Cities/county road resources

AN ACT Relating to increasing opportunities for cities to utilize 1
county resources for road construction and maintenance; amending RCW 2
35.77.030; reenacting and amending RCW 35.22.620 and 35.23.352; and 3
creating a new section. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
NEW SECTION. Sec. 1. The legislature finds that most counties 6
have road construction crews that have the equipment and skills to 7
construct and maintain roads. It is the intent of the legislature to 8
make it easier for counties, through agreements with cities and 9
towns, to provide repairs, striping, maintenance, and construction 10
work on roads throughout the county in order to keep the highway 11
system in a state of good repair. The legislature finds counties can 12
be a particularly important resource in rural communities where 13
otherwise obtaining such services is challenging.14
Sec. 2. RCW 35.22.620 and 2023 c 395 s 20 and 2023 c 255 s 3 are 15
each reenacted and amended to read as follows: 16
(1) As used in this section, the term "public works" means as 17
defined in RCW 39.04.010. 18
(2) A first -class city may have public works performed by 19
contract pursuant to public notice and call for competitive bids. As 20
H-0675.1
HOUSE BILL 1529
State of Washington 69th Legislature 2025 Regular Session
By Representatives Griffey, Stuebe, Couture, and Waters
Read first time 01/23/25. Referred to Committee on Local Government.
p. 1 HB 1529
limited by subsection (3) of this section, a first -class city may 1
have public works performed by city employees in any annual or 2
biennial budget period equal to a dollar value not exceeding 10 3
percent of the public works construction budget, including any amount 4
in a supplemental public works construction budget, over the budget 5
period. The amount of public works that a first-class city has a 6
county perform for it under RCW 35.77.020 shall not be included 7
within this 10 percent limitation , and such work shall not be 8
included when calculating the amount of public work performed by 9
public employees in a budget period. 10
If a first -class city has public works performed by public 11
employees in any budget period that are in excess of this 10 percent 12
limitation, the amount in excess of the permitted amount shall be 13
reduced from the otherwise permitted amount of public works that may 14
be performed by public employees for that city in its next budget 15
period. Twenty percent of the motor vehicle fuel tax distributions to 16
that city shall be withheld if two years after the year in which the 17
excess amount of work occurred, the city has failed to so reduce the 18
amount of public works that it has performed by public employees. The 19
amount so withheld shall be distributed to the city when it has 20
demonstrated in its reports to the state auditor that the amount of 21
public works it has performed by public employees has been so 22
reduced. 23
Whenever a first-class city has had public works performed in any 24
budget period up to the maximum permitted amount for that budget 25
period, all remaining public works within that budget period shall be 26
done by contract pursuant to public notice and call for competitive 27
bids. 28
The state auditor shall report to the state treasurer any 29
first-class city that exceeds this amount and the extent to which the 30
city has or has not reduced the amount of public works it has 31
performed by public employees in subsequent years.32
(3) In addition to the percentage limitation provided in 33
subsection (2) of this section, a first-class city shall not have 34
public employees perform a public works project in excess of $150,000 35
if more than a single craft or trade is involved with the public 36
works project, or a public works project in excess of $75,500 if only 37
a single craft or trade is involved with the public works project or 38
the public works project is street signalization or street lighting. 39
A public works project means a complete project. The restrictions in 40
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this subsection do not permit the division of the project into units 1
of work or classes of work to avoid the restriction on work that may 2
be performed by day labor on a single project. However, a first-class 3
city may have its own regularly employed personnel perform work which 4
is an accepted industry practice under prudent utility management 5
without a contract. For purposes of this section, "prudent utility 6
management" means performing work with regularly employed personnel 7
utilizing material of a worth not exceeding $300,000 in value without 8
a contract. This limit on the value of material being utilized in 9
work being performed by regularly employed personnel shall not 10
include the value of individual items of equipment. For purposes of 11
this section, the term "equipment" includes, but is not limited to, 12
conductor, cabling, wire, pipe, or lines used for electrical, water, 13
fiber optic, or telecommunications. Public works that a first-class 14
city has a county perform for it under RCW 35.77.020 are not subject 15
to the limitations in this subsection.16
(4) In addition to the accounting and recordkeeping requirements 17
contained in RCW 39.04.070, every first-class city annually may 18
prepare a report for the state auditor indicating the total public 19
works construction budget and supplemental public works construction 20
