AN ACT Relating to local government; amending RCW 28A.58.135, 35.23.353, 35.43.190, 36.32.240, 36.58.130, 36.82.130, 36.77.065, 52.14.110, 54.04.070, 56.08.070, 57.08.050, 70.44.140, and 85.38.190; and reenacting and amending RCW 35.22.620, 35.23.352, and 36.32.250.

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

Sec. 1. Section 28A.58.135, chapter 223, Laws of 1969 ex. sess. as last amended by section 1, chapter 324, Laws of 1985 and RCW 28A.58.135 are each amended to read as follows:

(1) When, in the opinion of the board of directors of any school district, the cost of any furniture, supplies, equipment, building, improvements, or repairs, or other work or purchases, except books, will equal or exceed the sum of twenty thousand dollars, complete plans and specifications for such work or purchases shall be prepared and notice by publication given in at least one newspaper of general circulation within the district, once each week for two consecutive weeks, of the intention to receive bids therefor and that specifications and other information may be examined at the office of the board or any other officially designated location: PROVIDED, That the board without giving such notice may make improvements or repairs to the property of the district through the shop and repair department of such district when the total of such improvements or repair does not exceed the sum of ((~~seventy-five hundred~~)) ten thousand dollars. The cost of any public work, improvement or repair for the purposes of this section shall be the aggregate of all amounts to be paid for labor, material, and equipment on one continuous or interrelated project where work is to be performed simultaneously or in close sequence. The bids shall be in writing and shall be opened and read in public on the date and in the place named in the notice and after being opened shall be filed for public inspection.

(2) Every purchase of furniture, equipment or supplies, except books, the cost of which is estimated to be in excess of seventy-five hundred dollars, shall be on a competitive basis. The board of directors shall establish a procedure for securing telephone and/or written quotations for such purchases. Whenever the estimated cost is from seventy-five hundred dollars up to twenty thousand dollars, the procedure shall require quotations from at least three different sources to be obtained in writing or by telephone, and recorded for public perusal. Whenever the estimated cost is in excess of twenty thousand dollars, the public bidding process provided in subsection (1) of this section shall be followed.

(3) Every building, improvement, repair or other public works project, the cost of which is estimated to be in excess of ((~~seventy-five hundred~~)) ten thousand dollars, shall be on a competitive bid process. School district employees may perform a portion or portions of a single building, improvement, repair, or other public works project where the total value of the building, improvement, repair, or other public works project exceeds ten thousand dollars in value, if the value of the portion or portions on a single building, improvement, repair, or other public works project does not exceed ten thousand dollars in value. All such projects estimated to be less than twenty thousand dollars may be awarded to a contractor on the small works roster. The small works roster shall be comprised of all responsible contractors who have requested to be on the list. The board of directors shall establish a procedure for securing telephone and/or written quotations from the contractors on the small works roster to assure establishment of a competitive price and for awarding contracts to the lowest responsible bidder. Such procedure shall require that a good faith effort be made to request quotations from all contractors on the small works roster who have indicated the capability of performing the kind of public works being contracted. Immediately after an award is made, the bid quotations obtained shall be recorded, open to public inspection, and available by telephone inquiry. The small works roster shall be revised at least once each year by publishing notice of such opportunity in at least one newspaper of general circulation in the district. Responsible contractors shall be added to the list at any time they submit a written request. Whenever the estimated cost of a public works project is twenty thousand dollars or more, the public bidding process provided in subsection (1) of this section shall be followed.

(4) The contract for the work or purchase shall be awarded to the lowest responsible bidder as defined in RCW 43.19.1911 but the board may by resolution reject any and all bids and make further calls for bids in the same manner as the original call. On any work or purchase the board shall provide bidding information to any qualified bidder or his agent, requesting it in person.

(5) In the event of any emergency when the public interest or property of the district would suffer material injury or damage by delay, upon resolution of the board declaring the existence of such an emergency and reciting the facts constituting the same, the board may waive the requirements of this section with reference to any purchase or contract: PROVIDED, That an "emergency", for the purposes of this section, means a condition likely to result in immediate physical injury to persons or to property of the school district in the absence of prompt remedial action.

(6) In lieu of the ten thousand dollar limit over which any single public works project, or portion of a project, may not be performed by school district employees, the board may adopt a resolution providing that up to fifteen percent of the total value of public works projects may be performed by school district employees during the forthcoming year. This work by the school district employees may be on all or part of one or more separate public works projects. A resolution providing for this change must be adopted on or before December 1 of the year preceding its application.

Sec. 2. Section 1, chapter 56, Laws of 1975 1st ex. sess. as last amended by section 6, chapter 169, Laws of 1985 and by section 1, chapter 219, Laws of 1985 and RCW 35.22.620 are each reenacted and amended to read as follows:

(1) Any public work or improvement of a first class city shall be done by contract pursuant to public notice and call for competitive bids, whenever the estimated cost of such work or improvement, including the cost of materials, supplies, and equipment will exceed the sum of ((~~ten~~)) fifty thousand dollars((~~: PROVIDED, That whenever this public work or improvement is for construction of water mains, such sum shall be fifteen thousand dollars~~)). City employees may perform a portion or portions of a single public work or improvement where the total value of the public work or improvement exceeds fifty thousand dollars in value, if the value of the portion or portions on a single public work or improvement does not exceed fifty thousand dollars in value. When any emergency shall require the immediate execution of such public work, upon the finding of the existence of such emergency by the authority having power to direct such public work to be done and duly entered of record, publication of description and estimate may be made within seven days after the commencement of the work.

