HOUSE BILL REPORT

SSB 5417

BYSenate Committee on Transportation (originally sponsored by Senators Peterson, Patterson and Hansen; by request of Department of Transportation)

Extending maximum term for ferry system leases.

House Committe on Transportation

Majority Report:  Do pass.  (25)

      Signed by Representatives Walk, Chair; Baugher, Vice Chair; Betrozoff, Brough, Cantwell, Cooper, Dellwo, Doty, Fisher, Gallagher, Hankins, Haugen, Heavey, Kremen, Meyers, Prince, Schmidt, C. Smith, D. Sommers, Spanel, Sutherland, Todd, J. Williams, S. Wilson and Zellinsky.

House Staff:Louise Bray (786-7322)

AS PASSED HOUSE APRIL 7, 1987

BACKGROUND:

Current law (RCW 47.60.140) authorizes the Marine Division of the Department of Transportation (DOT) to enter into leases and contracts with private parties for concessions and space located on ferry wharves and docks.  This authorization empowers the DOT to operate the ferry system as a revenue producing undertaking.  The law, however, restricts leases for private concessions to not more than five years system-wide and not more than ten years at the Colman Dock facility in Seattle.  These restrictions prohibit long-term leasing options with public or private developers, that allow such persons to recover their investment.

Article 15, Section 2 of the Washington State Constitution restricts leases involving state aquatic lands to a period of no longer than 30 years.

SUMMARY:

The Department of Transportation is authorized to enter into lease agreements, for a period not to exceed 55 years, with public or private developers for the construction of improvements on ferry system property.

Lease agreements that involve state aquatic lands are restricted to a period of not more than 30 years and must conform to state constitutional and statutory requirements.

Fiscal Note:      Attached.

House Committee ‑ Testified For:    Jim Sainsbury, Department of Transportation.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    In order to interest private developers in making major improvements to Ferry System properties, it is necessary to provide for long-term leases; otherwise, the private developers will not be able to recoup their investments.

House Committee - Testimony Against:      None Presented.