HOUSE BILL REPORT

                  HB 1642

             As Reported By House Committee On:

                  Government Administration

Title:  An act relating to bid requirements for water‑sewer districts.

Brief Description:  Changing bidding for water‑sewer districts.

Sponsors:  Representatives D. Sommers, Scott, Wolfe, D. Schmidt, Wensman and Dunn.

Brief History:

Committee Activity:

Government Administration:  2/14/97, 3/4/97 [DPS].

HOUSE COMMITTEE ON GOVERNMENT ADMINISTRATION

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  Signed by 10 members:  Representatives D. Schmidt, Chairman; D. Sommers, Vice Chairman; Scott, Ranking Minority Member; Doumit; Dunn; Reams; Smith; L. Thomas; Wensman and Wolfe.

Minority Report:  Do not pass.  Signed by 3 members:  Representatives Gardner, Assistant Ranking Minority Member; Dunshee and Murray.

Staff:  Bill Lynch (786-7092).

Background:  Water-sewer districts must follow certain procedures when awarding contracts for purchases or public works.  If a contract for a public works project has an estimated value of more than $5,000 it must be let by contract.  If a contract for the purchase of materials, supplies, or equipment has an estimated value of more than $10,000, it must be awarded by contract.  If the contract for purchases has an estimated value of $5,000 to less than $50,000, it may be awarded pursuant to either a small works roster process or formal competitive bidding.  It has been suggested that these thresholds should be adjusted.

Summary of Substitute Bill:  The threshold for requiring a public works project to be let by contract is raised from $5,000 to $10,000.  A water-sewer district may use the uniform process to award contracts for purchases when the contract has an estimated cost from $10,000 to less than $50,000.

The cost of a project is the aggregate amount to be paid for all labor, materials, supplies, and equipment of a continuous or interrelated project if the work is to be performed simultaneously or in close sequence.

Substitute Bill Compared to Original Bill:  Language that created a separate bid limit for the purchase of labor is deleted.  The threshold for requiring a public works project to be let by contract is raised from $5,000 to $10,000.  A definition is added for public works projects.  Technical changes are made.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date of Substitute Bill:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  The cost of contract administration is growing.  It makes sense to adjust the dollar threshold amounts.

Testimony Against:  (original)  Bid limit statutes should not separate out labor from the rest of the project costs.

Testified:  Steve Lindstrom, Sno-King Water District Coalition; and Dick Ducharme, Utility Contractors Association of Washington (with amendments).