(2) In addition to the procedures of subsection (1) of this section, a first class city may use a small works roster and award contracts under this subsection for contracts of one hundred thousand dollars or less.

(a) The city may maintain a small works roster comprised of all contractors who have requested to be on the roster and are, where required by law, properly licensed or registered to perform such work in this state.

(b) Whenever work is done by contract, the estimated cost of which is one hundred thousand dollars or less, and the city uses the small works roster, the city shall invite proposals from all appropriate contractors on the small works roster: PROVIDED, That not less than five separate appropriate contractors, if available, shall be invited to submit bids on any one contract: PROVIDED FURTHER, That whenever possible, the city shall invite at least one proposal from a minority or woman contractor who shall otherwise qualify under this section. Once a bidder on the small works roster has been offered an opportunity to bid, that bidder shall not be offered another opportunity until all other appropriate contractors on the small works roster have been afforded an opportunity to submit a bid. Invitations shall include an estimate of the scope and nature of the work to be performed, and materials and equipment to be furnished.

(c) When awarding such a contract for work, the estimated cost of which is one hundred thousand dollars or less, the city shall award the contract to the contractor submitting the lowest responsible bid.

(3) This section does not apply to performance-based contracts, as defined in RCW 39.35A.020(3), that are negotiated under chapter 39.35A RCW.

(4) In lieu of the fifty thousand dollar limit over which any single public works project, or portion of a project, may not be performed by city employees, the city council may adopt a resolution providing that up to fifteen percent of the total value of public works projects may be performed by city employees during the forthcoming year. This work by city employees may be on all or part of one or more separate public works projects. A resolution providing for this change must be adopted on or before December 1 of the year preceding its application.

Sec. 3. Section 35.23.352, chapter 7, Laws of 1965 as last amended by section 7, chapter 169, Laws of 1985 and by section 2, chapter 219, Laws of 1985 and by section 24, chapter 469, Laws of 1985 and RCW 35.23.352 are each reenacted and amended to read as follows:

(1) Any second or third class city or any town may construct any public work or improvement by contract or day labor without calling for bids therefor whenever the estimated cost of the work or improvement, including cost of materials, supplies and equipment will not exceed the sum of ((~~fifteen~~)) fifty thousand dollars. Whenever the cost of the public work or improvement, including materials, supplies and equipment, will exceed ((~~fifteen~~)) fifty thousand dollars, the same shall be done by contract. City or town employees may perform a portion or portions of a single public work or improvement where the total value of the public work or improvement exceeds fifty thousand dollars in value, if the value of the portion or portions on a single public work or improvement does not exceed fifty thousand dollars in value. All such contracts shall be let at public bidding upon posting notice calling for sealed bids upon the work. The notice thereof shall be posted in a public place in the city or town and by publication in the official newspaper once each week for two consecutive weeks before the date fixed for opening the bids. The notice shall generally state the nature of the work to be done that plans and specifications therefor shall then be on file in the city or town hall for public inspections, and require that bids be sealed and filed with the council or commission within the time specified therein. Each bid shall be accompanied by a bid proposal deposit in the form of a cashier's check, postal money order, or surety bond to the council or commission for a sum of not less than five percent of the amount of the bid, and no bid shall be considered unless accompanied by such bid proposal deposit. The council or commission of the city or town shall let the contract to the lowest responsible bidder or shall have power by resolution to reject any or all bids and to make further calls for bids in the same manner as the original call. When the contract is let then all bid proposal deposits shall be returned to the bidders except that of the successful bidder which shall be retained until a contract is entered into and a bond to perform the work furnished, with surety satisfactory to the council or commission, in the full amount of the contract price. If the bidder fails to enter into the contract in accordance with his bid and furnish a bond within ten days from the date at which he is notified that he is the successful bidder, the check or postal money order and the amount thereof shall be forfeited to the council or commission or the council or commission shall recover the amount of the surety bond. If no bid is received on the first call the council or commission may readvertise and make a second call, or may enter into a contract without any further call or may purchase the supplies, material or equipment and perform the work or improvement by day labor.

(2) In addition to the procedures of subsection (1) of this section, a second or third class city or a town may use a small works roster and award contracts under this subsection for contracts of one hundred thousand dollars or less.

(a) The city or town may maintain a small works roster comprised of all contractors who have requested to be on the roster and are, where required by law, properly licensed or registered to perform such work in this state.

(b) Whenever work is done by contract, the estimated cost of which is one hundred thousand dollars or less, and the city uses the small works roster, the city or town shall invite proposals from all appropriate contractors on the small works roster: PROVIDED, That whenever possible, the city or town shall invite at least one proposal from a minority or woman contractor who shall otherwise qualify under this section. The invitation shall include an estimate of the scope and nature of the work to be performed, and materials and equipment to be furnished.

(c) When awarding such a contract for work, the estimated cost of which is one hundred thousand dollars or less, the city or town shall award the contract to the contractor submitting the lowest responsible bid.