budget for that year, the total construction costs of public works 21
performed by public employees for that year, and the amount of public 22
works that is performed by public employees above or below 10 percent 23
of the total construction budget. However, if a city budgets on a 24
biennial basis, this annual report may indicate the amount of public 25
works that is performed by public employees within the current 26
biennial period that is above or below 10 percent of the total 27
biennial construction budget. 28
Each first-class city with a population of 150,000 or less shall 29
use the form required by RCW 43.09.205 to account and record costs of 30
public works in excess of $5,000 that are not let by contract.31
(5) The cost of a separate public works project shall be the 32
costs of materials, supplies, equipment, and labor on the 33
construction of that project. The value of the public works budget 34
shall be the value of all the separate public works projects within 35
the budget. 36
(6) The competitive bidding requirements of this section may be 37
waived by the city legislative authority pursuant to RCW 39.04.280 if 38
an exemption contained within that section applies to the work or 39
contract. 40
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(7) In lieu of the procedures of subsections (2) and (6) of this 1
section, a first -class city may let contracts using the small works 2
roster process in RCW 39.04.151 through 39.04.154. 3
Whenever possible, the city shall invite at least one proposal 4
from a certified minority or woman contractor who shall otherwise 5
qualify under this section. 6
(8) The allocation of public works projects to be performed by 7
city employees shall not be subject to a collective bargaining 8
agreement. 9
(9) This section does not apply to performance-based contracts, 10
as defined in RCW 39.35A.020(6), that are negotiated under chapter 11
39.35A RCW. 12
(10) Nothing in this section shall prohibit any first -class city 13
from allowing for preferential purchase of products made from 14
recycled materials or products that may be recycled or reused.15
(11)(a) Any first-class city may procure public works with a unit 16
priced contract under this section for the purpose of completing 17
anticipated types of work based on hourly rates or unit pricing for 18
one or more categories of work or trades. 19
(b) For the purposes of this section, "unit priced contract" 20
means a competitively bid contract in which public works are 21
anticipated on a recurring basis to meet the business or operational 22
needs of the city, under which the contractor agrees to a fixed 23
period indefinite quantity delivery of work, at a defined unit price 24
for each category of work. 25
(c) Unit priced contracts must be executed for an initial 26
contract term not to exceed three years, with the city having the 27
option of extending or renewing the unit priced contract for one 28
additional year. 29
(d) Invitations for unit price bids shall include, for purposes 30
of the bid evaluation, estimated quantities of the anticipated types 31
of work or trades, and specify how the city will issue or release 32
work assignments, work orders, or task authorizations pursuant to a 33
unit priced contract for projects, tasks, or other work based on the 34
hourly rates or unit prices bid by the contractor. Contracts must be 35
awarded to the lowest responsible bidder as per RCW 39.04.010. 36
Whenever possible, the city must invite at least one proposal from a 37
certified minority or woman contractor who otherwise qualifies under 38
this section. 39
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(e) Unit price contractors shall pay prevailing wages for all 1
work that would otherwise be subject to the requirements of chapter 2
39.12 RCW. Prevailing wages for all work performed pursuant to each 3
work order must be the prevailing wage rates in effect at the 4
beginning date for each contract year. Unit priced contracts must 5
have prevailing wage rates updated annually. Intents and affidavits 6
for prevailing wages paid must be submitted annually for all work 7
completed within the previous 12-month period of the unit priced 8
contract. 9
(12) For the purposes of this section, "lowest responsible 10
bidder" means a bid that meets the criteria under RCW 39.04.350 and 11
has the lowest bid; provided, that if the city issues a written 12
finding that the lowest bidder has delivered a project to the city 13
within the last three years which was late, over budget, or did not 14
meet specifications, and the city does not find in writing that such 15
bidder has shown how they would improve performance to be likely to 16
meet project specifications then the city may choose the second 17
lowest bidder whose bid is within five percent of the lowest bid and 18
meets the same criteria as the lowest bidder. 19
Sec. 3. RCW 35.23.352 and 2023 c 395 s 21 and 2023 c 255 s 2 are 20
each reenacted and amended to read as follows: 21
(1) Any second -class city or any town may construct any public 22
works, as defined in RCW 39.04.010, by contract or day labor without 23
calling for bids therefor whenever the estimated cost of the work or 24
improvement, including cost of materials, supplies and equipment will 25
not exceed the sum of $150,000 if more than one craft or trade is 26
involved with the public works, or $75,500 if a single craft or trade 27
