TAPE/#

Speaker

Comments

TAPE 81, A

003

Chair Brown

Calls the meeting to order at 9:05 a.m. Opens the work session for the possible reconsideration of HB 2717 (EXHIBIT A).

HB 2717 – RECONSIDERATION AND WORK SESSION

005

Rep. Schaufler

MOTION:  Moves to SUSPEND the rules for the purpose of reconsidering the vote on HB 2717.

VOTE:  5-0-2

EXCUSED:  2 - Gilman, Kitts

006

Chair Brown

Hearing no objection, declares the motion CARRIED.

010

Janet Adkins

Committee Administrator.  Explains history of HB 2717 and submits the fiscal statement (EXHIBIT A).  States that HB 2717 needs to be reconsidered in order to consider a possible referral to Ways and Means.

018

Rep. Schaufler

MOTION:  Moves to RECONSIDER the vote by which the committee passed HB 2717.

022

VOTE:  5-0-2

EXCUSED: 2 – Gilman, Kitts

Chair Brown

Hearing no objection, declares the motion CARRIED.

029

Chair Brown

Closes the work session onof HB 2717. Opens the public hearing on HB 2718. 

HB 2718 – PUBLIC HEARING

032

Janet Adkins

Committee Administrator.  Explains HB 2718.

040

Gary Bauer

Northwest Natural.  Submits written testimony in support of HB 2718 (EXHIBIT B).  States that HB 2718 will allow a self-insured employer to continue to have insurance coverage for its potential liability.  Says HB 2718 would allow them to buy insurance from a surplus lines carrier.  Notes that HB 2718 only applies to utilities. 

072

Chair Brown

Closes the public hearing on HB 2718 and opens the work session on HB 2718.

HB 2718 – WORK SESSION

075

Rep. Shields

MOTION:  Moves HB 2718 to the floor with a DO PASS recommendation.

081

Chair Brown

States that he believes the Management Labor Advisory Committee (MLAC) approved HB 2718.

083

Gary Bauer

Northwest Natural.  Says that MLAC did not approve HB 2718, because it did not fall under their prevue.

087

VOTE:  6-0-1

AYE:            In a roll call vote, all members present vote Aye.

EXCUSED:  1 - Kitts

Chair Brown

The motion CARRIES.

089

Rep. Shields

MOTION:  Moves HB 2718 be placed on the CONSENT CALENDAR.

090

VOTE:  6-0-1

EXCUSED:  1 – Kitts

Chair Brown

Hearing no objection, declares the motion CARRIED.

093

Chair Brown

Closes the work session on HB 2718 and opens the public hearing on HB 2740.

HB 2740 – PUBLIC HEARING

096

Janet Adkins

Committee Administrator.  Summarizes HB 2740 and -3 amendments (EXHIBIT C).

117

Shawn Miller

Oregon Independent Auto Dealers Association.  Submits written testimony in support of HB 2740 and the -3 amendments (EXHIBIT E).  States that it is a consumer protection bill that was drafted with the Department of Justice.  Talks about the three provisions that HB 2740 addresses.  States that a broker will have to state in writing the cost of the services provided.  Adds that a broker is prohibited from advertising their services as free.  Says that an auto dealer cannot be a broker if the vehicle being sold is from the auto dealer’s inventory.

164

Jose Pino Mesa

Vice-president, Oregon Independent Auto Dealers Association.  Speaks in support of HB 2740.

169

Larry Campbell

Triple AAA Oregon and Idaho.  Submits written testimony in support of HB 2740 (EXHIBIT F).  Complements the process of compromise in the -3 amendments.

190

Monty King

President, Oregon Vehicle Dealers Association.  Submits written testimony in support of HB 2740 (EXHIBIT D).  States that all of the auto dealers industry supports HB 2740.  Explains that an auto dealer can still buy the vehicle for a person, but the auto dealer cannot advertise themselves as a broker.  Notes that the consumer will now be able to make a decision when the buyer knows the final price of the vehicle. 

