AN ACT Relating to
modifying the Public-Private Transportation Initiatives Act by authorizing
state financing and administration of toll facilities; amending RCW 47.56.010,
47.46.030, 47.46.040, 47.46.050, 47.46.060, 47.56.030, 47.56.270, 47.56.271,
39.46.070, and 47.56.245; reenacting and amending RCW 43.84.092; adding new
sections to chapter 47.46 RCW; and creating new sections.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
WASHINGTON:
NEW SECTION. Sec.
1. INTENT. The legislature finds
that greater flexibility to provide state financing for projects developed
under chapter 47.46 RCW will result in better use of public resources, lower
financing costs, and potential savings to taxpayers. The legislature intends to:
Clarify the ability of the department of transportation to use public and
private financing for projects selected and developed under chapter 47.46 RCW;
provide the department with specific means of state financing where that
financing is in the public's best interest; provide citizens living in the
impacted areas a statutory mechanism to review proposed toll rates and provide
input before adoption of toll schedules by the toll authority; and prevent
unreasonable delay of critical transportation projects that are essential for
public safety and welfare.
Sec. 2. RCW 47.56.010 and 1984 c
7 s 246 are each amended to read as follows:
PROVIDING DEFINITION
FOR 1950 TACOMA NARROWS BRIDGE. As used in this chapter:
(1) "Toll
bridge" means a bridge constructed or acquired under this chapter, upon
which tolls are charged, together with all appurtenances, additions,
alterations, improvements, and replacements thereof, and the approaches
thereto, and all lands and interests used therefor, and buildings and
improvements thereon.
(2) "Toll
road" means any express highway, superhighway, or motorway at such
locations and between such termini as may be established by law, and
constructed or to be constructed as a limited access highway under the
provisions of this chapter by the department, and shall include, but not be
limited to, all bridges, tunnels, overpasses, underpasses, interchanges,
entrance plazas, approaches, toll houses, service areas, service facilities,
communications facilities, and administration, storage, and other buildings
that the department may deem necessary for the operation of the project,
together with all property, rights, easements, and interests that may be
acquired by the department for the construction or the operation of the
project, all of which shall be conducted in the same manner and under the same
procedure as provided for the establishing, constructing, operating, and
maintaining of toll bridges by the department, insofar as those procedures are
reasonably consistent and applicable.
(3) "1950
Tacoma Narrows bridge" means the bridge crossing the Tacoma Narrows that
was opened to vehicle travel in 1950.
Sec. 3. RCW 47.46.030 and 1996 c
280 s 1 are each amended to read as follows:
DEMONSTRATION PROJECTS‑-SELECTION‑-PUBLIC
INVOLVEMENT. (1) The secretary or a designee shall solicit proposals from, and
negotiate and enter into agreements with, private entities to undertake as
appropriate, together with the department and other public entities, all or a
portion of the study, planning, design, construction, operation, and
maintenance of transportation systems and facilities, using in whole or in part
public or private sources of financing.
The public-private
initiatives program may develop up to six demonstration projects. Each
proposal shall be weighed on its own merits, and each of the six agreements
shall be negotiated individually, and as a stand-alone project.
(2) If project
proposals selected prior to September 1, 1994, are terminated by the public or
private sectors, the department shall not select any new projects, including
project proposals submitted to the department prior to September 1, 1994, and
designated by the transportation commission as placeholder projects, after June
16, 1995, until June 30, 1997.
The department, in
consultation with the legislative transportation committee, shall conduct a
program and fiscal audit of the public-private initiatives program for the
biennium ending June 30, 1997. The department shall submit a progress report
to the legislative transportation committee on the program and fiscal audit by
June 30, 1996, with preliminary and final audit reports due December 1, 1996,
and June 30, 1997, respectively.
