1872-S AMH RADC H1527

1872-S AMH RADC H1527.4

SHB 1872 - H AMD 330 ADOPTED 3-19-97

By Representative Radcliff

On page 15, beginning on line 24, strike all of section 16 and insert the following:

"NEW SECTION. Sec. 16. LEGISLATIVE FINDINGS. The legislature finds and declares that:

(1) The Puget Sound region is experiencing rapid growth, which is already straining transportation capacity, and threatening the economic viability of the area. The Puget Sound region is the state's largest urban area and most important economic region, and it is in the interest of the state to establish policies that facilitate preservation and enhancement of the economic viability of this region.

(2) The state has the primary responsibility for providing state highway capacity throughout the state, including the Puget Sound region. However, state, regional, and local policies do not envision construction of general purpose highway facilities to accommodate future growth in the Puget Sound region, but instead rely on a number of factors, especially attraction of single-occupant automobile users to transit and ride-sharing alternatives. As a result the state has a substantial and direct interest in the success of these policies to substitute alternative modes of transport, including public transit.

(3) Regional and local authorities have, in accordance with state and federal requirements, adopted a metropolitan transportation plan that forecasts a significant increase in transit ridership both within the constraints of existing resources and with expanded resources.

(4) The ridership trend of transit operators within the Puget Sound region falls short of the rate necessary to achieve the long-term transit ridership forecasts. Correction of this trend will require substantial increases in service, to be achieved, in part, within current resource constraints. However, these service increases are unlikely to occur without a performance program that provides transit operators with incentives to improve their cost-effectiveness.

(5) Transit agencies receive a substantial amount of state and local funding, including funds from the motor vehicle excise tax, which is declared to be a state tax, and local taxes authorized under state law. The state has an interest in ensuring that these funds are used cost-effectively. It is in the state's interest to establish a transit performance program for the Puget Sound region.

NEW SECTION. Sec. 17. DEFINITIONS. The definitions set forth in this section apply throughout this chapter.

(1) "Basic resource targets" mean ridership and service level targets based upon the Puget Sound regional council metropolitan transportation plan "financially constrained" strategy 2020 forecast in effect as of January 1, 1996.

(2) "Bus" means a motor bus or trolley bus.

(3) "Expanded resource targets" mean the ridership and service level targets based upon the Puget Sound regional council metropolitan transportation plan "preferred" strategy forecast in effect as of January 1, 1996.

(4) "Inflation adjustment" means adjustment of financial data using the Consumer Price Index: Urban Wage Earners and Clerical Workers (CPI-W) for Seattle-Tacoma, Washington, as published by the United States department of labor.

(5) "Operating cost" means all operating costs reported through the federal transit administration national transit data base as defined on January 1, 1994, or its successor, including vehicle operations, vehicle maintenance, nonvehicle maintenance, and general and administrative costs.

(6) "Puget Sound region" means the area consisting of a county with a population greater than one million persons, any counties abutting it that have populations greater than four hundred thousand persons, and any counties abutting it that have populations greater than two hundred thousand persons and are served by the Washington state ferry system.

(7) "Puget Sound regional council" means the metropolitan planning organization for the county having the largest population in the Puget Sound region.

(8) "Unlinked passenger trip" has the meaning as defined under the United States department of transportation, federal transit administration national transit data base as of January 1, 1994.

(9) "Vehicle hour" has the meaning as defined under the United States department of transportation, federal transit administration national transit data base as of January 1, 1994.

NEW SECTION. Sec. 18. PUGET SOUND TRANSIT PERFORMANCE PROGRAM. A Puget Sound transit performance program is established and applies to the transit operations of all municipalities as defined in RCW 35.58.272 and the regional transit authority established under chapter 81.112 RCW in the Puget Sound region. The program consists of the following:

(1) Unit cost, ridership, and service level performance targets for the Puget Sound region and transit operators as provided by sections 19 through 26 of this act;

(2) Unit cost regulation as provided by sections 27 through 33 of this act;

(3) The Puget Sound transit expansion account established by section 34 of this act;

(4) Truth in planning reporting as provided by section 35 of this act; and

(5) Related reporting requirements.

