City small works rosters

AN ACT Relating to modifying small works requirements for cities; 1
and reenacting and amending RCW 35.22.620 and 35.23.352.2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:3
Sec. 1. RCW 35.22.620 and 2023 c 395 s 20 and 2023 c 255 s 3 are 4
each reenacted and amended to read as follows: 5
(1) As used in this section, the term "public works" means as 6
defined in RCW 39.04.010. 7
(2) A first -class city may have public works performed by 8
contract pursuant to public notice and call for competitive bids. As 9
limited by subsection (3) of this section, a first -class city may 10
have public works performed by city employees in any annual or 11
biennial budget period equal to a dollar value not exceeding 10 12
percent of the public works construction budget, including any amount 13
in a supplemental public works construction budget, over the budget 14
period. The amount of public works that a first-class city has a 15
county perform for it under RCW 35.77.020 shall be included within 16
this 10 percent limitation. 17
If a first -class city has public works performed by public 18
employees in any budget period that are in excess of this 10 percent 19
limitation, the amount in excess of the permitted amount shall be 20
reduced from the otherwise permitted amount of public works that may 21
S-0491.1
SENATE BILL 5220
State of Washington 69th Legislature 2025 Regular Session
By Senators Shewmake and Nobles
Prefiled 01/10/25. Read first time 01/13/25. Referred to Committee
on Local Government.
p. 1 SB 5220
be performed by public employees for that city in its next budget 1
period. Twenty percent of the motor vehicle fuel tax distributions to 2
that city shall be withheld if two years after the year in which the 3
excess amount of work occurred, the city has failed to so reduce the 4
amount of public works that it has performed by public employees. The 5
amount so withheld shall be distributed to the city when it has 6
demonstrated in its reports to the state auditor that the amount of 7
public works it has performed by public employees has been so 8
reduced. 9
Whenever a first-class city has had public works performed in any 10
budget period up to the maximum permitted amount for that budget 11
period, all remaining public works within that budget period shall be 12
done by contract pursuant to public notice and call for competitive 13
bids. 14
The state auditor shall report to the state treasurer any 15
first-class city that exceeds this amount and the extent to which the 16
city has or has not reduced the amount of public works it has 17
performed by public employees in subsequent years.18
(3) In addition to the percentage limitation provided in 19
subsection (2) of this section, a first-class city shall not have 20
public employees perform a public works project in excess of 21
(($150,000)) $300,000 if more than a single craft or trade is 22
involved with the public works project, or a public works project in 23
excess of (($75,500)) $151,000 if only a single craft or trade is 24
involved with the public works project or the public works project is 25
street signalization or street lighting. A public works project means 26
a complete project. The restrictions in this subsection do not permit 27
the division of the project into units of work or classes of work to 28
avoid the restriction on work that may be performed by day labor on a 29
single project. ((However, a first-class city may have its own 30
regularly employed personnel perform work which is an accepted 31
industry practice under prudent utility management without a 32
contract. For purposes of this section, "prudent utility management" 33
means performing work with regularly employed personnel utilizing 34
material of a worth not exceeding $300,000 in value without a 35
contract. This limit on the value of material being utilized in work 36
being performed by regularly employed personnel shall not include the 37
value of individual items of equipment. For purposes of this section, 38
the term "equipment" includes, but is not limited to, conductor, 39
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cabling, wire, pipe, or lines used for electrical, water, fiber 1
optic, or telecommunications.))2
(4) In addition to the accounting and recordkeeping requirements 3
contained in RCW 39.04.070, every first-class city annually may 4
prepare a report for the state auditor indicating the total public 5
works construction budget and supplemental public works construction 6
budget for that year, the total construction costs of public works 7
performed by public employees for that year, and the amount of public 8
works that is performed by public employees above or below 10 percent 9
of the total construction budget. However, if a city budgets on a 10