The department shall
develop and submit a proposed public involvement plan to the 1997 legislature
to identify the process for selecting new potential projects and the associated
costs of implementing the plan. The legislature must adopt the public
involvement plan before the department may proceed with any activity related to
project identification and selection. Following legislative adoption of the
public involvement plan, the department is authorized to implement the plan and
to identify potential new projects.
The public involvement
plan for projects selected after June 30, 1997, shall, at a minimum, identify
projects that: (a) Have the potential of achieving overall public support
among users of the projects, residents of communities in the vicinity of the
projects, and residents of communities impacted by the projects; (b) meet a
state transportation need; (c) provide a significant state benefit; and (d)
provide competition among proposers and maximum cost benefits to users.
Prospective projects may include projects identified by the department or
submitted by the private sector.
Projects that meet the
minimum criteria established under this section and the requirements of the
public involvement plan developed by the department and approved by the
legislature shall be submitted to the Washington state transportation
commission for its review. The commission, in turn, shall submit a list of
eligible projects to the legislative transportation committee for its
consideration. Forty-five days after the submission to the legislative transportation
committee of the list of eligible projects, the secretary is authorized to
solicit proposals for the eligible project.
(3) Prior to entering
into agreements with private entities under the requirements of RCW 47.46.040
for any project proposal selected before September 1, 1994, or after June 30,
1997, except as provided for in subsections (((11) and)) (12) and
(13) of this section, the department shall require an advisory vote as
provided under subsections (5) through (10) of this section.
(4) The advisory vote
shall apply to project proposals selected prior to September 1, 1994, or after
June 30, 1997, that receive public opposition as demonstrated by the submission
to the department of original petitions bearing at least five thousand signatures
of individuals opposing the project collected and submitted in accordance with
the dates established in subsections (12) and (13) of this section. The
advisory vote shall be on the preferred alternative identified under the
requirements of chapter 43.21C RCW and, if applicable, the national
environmental policy act, 42 U.S.C. 4321 et seq. The execution by the
department of the advisory vote process established in this section is subject
to the prior appropriation of funds by the legislature for the purpose of
conducting environmental impact studies, a public involvement program, local
involvement committee activities, traffic and economic impact analyses,
engineering and technical studies, and the advisory vote.
(5) In preparing for
the advisory vote, the department shall conduct a comprehensive analysis of
traffic patterns and economic impact to define the geographical boundary of the
project area that is affected by the imposition of tolls or user fees
authorized under this chapter. The area so defined is referred to in this
section as the affected project area. In defining the affected project area,
the department shall, at a minimum, undertake: (a) A comparison of the
estimated percentage of residents of communities in the vicinity of the project
and in other communities impacted by the project who could be subject to tolls
or user fees and the estimated percentage of other users and transient traffic
that could be subject to tolls or user fees; (b) an analysis of the anticipated
traffic diversion patterns; (c) an analysis of the potential economic impact
resulting from proposed toll rates or user fee rates imposed on residents,
commercial traffic, and commercial entities in communities in the vicinity of
and impacted by the project; (d) an analysis of the economic impact of tolls or
user fees on the price of goods and services generally; and (e) an analysis of
the relationship of the project to state transportation needs and benefits.
(6)(a) After
determining the definition of the affected project area, the department shall
establish a committee comprised of individuals who represent cities and
counties in the affected project area; organizations formed to support or
oppose the project; and users of the project. The committee shall be named the
public-private local involvement committee, and be known as the local
involvement committee.
(b) The members of the
local involvement committee shall be: (i) An elected official from each city
within the affected project area; (ii) an elected official from each county
within the affected project area; (iii) two persons from each county within the
affected project area who represent an organization formed in support of the
project, if the organization exists; (iv) two persons from each county within
the affected project area who represent an organization formed to oppose the
project, if the organization exists; and (v) four public members active in a
statewide transportation organization. If the committee makeup results in an
even number of committee members, there shall be an additional appointment of
an elected official from the county in which all, or the greatest portion of
the project is located.