NEW SECTION. Sec. 19. PERFORMANCE TARGETS. The initial performance targets for 2020 are:

(1) A unit cost target for each transit operator of $56.00 operating cost per vehicle hour in 1994 dollars, converted to 1999 dollars through inflation adjustment. This cost per hour target is an estimate of the cost level required to achieve the 2020 basic resource ridership target under the assumptions of the metropolitan transportation plan "financially constrained" strategy;

(2) Basic resource targets for ridership and service level as defined in section 17 of this act;

(3) A ridership target of 185,000,000 unlinked passenger trips annually, exclusive of services funded by the regional transit authority.

NEW SECTION. Sec. 20. INTERIM RIDERSHIP TARGETS. The Puget Sound regional council, in cooperation with and with the unanimous consent of the transit operators, shall establish annual unlinked passenger trip forecasts, allocated by transit operator. The annual forecasts must be based upon achievement of the 2020 target of this chapter, and the total unlinked passenger trip targets allocated to the operators must balance to the total Puget Sound region unlinked passenger trip forecasts. The total Puget Sound region ridership target in each year must represent no less than eighty percent of the increase from the base year that would be required under the "straight line default" targets of section 21 of this act. The council shall forward notice of interim target adoption to the state auditor, who upon certifying consistency with the requirements of this chapter, shall use these targets in administering unit cost regulation and in "truth in planning" reporting.

NEW SECTION. Sec. 21. RIDERSHIP STRAIGHT LINE DEFAULT TARGETS. (1) Until such time as interim ridership targets are certified by the state auditor under section 20 of this act, the auditor shall use straight line default targets in administering unit cost regulation and "truth in planning" requirements. The unlinked passenger trip target will be increased each year by 1/23 of the difference between the base year 1997 unlinked trips and the 2020 target. The auditor shall allocate individual operator targets for each year based upon the percentage of base year Puget Sound region unlinked trips carried by the operator.

(2) Straight line default targets apply to any year for which the cooperative process in section 20 of this act did not result in certification of the interim target before the commencement of that year.

NEW SECTION. Sec. 22. SERVICE LEVEL TARGETS. (1) The Puget Sound regional council shall establish a basic resource service level target of 8,360,000 bus vehicle hours annually for 2020.

(2) The Puget Sound regional council, in cooperation with and with the unanimous consent of the transit operators, shall establish annual vehicle hour targets, allocated by transit operator. The annual targets must be based upon achievement of the 2020 target in this chapter, and the total annual vehicle hour targets allocated to the operators must balance to the total Puget Sound region annual vehicle hour targets. The total Puget Sound region ridership target in each year must represent no less than eighty percent of the increase from the base year that would be required under the "straight line default" scenario of section 23 of this act. The council shall forward notice of interim target adoption to the state auditor, who upon certifying consistency with the requirements of this chapter, shall use these targets in administering unit cost regulation and in "truth in planning" reporting.

NEW SECTION. Sec. 23. UNIT STRAIGHT LINE DEFAULT TARGETS. Until such time as interim service level targets are certified by the state auditor under section 22 of this act, the state auditor shall use straight line default targets in administering unit cost regulation and "truth in planning" requirements. The vehicle hours target will be increased each year by 1/23 of the difference between base year 1997 vehicle hours and the 2020 target. The auditor shall allocate individual operator targets for each year based upon the percentage of base year Puget Sound region vehicle hours provided by the operator.

NEW SECTION. Sec. 24. The state auditor shall revise future annual service level targets for an operator to reflect any revision in future cost per vehicle hour targets under section 30 of this act. The new vehicle hour target in any year must be equal to the existing vehicle hour target for the year multiplied by the preexisting cost per vehicle hour target divided by the revised cost per vehicle hour targets for the corresponding year. The auditor shall revise total Puget Sound region service level targets to reflect the revised transit operator service level targets.

NEW SECTION. Sec. 25. The Puget Sound regional council shall establish interim expanded resource targets as defined in section 17 of this act for the year 2020. The ridership target for the year 2020 is 295 million unlinked passenger trips annually. Following the general procedures in sections 20 and 21 of this act, interim annual targets must be established, submitted, and certified.