240

King

Says that a consumer can now learn how much the vehicle cost the auto dealer.

255

Darrell Fuller

Oregon Vehicle Dealers Association.  Testifies in support of HB 2740. 

277

Cheryl Pellegrini

Attorney-in-Charge, Financial Fraud/Consumer Protection Division, Department of Justice (DOJ).  Submits written testimony in support of HB 2740 and the -3 amendments (EXHIBIT G).  Gives history of the practice of brokers in the early 1990s.  Says that it is common practice for the broker to collect a fee by adding it on to the purchase price of the vehicle.  Summarizes the effects of HB 2740.     

325

Pellegrini

States that HB 2740 informs buyers about the services they can expect to receive from a broker. 

370

Rep. Schaufler

Asks if the fee charged by the broker goes to the government.

375

Pellegrini

Responds that the fee goes to the broker.

377

Chair Brown

Closes the public hearing on HB 2740 and opens the work session on HB 2740.

HB 2740 – WORK SESSION

381

Rep. Schaufler

MOTION:  Moves to ADOPT HB 2740-3 amendments dated 4/7/05.

389

VOTE:  6-0-1

EXCUSED:  1 - Esquivel

Chair Brown

Hearing no objection, declares the motion CARRIED.

390

Rep. Schaufler

MOTION: Moves to RESCIND referral to Committee on Transportation.

392

Rep. Gilman

Speaks in support of rescinding the referral to the House Transportation Committee.

401

VOTE: 6-0-1

EXCUSE: 1 – Esquivel

Chair Brown

Hearing no objection, declares the motion CARRIED.

402

Rep. Schaufler

MOTION:  Moves HB 2740 to the floor with a DO PASS AS AMENDED recommendation.

404

VOTE:  6-0-1

AYE:            In a roll call vote, all members present vote Aye.

EXCUSED:  1 - Esquivel

Chair Brown

The motion CARRIES.

REP. SCHAUFLER will lead discussion on the floor.

416

Chair Brown

Closes the work session on HB 2740 and opens the public hearing on HB 3272.

TAPE 82, A

HB 3272 – PUBLIC HEARING

001

Janet Adkins

Committee Administrator.  Explains HB 3272.  Submits testimony on the behalf of Saiid Behboodi, Greg Weston, Gayle Harley, and Sam Yaghmaie (EXHIBIT H – J, N). 

Cheryl Olson

Submits written testimony without oral testimony (EXHIBIT M).

028

Marshall Coba

American Council of Engineering Companies of Oregon.  Submits written testimony on behalf of John Martin, Dave Leonard, Mel Sears, Kenneth Wightman, Mark Vandehey, Ermal Quevedo, and Dwight Hardin, Michael Reed, H. Stanely Kelsay and David Driscoll,  and William Jabs, Mark Wifs, and Jory Adams, Dave Parkinson, Kendal Tanner, Katherine Lombardo, Jeanine Wright and Cindy Dahl, and Bob Post, Jerry Minor, Terrence E Belunes, Andrew Mc Cann, Scott Nebeker, Stephen Anderson, Barry Meyers, Robin McKnight and Cynthia Lowe, Kevin McCormick, and R. Gregg Weston in support of HB 3272 (EXHIBIT O – HH).  Submits and reads from informational packet in support of HB 3272 (EXHIBIT II).  Comments on the Qualification Based Selection (QBS) system.   Discusses QBS history in Oregon and the importance of QBS. 

072

Coba

Continues to read from informational packet (EXHIBIT II, Page 2 – 3).  Emphasizes QBS’s ability to save local governments money.  States that educated public clients work well with engineering firms.  Commits to help educate public officials about the QBS process.

106

Rep. Schaufler

Gives his tentative support of HB 3272.  Asks the witnesses to address the lack of quality when low-bid contracts are the criteria used to approve contracts and if HB 3272 will affect competition and will favor large firms.