(c) City and county
elected officials shall be appointed by a majority of the members of the city
or county legislative authorities of each city or county within the affected
project area, respectively. The county legislative authority of each county
within the affected project area shall identify and validate organizations
officially formed in support of or in opposition to the project and shall make
the appointments required under this section from a list submitted by the chair
of the organizations. Public members shall be appointed by the governor. All
appointments to the local involvement committee shall be made and submitted to
the department of transportation no later than January 1, 1996, for projects
selected prior to September 1, 1994, and no later than thirty days after the
affected project area is defined for projects selected after June 30, 1997. Vacancies
in the membership of the local involvement committee shall be filled by the
appointing authority under (b)(i) through (v) of this subsection for each
position on the committee.
(d) The local
involvement committee shall serve in an advisory capacity to the department on
all matters related to the execution of the advisory vote.
(e) Members of the
local involvement committee serve without compensation and may not receive
subsistence, lodging expenses, or travel expenses.
(7) The department
shall conduct a minimum thirty-day public comment period on the definition of
the geographical boundary of the project area. The department, in consultation
with the local involvement committee, shall make adjustments, if required, to the
definition of the geographical boundary of the affected project area, based on
comments received from the public. Within fourteen calendar days after the
public comment period, the department shall set the boundaries of the affected
project area in units no smaller than a precinct as defined in RCW 29.01.120.
(8) The department, in
consultation with the local involvement committee, shall develop a description
for selected project proposals. After developing the description of the
project proposal, the department shall publish the project proposal description
in newspapers of general circulation for seven calendar days in the affected
project area. Within fourteen calendar days after the last day of the
publication of the project proposal description, the department shall transmit
a copy of the map depicting the affected project area and the description of
the project proposal to the county auditor of the county in which any portion
of the affected project area is located.
(9) The department
shall provide the legislative transportation committee with progress reports on
the status of the definition of the affected project area and the description
of the project proposal.
(10) Upon receipt of
the map and the description of the project proposal, the county auditor shall,
within thirty days, verify the precincts that are located within the affected
project area. The county auditor shall prepare the text identifying and
describing the affected project area and the project proposal using the
definition of the geographical boundary of the affected project area and the
project description submitted by the department and shall set an election date
for the submission of a ballot proposition authorizing the imposition of tolls
or user fees to implement the proposed project within the affected project
area, which date may be the next succeeding general election to be held in the
state, or at a special election, if requested by the department. The text of
the project proposal must appear in a voter's pamphlet for the affected project
area. The department shall pay the costs of publication and distribution. The
special election date must be the next date for a special election provided
under RCW 29.13.020 that is at least sixty days but, if authorized under RCW 29.13.020,
no more than ninety days after the receipt of the final map and project
description by the auditor. The department shall pay the cost of an election
held under this section.
(11) Notwithstanding
any other provision of law, the department may contract with a private
developer of a selected project proposal to conduct environmental impact
studies, a public involvement program, and engineering and technical studies
funded by the legislature. For projects subject to this subsection, the
department shall not enter into an agreement under RCW 47.46.040 prior to the
advisory vote on the preferred alternative.
(12) Subsections (5)
through (10) of this section shall not apply to project proposals selected
prior to September 1, 1994, that have no organized public opposition as
demonstrated by the submission to the department of original petitions bearing
at least five thousand signatures of individuals opposing the project,
collected and submitted after September 1, 1994, and by thirty calendar days
after June 16, 1995.
(13) Subsections (5)
through (10) of this section shall not apply to project proposals selected
after June 30, 1997, that have no organized public opposition as demonstrated
by the submission to the department of original petitions bearing at least five
thousand signatures of individuals opposing the project, collected and
submitted by ninety calendar days after project selection.
NEW SECTION. Sec.
