SENATE BILL REPORT

SHB 1160

BYHouse Committee on Transportation (originally sponsored by Representatives Walk, Schmidt, Patrick, Prince, P. King, Doty and D. Sommers) 

Implementing a pilot program to study road and maintenance project costs.

House Committe on Transportation

Senate Committee on Transportation

Senate Hearing Date(s):March 30, 1987

Majority Report:  Do pass as amended.

      Signed by Senators Peterson, Chairman; Bailey, Barr, Conner, DeJarnatt, Garrett, Halsan, Nelson, Patterson, Sellar, Smitherman.

Senate Staff:Louise Bray (786-7322)

                  March 31, 1987

AS REPORTED BY COMMITTEE ON TRANSPORTATION, MARCH 30, 1987

BACKGROUND:

There has been continuing discussion and controversy regarding how to most effectively expend public funds used for roadway construction and maintenance projects.  In 1986 the Legislative Transportation Committee authorized a study to identify a reasonable, equitable method for comparing the costs of roadway construction and maintenance projects.

The study examined the accounting methodology and project costing techniques currently used by contractors and public agencies and made recommendations to improve the decision-making process for roadway construction and maintenance activities.

The study recommended a pilot project be conducted involving selected cities, counties and the Department of Transportation utilizing the project cost evaluation methodology (PCEM).  The entities would use PCEM to determine whether a particular project should be done in-house or contracted out, regardless of who had done the work historically.

SUMMARY:

A pilot program utilizing the PCEM is created.  The Legislative Transportation Committee shall select, from those entities wishing to participate, cities and counties representative of the various demographic and geographic components of this state to participate.  The Department of Transportation shall select a portion of a district or districts to participate in the program.

The pilot program shall consist of two parts:  the "preferred approach" and the "shadow approach".  The participating cities and counties will utilize the preferred approach which will involve evaluating the projects and following through with either in-house or contracted out performance of the projects.  The Department of Transportation will utilize the shadow approach and evaluate the projects and make a determination of which projects would have been performed in-house or contracted out had it been operating under the preferred approach.

In order for the local governments to fully participate in the program, the application of bid and day labor limits to them are suspended for the duration of the pilot program.  All reasonable, direct costs to the local governments generated by their participation will be reimbursed through a special studies appropriation that is funded from the city's and counties share of fuel tax revenues.  No public employee shall be displaced or terminated as a result of the pilot program.

The Department and the participating cities and counties shall report to the Legislature on or before February 15, 1989.  This pilot program shall expire on June 30, 1989.

SUMMARY OF PROPOSED SENATE AMENDMENT:

The pilot program is extended to June 30, 1990.

Fiscal Note:      none requested

Senate Committee - Testified: Stan Finkelstein, Association of Washington Cities