HomeMy WebLinkAboutTIC 2019-08-20 Item 2B - Interlocal Agreement - Joint Purchasing Agreement for Job Order Contracting with City of Bellevuettn Ekberg, Mayor
Public ors Depa _ Henry Hash, Di
etat
INFORMATIONAL MEMORANDUM
TO: Transportation & Infrastructure Committee
FROM: Henry Hash Public Works Director
BY: Gail Labanara, Public Works Analyst
CC: Mayor Ekberg
DATE: August 16, 2019
SUBJECT: Public Works Interlocal Joint Purchasing Agreement with the City of Bellevue
Piggybacking for Job Order Contracting
ISSUE
Approve Interlocal Joint Purchasing Agreement with the City of Bellevue to piggyback the use of
their Job Order Contract for a maximum amount of $1,000,000.
BACKGROUND
A Job Order Contract (JOC) is a State approved procurement method in which a contractor agrees
to provide an indefinite quantity delivery of negotiated and definitive work orders from a pre-
established catalog on public works contracts, all over a fixed period of time. The JOC
procurement method is intended to streamline the public works process and reduce costs by
utilizing pre -fixed unit prices, as submitted and agreed to by the selected contractor after an RFP
process. Job Order Contracting reduces the lead-time for smaller public works projects and allows
for work orders to be issued. The benefit to the contractor is that they are motivated to perform
quality work at a reasonable cost by the promise of continued work orders and potential extension
of the contract.
On July 28, 2019, the State legislature amended RCW 39.10.420 for Job Order Contracting and
are now allowing all public bodies of the State of Washington to award job order contracts (which
was formerly limited to cities greater than 75,000 population).
The City of Bellevue is allowing us to "piggyback" on their main JOC contract with Saybr
Construction and their JOC consultant, Gordian Group, and allow Tukwila to use up to $1 million in
capacity (out of Bellevue's $4 million capacity per year over three years through September 2021).
ANALYSIS
RCW 39.10.440 limits the use of JOC to no more than three job order contracts in effect at any one
time. With Bellevue's Interlocal Joint Purchasing Agreement, 5% of costs would be payable to
Gordian, 10% to the main general contractor, Saybr, and at least 90% of the work would be
subcontracted. All work would be paid prevailing wages and the job order contractor must
distribute contracts as equitably as possible among qualified and available subcontractors,
including certified minority and woman -owned subcontractors. The maximum dollar amount for any
one work order is now $500,000.
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INFORMATIONAL MEMO
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The process for a Job Order Contract is to identify the project and work with Gordian and Saybr to
develop a scope of work. The contractor would then use a fixed pricing mechanism (from the RFP
catalog) to list the proposed sub -contractors, the schedule, and the lump sum cost. In addition, any
change orders would also be on the same fixed unit prices. The City would then decide if to
approve the proposed work order with Gordian/Saybr or look at other options. There is no
obligation to use JOC and other bidding options are always available.
FINANCIAL IMPACT
There is no financial impact. Budget limitations would still be applied, and we would use the City
policy of Council approval for any contract over $40,000. Finance may look at our financial policies
when Tukwila surpasses the 20,000-population level.
RECOMMENDATION
Council is being asked to approve the Intergovernmental Agreement with the City of Bellevue for
use of their Job Order Contract and to consider this item on the Consent Agenda at the September
3, 2019 Regular Meeting.
Attachments: Intergovernmental Agreement with the City of Bellevue
Job Order Contracting for Novices
Job Order Contracting Substitute House Bill 1295 for RCW 39.10.420 - 450
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INTERLOCAL JOINT PURCHASING AGREEMENT
THIS AGREEMENT is between the City of Bellevue, a political subdivision of the State of
Washington, and City of Tukwila a public
agency under the laws of the State of Washington.