4. A new section is added
to chapter 47.46 RCW to read as follows:
USE OF STATE BONDS ON
CERTAIN PROJECTS. (1) To the extent that the legislature specifically
appropriates funding for a project developed under this chapter using the
proceeds of bonds issued by the state, an agreement for the design or
construction of the project entered into by the secretary must incorporate
provisions that are consistent with the use of the state financing provided by
the appropriation.
(2) The secretary shall
amend existing agreements or execute new agreements to comply with subsection
(1) of this section.
(3) If the secretary is
unable to reach agreement with other parties on contractual provisions
providing for state financing, the secretary shall not enter into an agreement,
or shall take no action with respect to an agreement, or shall exercise
termination provisions, whichever option in the secretary's determination will
result in the lowest net cost to the state.
NEW SECTION. Sec.
5. A new section is added
to chapter 47.46 RCW to read as follows:
STATE TOLL FACILITIES
AUTHORIZED FOR PPI PROJECTS. The department may provide for the establishment
and construction of state toll bridge facilities upon any public highways of
this state together with approaches to them under agreements entered into under
this chapter to develop such facilities. A state toll bridge facility
authorized under this section includes, but is not limited to, the construction
of an additional toll bridge, including approaches, adjacent to and within two
miles of an existing bridge, the imposition of tolls on both bridges, and the
operation of both bridges as one toll facility.
NEW SECTION. Sec.
6. A new section is added
to chapter 47.46 RCW to read as follows:
CITIZEN ADVISORY
COMMITTEE CREATED. (1) A citizen advisory committee must be created for any
project developed under this chapter that imposes toll charges for use of a
transportation facility. The governor shall appoint nine members to the
committee, all of whom must be permanent residents of the affected project
area, as that term is used in RCW 47.46.030.
(2) The citizen
advisory committee shall serve in an advisory capacity to the commission on all
matters related to the imposition of tolls. Members of the committee shall
serve without compensation.
(3) No toll charge may
be imposed or modified unless the citizen advisory committee has been given at
least twenty days to review and comment on any proposed toll charge schedule.
In setting toll rates, the commission shall give consideration to any
recommendations of the citizen advisory committee.
NEW SECTION. Sec.
7. A new section is added
to chapter 47.46 RCW to read as follows:
COMMISSION TO ESTABLISH
TOLL CHARGES. (1) The commission shall fix the rates of toll and other charges
for all toll bridges built under this chapter that are financed primarily by
bonds issued by the state. Subject to section 6 of this act, the commission
may impose and modify toll charges from time to time as conditions warrant.
(2) In establishing
toll charges, the commission shall give due consideration to any required costs
for operating and maintaining the toll bridge or toll bridges, including the
cost of insurance, and to any amount required by law to meet the redemption of
bonds and interest payments on them.
(3) The toll charges
must be imposed in amounts sufficient to:
(a) Provide annual
revenue sufficient to provide for annual operating and maintenance expenses,
except as provided in RCW 47.56.245;
(b) Make payments
required under sections 11 and 12 of this act, including insurance costs and
the payment of principal and interest on bonds issued for any particular toll
bridge or toll bridges; and
(c) Repay the motor
vehicle fund under sections 8, 11, and 12 of this act.
(4) The bond principal
and interest payments, including repayment of the motor vehicle fund for
amounts transferred from that fund to provide for such principal and interest
payments, constitute a first direct and exclusive charge and lien on all tolls
and other revenues from the toll bridge concerned, subject to operating and
maintenance expenses.
NEW SECTION. Sec.
8. A new section is added
to chapter 47.46 RCW to read as follows:
TERM OF TOLLS. (1) The
commission shall retain toll charges on any existing and future facilities
constructed under this chapter and financed primarily by bonds issued by the
state until:
(a) All costs of
investigation, financing, acquisition of property, and construction advanced
from the motor vehicle fund have been fully repaid, except as provided in
subsection (2)(b) of this section;
(b) Obligations
incurred in constructing that facility have been fully paid; and
(c) The motor vehicle
fund is fully repaid under section 12 of this act.
