2321-S AMS GO S5604.1

SHB 2321 - S COMM AMD

By Committee on Government Operations

    Strike everything after the enacting clause and insert the following:

    "NEW SECTION. Sec. 1.  A new section is added to chapter 39.04 RCW to read as follows:

    (1) Competitive bidding procedures may be waived by resolution of the governing body of the municipality for:

    (a) Purchases that are clearly and legitimately limited to a single source of supply;

    (b) Purchases involving unique facilities, services, or market conditions;

    (c) Purchases in the event of an emergency;

    (d) Purchases of insurance or bonds; and

    (e) Public works in the event of an emergency.

    (2)(a) A resolution adopted by a governing body to waive competitive bidding procedures pursuant to subsection (1) of this section must recite the factual basis for an exception and any economic or health-related justifications for the waiver.  The resolution must be adopted by the municipality prior to the final award of the contract except in the event of an emergency.

    (b) If an emergency exists, the person or persons designated by the governing body of the municipality to act in the event of the emergency may award all necessary contracts on behalf of the municipality to address the emergency situation.  If a contract is awarded without competitive bidding due to an emergency, the governing body of the municipality must adopt the resolution required pursuant to (a) of this subsection at either a regular or special meeting no later than two weeks following the award of the contract.

    (3) For purposes of this section, "emergency" means unforeseen circumstances beyond the control of the municipality that either:  (a) Present a real, immediate threat to the proper performance of essential functions of the municipality; or (b) will likely result in material loss or damage to property, bodily injury, or loss of life if immediate action is not taken.

    (4) This section supplements and does not limit the authority of any particular type or class of municipality to provide exemptions from competitive bidding procedures as authorized by statute.

    Sec. 2.  RCW 28A.335.190 and 1990 c 33 s 362 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)) published 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)).  The notice must include a statement that specifications and other information may be examined at the office of the board or any other officially designated location((:  PROVIDED, That)).  The notice shall be published at least once at least thirteen days prior to the last date upon which bids will be received.  The board, however, 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 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)) board may by resolution use the uniform process provided in RCW 39.04.190 to award contracts.  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 dollars, shall be ((on)) awarded by a competitive bid process.  ((All such projects)) The board may use the small works roster process provided in RCW 39.04.155 to award contracts for public works with an estimated ((to be)) value of 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 the bidder's 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.)) The board may waive the requirements of this section pursuant to section 1 of this act if an exemption contained within that section applies to the work or contract.

    Sec. 3.  RCW 35.22.620 and 1993 c 198 s 9 are each amended to read as follows:

    (1) As used in this section, the term "public works" means as defined in RCW 39.04.010.

    (2) A first class city may have public works performed by contract pursuant to public notice and call for competitive bids.  As limited by subsection (3) of this section, a first class city may have public works performed by city employees in any annual or biennial budget period equal to a dollar value not exceeding ten percent of the public works construction budget, including any amount in a supplemental public works construction budget, over the budget period.  The amount of public works that a first class city has a county perform for it under RCW 35.77.020 shall be included within this ten percent limitation.

    If a first class city has public works performed by public employees in any budget period that are in excess of this ten percent limitation, the amount in excess of the permitted amount shall be reduced from the otherwise permitted amount of public works that may be performed by public employees for that city in its next budget period.  Twenty percent of the motor vehicle fuel tax distributions to that city shall be withheld if two years after the year in which the excess amount of work occurred, the city has failed to so reduce the amount of public works that it has performed by public employees.  The amount so withheld shall be distributed to the city when it has demonstrated in its reports to the state auditor that the amount of public works it has performed by public employees has been so reduced.

    Whenever a first class city has had public works performed in any budget period up to the maximum permitted amount for that budget period, all remaining public works within that budget period shall be done by contract pursuant to public notice and call for competitive bids.

    The state auditor shall report to the state treasurer any first class city that exceeds this amount and the extent to which the city has or has not reduced the amount of public works it has performed by public employees in subsequent years.