129

Coba

Responds that American Council of Engineering Companies of Oregon  would be able to meet with Rep. Schaufler to answer all his questions.

130

Dave Leonard

Civil and Structural Engineer, Roseburg.  Submits and reads written testimony in support of HB 3272 (EXHIBIT L).  Explains the problems surrounding unqualified construction bids.  States that when he worked for Douglas County he instated a QBS process for construction contracts. 

200

Leonard

Addresses Rep. Schaufler’s original questions.  States that his firm started from scratch in 1985 and he now employees 25 people.  Says that they do not bid on low bid projects and notes that he has had strong customer satisfaction.  Believes that QBS is weighted against larger firms.

222

Rep. Schaufler

Asks if costs will rise if the QBS program is instated.

230

Leonard

Talks about how projects suffer when low bid construction contractors and engineers are used.  Explains the process he used in Douglas County and how the project was under budget and ahead of schedule.

251

Rep. Kitts

Asks if during the bidding process the bids are all within a five percent variation of each other.

255

Leonard

Affirms that they are for comparably qualified firms.

257

Rep. Kitts

Asks what a comparably qualified firm means.

260

Leonard

Responds that it is a firm with an understanding of different projects’ scopes.  Says that qualification could be based on educational and/or experience.

275

Rep. Kitts

Asks if a definition of comparably qualified firms exists.

276

Leonard

Responds a specific project has a set definition for a comparably qualified firm, but a general term does not exist.

283

Jory Adams

Civil Engineer, CH2M Hill.  Submits and reads written testimony in support of HB 3272 (EXHIBIT K).  States that QBS creates an environment in which project costs are lower.   Comments that states with QBS are better places for engineers to work and the projects are more successful.

335

Adams

Continues to read from written testimony (EXHIBIT K).  Describes the problems associated with low bid selection processes.

390

Rep. Schaufler

Requests an example of design cost savings.

392

Adams

Talks about the ways that firms can reduce the price of the project to the detriment of the design process.

TAPE 81, B

006

Rep. Kitts

Asks how many state projects are under $400,000.

014

Adams

Responds she cannot answer.

026

Chair Brown

Clarifies the number is for local governments rather than state governments.

031

Adams

Talks about her time as a city engineer and the small projects that currently do not fall under the QBS law.  Urges the committee to adopt QBS standards for local governments.

065

Jon Oshel

Association of Oregon Counties.  Submits written testimony in opposition to HB 3272 (EXHIBIT J).  Speaks in support of engineering surveying services being selected based on qualifications.  Says that the county does not acquire professional services based solely on price.  Believes that HB 3272 makes it harder for small firms to compete against large firms.  States that the existing law is adequate.

108

Jim Van Dyke

Attorney, City of Portland.  Speaks in opposition to HB 3272.  Says that engineers are not currently selected through a low bid process.  Mentions that the City of Portland has engineers on staff and they do not choose projects based only on the price.  States that the city tries to hire different engineering and architecture firms in order to support small businesses.  Says that HB 3272 will create a slower bidding process because of additional bureaucracy.

160

Chair Brown

Asks if Mr. Van Dyke and Mr. Oshel agree with the process that is currently in place.

162

Van Dyke

Responds that qualifications should not be the only standard when contracting out engineering and architectural work.

164

Chair Brown

Asks if they have problems with the existing statutes.

166

Van Dyke

Responds the existing statute does not affect their projects, because it only affects their bidding process when the project is over $400,000 and over 35% of the money comes from the state.  States that QBS affects 5% of their projects.

171

Oshel

Comments the bill would prevent them from looking at the price of a small construction project.

175

Chair Brown

Asks if the existing statute is acceptable.

176

Oshel

Responds the existing statue is adequate.

182

Chair Brown

Questions if a removal of the sunset is okay.