(2) This section does
not:
(a) Prohibit the use of
toll revenues to fund maintenance, operations, or management of facilities
constructed under this chapter except as prohibited by RCW 47.56.245;
(b) Require repayment
of funds specifically appropriated as a nonreimbursable state financial
contribution to a project.
(3) Notwithstanding the
provisions of subsection (2)(a) of this section, upon satisfaction of the
conditions enumerated in subsection (1) of this section:
(a) The facility must
be operated as a toll-free facility; and
(b) The operation,
maintenance, upkeep, and repair of the facility must be paid from funds
appropriated for the use of the department for the construction and maintenance
of the primary state highways of the state of Washington.
NEW SECTION. Sec.
9. A new section is added
to chapter 47.46 RCW to read as follows:
TOLL INCREASES IN
EXCESS OF FISCAL GROWTH FACTOR. Pursuant to RCW 43.135.055, the legislature
authorizes the transportation commission to increase bridge tolls in excess of
the fiscal growth factor.
NEW SECTION. Sec.
10. A new section is added
to chapter 47.46 RCW to read as follows:
USE OF STATE BOND
PROCEEDS. Proceeds of the sale of bonds issued by the state for projects
constructed under this chapter must be deposited in the state treasury to the
credit of a special account designated for those purposes. Those proceeds must
be expended only for the purposes enumerated in this chapter, for payment of
the expense incurred in the issuance and sale of any such bonds, and to repay
the motor vehicle fund for any sums advanced to pay the cost of surveys,
location, design, development, right‑of‑way, and other activities
related to the financing and construction of the bridge and its approaches.
NEW SECTION. Sec.
11. TACOMA NARROWS TOLL
BRIDGE ACCOUNT CREATED. A special account to be known as the Tacoma Narrows
toll bridge account is created in the motor vehicle fund in the state treasury.
(1) Deposits to the
account must include:
(a) All proceeds of
bonds issued for construction of the Tacoma Narrows public-private initiative
project, including any capitalized interest;
(b) All of the toll
charges and other revenues received from the operation of the Tacoma Narrows
bridge as a toll facility, to be deposited at least monthly; and
(c) Any interest that
may be earned from the deposit or investment of those revenues.
(2) Proceeds of bonds
shall be used consistent with section 10 of this act, including the
reimbursement of expenses and fees incurred under agreements entered into under
RCW 47.46.040 as required by those agreements.
(3) Toll charges, other
revenues, and interest may be used to:
(a) Pay any required
costs of financing, operation, maintenance, and management and necessary
repairs of the facility; and
(b) Repay amounts to
the motor vehicle fund as required under section 12 of this act.
(4) When repaying the
motor vehicle fund under section 12 of this act, the state treasurer shall
transfer funds from the Tacoma Narrows toll bridge account to the motor vehicle
fund on or before each debt service date for bonds issued for the Tacoma
Narrows public-private initiative project in an amount sufficient to repay the
motor vehicle fund for amounts transferred from that fund to the highway bond
retirement fund to provide for any bond principal and interest due on that
date. The state treasurer may establish subaccounts for the purpose of
segregating toll charges, bond sale proceeds, and other revenues.
NEW SECTION. Sec.
12. A new section is added
to chapter 47.46 RCW to read as follows:
TOLL CHARGES REMAIN ON
FACILITY TO REPAY MOTOR VEHICLE FUND. Toll charges must be used to repay the
motor vehicle fund consistent with section 11 of this act for any amounts
transferred from the motor vehicle fund to the highway bond retirement fund
under RCW 47.10.847 to provide for bond retirement and interest on bonds issued
for the Tacoma Narrows public-private initiative project. Toll charges must
remain on any facility financed by bonds issued by the state for a length of
time necessary to repay the motor vehicle fund for any amounts expended from
that fund for the design, development, right-of-way, financing, construction,
maintenance, repair, or operation of the toll facility or for amounts
transferred from the motor vehicle fund to the highway bond retirement fund
under RCW 47.10.847 to provide for bond retirement and interest on bonds issued
for the Tacoma Narrows public-private initiative project. Funds specifically
appropriated as a nonreimbursable state financial contribution to the project
do not require repayment.