(3) Any purchase of supplies, material, equipment or services other than professional services, except for public work or improvement, where the cost thereof exceeds ((~~two~~)) seven thousand five hundred dollars shall be made upon call for bids: PROVIDED, That the limitations herein shall not apply to any purchases of materials at auctions conducted by the government of the United States, any agency thereof or by the state of Washington or a political subdivision thereof.

(4) Bids shall be called annually and at a time and in the manner prescribed by ordinance for the publication in a newspaper published or of general circulation in the city or town of all notices or newspaper publications required by law. The contract shall be awarded to the lowest responsible bidder.

(5) For advertisement and competitive bidding to be dispensed with as to purchases between ((~~two~~)) seven thousand five hundred and ((~~four~~)) fifteen thousand dollars, the city legislative authority must authorize by resolution a procedure for securing telephone and/or written quotations from enough vendors to assure establishment of a competitive price and for awarding the contracts for purchase of materials, equipment, or services to the lowest responsible bidder. Immediately after the award is made, the bid quotations obtained shall be recorded and open to public inspection and shall be available by telephone inquiry.

(6) This section does not apply to performance-based contracts, as defined in RCW 39.35A.020(3), that are negotiated under chapter 39.35A RCW.

(7) In lieu of the fifty thousand dollar limit over which any single public works project, or portion of a project, may not be performed by city or town employees, the city or town council may adopt a resolution providing that up to fifteen percent of the total value of public works projects may be performed by city or town employees during the forthcoming year. This work by city or town employees may be on all or part of one or more separate public works projects. A resolution providing for this change must be adopted on or before December 1 of the year preceding its application.

Sec. 4. Section 35.23.353, chapter 7, Laws of 1965 and RCW 35.23.353 are each amended to read as follows:

Any purchase by a municipality of the second, third or fourth class of supplies, material, equipment or services for garbage collection and disposal, except for public work or improvement, where the cost thereof exceeds ((~~two thousand dollars~~)) the limits established in RCW 35.23.352 (3) and (5) shall be made upon call for bids in accordance with the procedure prescribed for any public work or improvement in the first paragraph of RCW 35.23.352 as now or hereafter amended. Notwithstanding any provision of law to the contrary, any municipality of the second, third or fourth class may call for bids for garbage collection and disposal for a period of five years or less but in no case for more than five years. The contract shall be awarded to the lowest responsible bidder. Nothing in this section is intended to repeal, amend or change RCW 35.13.280 as now or hereafter amended.

Sec. 5. Section 35.43.190, chapter 7, Laws of 1965 as amended by section 6, chapter 116, Laws of 1971 ex. sess. and RCW 35.43.190 are each amended to read as follows:

All local improvements, the funds for the making of which are derived in whole or in part from assessments upon property specially benefited shall be made by contract on competitive bids whenever the estimated cost of such improvement including the cost of materials, supplies, labor, and equipment will exceed the sum of ((~~five~~)) fifty thousand dollars. City or town employees may perform a portion or portions of a single improvement where the total value of the improvement exceeds fifty thousand dollars in value, if the value of the portion or portions on a single improvement does not exceed fifty thousand dollars in value. The city or town may reject any and all bids. The city or town itself may make the local improvements if all the bids received exceed by ten percent preliminary cost estimates prepared by an independent consulting engineer or registered professional engineer retained for that purpose by the city or town.

Sec. 6. Section 36.32.240, chapter 4, Laws of 1963 as last amended by section 8, chapter 169, Laws of 1985 and RCW 36.32.240 are each amended to read as follows:

(1) In any county the ((~~board of county commissioners~~)) county legislative authority may by resolution establish a county purchasing department and thereafter such department shall contract on a competitive basis for all public works in excess of fifty thousand dollars, and purchase or lease on a competitive basis all supplies, materials, and equipment, where the purchases or leases are in excess of seven thousand five hundred dollars, for all departments of the county, exclusive of the county hospital, pursuant to the provisions hereof and under such rules as the ((~~board~~)) county legislative authority shall by resolution adopt, except for such contracts and purchases as shall be made pursuant to RCW 36.77.065, 36.77.070 and 36.82.130, and except for such contracts and purchases for the printing of election ballots, voting machine labels and all other election material containing the names of candidates and ballot titles, and performance-based contracts as defined in RCW 39.35A.020(3), that are negotiated under chapter 39.35A RCW: PROVIDED, That in all class AA or class A counties or in any county of the first class it shall be mandatory that a purchasing department be established. Employees of such counties may perform a portion or portions of a single public works project where the total value of the public works project exceeds fifty thousand dollars in value, if the value of the portion or portions on a single public works project does not exceed fifty thousand dollars in value.

(2) In lieu of the fifty thousand dollar limit over which any single public works project, or portion of a project, may not be performed by county employees, the county legislative authority may adopt a resolution providing that up to fifteen percent of the total value of public works projects may be performed by county employees during the forthcoming year. This work by county employees may be on all or part of one or more separate public works projects. A resolution providing for this change must be adopted on or before December 1 of the year preceding its application.

