WAC 173-98-600   Design-build and design-build-operate project requirements.  (1) Design-build or design-build-operate projects must be consistent with applicable statutes, such as chapter 39.10 RCW, Alternative public works contracting procedures, chapter 70.150 RCW, Water Quality Joint Development Act, and/or chapter 35.58 RCW, Metropolitan municipal corporations.

     (2) The construction portions of a design-build-operate project under chapter 70.150 RCW, Water Quality Joint Development Act, may be eligible for reduced interest rate and a forgivable principal loan if the public body can demonstrate financial hardship in accordance with WAC 173-98-300.

     (3) The following conditions apply to design-build and design-build-operate projects:

     (a) The ceiling amounts in WAC 173-98-520;

     (b) If eligible project costs exceed the ceiling amounts in WAC 173-98-520, then public bodies can compete for additional funding in the subsequent funding cycle;

     (c) Interest rates for nonhardship projects are set according to WAC 173-98-400;

     (d) In the case of hardship, a reduced interest rate and a forgivable principal loan may be available for the construction portion of a design-build-operate project;

     (e) The project scope of work must implement a department-approved facilities plan;

     (f) In addition to the project application information listed in WAC 173-98-200, the project will be evaluated on the applicant's level of administrative and technical expertise;

     (g) Applicants may apply for up to one hundred ten percent of the facilities planning estimate for design and construction. The loan agreement will be written for the final negotiated contract price;

     (h) At the time of application, the following must be provided:

     (i) A legal opinion from an attorney of the public body indicating that the public body has sufficient legal authority to use the process;

     (ii) A department-approved facilities plan;

     (iii) A report detailing the projected savings based on a cost and time-to-complete as compared to the traditional design-bid-construct process;

     (i) The department may require that the public body obtain delegation authority consistent with chapter 90.48 RCW, Water pollution control, and assume the responsibility for sequential review and approval of plans, specifications, and change orders. The department will continue to make all eligibility determinations;

     (j) Costs associated with change orders are not eligible for reimbursement;

     (k) Before delegation authority is granted to the applicant and the loan agreement is signed, the following must be approved by the department:

     (i) Primary design elements;

     (ii) Final service agreements and/or contracts;

     (l) Projects funded before the effective date of this rule will continue to be managed in accordance with the program guidelines for the year the project was funded; and

     (m) Projects must be completed according to the timeline in WAC 173-98-800 and 173-98-810.



[Statutory Authority: Chapter 90.50A RCW, RCW 90.48.035, and 43.21A.080. 11-20-036 (Order 10-14), § 173-98-600, filed 9/27/11, effective 10/28/11. Statutory Authority: RCW 90.48.035. 07-14-096 (Order 05-16), § 173-98-600, filed 6/29/07, effective 7/30/07.]