WITNESSETH:
WHEREAS, the Interlocal Cooperation Act, as amended, and codified in Chapter 39.34 of
the Revised Code of Washington provided for interiocal cooperation between governmental
agencies; and
WHEREAS, Chapter 39.33 of the Revised Code of Washington provides for
intergovernmental disposition of property; and
WHEREAS, the parties desire to utilize each other's procurement agreements when it is
in their mutual interest; --
NOW, THEREFORE, the parties agree as follows::
1 PURPOSE: The purpose of this agreement is to acknowledge the parties' mutual
interest to jointly bid the acquisition of goods and services where such mutual effort
can be planned in advance and to authorize the acquisition of goods and services
and the purchase or acquisition of goods and services under contracts where a price
is extended by either party's bidder to other governmental agencies.
2. ADMINISTRATION: No new or separate legal or administrative entity is created to
administer the provisions of this agreement.
3. SCOPE: This agreement shall allow the following activities:
A. Purchase or acquisition of goods and services by each party acting as agent for
either or both parties when agreed to in advance, in writing;
B. Purchase or acquisition of goods and services by each party where provision has
been provided in contracts for other governmental agencies to avail themselves
of goods and services offered under the contract and/or where either party's
bidder is willing to extend prices to other governmental agencies.
4, DURATION AGREEMENT -- TERMINATION: This agreement shall remain in force
until cancelled by either party in writing.
5. RIGHT TO CONTRACT INDEPENDENT ACTION PRESERVED. Each party
reserves the right to contract independently for the acquisition of goods or services
without notice to the other party and shall not bind or otherwise obligate the other
party to participate in the activity.
6. COMPLIANCE WITH LEGAL REQUIREMENT: Each party accepts responsibility for
compliance with federal, state or local laws and regulations including, in particular,
bidding requirements applicable to its acquisition of goods and services.
7. FINANCING: The method of financing of payment shall be through budgeted funds
or other available funds of the party for whose use the property is actually acquired or
disposed. Each party accepts no responsibility for the payment of the acquisition
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price of any goods or services intended for use by the other party.
8, FILING: Executed copies of this agreement shall be filed as required by Section
39.34.040 of the Revised Code of Washington prior to this agreement becoming
effective.
9. INTERLOCAL COOPERATION DISCLOSURE: Each party may insert in its
solicitation for goods a provision disclosing that other authorized governmental
agencies may also wish to procure the goods being offered to the party and allowing
the bidder the option of extending its bid to other agencies at the same bid price,
terms and conditions.
10. NON-DELEGATION/NON-ASSIGNMENT: Neither party may delegate the
performance of any contractual obligation, to a third party, unless mutually agreed in
writing. Neither party may assign this agreement without the written consent of the
other party.
11. MOLD HARMLESS: SS: Each party shall be liable and responsible for the consequence
of any negligent or wrongful act or failure to act on the part of itself and its
employees. Neither party assumes responsibility to the other party for the
consequences of any act or omission of any person, firm or corporation not a party to
this agreement.
12, SEVERABILITY: Any provision of this agreement, which is prohibited or
unenforceable, shall be ineffective to the extent of such prohibition or
unenforceability, without invalidating the remaining provision or affecting the validity
or enforcement of such provisions.
APPROVED APPROVED, CITY OF BELLEVUE
Agency Name
Signature Date
Title
Procurement Manager Date
APPROVED AS TO FORM:
Assistant City Attorney Date
Signature (if needed) Date ATTEST:
Title City Clerk Date
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June 19th, 2019
Saybr Contractors
Attention: John Pallotta
3852 S 66th St
Tacoma, WA 98409
RE: Job Order Contracting; City of Tukwila use of Bellevue Contract
Dear Mr. Pallotta:
The City of Bellevue and the City of Tukwila recently entered into the attached agreement,
indicating intent to allow the City of Tukwila to issue work orders in a total amount not to exceed
$1,000,000 under the terms and conditions of Bellevue's Job Order Contracting agreements with
Gordian Group and Saybr. A copy of the agreement between the Bellevue and City of Tukwila is
attached for your reference.
The City of Bellevue is requesting that Saybr provide services directly to the City of Tukwila on the
same terms and conditions as exist in those certain "Job Order Contracting Saybr" contract, dated
September 19th, 2018. For work orders issued by the City of Tukwila for City of Tukwila projects,
any obligations owed by Saybr under the Saybr contract shall be performed for or provided directly
to the City of Tukwila.
