SENATE BILL REPORT

ESHB 186

BYHouse Committee on Local Government (originally sponsored by Representatives Haugen, Brough, Nutley, May, Hine, L. Smith, Zellinsky, Braddock and Crane)

Raising amounts over which public contracts must be sent out for competitive bids.

House Committe on Local Government

Senate Committee on Governmental Operations

Senate Hearing Date(s):March 30, 1987

Majority Report:  Do pass.

      Signed by Senators Halsan, Chairman; Garrett, Vice Chairman; DeJarnatt, Talmadge.

Senate Staff:Sam Thompson (786-7754); Eugene Green (786-7405)

                  March 31, 1987

AS REPORTED BY COMMITTEE ON GOVERNMENTAL OPERATIONS, MARCH 30, 1987

BACKGROUND:

First class cities and optional municipal code cities with a population of 20,000 or more may construct public works projects with their own labor force if the project is $10,000 or less in value, or $15,000 or less for water mains.  All public works projects in excess of these amounts must be put out to contract.  In addition, any public works project within these limits may be put out to contract. Public works projects in first class cities on electrical generating or distribution systems are not subject to these restrictions.

Second class cities, third class cities, towns, and optional municipal code cities with a population of less than 20,000 may construct public works projects with their own labor force if the project is $15,000 or less in value.  All public works projects in excess of this amount must be put out to contract.  Any public works project within this limit may be put out to contract.

Second class cities, third class cities, towns, and code cities with a population of less than 20,000 may make purchases of $2,000 or less without using competitive bidding procedures. Purchases of between $2,000 and $4,000 may be made with a modified competitive bidding procedure with prices solicited by telephone or in writing.  Purchases of $4,000 or more must be made through a formal competitive bidding procedure.

SUMMARY:

1.  First class cities and optional municipal code cities with a population over 20,000, may construct public works projects in any budget period of up to 10 percent of the total public works construction budget.  If a city has public works performed by its day labor force in excess of the permitted amount, the excess is reduced from the amount permitted in the next budget period.  If the city is still in excess after two years, 20 percent of the motor vehicle fuel tax distributions to the city are withheld until the amount of public works performed by the city day labor force has been adequately reduced.

a)  First class cities and code cities with a population of over 150,000 are further restricted in that a single public works project performed by a city labor force may not be in excess of $50,000 in value if the project involves more than a single trade or craft, nor in excess of $25,000 if the project involves a single trade or craft or involves street lighting or signalization.

b)  First class cities with a population of under 150,000, and code cites with a population of from 20,000 to 150,000 are further restricted in that a single public works project performed by a city labor force may not be in excess of $35,000 in value if the project involves more than a single trade or craft, nor in excess of $20,000 if the project involves a single trade or craft or involves street lighting or signalization.

2.  All other cities and towns have their existing single project day labor limit increased from $15,000 to $30,000 if the project involves more than a single trade or craft, and $20,000 if the project involves a single trade or craft or involves street lighting or signalization.

3.  Cities and towns are not permitted to divide public works projects to avoid the single project limitations.  The allocation of public works projects to be performed by city or town employees shall not be subject to collective bargaining.

4.  First class cities and code cities in excess of 20,000 population must prepare a report annually for the state auditor concerning their public works construction budget, the value of public works performed by their employees, and the amount above or below the 10 percent limitation.

5.  The state auditor is required to prescribe a standard accounting form for separate public works projects that are performed by public employees.  First class cities with a population of under 150,000 and code cities of over 20,000 in population must record information on these forms concerning each public works project over $5,000 in value that is performed by their employees.

6.  Second class cities, third class cities, towns, and code cities under 20,000 in population have their purchase bid limits increased, so that they: (a) can make purchases of $7,500 and under without competitive bidding; (b) can make purchases of from $7,500 to $15,000 with modified competitive bidding; and (c) must use formal competitive bidding for purchases over $15,000.

Fiscal Note:      none requested

Senate Committee - Testified: Representative Haugen, original sponsor; Representative Cooper; Stan Finkelstein, Association of Washington Cities; Duke Schaub, Associated General Contractors