is involved with the public works or the public works project is 28
street signalization or street lighting. A public works project means 29
a complete project. The restrictions in this subsection do not permit 30
the division of the project into units of work or classes of work to 31
avoid the restriction on work that may be performed by day labor on a 32
single project. However, a second-class city or any town may have its 33
own regularly employed personnel perform work which is an accepted 34
industry practice under prudent utility management without a 35
contract. For purposes of this section, "prudent utility management" 36
means performing work with regularly employed personnel utilizing 37
material of a worth not exceeding $300,000 in value without a 38
contract. This limit on value of material being utilized in work 39
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being performed by regularly employed personnel shall not include the 1
value of individual items of equipment. For purposes of this section, 2
"equipment" includes, but is not limited to, conductor, cabling, 3
wire, pipe, or lines used for electrical, water, fiber optic, or 4
telecommunications. 5
Whenever the cost of the public work or improvement, including 6
materials, supplies and equipment, will exceed these figures, the 7
same shall be done by contract. All such contracts shall be let at 8
public bidding upon publication of notice calling for sealed bids 9
upon the work. The notice shall be published in the official 10
newspaper, or a newspaper of general circulation most likely to bring 11
responsive bids, at least 13 days prior to the last date upon which 12
bids will be received. The notice shall generally state the nature of 13
the work to be done that plans and specifications therefor shall then 14
be on file in the city or town hall for public inspections, and 15
require that bids be sealed and filed with the council or commission 16
within the time specified therein. Each bid shall be accompanied by a 17
bid proposal deposit in the form of a cashier's check, postal money 18
order, or surety bond to the council or commission for a sum of not 19
less than five percent of the amount of the bid, and no bid shall be 20
considered unless accompanied by such bid proposal deposit. The 21
council or commission of the city or town shall let the contract to 22
the lowest responsible bidder or shall have power by resolution to 23
reject any or all bids and to make further calls for bids in the same 24
manner as the original call. 25
When the contract is let then all bid proposal deposits shall be 26
returned to the bidders except that of the successful bidder which 27
shall be retained until a contract is entered into and a bond to 28
perform the work furnished, with surety satisfactory to the council 29
or commission, in accordance with RCW 39.08.030. If the bidder fails 30
to enter into the contract in accordance with his or her bid and 31
furnish a bond within 10 days from the date at which he or she is 32
notified that he or she is the successful bidder, the check or postal 33
money order and the amount thereof shall be forfeited to the council 34
or commission or the council or commission shall recover the amount 35
of the surety bond. A low bidder who claims error and fails to enter 36
into a contract is prohibited from bidding on the same project if a 37
second or subsequent call for bids is made for the project.38
If no bid is received on the first call the council or commission 39
may readvertise and make a second call, or may enter into a contract 40
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without any further call or may purchase the supplies, material or 1
equipment and perform the work or improvement by day labor.2
(2) For the purposes of this section, "lowest responsible bidder" 3
means a bid that meets the criteria under RCW 39.04.350 and has the 4
lowest bid; provided, that if the city issues a written finding that 5
the lowest bidder has delivered a project to the city within the last 6
three years which was late, over budget, or did not meet 7
specifications, and the city does not find in writing that such 8
bidder has shown how they would improve performance to be likely to 9
meet project specifications then the city may choose the second 10
lowest bidder whose bid is within five percent of the lowest bid and 11
meets the same criteria as the lowest bidder. 12
(3) The allocation of public works projects to be performed by 13
city or town employees shall not be subject to a collective 14
bargaining agreement. 15
(4) In lieu of the procedures of subsection (1) of this section, 16
a second-class city or a town may let contracts using the small works 17
roster process provided in RCW 39.04.151 through 39.04.154.18
Whenever possible, the city or town shall invite at least one 19
proposal from a certified minority or woman contractor who shall 20
otherwise qualify under this section. 21
(5) The form required by RCW 43.09.205 shall be to account and 22
record costs of public works in excess of $5,000 that are not let by 23
contract. 24
(6) The cost of a separate public works project shall be the 25
costs of the materials, equipment, supplies, and labor on that 26
construction project. 27
(7) Any purchase of supplies, material, or equipment, except for 28
public work or improvement, with an estimated cost in excess of 29
$40,000, shall be by contract. Any purchase of materials, supplies, 30