NEW SECTION. Sec. 26. In establishing the 2020 expanded service level target, the Puget Sound regional council shall provide the 2020 incremental service level forecast using the metropolitan transportation plan "preferred strategy" service level minus the "financially constrained strategy" service level. Rail service must be converted to bus equivalents using the federal transit administration formula used in its latest biennial "needs" report to the United States Congress, or its successor. The target is the incremental service level plus the basic service level, stated in bus vehicle hours, including bus vehicle hour equivalents of rail service. Following the general procedures in sections 22 through 24 of this act, interim annual targets must be established, submitted, and certified.

NEW SECTION. Sec. 27. UNIT COST REGULATION. (1) Each transit operator in the Puget Sound region is subject to unit cost regulation or CPI-X factor, as set forth in section 28 of this act.

(2) The state auditor shall administer unit cost regulation and apply it to bus operating costs per vehicle hour of fixed route service open to the general public. The auditor shall perform all calculations and certifications required under this chapter in compliance with the provisions of this chapter.

NEW SECTION. Sec. 28. CALCULATION OF INITIAL CPI-X FACTOR. (1) The auditor shall calculate an initial CPI-X factor for each operator. The CPI-X factor is the annual percentage decline in inflation adjusted cost per vehicle hour necessary to reach the initial 2020 operating cost per vehicle hour target in 2020 established in section 19(1) of this act.

(2) The auditor shall calculate a schedule of annual cost per vehicle hour targets for each year from the base year to 2020, with each year's target reduced by the operator's CPI-X factor. The first year's target is the base year actual cost per vehicle hour reduced by the CPI-X factor. The targets must be expressed in inflation-adjusted 1999 dollars.

(3) The operating cost per vehicle hour target for each transit operator will continue to decline by the CPI-X factor determined in this section until the initial 2020 cost per vehicle hour target established in section 19(1) of this act is met. Thereafter the cost per vehicle hour target equals the initial 2020 cost per vehicle hour target.

(4) The auditor shall assess these targets and provide a report to the legislature not later than December 1, 2006.

NEW SECTION. Sec. 29. COMPLIANCE. (1) In any year, an operator is in compliance if its bus operating cost per vehicle hour is equal to or less than its operating cost per vehicle hour target and its unlinked passenger trips are equal to or greater than its basic resource unlinked passenger trips target.

(2) Each transit operator in compliance is not subject to the reductions in motor vehicle excise tax provided for in section 32 of this act.

NEW SECTION. Sec. 30. REVISION OF A TRANSIT OPERATOR'S CPI-X FACTOR. (1) If an operator is in compliance with both its operating cost per vehicle hour target and its unlinked passenger trips target, the state auditor shall reduce the operator's CPI-X standard for future years by ten percent of the operator's initial CPI-X factor.

(2) The auditor may not reduce an operator's CPI-X regulation factor by more than fifty percent from the operator's initial CPI-X factor.

(3) If an operator is not in compliance with both its operating cost per vehicle hour target and its unlinked passenger trips target, the auditor shall increase the operator's CPI-X factor for future years by ten percent of the operator's initial CPI-X factor, not to exceed the initial CPI-X factor.

(4) The auditor shall credit toward reducing the operating cost per vehicle hour, the amount of fares received for any commuter service that receives in fares, at least forty percent of the costs of operating that service.

(5) The auditor shall recalculate future operating cost per vehicle hour targets based upon any revision in an operator's CPI-X factor following the approach of section 28(2) of this act.

NEW SECTION. Sec. 31. No arbitrator, administrative law judge, or any other officer or authority may impose a labor contract award that causes a transit operator to be out of compliance with its operating cost per vehicle hour target at any point during the period of the award. An operator aggrieved by an arbitration decision in violation of this section may appeal the decision to a court of competent jurisdiction.

