FISCAL NOTE
FUND(S):
Sources of Revenue:
General Fund
Legislation creates:
A New Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
This bill makes substantial changes to the Design-Build Procurement Act. It provides for oversight by the board of all projects, the payment of stipends to the Design-Build teams not selected, provides for a pre-qualification process, provides for additional reporting requirements, prohibits an employee of the state from being the criteria developer and provides more openness in the Design-Build process.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2005
Increase/Decrease
(use"-") |
2006
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
590,356 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
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 meets on a quarterly basis. Therefore the estimated total costs would be $4,356.00 annually plus mileage.
The bill allows for the payment of stipends to the design-build teams that were not selected in amounts not to exceed $30,000.00 each. If four design-build teams receive stipends, the cost would be $120,000.00 per project. The Design-Build board approves approximately four projects a year, therefore, the fiscal impact for the payment of stipends would be approximately $480,000.00 annually. This would increase if more projects were approved.
The bill prohibits an employee of the State from being the criteria developer. The Department of Administration has a certified Architect on staff who currently provides those services on some projects. If the agency must hire an independent criteria developer the approximate cost would be based upon 200 hours of time at $125.00 per hour. If there were four projects a year the total cost would be $100,000.00. This would increase if the number of projects increased.
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 would not be required to hire additional staff but would redeploy current staff to take care of the additional requirements. It is estimated that the additional staff and administrataive costs would be $6,000.00
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. The estimated total cost to the State of West Virginia if the bill passed as introduced would be $590,356.00
Memorandum
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 because most members live locally. However, if all members would live outside of Kanawha County then the mileage would be much higher. The Design-Build Board did not request the reimbursement of expenses. This recommendation came from the Legislative Performance Evaluation audit that was conducted on the Design-Build Board.
If the bill that was introduced is amended to remove the stipends and modify the criteria developer requirements then the fiscal impact would be reduced dramatically. It is estimated that the cost with those amendments would be $19,068.00
Person submitting Fiscal Note: Donna Lipscomb, Executive Coordinator
Email Address: dlipscomb@wvadmin.gov