H-2376              _______________________________________________

                                          SUBSTITUTE HOUSE BILL NO. 1160

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

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

Read first time 3/6/87 and passed to Committee on Rules.

AN ACT Relating to roadway and maintenance project costs; creating new sections; and providing an expiration date.

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

NEW SECTION. Sec. 1.     The legislature recognizes the importance of cost-effective spending on roadway and maintenance projects in its responsibility to the citizens of the state to develop and maintain the best transportation network possible with the funds available.  It is the intent and purpose of this act to determine whether existing practices should be modified or retained.  A pilot program using the project cost evaluation methodology recommended in the 1986 study made by the legislative transportation committee may be implemented by and under the direction of the legislative transportation committee.

          The key issues identified in the study include cost accounting systems, level playing field, local tax impact of contracting out work, overhead cost allocation, accounting for materials and equipment, inspection and quality control requirements, impact of bid limits, labor and union agreements, interagency contracting, self-insurance costs, definitions of construction and maintenance, and essential services provided by governmental agencies.

          The program shall be in two parts.  Part one shall consist of cities and counties that have volunteered and subsequently have been approved by the legislative transportation committee in consultation with the Association of Washington Cities and the Washington State Association of Counties and represent the various demographic and geographic components of the state.  Jurisdictions participating in part one of the programs shall use the project cost evaluation methodology for evaluation of projects.  The projects shall be performed based on the lowest estimated cost regardless of who had performed the work historically.  Competitive bidding procedures currently in use by public agencies shall be used by the participating counties and cities.  No public employee shall be displaced or terminated as a result of the operation of this pilot program.  Part two shall consist of a portion of a district or districts chosen by the department of transportation.  The department shall use the project cost evaluation methodology to evaluate its projects and draw conclusions as to which projects would have been done in-house and which would have been contracted out had the department been operating under the requirements of part one of the pilot program.

NEW SECTION. Sec. 2.     The legislature finds that if the legislative transportation committee decides to implement the pilot program it is necessary to temporarily suspend the application of certain statutes regulating bid and day labor limits for roadway construction and maintenance projects for the purposes of this pilot program.  The following statutes are suspended as to the participating cities and counties chosen under section 1 of this act for the period July 1, 1987, through June 30, 1989, and only insofar as the statutes relate to bid and day labor limits for roadway construction and maintenance projects:  RCW 35.22.620, 35.23.352, 35A.40.210, 36.77.020, 36.77.065, 36.33A.010, and 39.12.020.

NEW SECTION. Sec. 3.     The department of transportation and each of the participating cities and counties shall report to the legislature on the outcome of this pilot program on or before February 15, 1989, and shall provide to the legislative transportation committee such reports and other items as the committee may desire.

NEW SECTION. Sec. 4.     The participating cities and counties shall apply to and be reimbursed by the department of transportation for all reasonable additional costs directly relating to their participation in the pilot project.

NEW SECTION. Sec. 5.     Sections 1 through 4 of this act shall expire on June 30, 1989, unless extended by law.