Any invoice issued by Saybr for work for the City of Tukwila should contain the following:
All work described herein provided directly to the City of Tukwila and Saybr are subject to the
terms and conditions of those certain "Job Order Contracting Saybr". The City of Bellevue is not a
party to nor responsible for performance of or payment for the work described in this invoice."
Please indicate your consent to this joint purchasing arrangement by countersigning this letter
where indicated below. This letter may be countersigned in multiple counterparts, which together
shall constitute a single agreement. Please contact me if you have any questions.
Sincerely,
CITY OF BELLEVUE
OFFICE OF THE CITY ATTORNEY
Nicholas Melissinos
Deputy City Attorney
Enclosure:
DATE
25
ACKNOWLEDGED AND ACCEPTED BY SAYBR
Signature
Printed Name
Title
ACKNOWLEDGED AND ACCEPTED BY THE CITY OF TUKWILA
Signature
Printed Name
Title
26
Job Order Contracting for Novices
Just the Basics
By: Gary Aller
So, what is JOC?
Job Order Contracting (JOC) is a way of getting small, simple, and commonly encountered
construction projects done easily and quickly. A JOC contract usually applies to a specific site or
sites and can be used for any number of jobs that need to be done for as long as the contract is in
effect. The JOC method of project delivery was devised by the military sector in the 1980s as a
way to overcome problems with the traditional Design Bid Build (DBB) or low -bid method.
Using DBB, every project, no matter how small, had to be designed and put out for bid, with the
award going to the lowest bidder.
Going through this procedure for every little job was becoming impractical. The common
occurrences of construction delays, cost over -runs, and quality disputes were successfully
reduced using the new method, and JOC has been equally successful in the private sector for
more than a decade. Recent legislation and existing procurement regulations have authorized the
use of JOC for public construction in many states (including New Mexico). Essentially, JOC
provides owners with an on -call general contractor who is familiar with the site and the owner's
needs.
When is JOC Used?
The JOC delivery method is particularly well suited to repetitive jobs and situations in which
owners know that many small tasks will arise, but the timing, type of work, and quantity of work
are unknown at the time the contract is signed. Many diverse tasks such as routine upgrades and
renovations, remodeling, alterations, and minor new construction for a site are very efficiently
handled using a single JOC contract. These jobs usually have minimal design requirements.
The JOC method should not be used for large, complex new construction projects that require
extensive or innovative design or are likely to encounter changes and revisions during
construction. In fact, some states require each job completed under a JOC contract to cost less
than $1,000,000.
Why is JOC Useful?
There are several important advantages provided by Job Order Contracting. Projects done under
JOC contracts are completed faster and incur fewer "soft costs," and the quality of the work is
equal to or higher than that of projects done using DBB.
The most obvious benefit of JOC is the fact that it is not necessary to write separate contracts for
each job. Since procurement procedures are major contributors to overhead and require
significant staff resources, bypassing this procedure saves time and money.
Jobs get done faster and more cost effectively because the procurement costs are spread over
many jobs. In fact, for most jobs done under JOC contracts, work beings 20 — 30 days after the
need for work is communicated to the contractor, as compared to 180 days for DBB.
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Another advantage is that the JOC contract establishes unit prices for labor and material, so once
quantities are determined, it is fast and easy to arrive at a fixed price for each job. There are no
price negotiations involved in implementing a JOC contract.
Additionally, because the owner establishes a long-term relationship with the Job Order
Contractor, communication can be very efficient as the contractor becomes familiar with the
needs and expectations of the owner. This long-term partnership, when established in a
cooperative environment, leads to better quality and better value. JOC contracts are written with
minimum and maximum dollar amounts of work that may be assigned under the contract. This
situation creates a powerful incentive for the contractor to provide fast, high quality, reliable
service to the owner. Owners are also motivated to establish positive relationships with the Job
Order Contractors in order to reap the maximum benefits from the contract.
Finally, a very important feature of the JOC process is that the contractor is chosen by
Qualifications Based Selection. This means that the choice will be based on experience with
similar sites, knowledge and capability of personnel, and other factors that directly impact the
quality of work delivered.