biennial basis, this annual report may indicate the amount of public 11
works that is performed by public employees within the current 12
biennial period that is above or below 10 percent of the total 13
biennial construction budget. 14
Each first-class city with a population of 150,000 or less shall 15
use the form required by RCW 43.09.205 to account and record costs of 16
public works in excess of $5,000 that are not let by contract.17
(5) The cost of a separate public works project shall be the 18
costs of materials, supplies, equipment, and labor on the 19
construction of that project. The value of the public works budget 20
shall be the value of all the separate public works projects within 21
the budget. 22
(6) The competitive bidding requirements of this section may be 23
waived by the city legislative authority pursuant to RCW 39.04.280 if 24
an exemption contained within that section applies to the work or 25
contract. 26
(7) In lieu of the procedures of subsections (2) and (6) of this 27
section, a first -class city may let contracts using the small works 28
roster process in RCW 39.04.151 through 39.04.154.29
Whenever possible, the city shall invite at least one proposal 30
from a certified minority or woman contractor who shall otherwise 31
qualify under this section. 32
(8) The allocation of public works projects to be performed by 33
city employees shall not be subject to a collective bargaining 34
agreement. 35
(9) This section does not apply to performance-based contracts, 36
as defined in RCW 39.35A.020(6), that are negotiated under chapter 37
39.35A RCW. 38
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(10) Nothing in this section shall prohibit any first -class city 1
from allowing for preferential purchase of products made from 2
recycled materials or products that may be recycled or reused.3
(11)(a) Any first-class city may procure public works with a unit 4
priced contract under this section for the purpose of completing 5
anticipated types of work based on hourly rates or unit pricing for 6
one or more categories of work or trades. 7
(b) For the purposes of this section, "unit priced contract" 8
means a competitively bid contract in which public works are 9
anticipated on a recurring basis to meet the business or operational 10
needs of the city, under which the contractor agrees to a fixed 11
period indefinite quantity delivery of work, at a defined unit price 12
for each category of work. 13
(c) Unit priced contracts must be executed for an initial 14
contract term not to exceed three years, with the city having the 15
option of extending or renewing the unit priced contract for one 16
additional year. 17
(d) Invitations for unit price bids shall include, for purposes 18
of the bid evaluation, estimated quantities of the anticipated types 19
of work or trades, and specify how the city will issue or release 20
work assignments, work orders, or task authorizations pursuant to a 21
unit priced contract for projects, tasks, or other work based on the 22
hourly rates or unit prices bid by the contractor. Contracts must be 23
awarded to the lowest responsible bidder as per RCW 39.04.010. 24
Whenever possible, the city must invite at least one proposal from a 25
certified minority or woman contractor who otherwise qualifies under 26
this section. 27
(e) Unit price contractors shall pay prevailing wages for all 28
work that would otherwise be subject to the requirements of chapter 29
39.12 RCW. Prevailing wages for all work performed pursuant to each 30
work order must be the prevailing wage rates in effect at the 31
beginning date for each contract year. Unit priced contracts must 32
have prevailing wage rates updated annually. Intents and affidavits 33
for prevailing wages paid must be submitted annually for all work 34
completed within the previous 12-month period of the unit priced 35
contract. 36
(12) For the purposes of this section, "lowest responsible 37
bidder" means a bid that meets the criteria under RCW 39.04.350 and 38
has the lowest bid; provided, that if the city issues a written 39
finding that the lowest bidder has delivered a project to the city 40
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within the last three years which was late, over budget, or did not 1
meet specifications, and the city does not find in writing that such 2
bidder has shown how they would improve performance to be likely to 3
meet project specifications then the city may choose the second 4
lowest bidder whose bid is within five percent of the lowest bid and 5
meets the same criteria as the lowest bidder. 6
Sec. 2. RCW 35.23.352 and 2023 c 395 s 21 and 2023 c 255 s 2 are 7
each reenacted and amended to read as follows: 8
(1) Any second -class city or any town may construct any public 9
works, as defined in RCW 39.04.010, by contract or day labor without 10