    (3) In addition to the percentage limitation provided in subsection (2) of this section, a first class city with a population in excess of one hundred fifty thousand shall not have public employees perform a public works project in excess of fifty thousand dollars if more than a single craft or trade is involved with the public works project, or a public works project in excess of twenty-five thousand dollars if only a single craft or trade is involved with the public works project or the public works project is street signalization or street lighting.  In addition to the percentage limitation provided in subsection (2) of this section, a first class city with a population of one hundred fifty thousand or less shall not have public employees perform a public works project in excess of thirty-five thousand dollars if more than one craft or trade is involved with the public works project, or a public works project in excess of twenty thousand dollars if only a single craft or trade is involved with the public works project or the public works project is street signalization or street lighting.  A public works project means a complete project.  The restrictions in this subsection do not permit the division of the project into units of work or classes of work to avoid the restriction on work that may be performed by day labor on a single project.

    (4) In addition to the accounting and record-keeping requirements contained in RCW 39.04.070, every first class city annually shall prepare a report for the state auditor indicating the total public works construction budget and supplemental public works construction budget for that year, the total construction costs of public works performed by public employees for that year, and the amount of public works that is performed by public employees above or below ten percent of the total construction budget.  However, if a city budgets on a biennial basis, this annual report shall indicate the amount of public works that is performed by public employees within the current biennial period that is above or below ten percent of the total biennial construction budget.

    After September 1, 1987, each first class city with a population of one hundred fifty thousand or less shall use the form required by RCW 43.09.205 to account and record costs of public works in excess of five thousand dollars that are not let by contract.

    (5) The cost of a separate public works project shall be the costs of materials, supplies, equipment, and labor on the construction of that project.  The value of the public works budget shall be the value of all the separate public works projects within the budget.

    (6) ((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.  Within two weeks of the finding that such an emergency existed, the city council shall adopt a resolution certifying the existence of this emergency situation.)) The board may waive the requirements of this section pursuant to section 1 of this act if an exemption contained within that section applies to the work or contract.

    (7) In lieu of the procedures of subsection((s)) (2) ((and (6))) of this section, a first class city may use ((a)) the small works roster process ((and)) provided in RCW 39.04.155 to award contracts for public works projects with an estimated value of one hundred thousand dollars or less ((as provided in RCW 39.04.155)).

    Whenever possible, the city shall invite at least one proposal from a minority or woman contractor who shall otherwise qualify under this section.

    (8) The allocation of public works projects to be performed by city employees shall not be subject to a collective bargaining agreement.

    (9) 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.

    (10) Nothing in this section shall prohibit any first class city from allowing for preferential purchase of products made from recycled materials or products that may be recycled or reused.

    Sec. 4.  RCW 35.23.352 and 1993 c 198 s 10 are each amended to read as follows:

    (1) Any second or third class city or any town may construct any public works, as defined in RCW 39.04.010, 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 thirty thousand dollars if more than one craft or trade is involved with the public works, or twenty thousand dollars if a single craft or trade is involved with the public works or the public works project is street signalization or street lighting.  A public works project means a complete project.  The restrictions in this subsection do not permit the division of the project into units of work or classes of work to avoid the restriction on work that may be performed by day labor on a single project.

    Whenever the cost of the public work or improvement, including materials, supplies and equipment, will exceed these figures, the same shall be done by contract.  All such contracts shall be let at public bidding upon publication of notice calling for sealed bids upon the work.  The notice shall be published in the official newspaper, or a newspaper of general circulation most likely to bring responsive bids, at least thirteen days prior to the last date upon which bids will be received.  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 accordance with RCW 39.08.030.  If the bidder fails to enter into the contract in accordance with his or her bid and furnish a bond within ten days from the date at which he or she is notified that he or she 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) The allocation of public works projects to be performed by city or town employees shall not be subject to a collective bargaining agreement.

    (3) In lieu of the procedures of subsection (1) of this section, a second or third class city or a town may use ((a)) the small works roster process ((and)) provided in RCW 39.04.155 to award public works contracts with an estimated value of one hundred thousand dollars or less ((as provided in RCW 39.04.155)).

    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.

    (4) After September 1, 1987, each second class city, third class city, and town shall use the form required by RCW 43.09.205 to account and record costs of public works in excess of five thousand dollars that are not let by contract.

    (5) The cost of a separate public works project shall be the costs of the materials, equipment, supplies, and labor on that construction project.

    (6) Any purchase of supplies, material, or equipment ((or services other than professional services)), except for public work or improvement, where the cost thereof exceeds seven thousand five hundred dollars shall be made upon call for bids.

    (7) Bids shall be called annually and at a time and in the manner prescribed by ordinance for the publication in a newspaper 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.