The JOC contractor typically uses his in-house design staff or an architect already under contract
to quickly draw up plans for jobs as the need arises, saving substantial time.
How is a JOC Contract Used?
The process of using a JOC contract is very fast and straightforward. When a need is identified,
the owner contacts the JOC contractor and they walk through the site, define the extent of the
project, and discuss alternate approaches to be considered. The contractor then draws up a
design, if necessary, and a detailed project list, including all materials and labor needed. Using
the chosen unit price book, the contractor can establish a firm price for the job. The owner
reviews the proposal and issues an authorization to proceed. The process from request to
authorization to begin work takes a very short time, sometimes as little as ten days to two weeks
and not more than 30 days. The flow diagram below shows the steps of the process.
Gary L. Aller is the former Director of the Alliance for Construction Excellence(ACE) and was
instrumental in the Arizona state legislative process incorporating Alternate Delivery Project Methods'
into law in the early 2000's, including JOC. ACE is an outreach/inreach organization that is part of the
Del E. Webb School of Construction at Arizona State University.
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1 build projects. In determining the amount of the honorarium, the
2 public body shall ((-c nsidcr)) recognize the level of effort required
3 to meet the selection criteria.
4 Sec. 7. RCW 39.10.420 and 2017 c 136 s 1 are each amended to
5 read as follows:
6 (1) ((The following)) All public bodies of the state of
7 Washington are authorized to award job order contracts and use the
8 job order contracting procedure((÷
9 „.."c department
10 /1._\
11
College;
12 .Sound transit
13
14
15 nnd any -public authority
with
enterprise services;
16 ?E 7FG.
17 (e) Every county with
18 .4' 4
thousan-];
19
20 11
21
22 greater than twenty three million dollars --or year;
23 (h) Evary school district;
24 \ 4 \ The -state ferry system;
Sound tran-it
under...ROW.
population great r than
4--.-f_),-.).--Evcry port dictrict with total rovenues grea4-or than -F-'ftcen
25 / \
\ / The Washington
26 ' -c '1
"I 4 4....
A4
,-.
of trancp.
d
27 projects only
28 (k) public hospital with total rev-nucs grcatcr
29 than 'i-F-to--n ri5iicn ,-'0.-1-1arc per ar; --and
30 (1) Every public transportation benefit arc- authori
31 under acw 36.57A.010)).
32 (2)(a) The department of enterprise services may issue job order
33 contract work orders for Washington state parks department projects
34 and public hospital districts.
35 (b) The department of enterprise services, the University of
36 Washington, and Washington State University may issue job order
37 contract work orders for the state regional universities and The
38 Evergreen State College.
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1 (3) Public bodies may use a job order contract for public works
2 projects when a determination is made that the use of job order
3 contracts will benefit the public by providing an effective means of
4 reducing the total lead-time and cost for the construction of public
5 works projects for repair and renovation required at public
6 facilities through the use of unit price books and work orders by
7 eliminating time-consuming, costly aspects of the traditional public
8 works process, which require separate contracting actions for each
9 small project.
10
11 read as follows:
Sec. 8. RCW 39.10.430 and 2007 c 494 s 402 are each amended to
12 (1) Job order contracts shall be awarded through a competitive
13 process using public requests for proposals.
14 (2) The public body shall make an effort to solicit proposals
15 from certified minority or certified woman -owned contractors to the
16 extent permitted by the Washington state civil rights act, RCW
17 49.60.400.