or equipment with an estimated cost of less than $50,000 shall be 31
made using the process provided in RCW 39.04.190. 32
(8) Bids shall be called annually and at a time and in the manner 33
prescribed by ordinance for the publication in a newspaper of general 34
circulation in the city or town of all notices or newspaper 35
publications required by law. The contract shall be awarded to the 36
lowest responsible bidder. 37
(9) For advertisement and formal sealed bidding to be dispensed 38
with as to purchases with an estimated value of $15,000 or less, the 39
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council or commission must authorize by resolution, use of the 1
uniform procedure provided in RCW 39.04.190. 2
(10) The city or town legislative authority may waive the 3
competitive bidding requirements of this section pursuant to RCW 4
39.04.280 if an exemption contained within that section applies to 5
the purchase or public work. 6
(11) This section does not apply to performance-based contracts, 7
as defined in RCW 39.35A.020(6), that are negotiated under chapter 8
39.35A RCW, or to public works performed for the city or town by a 9
county under RCW 35.77.020. 10
(12) Nothing in this section shall prohibit any second-class city 11
or any town from allowing for preferential purchase of products made 12
from recycled materials or products that may be recycled or reused.13
(13)(a) Any second-class city or any town may procure public 14
works with a unit priced contract under this section for the purpose 15
of completing anticipated types of work based on hourly rates or unit 16
pricing for one or more categories of work or trades.17
(b) For the purposes of this section, "unit priced contract" 18
means a competitively bid contract in which public works are 19
anticipated on a recurring basis to meet the business or operational 20
needs of the city or town, under which the contractor agrees to a 21
fixed period indefinite quantity delivery of work, at a defined unit 22
price for each category of work. 23
(c) Unit priced contracts must be executed for an initial 24
contract term not to exceed three years, with the city or town having 25
the option of extending or renewing the unit priced contract for one 26
additional year. 27
(d) Invitations for unit price bids shall include, for purposes 28
of the bid evaluation, estimated quantities of the anticipated types 29
of work or trades, and specify how the city or town will issue or 30
release work assignments, work orders, or task authorizations 31
pursuant to a unit priced contract for projects, tasks, or other work 32
based on the hourly rates or unit prices bid by the contractor. 33
Contracts must be awarded to the lowest responsible bidder as per RCW 34
39.04.010. Whenever possible, the city or town must invite at least 35
one proposal from a certified minority or woman contractor who 36
otherwise qualifies under this section. 37
(e) Unit price contractors shall pay prevailing wages for all 38
work that would otherwise be subject to the requirements of chapter 39
39.12 RCW. Prevailing wages for all work performed pursuant to each 40
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work order must be the prevailing wage rates in effect at the 1
beginning date for each contract year. Unit priced contracts must 2
have prevailing wage rates updated annually. Intents and affidavits 3
for prevailing wages paid must be submitted annually for all work 4
completed within the previous 12-month period of the unit priced 5
contract. 6
(14) Any second-class city or town that awards a project to a 7
bidder under the criteria described in subsection (2) of this section 8
must make an annual report to the department of commerce that 9
includes the total number of bids awarded to certified minority or 10
women contractors and describing how notice was provided to potential 11
certified minority or women contractors. 12
Sec. 4. RCW 35.77.030 and 2009 c 549 s 2123 are each amended to 13
read as follows: 14
Pursuant to an agreement authorized by RCW 35.77.020, the board 15
of county commissioners may expend funds from the county road fund 16
for the construction, repair, and maintenance of the streets of such 17
city or town and for engineering and administrative services. 18
Payments by a city or town under such an agreement shall be made to 19
the county treasurer and by him or her deposited in the county road 20
fund. Such construction, repair, maintenance, and engineering service 21
shall be ordered by resolution and proceedings conducted in respect 22
thereto in the same manner as provided for the construction, repair, 23
and maintenance of county roads by counties, and for the preparation 24
of maps, plans and specifications, advertising and award of contracts 25
therefor: PROVIDED, That except in case of emergency all construction 26
work performed by a county on city streets pursuant to RCW 35.77.020 27
through 35.77.040, which exceeds ten thousand dollars, shall be done 28
by contract, unless after advertisement and solicitation of 29
competitive bids it appears that bids are unobtainable or that the 30
lowest bid exceeds the amount for which such construction can be done 31
by means other than contract , including by utilizing regularly 32
employed county personnel . No street construction project shall be 33
divided into lesser component parts for the purpose of avoiding the 34
requirements for competitive bidding. 35
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