FINAL BILL REPORT

SHB 2584

                                  C 251 L 90

BYHouse Committee on Local Government (originally sponsored by Representatives Haugen, Nealey, Nutley, Ferguson, Nelson, Zellinsky, Wood, Phillips and Raiter)

Raising public utility district internal job value limits and creating a small works roster.

House Committe on Local Government

Senate Committee on Governmental Operations

SYNOPSIS AS ENACTED

BACKGROUND:

Public utility districts (PUDs) may choose to have work done by their own employees using equipment of a worth not exceeding $30,000, but not including the value of equipment used as "one unit of a project."  Such a limitation is referred to as a day labor limit.

PUDs are required to use a formal competitive bidding procedure to award contracts for work having a value of more than $10,000, not including sales taxes.  Such a limitation is referred to as a public works bid limit.

PUDs are required to use a formal competitive bidding procedure to purchase materials, equipment, or supplies, if the estimated cost is in excess of $5,000.  Such a limitation is referred to as a purchase bid limit.

When an emergency arises endangering the public safety, or threatening property damage, a PUD commission may choose not to conform with these requirements and have its own employees perform the work, award a contract for work without using the formal public works bid limit process, or make purchases without using the formal purchasing bid limit process.

SUMMARY:

The day labor limitation for public utility districts (PUDs) is increased from $30,000 to $50,000.

PUDs are permitted to use a small works roster process to award contracts for work with an estimated value of less than $100,000.  The small works roster must be revised once a year, and shall consist of all responsible contractors who request to be on the list.  A procedure shall be authorized to secure telephone and/or written quotations from contractors on the small works roster to assure establishing a competitive price and to award the contracts to the lowest responsible bidder.  A good-faith effort shall be made to request quotations from all contractors on the small works roster.

What constitutes an emergency authorizing a PUD to disregard the various limits is altered.  The requirement that such an emergency must endanger the public safety or threaten property damage, is altered to an emergency where the public interest or property of the district would suffer material injury or damage by delay associated with formal bidding requirements.  In such instances the PUD must take precautions to secure the lowest possible price practicable under the circumstances.

A PUD may waive bidding requirements relating to purchases and negotiate the purchase price directly if, at a public meeting, the commission determines that a particular purchase is limited clearly and legitimately to a single source of supply.

VOTES ON FINAL PASSAGE:

      House 92   1

      Senate    34    12

EFFECTIVE:June 7, 1990