183

Oshel

States that the LOC was planning on asking for the removal of the sunset in two years.

184

Rep. Schaufler

Asks Mr. Van Dyke about his experience with QBS qualifying projects.

189

Van Dyke

Responds the laws slow down the construction process.

191

Rep. Schaufler

Asks for clarification on negotiations.

193

Van Dyke

Responds he does not participate in QBS negotiations.

198

Rep. Shields

Asks if there are any minority or disadvantaged firms that HB 3272 might prevent from getting work.

200

Van Dyke

Says that the City of Portland is trying to give work to emerging small businesses and women- and minority-owned businesses.  Shares concern that HB 3272 would create an environment where this is not possible.

204

Rep. Shields

Questions if disadvantaged firms currently receive work.

205

Van Dyke

Affirms that there are.

206

Chair Brown

Asks who makes decisions on who is qualified to receive the design contract.

209

Oshel

States that the process is done within the organization who is contracting out the work.  Adds that the decision is usually made by a committee.

216

Chair Brown

Asks if the size of a project decides whether a firm is qualified.

218

Oshel

Responds the size of the firm must reflect the size of the project.

225

Kurt Corey

Secretary, Oregon Public Works Association.  Member, the American Public Works Association (APWA).  Director, Public Works for City of Eugene.  Submits and reads from written testimony in support of HB 3272 (EXHIBIT KK).  Shares the history and views of APWA. 

281

Corey

Reads from written testimony (EXHIBIT KK).  Talks about APWA’s current mission statement.  Notes that APWA supports the QBS process.  

325

Corey

Reads from written testimony (EXHIBIT KK).  Mentions the educator grant program.  States that QBS is a nonpartisan issue.  Talks about his work history working with the QBS process and believes that QBS is only considering qualification before price. 

375

Corey

Continues to read from written testimony (EXHIBIT KK).  Talks about the QBS process in Eugene. 

422

Rep. Kitts

Asks who determines whether someone is qualified to receive a design contract.

425

Corey

Says local agencies can determine the qualifications and guidelines that are appropriate.  Notes that guidelines are available and references the guidelines in the beginning of HB 3272.

TAPE 82, B

005

Rep. Kitts

Asks if there is a set of qualifications defined for QBS or if the qualifications can be interpreted by each local government.

008

Corey

Responds it is easy to be objective when creating qualifications for the QBS process.

012

Rep. Kitts

Shares concerns about the variability of what being qualified means in HB 3272.  Asks what would keep a local government from choosing friends who they say are qualified to design the project.

033

Corey

Responds his area of expertise involves QBS projects.  Stresses that some faith must be put in local agencies.

048

Rep. Kitts

Shares concern that the qualifications in HB 3272 are too flexible.  Asks if the criteria for qualification in North Plains will be appropriate for Eugene.

057

Corey

States that North Plains and Eugene have the flexibility to put into place guidelines that will address their needs. 

065

Rep. Kitts

Asks if the possibility exists for the definition of qualified, in relation to QBS, to be adequate for one city but not another.

067

Corey

States that nothing comes to mind. 

072

Rep. Holvey

Asks if it would be fair to say that HB 3272 creates the opportunity for government agencies to set up QBS processes to meet their needs.

076

Corey

Affirms that it does create an opportunity for the QBS process to meet the needs of local governments.

077

Rep. Schaufler

Shares the concerns of Rep. Kitts.  States that he has absolute confidence in the local administrator from Happy Valley.

085

Chair Brown

Comments that engineering, architecture, land surveying are pretty much exact sciences and states that the latitude in the qualifications are not as great as one might think.

095

Jody A. Seaborn

President and Co-owner, Seaborn Engineering.  Submits and reads written testimony in support of HB 3272 (EXHIBIT LL).  Talks about how QBS benefits small firms.

145

Seaborn

Continues to read from written testimony (EXHIBIT LL).  Says that an owner knows the project the best at the beginning of the process and that makes them the most qualified to create qualifications. 

