HOUSE BILL REPORT

SSB 5514

As Amended by the House

BYSenate Committee on Governmental Operations (originally sponsored by Senators Talmadge, von Reichbauer, Nelson and Bender)

Revising competitive bidding requirements for water and sewer districts.

House Committe on Local Government

Majority Report:  Do pass with amendments.  (11)

      Signed by Representatives Haugen, Chair; Cooper, Vice Chair; Beck, Ferguson, Hine, Madsen, Nelson, Nutley, Rayburn, L. Smith and Zellinsky.

House Staff:Steve Lundin (786-7127)

AS PASSED HOUSE APRIL 14, 1987

BACKGROUND:

Sewer districts and water districts must make all purchases of materials by contract let through a formal competitive bidding procedure if the contract is in excess of $5000.  This formal process involves publishing notices that request bids, submitting sealed bids together with bid deposits, opening the bids at a designated time and place, and awarding the contract to the lowest responsible bidder.  During an emergency, the formal competitive bidding procedure can be waived.

SUMMARY:

Sewer districts and water districts are authorized to waive formal competitive bidding procedures to make purchases that are clearly and legitimately limited to a single source or supply and purchases involving special facilities, services or market conditions.  Such purchases may be by direct negotiation.

A sewer district or water district may not require that a specified engineer prepare plans for extensions to its systems that are to be financed and constructed by a private party, but may review and approve or reject plans prepared for the private party based upon standards established by the district.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Joe Daniels, Washington Association of Water and Wastewater Districts; Bert Lysen, Southwest Suburban Sewer Districts; Paul Morford, citizen; Jack Ewing, John Ewing & Associates; Bill Mudge, Washington State Association of Sewer Districts; Dick Ducharme, Utilities Contractors Association of Washington; Duke Schaub, Associated General Contractors; and Larry Stevens, National Electrical Contractors Association.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    This gives more flexibility to sewer and water districts.  Savings can arise.

House Committee - Testimony Against:      None Presented.