|Date Requested:February 24, 2005
Time Requested:12:44 PM
| FUND(S) |
Sources of Revenue
Legislation creates:A New Fund
Effect this measure will have on costs and revenues of state government.
|HB 2592 as originally filed made substantial changes to the Design-Build Procurement Act. The bill provided for oversight by the Board, the payment of stipends to the Design-Build teams not selected, provided for a pre-qualification process, prohibited an employee of the state from being the criteria developer, provided for additional reporting requirements, and provided more openness in the Design-Build process. The bill as amended in the Government Organization committee removed the payment of stipends and allows an employee of the state to be the criteria developer on project under one million dollars.|
|Effect of Proposal||Fiscal Year|
|1. Estmated Total Cost||0||0||19,068|
|Repairs and Alterations||0||0||0|
|2. Estimated Total Revenues||0||0||0|
3. Explanation of above estimates (including long-range effect):
There are nine board members on the Design-Build Board of Directors. Currently they do not get reimbursed for expenses. Should they start to get reimbursed for actual expenses then the cost would be estimated at $121.00 per day plus .40 cents per mile for each board member. This is assuming that every board member would live out of town and overnight accommodations would be required. This is based upon Federal GSA per diem rates as no legislative rules have been promulgated under WV Code §12-3-11. The board currently meets on a quarterly basis but may be required to meet more often if the legislation passed. Therefore the estimated total costs for expenses would be $4,356.00 annually plus mileage if quarterly meetings are required and $13,068.00 annually plus mileage if monthly meetings are required.
The bill as amended requires that the criteria developer be an independent licensed professional on projects over one million dollars but allows an employee of the state to provide those services on projects under one million dollars. This would have no fiscal impact on the state as that is the current practice. The Department of Administration’s staff architect is currently utilized on small projects only and we already retain an independent criteria developer on projects over one million dollars.
The Department of Administration would be required to utilize additional staff time for the monitoring of project status, collecting of data and production of monthly reports to be submitted to the Design Build Board. The Design-Build Board may need to have additional meetings based upon the contents of the monthly reports. This would increase the board member expenses slightly. There would also be costs associated with production and mailing of reports to the Board. The Department of Administration does not anticipate that they would be required to hire additional staff but believe they could redeploy current staff to take care of the additional requirements. It is estimated that the additional staff time and administrative costs would be approximately $6,000.00 annually.
There is no current line item in the budget for this Board. It is anticipated that any funds associated with the requirements of this legislation would come from the Cabinet Secretary’s General Revenue appropriation. No funds have been allocated for that purpose.
| The above estimates do not include any reimbursement for mileage as it would depend upon where the board members reside as to how much the mileage costs would be. If you base the mileage upon the current make up of the board then the mileage would be approximately $1,155.00 annually when quarterly meetings are held because most members live locally. However, if all members would live outside of Kanawha County then the mileage would be much higher. The mileage would also be higher if they were required to meet monthly.