Sec. 7. Section 36.32.250, chapter 4, Laws of 1963 as last amended by section 9, chapter 169, Laws of 1985 and by section 1, chapter 369, Laws of 1985 and RCW 36.32.250 are each reenacted and amended to read as follows:

Except as provided in RCW 36.32.240, no contract for a public works project, or portion of a project, in excess of fifty thousand dollars, and no contract for a lease((,)) or purchase in excess of seven thousand five hundred dollars, may be entered into by the county legislative authority or by any elected or appointed officer of such county until after bids have been submitted to the county upon specifications therefor. Such specifications shall be in writing and shall be filed with the clerk of the county legislative authority for public inspection, and an advertisement thereof stating the time and place where bids will be opened, the time after which bids will not be received, the character of the work to be done, or material, equipment, or service to be purchased, or lease to be made, and that specifications therefor may be seen at the office of the clerk of the county legislative authority, shall be published in the county official newspaper: PROVIDED, That advertisements for public works contracts for construction, alteration, repair, or improvement of public facilities shall be additionally published in a legal newspaper of general circulation in or as near as possible to that part of the county in which such work is to be done: AND PROVIDED FURTHER, That if the county official newspaper is a newspaper of general circulation covering at least forty percent of the residences in that part of the county in which such public works are to be done publication of an advertisement of the applicable specifications in the county official newspaper only shall be sufficient. Such advertisements shall be published at least once in each week for two consecutive weeks prior to the last date upon which bids will be received and as many additional publications as shall be determined by the county legislative authority.

The bids shall be in writing, shall be filed with the clerk, shall be opened and read in public at the time and place named therefor in said advertisements, and after being opened, shall be filed for public inspection. No bid may be considered for public work unless it is accompanied by a bid deposit in the form of a surety bond, postal money order, cash, cashier's check, or certified check in an amount equal to five percent of the amount of the bid proposed.

The contract for the public work, lease, or purchase shall be awarded to the lowest responsible bidder, taking into consideration the quality of the articles or equipment to be purchased or leased. Any or all bids may be rejected for good cause.

The county legislative authority shall require from the successful bidder for such public work a contractor's bond in the amount and with the conditions imposed by law. If the bidder to whom the contract is awarded fails to enter into the contract and furnish the contractor's bond as required within ten days after notice of the award, exclusive of the day of notice, the amount of the bid deposit shall be forfeited to the county and the contract awarded to the next lowest and best bidder. The bid deposit of all unsuccessful bidders shall be returned after the contract is awarded and the required contractor's bond given by the successful bidder is accepted by the county legislative authority. ((In the letting of any contract, lease, or purchase involving less than three thousand five hundred dollars, advertisement and competitive bidding may be dispensed with on order of the county legislative authority.)) Notice of intention to let contracts or to enter into lease agreements involving amounts exceeding one thousand dollars but less than ((~~three~~)) fifteen thousand ((~~five hundred~~)) dollars, shall be posted by the county legislative authority on a bulletin board in its office not less than five days prior to making such lease or contract. ((For advertisement and competitive bidding to be dispensed with as to purchases between one thousand and three thousand five hundred dollars, the county legislative authority must authorize by resolution a county procedure for securing))

A county may dispense with formal competitive bidding for purchases between seven thousand five hundred dollars and fifteen thousand dollars, and make a purchase from the lowest responsible bidder if telephone or written quotations, or both, are secured from enough vendors to assure establishment of a competitive price and for awarding such contracts for purchase of materials, equipment, or services to the lowest responsible bidder. Immediately after the award is made, the bid quotations obtained shall be recorded and open to public inspection and shall be available by telephone inquiry. Wherever possible, supplies shall be purchased in quantities for a period of at least three months, and not to exceed one year. Supplies generally used throughout the various departments shall be standardized insofar as possible, and may be purchased and stored for general use by all of the various departments which shall be charged for the supplies when withdrawn from the purchasing department.

This section does not apply to performance-based contracts, as defined in RCW 39.35A.020(3), that are negotiated under chapter 39.35A RCW.

Sec. 8. Section 4, chapter 175, Laws of 1982 and RCW 36.58.130 are each amended to read as follows:

A solid waste disposal district may provide for all aspects of disposing of solid wastes. All moneys received by a solid waste disposal district shall be used exclusively for district purposes. Nothing in this chapter shall permit waste disposal districts to engage in the collection of residential or commercial garbage.

A solid waste disposal district shall perform all construction in excess of twenty-five thousand dollars by contract let pursuant to RCW 36.32.250. Public employees may perform a portion or portions of a single public works project where the total value of the public works project exceeds twenty-five thousand dollars in value, if the value of the portion or portions on a single public works project does not exceed twenty-five thousand dollars in value. In lieu of the twenty-five thousand dollar limit over which any single public works project may not be performed by public employees, the governing body may adopt a resolution providing that up to fifteen percent of the total value of public works projects may be performed by public employees during the forthcoming year. This work by public employees may be on all or part of one or more separate public works projects. A resolution providing for this change must be adopted on or before December 1 of the year preceding its application.

A solid waste disposal district may collect disposal fees based exclusively upon utilization by weight or volume for accepting solid wastes at a disposal site or transfer station. The county may transfer moneys to a solid waste disposal district to be used for district purposes.