NEW SECTION. Sec. 32. With respect to a year in which a transit operator fails to achieve its operating cost per vehicle hour target:

(1) The state auditor shall reduce the operator's maximum level of motor vehicle excise tax to be distributed to that municipality by the product of the total vehicle hours operated in the subject year multiplied by the extent to which the operating cost per vehicle hour target is missed. This reduction takes effect in the first full fiscal year after the due date of the transit operator's annual report applying to the year in which the target is missed. The state auditor shall annually determine the compliance or noncompliance of each transit operator with unit cost regulation within ninety days of the due date of the transit operator annual reports.

(2) Upon order of the auditor, the state treasurer shall hold in escrow the amount by which the transit operator's excise tax eligibility is reduced.

(3) If the transit operator achieves its operating cost per vehicle hour target in the next year, the auditor shall restore the operator's excise tax eligibility to the previous year's level, and shall notify the treasurer to grant to the transit operator the funding that was placed in escrow.

(4) If the transit operator fails to achieve its operating cost per vehicle hour target in the next year, the auditor shall calculate a factor by which the maximum rate of motor vehicle excise tax that the municipality may impose under RCW 35.58.273 will be permanently reduced, which must reflect the amount in escrow. In each year, the auditor shall deposit this amount in the Puget Sound transit expansion account created in section 34 of this act.

(5) Failure to achieve the operating cost per vehicle hour target will disqualify the transit agency from receiving funds from the central Puget Sound public transportation account.

NEW SECTION. Sec. 33. (1) The regional transit authority may not award service contracts to a designated transit operator not in compliance with its most recent annual unit cost target, as determined by the state auditor, at the time of contract award.

(2) A regional transit authority may award service contracts to a transit operator or company whose unit costs are equal to or less than unit costs established for designated Puget Sound transit operators during the term of the contract.

(3) Bus services directly operated at any time by the regional transit authority are subject to the initial 2020 cost per vehicle hour standard established in section 19(1) of this act.

NEW SECTION. Sec. 34. A new section is added to chapter 47.26 RCW to read as follows:

PUGET SOUND TRANSIT EXPANSION ACCOUNT. (1) The Puget Sound transit expansion account is created in the custody of the state treasurer. All receipts from section 32(4) of this act must be deposited into the account. Expenditures from the account may be used only for transit projects selected under this section.

(2) The transportation improvement board shall administer a competitive grant program to provide funds for eligible agencies within the Puget Sound region to expand transit services using the Puget Sound transit expansion account.

(3) The criteria for projects to be funded from this account include, but are not limited to:

(a) The projects must be within the Puget Sound region;

(b) Eligible projects are limited to general purpose transit service and improvements to the high-occupancy vehicle lane system;

(d) To the extent feasible, and consistent with other criteria, allocations should reflect the general distribution of state funding reduction by county jurisdiction.

(4) Eligible agencies include:

(a) Municipalities operating public transit services that are in compliance with their operating cost per vehicle hour targets;

(b) Any other unit of government in the region, including state agencies, counties, municipalities, school districts, special districts, or a combination of them.

NEW SECTION. Sec. 35. TRUTH IN PLANNING REQUIREMENT. The state auditor shall produce a "truth in planning" report to the governor and the legislature by November 30th of each even-numbered year. The report must provide the following information through the most recent fiscal year for which data is available:

(1) Required findings. The findings in this subsection are based upon the metropolitan transportation plan as in effect on January 1, 1996, for both the financially constrained and preferred strategies, the basic resource and expanded resource targets. Separate findings need to be made under each strategy for the Puget Sound region in total and for each of the transit operators:

(a) Percentage variance of total unlinked passenger trips relative to the forecast;

(b) Percentage variance of change in unlinked passenger trips from the base year compared to the forecast;

(d) Percentage variance of total bus vehicle hours relative to the forecast;

(e) Percentage variance of the change in bus vehicle hours from the base year compared to the forecast;

(f) Percentage variance of the change in bus vehicle hours during the latest biennium compared to the forecast;

(2) Summary tables for the Puget Sound region and each operator, showing the following information under the metropolitan transportation plan "financially constrained" and "preferred" strategies:

(a) Total forecast unlinked passenger trips, actual unlinked passenger trips, the difference between forecast and actual, and the percentage of variance;