180

Seaborn

Begins to read from written testimony again (EXHIBIT LL, Page 1, Paragraph 4).  Talks about how she was higher in price than larger firms even though the hourly rate was cheaper.  

212

Martha Moore

President and Owner, TW Environmental Inc.  Submits and reads written testimony in support of HB 3272 (EXHIBIT MM).  Adds that she was originally registered as a woman-owned, disadvantaged, and emerging small business and that she is still registered as a disadvantaged business.  States that she has refused projects where the owner wanted the design scope to be smaller than the project needed and provides example.

284

Rep. Gilman

Says that they are already working with QBS and asks why it should be put into statute if QBS is already being used.

290

Seaborn

States that clients exist who do not use QBS and they choose not to work with them.  Responds the process brings more value to the firms and clients.

320

Christy Monson

League of Cities (LOC).  Submits and reads written testimony in opposition to HB 3272 (EXHIBIT NN).  Wants to wait to see how effective the contracts that currently fall under the jurisdiction are and revisit the issue when the current QBS law sunsets in 2008.  Comments that small cities do not have architects and engineers on staff and says that QBS affects small cities differently.  Clarifies that HB 3272 allows cities and counties to determine whether a business is minority owned in determining who is qualified.  Outlines liability problems with that qualification. 

387

Don Otterman

City Manager, North Plains.  Speaks in opposition to HB 3272.  Comments on the problems small cities have with the QBS process. 

TAPE 83, A

001

Otterman

Says that the city of North Plains could not use their city engineer when projects fell under the jurisdiction of QBS.  Talks about the issues the city had with QBS.  States that North Plains does not award contracts to the lowest bids.   Comments that QBS will slow construction processes and increase bureaucracy for small cities.

038

Rep. Schaufler

References the comment that the engineering component of the QBS project in North Plains was 30% and asks why they did not move onto the next engineer. 

054

Otterman

Says that the public works director only has expertise in water and does not have expertise in railroad trestles.  States that they did not know what a comparable price would be and did not know if the next firm’s price would be higher.

064

Wanda Kuppler

City Manager, Happy Valley.  Speaks in opposition to HB 3272.  Says that HB 3272 will create difficulties for small engineering firms.  Talks about her experience as a public employee.  States that the large engineering firms are often seen as the most qualified because of their access to advertising.  Notes that Happy Valley taxpayers expect the city to do what is best for the city and that does not mean always selecting the most qualified firm for construction projects.

116

Rep. Schaufler

States that he has to leave.

123

Cindy Robert

American Institute of Architects in Oregon.  Speaks in support of HB 3272.  Says that HB 3272 list the qualifications very clearly and local governments can determine qualifications.  Indicates that the reason Oregon needs HB 3272 is because it creates better projects and not everyone is utilizing the QBS process.  Talks about the list of design awards for QBS projects.  Talks about the concern of decreased quality and states that it has been shown QBS increases quality. 

172

Robert

Talks about small firms.  Comments that the average firm in Oregon is between five and seven people.

196

Jonathan Stafford

Architect, Jonathan Stafford AAA.  Testifies in support of HB 3272.  Believes the QBS system would not harm small architectural firms. 

224

Rep. Holvey

Comments about the oligarchic power that contracting agencies have.

231

Robert

Responds cities budget all of the construction costs.

255

Ken Armstrong

Oregon Ports Group.  Speaks in opposition to HB 3272.  Asserts that projects are not selected on a low bid basis.  Says that ports are working on a daily basis with engineers and have a deep knowledge of how to work with contractors.  Says that HB 3272 will create project delays.   States that the School Board Association is in opposition to HB 3272.

295

Amanda Rich

Special Districts.  Comments that projects’ price considerations do not exclude quality issues.  States that maintaining the threshold for simple projects is very important.