18 (3) The public body shall publish, at least once in a statewide
19 publication and legal newspaper of general circulation published in
20 every county in which the public works project is anticipated, a
21 request for proposals for job order contracts and the availability
22 and location of the request for proposal documents. The public body
23 shall ensure that the request for proposal documents at a minimum
24 includes:
25 (a) A detailed description of the scope of the job order contract
26 including performance, technical requirements and specifications,
27 functional and operational elements, minimum and maximum work order
28 amounts, duration of the contract, and options to extend the job
29 order contract;
30 (b) The reasons for using job order contracts;
31 (c) A description of the qualifications required of the proposer;
32 (d) The identity of the specific unit price book to be used;
33 (e) The minimum contracted amount committed to the selected job
34 order contractor;
35 (f) A description of the process the public body will use to
36 evaluate qualifications and proposals, including evaluation factors
37 and the relative weight of factors. The public body shall ensure that
38 evaluation factors include, but are not limited to, proposal price
39 and the ability of the proposer to perform the job order contract. In
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30
1 evaluating the ability of the proposer to perform the job order
2 contract, the public body may consider: The ability of the
3 professional personnel who will work on the job order contract; past
4 performance on similar contracts; ability to meet time and budget
5 requirements; past performance on approved subcontractor inclusion
6 plans; ability to provide a performance and payment bond for the job
7 order contract; recent, current, and projected workloads of the
8 proposer; location; and the concept of the proposal;
9 (g) The form of the contract to be awarded;
10 (h) The method for pricing renewals of or extensions to the job
11 order contract;
12 (i) A notice that the proposals are subject to RCW 39.10.470; and
13 (j) Other information relevant to the project.
14 (4) A public body shall establish a committee to evaluate the
15 proposals. After the committee has selected the most qualified
16 finalists, the finalists shall submit final proposals, including
17 sealed bids based upon the identified unit price book. Such bids may
18 be in the form of coefficient markups from listed price book costs.
19 The public body shall award the contract to the firm submitting the
20 highest scored final proposal using the evaluation factors and the
21 relative weight of factors published in the public request for
22 proposals and will notify the board of the award of the contract.
23 (5) The public body shall provide a protest period of at least
24 ten business days following the day of the announcement of the
25 apparent successful proposal to allow a protester to file a detailed
26 statement of the grounds of the protest. The public body shall
27 promptly make a determination on the merits of the protest and
28 provide to all proposers a written decision of denial or acceptance
29 of the protest. The public body shall not execute the contract until
30 two business days following the public body's decision on the
31 protest.
32 (6) The requirements of RCW 39.30.060 do not apply to requests
33 for proposals for job order contracts.
34 Sec. 9. RCW 39.10.440 and 2015 c 173 s 1 are each amended to
35 read as follows:
36 (1) The maximum total dollar amount that may be awarded under a
37 job order contract is four million dollars per year for a maximum of
38 three years. Any unused capacity from the previous year may be
39 carried over for one year and added to the immediate following year's
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1 limit. The maximum annual volume including unused capacity shall not
2 exceed the limit of two years. The maximum total dollar amount that
3 may be awarded under a job order contract for the department of
4 enterprise services, counties with a population of more than one
5 million, and cities with a population of more than four hundred
6 thousand is six million dollars per year for a maximum of three
7 years. The maximum total dollar amounts are exclusive of Washington
8 state sales and use tax.
9 (2) Job order contracts may be executed for an initial contract
10 term of not to exceed two years, with the option of extending or
11 renewing the job order contract for one year. All extensions or
12 renewals must be priced as provided in the request for proposals. The
13 extension or renewal must be mutually agreed to by the public body
14 and the job order contractor.
15 (3) A public body may have no more than ((we)) three job order
16 contracts in effect at any one time, with the exception of the
17 department of enterprise services, which may have six job order
18 contracts in effect at any one time.
19 (4) At least ninety percent of work contained in a job order
20 contract must be subcontracted to entities other than the job order
21 contractor. The job order contractor must distribute contracts as
22 equitably as possible among qualified and available subcontractors
23 including certified minority and woman -owned subcontractors to the
24 extent permitted by law as demonstrated on the subcontractor and
25 supplier project submission, and shall limit subcontractor bonding
26 requirements to the greatest extent possible.
27
28 to perform public works projects at the beginning of each contract
29 year in a statewide publication and in a legal newspaper of general
30 circulation in every county in which the public works projects are
31 anticipated.
32 (6) Job order contractors shall pay prevailing wages for all work
33 that would otherwise be subject to the requirements of chapter 39.12
34 RCW. Prevailing wages for all work performed pursuant to each work
35 order must be the rates in effect at the time the individual work
36 order is issued.