Sec. 9. Section 36.82.130, chapter 4, Laws of 1963 as last amended by section 1, chapter 145, Laws of 1982 and RCW 36.82.130 are each amended to read as follows:

No items of equipment may be purchased by any county and paid for from the county road fund or equipment rental and revolving fund where the sales price thereof is in excess of ((~~three~~)) seven thousand five hundred dollars, except upon a call for bids published at least once a week for two consecutive weeks prior to the day of receiving and opening such bids. However, a county may dispense with formal competitive bidding for purchases of equipment between seven thousand five hundred dollars and fifteen thousand dollars, and make a purchase from the lowest responsible bidder if telephone or written quotations, or both, are secured from enough vendors to assure competitive price and for awarding such contracts to the lowest responsible bidder. Immediately after the award is made, the bid quotations obtained shall be recorded and open to public inspection and shall be available by telephone inquiry. The call for bids shall specify the equipment to be purchased and the time and place when bids will be received and opened. Bids shall be publicly opened and read, and award shall be made to the lowest and best bidder: PROVIDED, That in the event of any evidence of collusion as between bidders, or in the event that it is considered that an insufficient number of bids have been received, or for other good cause, the board may reject all bids and readvertise for bids.

Sec. 10. Section 1, chapter 40, Laws of 1980 and RCW 36.77.065 are each amended to read as follows:

The board may cause any county road to be constructed or improved by day labor as provided in this section.

(1) As used in this section, "county road construction budget" means the aggregate total of those costs as defined by the budgeting, accounting, and reporting system for counties and cities and other local governments authorized under RCW 43.09.200 and 43.09.230 as prescribed in the state auditor's budget, accounting, and reporting manual's (BARS) road and street construction accounts 541.00 through 541.90 in effect April 1, 1975: PROVIDED, That such costs shall not include those costs assigned to the preliminary engineering account 541.11, right of way accounts 541.20 through 541.25, ancillary operations account 541.80, and ferries account 541.81 in the budget, accounting, and reporting manual.

(2) The total amount of day labor construction programs one county may perform annually shall total no more than the amounts determined in the following manner:

(a) Any county with a total annual county road construction budget of four million dollars or more may accumulate a day labor road construction budget equal to no more than eight hundred thousand dollars or fifteen percent of the county's total annual county road construction budget, whichever is greater.

(b) Any county with a total annual county road construction budget over one million five hundred thousand dollars and less than four million dollars may accumulate a day labor road construction budget equal to not more than five hundred twenty-five thousand dollars or twenty percent of the county's total annual county road construction budget, whichever is greater.

(c) Any county with a total annual county road construction budget over five hundred thousand dollars and less than one million five hundred thousand dollars may accumulate a day labor road construction budget equal to two hundred fifty thousand dollars or thirty-five percent of the county's total annual county road construction budget, whichever is greater.

(d) Any county with a total annual county road construction budget less than five hundred thousand dollars may accumulate a day labor road construction budget equal to two hundred fifty thousand dollars: PROVIDED, That any county with a total annual road construction budget of less than five hundred thousand dollars may, by resolution of the board at the time the county road construction budget is adopted, elect to construct or improve county roads by day labor in an amount not to exceed ((~~thirty-five~~)) fifty thousand dollars on any one project, ((~~including~~)) or portion or portions of a single project where the total value of the project exceeds fifty thousand dollars in value, if the value of the portion or portions on a single project does not exceed fifty thousand dollars. The value of a project includes labor, equipment, and materials((~~; such~~)). The election ((to)) shall be in lieu of the two hundred fifty thousand dollar limit provided for in this section((~~, except that any project means a complete project and the division of any project into units of work or classes of work so as to permit construction by day labor is not authorized~~)).

Any county that adopts a county road construction budget unreasonably exceeding that county's actual road construction expenditures for the same budget year which has the effect of permitting the county to exceed the day labor amounts established in this section is in violation of the county road administration board's standards of good practice under RCW 36.78.020 and is in violation of this section. Any county, whose expenditure for day labor for road construction projects unreasonably exceeds the limits specified in this section, is in violation of the county road administration board's standards of good practice under RCW 36.78.020 and is in violation of this section.

(3) ((Notwithstanding any other provision in this section, whenever the construction work or improvement is the installation of electrical traffic control devices, highway illumination equipment, electrical equipment, wires, or equipment to convey electrical current, in an amount exceeding ten thousand dollars for any one project including labor, equipment, and materials, such work shall be performed by contract as in this chapter provided.)) This section means a complete project and does not permit ((~~the construction of any project by day labor by~~)) division of the project into units of work or classes of work to avoid the restriction on work that may be done by day labor on any single project.

Sec. 11. Section 3, chapter 238, Laws of 1984 and RCW 52.14.110 are each amended to read as follows:

Insofar as practicable, purchases and any public works by the district shall be based on competitive bids. A formal sealed bid procedure shall be used as standard procedure for purchases and contracts for purchases executed by the board of commissioners. Formal sealed bidding shall not be required for:

(1) Emergency purchases if the sealed bidding procedure would prevent or hinder the emergency from being addressed appropriately. The term emergency means an occurrence that creates an immediate threat to life or property;

(2) The purchase of any materials, supplies, or equipment if the cost will not exceed the sum of ten thousand dollars: PROVIDED, That whenever the estimated cost is from forty-five hundred dollars up to ten thousand dollars, the commissioners shall require quotations from at least three different sources to be obtained in writing or by telephone, and recorded for public perusal to assure establishment of a competitive price for such purchase;

(3) Contracting for work to be done involving the construction or improvement of a fire station or other buildings where the estimated cost will not exceed the sum of ((~~two~~)) ten thousand ((~~five hundred~~)) dollars, which includes the costs of labor, material, and equipment. Fire protection district employees may perform a portion or portions of a single construction project or improvement where the total value of the project or improvement exceeds ten thousand dollars in value, if the value of the portion or portions on a single project or improvement does not exceed ten thousand dollars in value;

(4) Purchases which are clearly and legitimately limited to a single source of supply, or services, in which instances the purchase price may be best established by direct negotiation: PROVIDED, That this subsection shall not apply to purchases or contracts relating to public works as defined in chapter 39.04 RCW; and

(5) Purchases of insurance and bonds.