(b) Total forecast change in unlinked passenger trips since the base year, the actual change, the difference between forecast and actual, and the percentage of variance;

(c) Total forecast change in unlinked passenger trips during the last biennium, the actual change, the difference between forecast and actual, and the percentage of variance;

(d) Total forecast bus vehicle hours, actual bus vehicle hours, the difference between forecast and actual, and the percentage of variance;

(e) Total forecast change in bus vehicle hours since the base year, the actual change, the difference between forecast and actual, and the percentage of variance;

(f) Total forecast change in bus vehicle hours during the last biennium, the actual change, the difference between forecast and actual, and the percentage of variance;

(3) Detailed versions of all tables required as summary tables under subsection (2) of this section for each year from 1997 to 2020, to the extent available, for the Puget Sound region and each transit operator;

(4) Charts with graphics that clearly and effectively depict short-term (base year to present) and long-term trends (base year to 2020) in unlinked passenger trips and bus vehicle hours for the Puget Sound region and each transit operator.

By June 1st of each year, all designated Puget Sound transit operators shall submit to the department of transportation an estimate of the number and percentage of discretionary passengers who rode their systems during the previous year and an estimate of the percentage of all vehicular trips made on transit within their service territories during the previous year. The department shall publish this data in its annual public transportation report as provided in RCW 35.58.2796. A discretionary passenger is a person with access to a single occupant vehicle who has chosen to ride transit instead of driving alone in an automobile.

NEW SECTION. Sec. 36. A new section is added to chapter 47.80 RCW to read as follows:

A regional transportation planning organization for a county with a population of at least one million persons has the following duties:

(1) Prepare and periodically update a transportation strategy for the region. The strategy must address alternative transportation modes and transportation demand management measures in regional corridors and shall recommend preferred transportation policies to implement adopted growth strategies. The strategy serves as a guide in preparation of the regional transportation plan.

At minimum, the regional strategy must address, at least every two years, a regional public transportation strategy addressing short-range (six-year) transportation system needs and deficiencies, as further described in this section, must be prepared, approved, and submitted to the department by December 15, 1997. The strategy must contain at least the following components: (a) Documentation of biennial progress implementing regionally significant public transportation system service, facility, and program improvements addressing regional public transportation system needs and deficiencies identified in the previous regional transportation strategy report; (b) documentation and evaluation, using the most recently available data, of the current performance of the regional public transportation system, summarized for the overall regional transportation system and also reported by mode for people movement; and (c) a component identifying priority regional public transportation corridor and subarea transportation system needs and deficiencies that should be addressed by public transportation providers in their subsequent six-year transportation improvement programs. The performance component of the regional strategy report must further specifically describe, at least for the public transportation element, how the most recent monitoring data available for actual transportation system performance compares with intended transportation system performance objectives developed for the regional transportation system consistent with strategies and policies adopted in the regional transportation plan.

(2) Prepare a regional transportation plan as set forth in RCW 47.80.030 that is consistent with county-wide planning policies if those policies have been adopted under chapter 36.70A RCW, with county, city, and town comprehensive plans, and state transportation plans. The plan must also be developed and updated to consider public transportation mobility needs for people in the regional transportation plans prepared by regional transportation planning organizations whose designated planning areas abut that area.

(3) Certify by December 31, 1998, that the six-year transit development plans prepared under RCW 35.58.2795 by municipalities defined in RCW 35.58.272 are consistent with the adopted regional transportation plan. Every two years thereafter, the certification must be reviewed for currency and consistency with subsequent updates of six-year transit development plans for such municipalities, and the executive board of the regional transportation planning organization shall either recertify or decertify each municipality based upon a determination of consistency between updated six-year transit development plans and the adopted regional transportation plan and the regional transportation system needs identified in regional transportation strategy reports. After December 31, 1998, certification or recertification of six-year transit development plans is a minimum requirement for municipalities defined in RCW 35.58.272 to be eligible to apply for discretionary fund account programs managed by the transportation improvement board.

(4) Where appropriate, certify that county-wide planning policies adopted under RCW 36.70A.210 and the adopted regional transportation plan are consistent.