calling for bids therefor whenever the estimated cost of the work or 11
improvement, including cost of materials, supplies and equipment will 12
not exceed the sum of (($150,000)) $300,000 if more than one craft or 13
trade is involved with the public works, or (($75,500)) $151,000 if a 14
single craft or trade is involved with the public works or the public 15
works project is street signalization or street lighting. A public 16
works project means a complete project. The restrictions in this 17
subsection do not permit the division of the project into units of 18
work or classes of work to avoid the restriction on work that may be 19
performed by day labor on a single project. However, a second-class 20
city or any town may have its own regularly employed personnel 21
perform work which is an accepted industry practice under prudent 22
utility management without a contract. For purposes of this section, 23
"prudent utility management" means performing work with regularly 24
employed personnel utilizing material of a worth not exceeding 25
$300,000 in value without a contract. This limit on value of material 26
being utilized in work being performed by regularly employed 27
personnel shall not include the value of individual items of 28
equipment. For purposes of this section, "equipment" includes, but is 29
not limited to, conductor, cabling, wire, pipe, or lines used for 30
electrical, water, fiber optic, or telecommunications.31
Whenever the cost of the public work or improvement, including 32
materials, supplies and equipment, will exceed these figures, the 33
same shall be done by contract. All such contracts shall be let at 34
public bidding upon publication of notice calling for sealed bids 35
upon the work. The notice shall be published in the official 36
newspaper, or a newspaper of general circulation most likely to bring 37
responsive bids, at least 13 days prior to the last date upon which 38
bids will be received. The notice shall generally state the nature of 39
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the work to be done that plans and specifications therefor shall then 1
be on file in the city or town hall for public inspections, and 2
require that bids be sealed and filed with the council or commission 3
within the time specified therein. Each bid shall be accompanied by a 4
bid proposal deposit in the form of a cashier's check, postal money 5
order, or surety bond to the council or commission for a sum of not 6
less than five percent of the amount of the bid, and no bid shall be 7
considered unless accompanied by such bid proposal deposit. The 8
council or commission of the city or town shall let the contract to 9
the lowest responsible bidder or shall have power by resolution to 10
reject any or all bids and to make further calls for bids in the same 11
manner as the original call. 12
When the contract is let then all bid proposal deposits shall be 13
returned to the bidders except that of the successful bidder which 14
shall be retained until a contract is entered into and a bond to 15
perform the work furnished, with surety satisfactory to the council 16
or commission, in accordance with RCW 39.08.030. If the bidder fails 17
to enter into the contract in accordance with his or her bid and 18
furnish a bond within 10 days from the date at which he or she is 19
notified that he or she is the successful bidder, the check or postal 20
money order and the amount thereof shall be forfeited to the council 21
or commission or the council or commission shall recover the amount 22
of the surety bond. A low bidder who claims error and fails to enter 23
into a contract is prohibited from bidding on the same project if a 24
second or subsequent call for bids is made for the project.25
If no bid is received on the first call the council or commission 26
may readvertise and make a second call, or may enter into a contract 27
without any further call or may purchase the supplies, material or 28
equipment and perform the work or improvement by day labor.29
(2) For the purposes of this section, "lowest responsible bidder" 30
means a bid that meets the criteria under RCW 39.04.350 and has the 31
lowest bid; provided, that if the city issues a written finding that 32
the lowest bidder has delivered a project to the city within the last 33
three years which was late, over budget, or did not meet 34
specifications, and the city does not find in writing that such 35
bidder has shown how they would improve performance to be likely to 36
meet project specifications then the city may choose the second 37
lowest bidder whose bid is within five percent of the lowest bid and 38
meets the same criteria as the lowest bidder. 39
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(3) The allocation of public works projects to be performed by 1