In lieu of the ten thousand dollar limit over which any single public works project, or portion of a project, may not be performed by fire protection district employees, the board may adopt a resolution providing that up to fifteen percent of the total value of public works projects may be performed by fire district employees during the forthcoming year. This work by fire protection district employees may be on all or part of one or more separate public works projects. A resolution providing for this change must be adopted on or before December 1 of the year preceding its application.

Sec. 12. Section 2, chapter 124, Laws of 1955 as amended by section 4, chapter 220, Laws of 1971 ex. sess. and RCW 54.04.070 are each amended to read as follows:

(1) Any item, or items of the same kind of materials, equipment, or supplies purchased, the estimated cost of which is in excess of five thousand dollars, exclusive of sales tax shall be by contract: PROVIDED, That a district may make purchases of the same kind of items of materials, equipment and supplies not exceeding five thousand dollars in any calendar month without a contract, purchasing any excess thereof over five thousand dollars by contract.

Any work ordered by a district commission, the estimated cost of which is in excess of ((~~ten~~)) thirty thousand dollars exclusive of sales tax, shall be by contract((~~, except that~~)). Public utility district employees may perform a portion or portions of a single public works project where the total value of the public works project exceeds thirty thousand dollars in value, if the value of the portion or portions on a single public works project does not exceed thirty thousand dollars in value. However, a district commission may have its own regularly employed personnel perform work which is an accepted industry practice under prudent utility management without a contract. Prudent utility management means performing work with regularly employed personnel utilizing material of a worth not exceeding thirty thousand dollars in value without a contract: PROVIDED, That such limit on the value of material being utilized in work being performed by regularly employed personnel shall not include the value of individual items of equipment purchased or acquired and used as one unit of a project. Before awarding such a contract, the commission shall publish a notice once or more in a newspaper of general circulation in the district at least twenty days before the letting of the contract, inviting sealed proposals for the work or materials; plans and specifications of which shall at the time of the publication be on file at the office of the district subject to public inspection: PROVIDED, That any published notice ordering work to be performed for the district shall be mailed at the time of publication to any established trade association which files a written request with the district to receive such notices. The commission may at the same time and as part of the same notice, invite tenders for the work or materials upon plans and specifications to be submitted by the bidders.

Whenever equipment or materials required by a district are held by a governmental agency and are available for sale but such agency is unwilling to submit a proposal, the commission may ascertain the price of such items and file a statement of such price supported by the sworn affidavit of one member of the commission and may consider such price as a bid without a deposit or bond: PROVIDED, That where an emergency arises endangering the public safety, or threatening property damage, the commission may purchase materials or order work performed by others in addition to regularly employed personnel in any amount necessary without calling for bids after having taken precautions to secure the lowest price practicable under the circumstances.

(2) In lieu of the thirty thousand dollar limit over which any single public works project, or portion of a project, may not be performed by public utility district employees, the board may adopt a resolution providing that up to fifteen percent of the total value of public works projects may be performed by district employees during the forthcoming year. This work by public utility district employees may be on all or part of one or more separate public works projects. A resolution providing for this change must be adopted on or before December 1 of the year preceding its application.

Sec. 13. Section 44, chapter 210, Laws of 1941 as last amended by section 1, chapter 154, Laws of 1985 and RCW 56.08.070 are each amended to read as follows:

(1) All materials purchased in excess of five thousand dollars, and work ordered, the estimated cost of which is in excess of ((~~five~~)) ten thousand dollars, shall be let by contract. Sewer district employees may perform a portion or portions of a single public works project where the total value of the public works project exceeds ten thousand dollars in value, if the value of the portion or portions on a single public works project does not exceed ten thousand dollars in value. All contract projects, the estimated cost of which is less than twenty-five thousand dollars, may be awarded to a contractor on the small works roster. The small works roster shall be comprised of all responsible contractors who have requested to be on the list. The board of sewer commissioners may set up uniform procedures to prequalify contractors for inclusion on the small works roster. The board of sewer commissioners shall authorize by resolution a procedure for securing telephone and/or written quotations from the contractors on the small works roster to assure establishment of a competitive price and for awarding contracts to the lowest responsible bidder. Such procedure shall require that a good faith effort be made to request quotations from all contractors on the small works roster. Immediately after an award is made, the bid quotations obtained shall be recorded, open to public inspection, and available by telephone inquiry. The small works roster shall be revised once a year. All contract projects equal to or in excess of twenty-five thousand dollars shall be let by competitive bidding. Before awarding any competitive contract the board of sewer commissioners shall cause a notice to be published in a newspaper in general circulation where the district is located at least once, ten days before the letting of such contract, inviting sealed proposals for such work, plans and specifications which must at the time of publication of such notice be on file in the office of the board of sewer commissioners subject to public inspection. Such notice shall state generally the work to be done and shall call for proposals for doing the same to be sealed and filed with the board of sewer commissioners on or before the day and hour named therein.