    (8) For advertisement and formal sealed bidding to be dispensed with as to purchases between seven thousand five hundred and fifteen thousand dollars, the city legislative authority must authorize by resolution, use of the uniform procedure provided in RCW 39.04.190.

    (9) ((These requirements for purchasing may be waived by resolution of the city or town council which declared that the purchase is clearly and legitimately limited to a single source or supply within the near vicinity, or the materials, supplies, equipment, or services are subject to special market conditions, and recites why this situation exists.  Such actions are subject to RCW 39.30.020.)) The city or town council may waive the requirements of this section pursuant to section 1 of this act if an exemption contained within that section applies to the work or contract.

    (10) 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.

    (11) Nothing in this section shall prohibit any second or third class city or any town from allowing for preferential purchase of products made from recycled materials or products that may be recycled or reused.

    Sec. 5.  RCW 36.32.270 and 1963 c 4 s 36.32.270 are each amended to read as follows:

    ((In the event of an emergency when the public interest or property of the county would suffer material injury or damage by delay, upon resolution of the board of county commissioners declaring the existence of such emergency and reciting the facts constituting the same, the board)) The county legislative authority may waive the requirements of this chapter with reference to any purchase or contract pursuant to section 1 of this act if an exemption contained within that section applies to the work or contract.

    Sec. 6.  RCW 52.14.110 and 1993 c 198 s 11 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 four thousand five hundred dollars.  However, whenever the estimated cost is from four thousand five hundred dollars up to ten thousand dollars, the commissioners may by resolution use the process provided in RCW 39.04.190 to award contracts;

    (((3))) (2) 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 thousand five hundred dollars, which includes the costs of labor, material, and equipment.  However, whenever the estimated cost is from two thousand five hundred dollars up to ten thousand dollars, the commissioner may by resolution use the small works roster process provided in RCW 39.04.155; and

    (((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)) (3) Any purchase or contract for work if an exemption contained within section 1 of this act applies to the work or contract.

    Sec. 7.  RCW 53.08.120 and 1993 c 198 s 13 are each amended to read as follows:

    All material required by a port district may be procured in the open market or by contract and all work ordered may be done by contract or day labor.  All such contracts for work, the estimated cost of which exceeds one hundred thousand dollars, shall be let at public bidding upon notice published in a newspaper of general circulation in the district at least thirteen days before the last date upon which bids will be received, calling for sealed bids upon the work, plans and specifications for which shall then be on file in the office of the commission for public inspection.  The same notice may call for bids on such work or material based upon plans and specifications submitted by the bidder.  The requirements of this section may be waived pursuant to section 1 of this act if an exemption contained within that section applies to the work or contract.

    Each port district shall maintain a small works roster, as provided in RCW 39.04.155, and may use the small works roster process to award contracts in lieu of calling for sealed bids whenever work is done by contract, the estimated cost of which is one hundred thousand dollars or less.  Whenever possible, the managing official shall invite at least one proposal from a minority contractor who shall otherwise qualify under this section.

    When awarding such a contract for work, when utilizing proposals from the small works roster, the managing official shall give weight to the contractor submitting the lowest and best proposal, and whenever it would not violate the public interest, such contracts shall be distributed equally among contractors, including minority contractors, on the small works roster.

    Sec. 8.  RCW 54.04.070 and 1993 c 198 s 14 are each amended to read as follows:

    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 thousand dollars exclusive of sales tax, shall be by contract, except that 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 fifty 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 thirteen days before the last date upon which bids will be received, 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.  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.

    Notwithstanding any other provisions herein, all contract projects, the estimated cost of which is less than one hundred thousand dollars, may be awarded to a contractor using the small works roster process provided in RCW 39.04.155.  All contract projects equal to or in excess of one hundred thousand dollars shall be let by competitive bidding.

    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.  ((In the event of an emergency when the public interest or property of the district would suffer material injury or damage by delay, upon resolution of the commission, 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, after having taken precautions to secure the lowest price practicable under the circumstances.

    After determination by the commission during a public meeting that a particular purchase is available clearly and legitimately only from a single source of supply, the bidding requirements of this section may be waived by the commission.))

The commission may waive the requirements of this section pursuant to section 1 of this act if an exemption contained within that section applies to the work or contract.

