zeiger and Dunshee.

Brief History: Passed House: 2/13/12, 97-1.

Committee Activity: Ways & Means: 2/20/12, 2/21/12 [DP, w/oRec].

Majority Report: Do pass.

Signed by Senators Murray, Chair; Kilmer, Vice Chair, Capital Budget Chair; Conway, Fraser, Harper, Hatfield, Hewitt, Holmquist Newbry, Honeyford, Keiser, Kohl-Welles, Pridemore, Regala, Schoesler and Tom.

Minority Report: That it be referred without recommendation.

Signed by Senators Zarelli, Ranking Minority Member; Parlette, Ranking Minority Member Capital; Padden and Pflug.

Staff: Brian Sims (786-7431)

Background: The capital budget includes appropriations for the construction and repair of colleges and universities, state office buildings, prisons and juvenile rehabilitation facilities, parks, public schools, and for other capital facilities and programs.

Minor Works Projects. Minor works appropriations in the capital budget are lump sum appropriations to cover smaller preservation and programmatic projects that are similar in nature and cost less than $1 million for most state agencies or less than $2 million for higher education institutions. Typically, minor works projects are completed within one biennium. State agencies must file minor works lists and requested revisions with the Office of Financial Management (OFM), the House Capital Budget Committee, and the Senate Ways and Means Committee.

Predesigns. A predesign is a decision-making tool that is required for all capital projects that exceed $5 million. The Legislature and OFM may also require a predesign for certain stand-alone projects between $1 million and $5 million. The purpose of the predesign is to clearly identify the facility need or problem to be addressed and provide an analysis of the options to meet the need or solve the problem. The predesign includes information about the space needs of the proposed program, alternatives to the preferred project, and estimated budget information. The predesign often is prepared by architectural consultants and usually includes a detailed space plan.

Summary of Bill: The minor works project threshold for higher education institutions is raised from $2 million to $5 million. The predesign threshold for higher education institutions is raised from $5 million to $10 million.

Appropriation: None.

Fiscal Note: Not requested.

Committee/Commission/Task Force Created: No.

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

Staff Summary of Public Testimony: PRO: Raising the limit for minor works projects to $5 million provides more flexibility for higher education institutions and will allow schools to get more repair work done on the campuses. Raising the predesign limit to $10 million allows projects between $5 million and $10 million to be done quicker rather than going through the predesign process. A project that was $5 million 15 years ago is more now when it is adjusted for inflation.

Persons Testifying: PRO: Steve DuPont, Central WA University; Chris Mulick, WA State University; David Buri, Eastern WA University; Byron Starkey, Western WA University.