37 (7) If, in the initial contract term, the public body, at no
38 fault of the job order contractor, fails to issue the minimum amount
39 of work orders stated in the public request for proposals, the public
40 body shall pay the contractor an amount equal to the difference
(5) The job order contractor shall publish
notification of intent
p. 14
SHB 1295.SL
32
1 between the minimum work order amount and the actual total of the
2 work orders issued multiplied by an appropriate percentage for
3 overhead and profit contained in the contract award coefficient for
4 services as specified in the request for proposals. This is the
5 contractor's sole remedy.
6 (8) All job order contracts awarded under this section must be
7 signed before July 1, 2021; however the job order contract may be
8 extended or renewed as provided for in this section.
9 (9) Public bodies may amend job order contracts awarded prior to
10 July 1, 2007, in accordance with this chapter.
11 Sec. 10. RCW 39.10.450 and 2012 c 102 s 2 are each amended to
12 read as follows:
13 (1) The maximum dollar amount for a work order is ((thrco)) five
14 hundred ((fifty)) thousand dollars, excluding- Washington state sales
15 and use tax.
16 (2) All work orders issued for the same project shall be treated
17 as a single work order for purposes of the dollar limit on work
18 orders.
19 (3) No more than twenty percent of the dollar value of a work
20 order may consist of items of work not contained in the unit price
21 book.
22 (4) Any new stand-alone permanent((, cncicz-cd -p,cc))
23 structure constructed under a work order shall not exceed ((tw ))
24 three thousand gross square feet.
25 (5) A public body may issue no work orders under a job order
26 contract until it has approved, in consultation with the office of
27 minority and women's business enterprises or the equivalent local
28 agency, a plan prepared by the job order contractor that equitably
29 spreads certified women and minority business enterprise
30 subcontracting opportunities, to the extent permitted by the
31 Washington state civil rights act, RCW 49.60.400, among the various
32 subcontract disciplines.
33 (6) For purposes of chapters 39.08, 39.12, 39.76, and 60.28 RCW,
34 each work order issued shall be treated as a separate contract. The
35 alternate filing provisions of RCW 39.12.040(2) apply to each work
36 order that otherwise meets the eligibility requirements of RCW
37 39.12.040(2).
38 (7) The job order contract shall not be used for the procurement
39 of architectural or engineering services not associated with specific
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1
2
3
4
5
6
7
work orders. Architectural and engineering services shall be procured
in accordance with RCW 39.80.040.
£31 Any work order over three hundred fifty thousand dollars,
excluding Washington state sales and use tax, and includina over six
hundred single trade hours shall utilize a
state reaistered
apprenticeship program for that single trade in accordance with ROW
39.04,_320„ Awarding entities may ad>ust this requirement for a
8 specific work order for the followina reasons:
9 (a) The demonstrated lack of availability of apprentices in
10 specific geographic areas;
11 (b) A disproportionately high ratio of material costs to labor
12 hours, which does not make feasible the reauired minimum levels of
13 apprentice participation;
14 Participating contractors have demonstrated a good faith
15 effort to comply with the requirements of RCW 39.04.300 and
16 39.04.310; or
17 (d) Other criteria the awarding entity deems appropriate.
18 Sec. 11. RCW 39.10.470 and 2014 c 19 s 2 are each amended to
19 read as follows:
20 (1) Except as provided in subsections (2) and (3) of this
21 section, all proceedings, records, contracts, and other public
22 records relating to alternative public works transactions under this
23 chapter shall be open to the inspection of any interested person,
24 firm, or corporation in accordance with chapter 42.56 RCW.
25 (2) Trade secrets, as defined in RCW 19.108.010, or other
26 proprietary information submitted by a bidder, offeror, or contractor
27 in connection with an alternative public works transaction under this
28 chapter shall not be subject to chapter 42.56 RCW if the bidder,
29 offeror, or contractor specifically states in writing the reasons why
30 protection is necessary, and identifies the data or materials to be
31 protected.
32 (3) ((2r3polo. ubcitted by dcign build All
33 documents related to a procurement under RCW 39.10.330 are exempt
34 from disclosure until the notification of the highest scoring
35 finalist is made in accordance with RCW 39.10.330((+*)) (6) or the
36 selection process is terminated, except as expressly reauired under
37 RCW 39.10.330(3).
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