    Sec. 9.  RCW 56.08.070 and 1993 c 198 s 16 and 1993 c 45 s 4 are each reenacted and amended to read as follows:

    (1) All materials purchased and work ordered, the estimated cost of which is in excess of five thousand dollars shall be let by contract.  All contract projects, the estimated cost of which is less than fifty thousand dollars, may be awarded to a contractor using the small works roster process provided in RCW 39.04.155 or the process provided in RCW 39.04.190 for purchases.  The board of sewer commissioners may set up uniform procedures to prequalify contractors for inclusion on the small works roster.  All contract projects equal to or in excess of fifty thousand dollars shall be let by competitive bidding.  Before awarding any competitive contract the board of sewer commissioners shall publish a notice in a newspaper of general circulation where the district is located at least once, thirteen days before the last date upon which bids will be received, 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 the materials or work.  The board of sewer commissioners may reject all bids for good cause 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 the bidder fails to enter into the contract in accordance with the bid and furnish such bond within ten days from the date at which the bidder is notified that he or she is the successful bidder, the 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.  In addition, these requirements may be waived for purchases which are clearly and legitimately limited to a single source of supply and purchases involving special facilities, services, or market conditions, in which instances the purchase price may be best established by direct negotiation.)) The board may waive the requirements of this section pursuant to section 1 of this act if an exemption contained within that section applies to the work or contract.

    Sec. 10.  RCW 57.08.050 and 1993 c 198 s 21 and 1993 c 45 s 8 are each reenacted and 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 and work ordered, the estimated cost of which is in excess of five thousand dollars shall be let by contract.  All contract projects, the estimated cost of which is less than fifty thousand dollars, may be awarded to a contractor using a small works roster process provided in RCW 39.04.155 or the process provided in RCW 39.04.190 for purchases.  The board of water commissioners may set up uniform procedures to prequalify contractors for inclusion on the small works roster.  All contract projects equal to or in excess of fifty thousand dollars shall be let by competitive bidding.  Before awarding any such contract the board of water commissioners shall publish a notice in a newspaper of general circulation where the district is located at least once thirteen days before the last date upon which bids will be received, 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 the bidder enters into a contract in accordance with his or her 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 or her own plans and specifications:  PROVIDED, That no contract shall be let in excess of the cost of the materials or work.  The board of water commissioners may reject all bids for good cause 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 the bidder fails to enter into the contract in accordance with the bid and furnish such bond within ten days from the date at which the bidder is notified that he or she is the successful bidder, the 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 or her 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 the 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.  In addition, these requirements may be waived for purchases which are clearly and legitimately limited to a single source of supply and purchases involving special facilities, services, or market conditions, in which instances the purchase price may be best established by direct negotiation.)) The board may waive the requirements of this section pursuant to section 1 of this act if an exemption contained within that section applies to the work or contract.

    Sec. 11.  RCW 70.44.140 and 1993 c 198 s 22 are each amended to read as follows:

    (1) All materials purchased and work ordered, the estimated cost of which is in excess of five thousand dollars, shall be by contract.  Before awarding any such contract, the commission shall publish a notice at least thirteen days before the last date upon which bids will be received, inviting sealed proposals for such work.  The plans and specifications 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 the work or materials upon plans and specifications to be submitted by bidders.  The 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 or her own plans and specifications:  PROVIDED, HOWEVER, That no contract shall be let in excess of the estimated cost of the 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 the contract in accordance with the bid and furnish such bond within ten days from the date at which the bidder is notified that he or she is the successful bidder, the bid proposal security and the amount thereof shall be forfeited to the public hospital district.

    (2) In lieu of the procedures of subsection (1) of this section, a public hospital district may use ((a)) the small works roster process ((and)) provided in RCW 39.04.155 to award public works contracts for projects in excess of five thousand dollars up to fifty thousand dollars ((as provided in RCW 39.04.155)).

    (3) For advertisement and formal sealed bidding to be dispensed with as to purchases between five thousand and fifteen thousand dollars, the commission must authorize by resolution a procedure as provided in RCW 39.04.190.

(4) The commission may waive the requirements of this section pursuant to section 1 of this act if an exemption contained within that section applies to the work or contract."

SHB 2321 - S COMM AMD

By Committee on Government Operations

    On page 1, line 1 of the title, after "procedures;" strike the remainder of the title and insert "amending RCW 28A.335.190, 35.22.620, 35.23.352, 36.32.270, 52.14.110, 53.08.120, 54.04.070, and 70.44.140; reenacting and amending RCW 56.08.070 and 57.08.050; and adding a new section to chapter 39.04 RCW."

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