city or town employees shall not be subject to a collective 2
bargaining agreement. 3
(4) In lieu of the procedures of subsection (1) of this section, 4
a second-class city or a town may let contracts using the small works 5
roster process provided in RCW 39.04.151 through 39.04.154.6
Whenever possible, the city or town shall invite at least one 7
proposal from a certified minority or woman contractor who shall 8
otherwise qualify under this section. 9
(5) The form required by RCW 43.09.205 shall be to account and 10
record costs of public works in excess of $5,000 that are not let by 11
contract. 12
(6) The cost of a separate public works project shall be the 13
costs of the materials, equipment, supplies, and labor on that 14
construction project. 15
(7) Any purchase of supplies, material, or equipment, except for 16
public work or improvement, with an estimated cost in excess of 17
$40,000, shall be by contract. Any purchase of materials, supplies, 18
or equipment with an estimated cost of less than $50,000 shall be 19
made using the process provided in RCW 39.04.190. 20
(8) Bids shall be called annually and at a time and in the manner 21
prescribed by ordinance for the publication in a newspaper of general 22
circulation in the city or town of all notices or newspaper 23
publications required by law. The contract shall be awarded to the 24
lowest responsible bidder. 25
(9) For advertisement and formal sealed bidding to be dispensed 26
with as to purchases with an estimated value of $15,000 or less, the 27
council or commission must authorize by resolution, use of the 28
uniform procedure provided in RCW 39.04.190. 29
(10) The city or town legislative authority may waive the 30
competitive bidding requirements of this section pursuant to RCW 31
39.04.280 if an exemption contained within that section applies to 32
the purchase or public work. 33
(11) This section does not apply to performance-based contracts, 34
as defined in RCW 39.35A.020(6), that are negotiated under chapter 35
39.35A RCW. 36
(12) Nothing in this section shall prohibit any second-class city 37
or any town from allowing for preferential purchase of products made 38
from recycled materials or products that may be recycled or reused.39
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(13)(a) Any second-class city or any town may procure public 1
works with a unit priced contract under this section for the purpose 2
of completing anticipated types of work based on hourly rates or unit 3
pricing for one or more categories of work or trades.4
(b) For the purposes of this section, "unit priced contract" 5
means a competitively bid contract in which public works are 6
anticipated on a recurring basis to meet the business or operational 7
needs of the city or town, under which the contractor agrees to a 8
fixed period indefinite quantity delivery of work, at a defined unit 9
price for each category of work. 10
(c) Unit priced contracts must be executed for an initial 11
contract term not to exceed three years, with the city or town having 12
the option of extending or renewing the unit priced contract for one 13
additional year. 14
(d) Invitations for unit price bids shall include, for purposes 15
of the bid evaluation, estimated quantities of the anticipated types 16
of work or trades, and specify how the city or town will issue or 17
release work assignments, work orders, or task authorizations 18
pursuant to a unit priced contract for projects, tasks, or other work 19
based on the hourly rates or unit prices bid by the contractor. 20
Contracts must be awarded to the lowest responsible bidder as per RCW 21
39.04.010. Whenever possible, the city or town must invite at least 22
one proposal from a certified minority or woman contractor who 23
otherwise qualifies under this section. 24
(e) Unit price contractors shall pay prevailing wages for all 25
work that would otherwise be subject to the requirements of chapter 26
39.12 RCW. Prevailing wages for all work performed pursuant to each 27
work order must be the prevailing wage rates in effect at the 28
beginning date for each contract year. Unit priced contracts must 29
have prevailing wage rates updated annually. Intents and affidavits 30
for prevailing wages paid must be submitted annually for all work 31
completed within the previous 12-month period of the unit priced 32
contract. 33
(14) Any second-class city or town that awards a project to a 34
bidder under the criteria described in subsection (2) of this section 35
must make an annual report to the department of commerce that 36
includes the total number of bids awarded to certified minority or 37
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women contractors and describing how notice was provided to potential 1
certified minority or women contractors. 2
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