The public works arena saw a flurry of activity all session long! As in years past, activity was both favorable and unfavorable to cities.

In stark contrast to the 2022 session, when the Public Works Assistance Account (PWAA) was victim to a fund sweep with no new funds appropriated to the account, this session the PWAA received $400 million in appropriations. What’s more, long-standing diversions from the account are set to expire this July, at which point full funding will be restored to the PWAA.

Sen. Mark Mullet (D-Issaquah) introduced a pair of bills (SB 5303 and SJR 8201) early in session that would have amended the State Constitution to establish the Public Works Revolving Account in the state Treasury, to be used strictly for the purpose of providing loans and grants to local governments for infrastructure projects. The existing PWAA would have remained intact; however, all moneys received from local governments in the repayment of loans made under both accounts would be paid into the revolving account. This would have ensured that loan repayment dollars from local governments were used solely for future local infrastructure loans and could not be directed to other funds by the Legislature. While the proposals were ultimately unsuccessful and the legislation failed, AWC is committed to working with the bill sponsor, the Public Works Board, and other stakeholders to refine the proposal for consideration next session.

In addition to infrastructure funding, another area of focus this session was updating and standardizing public works procurement, contracting, and employment practices.

SB 5268 was consensus legislation proposed by the Capital Projects Advisory Board (CPARB). The bill modifies the small works roster requirements and removes barriers for small businesses to bid on public works projects, with the intent to achieve greater inclusion of women, minority, or veteran-owned businesses on small works rosters. HB 1621 standardizes the definition of “lowest responsible bidder” across cities, public utility districts, water-sewer districts, and fire districts. The bill authorizes increased bid limits if two or more trades are involved in a project and allows current employees to perform work without a contract on projects costing under $300,000 if the type of work being performed is accepted industry practice. Implementation of the bill is delayed until CPARB formally reviews the legislation and makes recommendations to the appropriate legislative committees. The legislation is scheduled to take effect June 30, 2024.

Addressing the state’s substantial need for workforce recruitment and retention, HB 1050 requires that public works contracts awarded by a municipality and estimated to cost more than $2 million have at least 15% of the labor hours performed by apprentices. Over time, this threshold will decrease, requiring that projects estimated to cost $1 million or more will meet the same 15% threshold for apprenticeship utilization.

Finally, neither HB 1099 nor SB 5726 passed this session; however, both bills contained language that AWC expects legislators will continue to prioritize and reintroduce in future legislation. The bills aimed to require that wages paid to workers of public works projects be no less than the latest prevailing wage rate in effect at the time the work is performed. AWC supports the policy of paying prevailing wages at the time work is performed and will continue working with legislators and stakeholders in crafting legislation that can be successfully implemented.