(2) Each bid shall be accompanied by a bid proposal deposit in the form of a certified check, cashier's check, postal money order, or surety bond payable to the order of the county treasurer for a sum not less than five percent of the amount of the bid and no bid shall be considered unless accompanied by such bid proposal deposit. At the time and place named such bids shall be publicly opened and read and the board of sewer commissioners shall proceed to canvass the bids and may let such contract to the lowest responsible bidder upon plans and specifications: PROVIDED, That no contract shall be let in excess of the cost of said materials or work, or if in the opinion of the board of sewer commissioners all bids are unsatisfactory they may reject all of them and readvertise and in such case all checks, cash or bid bonds shall be returned to the bidders. If such contract be let, then all checks, cash or bid bonds shall be returned to the bidders, except that of the successful bidder, which shall be retained until a contract shall be entered into for the purchase of such materials or doing such work, and a bond to perform such work furnished with sureties satisfactory to the board of sewer commissioners in the full amount of the contract price between the bidder and the commission in accordance with bid. If said bidder fails to enter into said contract in accordance with said bid and furnish such bond within ten days from the date at which he is notified that he is the successful bidder, the said check, cash or bid bonds and the amount thereof shall be forfeited to the sewer district.

(3) In the event of an emergency when the public interest or property of the sewer district would suffer material injury or damage by delay, upon resolution of the board of sewer commissioners, or proclamation of an official designated by the board to act for the board during such emergencies, declaring the existence of such emergency and reciting the facts constituting the same, the board, or the official acting for the board, may waive the requirements of this chapter with reference to any purchase or contract.

(4) In lieu of the ten thousand dollar limit over which any single public works project, or portion of a project, may not be performed by sewer district employees, the board may adopt a resolution providing that up to fifteen percent of the total value of public works projects may be performed by sewer district employees during the forthcoming year. This work by sewer district employees may be on all or part of one or more separate public works projects. A resolution providing for this change must be adopted on or before December 1 of the year preceding its application.

Sec. 14. Section 21, chapter 114, Laws of 1929 as last amended by section 2, chapter 154, Laws of 1985 and RCW 57.08.050 are each amended to read as follows:

(1) The board of water commissioners shall have authority to create and fill such positions and fix salaries and bonds thereof as it may by resolution provide.

(2) All materials purchased in excess of five thousand dollars, and work ordered, the estimated cost of which is in excess of ((~~five~~)) ten thousand dollars, shall be let by contract. Water district employees may perform a portion or portions of a single public works project where the total value of the public works project exceeds ten thousand dollars in value, if the value of the portion or portions on a single public works project does not exceed ten thousand dollars in value. All contract projects, the estimated cost of which is less than twenty-five thousand dollars, may be awarded to a contractor on the small works roster. The small works roster shall be comprised of all responsible contractors who have requested to be on the list. The board of water commissioners may set up uniform procedures to prequalify contractors for inclusion on the small works roster. The board of water commissioners shall authorize by resolution a procedure for securing telephone and/or written quotations from the contractors on the small works roster to assure establishment of a competitive price and for awarding contracts to the lowest responsible bidder. Such procedure shall require that a good faith effort be made to request quotations from all contractors on the small works roster. Immediately after an award is made, the bid quotations obtained shall be recorded, open to public inspection, and available by telephone inquiry. The small works roster shall be revised once a year. All contract projects equal to or in excess of twenty-five thousand dollars shall be let by competitive bidding. Before awarding any such contract the board of water commissioners shall cause a notice to be published in a newspaper in general circulation where the district is located at least once ten days before the letting of such contract, inviting sealed proposals for such work, plans and specifications which must at the time of publication of such notice be on file in the office of the board of water commissioners subject to public inspection. Such notice shall state generally the work to be done and shall call for proposals for doing the same to be sealed and filed with the board of water commissioners on or before the day and hour named therein.

(3) Each bid shall be accompanied by a certified or cashier's check or postal money order payable to the order of the county treasurer for a sum not less than five percent of the amount of the bid, or accompanied by a bid bond in an amount not less than five percent of the bid with a corporate surety licensed to do business in the state, conditioned that the bidder will pay the district as liquidated damages the amount specified in the bond, unless he enters into a contract in accordance with his bid, and no bid shall be considered unless accompanied by such check, cash or bid bond. At the time and place named such bids shall be publicly opened and read and the board of water commissioners shall proceed to canvass the bids and may let such contract to the lowest responsible bidder upon plans and specifications on file or to the best bidder submitting his own plans and specifications: PROVIDED, That no contract shall be let in excess of the cost of said materials or work, or if in the opinion of the board of water commissioners all bids are unsatisfactory they may reject all of them and readvertise and in such case all checks, cash or bid bonds shall be returned to the bidders. If such contract be let, then all checks, cash or bid bonds shall be returned to the bidders, except that of the successful bidder, which shall be retained until a contract shall be entered into for the purchase of such materials or doing such work, and a bond to perform such work furnished with sureties satisfactory to the board of water commissioners in the full amount of the contract price between the bidder and the commission in accordance with the bid. If said bidder fails to enter into said contract in accordance with said bid and furnish such bond within ten days from the date at which he is notified that he is the successful bidder, the said check, cash or bid bonds and the amount thereof shall be forfeited to the water district: PROVIDED, That if the bidder fails to enter into a contract in accordance with his bid, and the board of water commissioners deems it necessary to take legal action to collect on any bid bond required herein, then the water district shall be entitled to collect from said bidder any legal expenses, including reasonable attorneys' fees occasioned thereby.