337

Lori Sattenspiel

Oregon Community College Association.  Speaks in opposition to HB 3272.  Says that they are concerned that HB 3272 could increase the cost of projects and that projects will take longer.

357

Chair Brown

Believes that if the Oregon Coast Community College gets the dollars that they want for capital construction from the state of Oregon then they will fall under existing QBS statutes.

360

Doug Riggs

Central Oregon Cities Organization.  Speaks in opposition to HB 3272.  Points out that looking at qualifications does not always meet individual projects needs.  Says that cities should have the opportunity to look at both cost and qualifications.

425

Chair Brown

Closes the public hearing on HB 3272 and opens a public hearing on HB 3001.  Notes a work group will be formed on HB 3272.

TAPE 84, A

HB 3001 – PUBLIC HEARING

006

Rep. Holvey

Explains HB 3001.  Talks about the possibility of a fiscal impact. Submits and reads written testimony and the -1 amendments (EXHIBIT OO and PP).  Also submits written testimony on behalf of the Eugene Water and Electric Board, Ethan Nelson, and Rhone Resch in support of SB 3001 (EXHIBIT QQ – SS). 

036

Frank Vignola

Director, University of Oregon Solar Energy Center.  Submits written testimony in support of HB 3001 (EXHIBIT TT).  Submits written testimony on the behalf of Douglass Boleyn and Jon Miller (EXHIBIT UU and VV).  Says that the solar industry has a growth rate of 30 percent a year.  Comments that Oregon is a great place for solar radiation.  Lists the benefits of solar energy.

091

John Reynolds

Professor of Architecture Emeritus, University of Oregon, Energy Trust Board of Directors, and American Solar Energy Society.  Comments on the ease of designing buildings that take advantage of solar energy.  States the HB 3001 could reduce overall electricity payments for organizations.

127

Nathan Philips

Chair, Oregon Electrical and Elevator Board and Governor, Oregon National Electrical Contractors Association.  Testifies in support of HB 3001.  Comments that the solar energy programs will pay for themselves within five years.  States that solar energy development supports economic growth. 

182

Chair Brown

Asks if solar energy design is being used in the private sector.

188

Vignola

Affirms that the private sector is incorporating solar energy into their building designs.  States that two megawatts of solar energy are currently being produced in Oregon.

204

Phillips

Comments that major Portland companies are moving towards incorporating solar energy into their buildings.

211

Chair Brown

Talks about different design options that can take advantage of solar energy. 

217

Phillips

Responds there must also be electrical lighting control to take advantage of daylight.

222

Reynolds

Comments, once a critical mass is reached, Oregon will see an explosion of solar installations.

237

Chair Brown

Notes that the designs for buildings made to ensure a 100 year lifespan.

239

Phillips

Comments that solar energy is at the same place insulation was 30 to 40 years ago.

247

Rep. Holvey

Comments that HB 3001 gives some latitude to contracting agencies.

268

Chair Brown

Closes the public hearing on HB 3001 and opens the work session on HB 3001.

HB 3001 – WORK SESSION

293

Rep. Holvey

MOTION:  Moves to ADOPT HB 3001-1 amendments dated 4/7/05.

294

VOTE:  4-0-3

EXCUSED:  3 - Kitts, Schaufler, Esquivel

Chair Brown

Hearing no objection, declares the motion CARRIED.

298

Rep. Shields

MOTION:  Moves HB 3001 with a DO PASS AS AMENDED recommendation and BE REFERRED to the committee on Ways and Means.

303

VOTE:  4-0-3

AYE:            In a roll call vote, all members present vote Aye.

EXCUSED:  3 - Esquivel, Kitts, Schaufler

Chair Brown

The motion CARRIES.

311

Chair Brown

Closes the work session on HB 3001.

312

Janet Adkins

Committee Administrator. Comments that HB 2717 can be carried over to the next meeting and does not need a referral to Ways and Means.

315

Chair Brown

Adjourns the meeting at 11:47 a.m.