(5) Develop, in cooperation with the department, operators of public transportation services, and local governments within the region, a six-year regional transportation improvement program that proposes regionally significant projects and programs and transportation demand management measures. The regional transportation improvement program must be based on the programs, projects, and transportation demand management measures of regional significance as identified by transit agencies, cities, and counties under RCW 35.58.2795, 35.77.010, and 36.81.121, respectively, and that address and support the priority regional transportation system needs and deficiencies identified in regional transportation strategy reports prepared under RCW 47.80.023(1). The program must include a priority list of projects and programs, project segments and programs, transportation demand management measures, and a specific financial plan that demonstrates how the transportation improvement program can be funded. The program must be updated at least every two years for the ensuing six-year period.

(6) Designate a lead planning agency to coordinate preparation of the regional transportation plan and carry out the other responsibilities of the organization. The lead planning agency may be a regional organization, a component county, city, or town agency, or the appropriate department district office.

Sec. 37. RCW 47.80.023 and 1994 c 158 s 2 are each amended to read as follows:

Each regional transportation planning organization ((~~shall have~~)) that does not contain a county with a population of more than one million persons has the following duties:

(1) Prepare and periodically update a transportation strategy for the region. The strategy shall address alternative transportation modes and transportation demand management measures in regional corridors and shall recommend preferred transportation policies to implement adopted growth strategies. The strategy shall serve as a guide in preparation of the regional transportation plan.

(2) Prepare a regional transportation plan as set forth in RCW 47.80.030 that is consistent with county-wide planning policies if such have been adopted pursuant to chapter 36.70A RCW, with county, city, and town comprehensive plans, and state transportation plans.

(3) Certify by December 31, 1996, that the transportation elements of comprehensive plans adopted by counties, cities, and towns within the region reflect the guidelines and principles developed pursuant to RCW 47.80.026, are consistent with the adopted regional transportation plan, and, where appropriate, conform with the requirements of RCW 36.70A.070.

(4) Where appropriate, certify that county-wide planning policies adopted under RCW 36.70A.210 and the adopted regional transportation plan are consistent.

(5) Develop, in cooperation with the department of transportation, operators of public transportation services and local governments within the region, a six-year regional transportation improvement program which proposes regionally significant transportation projects and programs and transportation demand management measures. The regional transportation improvement program shall be based on the programs, projects, and transportation demand management measures of regional significance as identified by transit agencies, cities, and counties pursuant to RCW 35.58.2795, 35.77.010, and 36.81.121, respectively. The program shall include a priority list of projects and programs, project segments and programs, transportation demand management measures, and a specific financial plan that demonstrates how the transportation improvement program can be funded. The program shall be updated at least every two years for the ensuing six-year period.

NEW SECTION. Sec. 38. Sections 16 through 33 and 35 of this act constitute a new chapter in Title 47 RCW.

NEW SECTION. Sec. 39. Sections 16 through 33 and 35 of this act take effect January 1, 1999.

NEW SECTION. Sec. 40. Section captions used in this act are not part of the law."

Renumber the sections following consecutively, and correct internal references and the title accordingly.

SHB 1872 - H AMD

By Representative Radcliff

On page 7, line 23, after "percent" insert ", as adjusted under section 32 of this act,"

SHB 1872 - H AMD

By Representative Radcliff

On page 6, line 7, after "RCW 35.58.273" strike everything through "persons" on line 11

EFFECT: Provides that transit systems in King, Pierce, and Snohomish counties that receive the motor vehicle excise tax will also be subject to a performance audit.

On page 6, line 28, after "audit." insert "The auditor shall undertake in the first year of the audits, those audits of municipalities located in a county with a population of at least one million persons, and those municipalities located in a county of at least four hundred thousand persons and bordering a county with a population of at least one million persons. Audits must include, where warranted, an emphasis on the operating costs per vehicle hour for those agencies and those costs in relation to other systems of comparable size."

EFFECT: Requires that the auditor address in the first year the performance audits for transit agencies in King, Pierce and Snohomish counties. Requires that those audits include an emphasis on operating costs and costs in relation to other agencies.