HOUSE BILL REPORT

                  HB 2889

             As Reported By House Committee On:

                       Capital Budget

Title:  An act relating to legislative building preservation and renovation.

Brief Description:  Providing funds for the state legislative building renovation.

Sponsors:  Representatives Mitchell, Murray, Romero, Lantz, Alexander, Ogden, Van Luven, Hankins, Edwards, Stensen, Skinner, Kagi and Parlette; by request of Lieutenant Governor, State Treasurer and Secretary of State.

Brief History:

  Committee Activity:

Capital Budget: 2/2/00, 2/8/00 [DPS];

           Brief Summary of Substitute Bill

$Authorizes the State Finance Committee to issue $101,445,000 in general obligation bonds for the renovation and preservation of the legislative building and for construction of a Capitol addition.

$Dedicates future timber revenues to the Capitol Building Construction Account for repayment of the general obligation debt.

$Exempts bonds for the legislative building rehabilitation and the Capitol addition project from the state debt limit, however, debt service payments on bonds for the project paid from any source other than the Capitol Building Construction Account are subject to the state debt limit.

HOUSE COMMITTEE ON CAPITAL BUDGET

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  Signed by 15 members:  Representatives Alexander, Republican Co-Chair; Murray, Democratic Co-Chair; Edmonds, Democratic Vice Chair; Esser, Republican Vice Chair; Anderson; Barlean; Bush; Constantine; Dunshee; Hankins; Lantz; Mastin; Miloscia; O'Brien and Ogden.

Minority Report:  Do not pass.  Signed by 3 members:  Representatives Koster; Schoesler and Woods.

Staff:  Susan Howson (786-7142).

Background:

The Washington State legislative building was built in the years 1924-27.  It is an example of the Imperial Classic tradition in architectural history and is one of the largest, and among the last, of these traditional monumental structures to be built in the world.

The legislative building houses the state Legislature and the offices of the Governor, Lieutenant Governor, State Auditor, State Treasurer and Secretary of State and is used daily by visitors from all over the world.  During the peak activity of legislative session, the building supports 152 legislators and elected officials, more than 400 employees and an estimated 90,000 visitors, including approximately 900 students each day.

During the 1999 legislative session, House Concurrent Resolution 4410 established a Commission on Legislative Building Preservation and Renovation "to identify a plan and resources for the renovation and preservation of the state legislative building."  The 21 member commission conducted a review of alternatives to address the needs of the 72-year-old building.  They considered options for basic rehabilitation needs, financing, space use and relocation, restoration treatment, access, seismic performance, and security.

The commission's recommendation to the 2000 Legislature is to complete the rehabilitation of the legislative building and construct a new underground addition adjacent to the building at a total project cost of $111 million.  This amount assumes: (1) $85.9 million to repair, replace and install modern heating, cooling, electrical and fire safety systems; clean, treat and repair existing sandstone; and improve the adjacent site; (2) $1 million to complete space use programming, investigate sandstone attachment, and conduct a feasibility study of private financing; (3) $18.6 million to construct an addition adjacent to the legislative building for relocation of displaced space, temporary relocation of offices during construction, and to meet needs for public space; and (4) $5.5 million in private contributions for restoration and public education.

Summary of Substitute Bill:

The State Finance Committee is authorized to issue $101,445,000 in general obligation bonds for the renovation and preservation of the legislative building and for construction of a Capitol addition.  The proceeds from the sale of these bonds are to be deposited into the Capital Historic District Construction Account.

The sum of $99,400,000 is appropriated in the 1999-01 biennium from the Capital Historic District Construction Account to the Department of General Administration for planning, design, and construction costs related to the rehabilitation of the legislative building and construction of a Capitol addition.  Of this amount, up to $200,000 may be used to conduct a feasibility study of the potential for private fund-raising and for the administrative costs of establishing a private foundation.

Future timber revenues to the Capitol Building Construction Account are dedicated for repayment of the general obligation debt.  In addition, the Legislature may provide additional means for raising moneys for the payment of principal and interest on the general obligation debt.

The legislative building rehabilitation and addition project is exempt from the state debt limit, however, debt service payments on bonds for the project paid from any source other than the Capitol Building Construction Account are subject to the state debt limit.

Substitute Bill Compared to Original Bill:  Debt service payments on bonds for the project paid from any source other than the Capitol Building Construction Account are subject to the state debt limit.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date of Substitute Bill:  The bill contains an emergency clause and takes effect immediately.

Testimony For:  On the surface, the legislative building presents a very remarkable face, but underneath there are maintenance, safety, and operating problems stemming from increasing demands on space and infrastructure, changes in building codes, and changing technical needs in building systems.  The state must accept responsibility for the deteriorated condition of the building and pursue a solution this biennium.  Few states in the nation had the foresight to dedicate timber trust lands for the construction and preservation of its Capitol Campus.  Construction of an underground addition will preserve the character and integrity of the original Wilder and White design for the capitol campus.  An underground solution is feasible using today's technology and materials.

Testimony Against:  None.

Testified:  (In support) Representative Maryann Mitchell, prime sponsor; Ralph Munro, Secretary of State; David M. Scott, Emeritus Professor of Architecture, Washington State University; and Pat McLain, Department of General Administration.