(4) In the event of an emergency when the public interest or property of the water district would suffer material injury or damage by delay, upon resolution of the board of water commissioners, or proclamation of an official designated by the board to act for the board during such emergencies, declaring the existence of such emergency and reciting the facts constituting the same, the board, or official acting for the board, may waive the requirements of this chapter with reference to any purchase or contract.

(5) In lieu of the ten thousand dollar limit over which any single public works project, or portion of a project, may not be performed by water district employees, the board may adopt a resolution providing that up to fifteen percent of the total value of public works projects may be performed by water district employees during the forthcoming year. This work by water district employees may be on all or part of one or more separate public works projects. A resolution providing for this change must be adopted on or before December 1 of the year preceding its application.

Sec. 15. Section 17, chapter 264, Laws of 1945 as amended by section 1, chapter 83, Laws of 1965 and RCW 70.44.140 are each amended to read as follows:

(1) All materials purchased in excess of five thousand dollars, and work ordered, the estimated cost of which is in excess of ((~~five~~)) ten thousand dollars, shall be by contract. Public hospital district employees may perform a portion or portions of a single public works project where the total value of the public works project exceeds ten thousand dollars in value, if the value of the portion or portions on a single public works project does not exceed ten thousand dollars in value. Before awarding any such contract, the commission shall cause to be published a notice at least thirty days before the letting of said contract, inviting sealed proposals for such work, plans and specifications which must at the time of the publication of such notice be on file at the office of the public hospital district, subject to public inspection: PROVIDED, HOWEVER, That the commission may at the same time, and as part of the same notice, invite tenders for said work or materials upon plans and specifications to be submitted by bidders. Such notice shall state generally the work to be done, and shall call for proposals for doing the same, to be sealed and filed with the commission on or before the day and hour named therein. Each bid shall be accompanied by bid proposal security in the form of a certified check, cashier's check, postal money order, or surety bond made payable to the order of the commission, for a sum not less than five percent of the amount of the bid, and no bid shall be considered unless accompanied by such bid proposal security.

At the time and place named, such bids shall be publicly opened and read, and the commission shall proceed to canvass the bids, and may let such contract to the lowest responsible bidder upon plans and specifications on file, or to the best bidder submitting his own plans and specifications: PROVIDED, HOWEVER, That no contract shall be let in excess of the estimated cost of said materials or work, or if, in the opinion of the commission, all bids are unsatisfactory, they may reject all of them and readvertise, and in such case all bid proposal security shall be returned to the bidders; but if such contract be let, then and in such case all bid proposal security shall be returned to the bidders, except that of the successful bidder, which shall be retained until a contract shall be entered into for the purchase of such materials for doing such work, and a bond to perform such work furnished, with sureties satisfactory to the commission, in an amount to be fixed by the commission, not less than twenty-five percent of contract price in any case, between the bidder and commission, in accordance with the bid. If such bidder fails to enter into said contract in accordance with said bid and furnish such bond within ten days from the date at which he is notified that he is the successful bidder, the said bid proposal security and the amount thereof shall be forfeited to the public hospital district.

(2) In lieu of the ten thousand dollar limit over which any single public works project, or portion of a project, may not be performed by public hospital district employees, the directors may adopt a resolution providing that up to fifteen percent of the total value of public works projects may be performed by public hospital district employees during the forthcoming year. This work by public hospital district employees may be on all or part of one or more separate public works projects. A resolution providing for this change must be adopted on or before December 1 of the year preceding its application.

Sec. 16. Section 50, chapter 278, Laws of 1986 and RCW 85.38.190 are each amended to read as follows:

((Special districts shall have authority to enter into contracts for the construction of any improvement authorized by law, or for labor, materials, or equipment entering therein, without public bidding, with the written approval and consent of the governing body in instances of genuine emergency to be declared by the governing body or in any instance where the contract price does not exceed ten thousand dollars.))

Any proposed improvement or part thereof, not exceeding ((~~five~~)) ten thousand dollars in cost, may be constructed by district employees((~~: PROVIDED, That~~)). Special district employees may perform a portion or portions of a single improvement where the total value of the improvement exceeds ten thousand dollars in value, if the value of the portion or portions on a single improvement does not exceed ten thousand dollars in value. However, this shall not restrict a special district from using volunteer labor and equipment on improvements, and providing reimbursement for actual expenses.

In lieu of the ten thousand dollar limit over which any single public works project, or portion of a project, may not be performed by special district employees, the governing body may adopt a resolution providing that up to fifteen percent of the total value of public works projects may be performed by special district employees during the forthcoming year. This work by special district employees may be on all or part of one or more separate public works projects. A resolution providing for this change must be adopted on or before December 1 of the year preceding its application.