NEW SECTION. Sec.
13. A new section is added
to chapter 47.46 RCW to read as follows:
ALTERATION DOES NOT
CONSTITUTE NEW PROPOSAL. If a proposal is or has been selected for the design,
development, construction, maintenance, or operation of transportation systems
or facilities under this chapter, subsequent agreements may be made to
implement portions of the proposal that modify the proposal or that do not
incorporate all the features of the proposal. Any such modified agreement does
not require the solicitation or consideration of additional proposals for all
or any portion of the services rendered under that modified agreement.
Modified agreements may provide for the reimbursement of expenses and fees
incurred under earlier agreements.
NEW SECTION. Sec.
14. A new section is added
to chapter 47.46 RCW to read as follows:
APPLICABLE RULES AND
STATUTES. All projects designed, constructed, and operated under this chapter
must comply with all applicable rules and statutes in existence at the time the
agreement is executed, including but not limited to the following provisions:
Chapter 39.12 RCW, this title, RCW 41.06.380, chapter 47.64 RCW, RCW 49.60.180,
and 49 C.F.R. Part 21.
NEW SECTION. Sec.
15. A new section is added
to chapter 47.46 RCW to read as follows:
APPLICATION OF RCW
47.46.040 AND 47.46.050. RCW 47.46.040 and 47.46.050 apply only to those
agreements that include private sources of financing in whole or in part.
Sec. 16. RCW 47.46.040 and 2001 c
64 s 14 are each amended to read as follows:
DEMONSTRATION PROJECTS‑-TERMS
OF AGREEMENTS‑-PUBLIC PARTICIPATION. (1) ((All projects designed,
constructed, and operated under this authority must comply with all applicable
rules and statutes in existence at the time the agreement is executed,
including but not limited to the following provisions: Chapter 39.12 RCW, this
title, RCW 41.06.380, chapter 47.64 RCW, RCW 49.60.180, and 49 C.F.R. Part 21.
(2))) The secretary or a designee shall consult with
legal, financial, and other experts within and outside state government in the
negotiation and development of the agreements.
(((3))) (2)
Agreements ((shall)) may provide for private ownership of the
projects during the construction period. After completion and final acceptance
of each project or discrete segment thereof, the agreement ((shall)) may
provide for state ownership of the transportation systems and facilities and
lease to the private entity unless the state elects to provide for ownership of
the facility by the private entity during the term of the agreement.
The state ((shall))
may lease each of the demonstration projects, or applicable project
segments, to the private entities for operating purposes for up to fifty years.
(((4))) (3)
The department may exercise any power possessed by it to facilitate the
development, construction, financing operation, and maintenance of
transportation projects under this ((chapter)) section. Agreements
for maintenance services entered into under this section shall provide for full
reimbursement for services rendered by the department or other state agencies.
Agreements for police services for projects, involving state highway routes,
developed under agreements shall be entered into with the Washington state
patrol. The agreement for police services shall provide that the state patrol
will be reimbursed for costs on a comparable basis with the costs incurred for
comparable service on other state highway routes. The department may provide
services for which it is reimbursed, including but not limited to preliminary
planning, environmental certification, and preliminary design of the
demonstration projects.
(((5))) (4)
The plans and specifications for each project constructed under this section
shall comply with the department's standards for state projects. A facility
constructed by and leased to a private entity is deemed to be a part of the
state highway system for purposes of identification, maintenance, and
enforcement of traffic laws and for the purposes of applicable sections of this
title. Upon reversion of the facility to the state, the project must meet all
applicable state standards. Agreements shall address responsibility for reconstruction
or renovations that are required in order for a facility to meet all applicable
state standards upon reversion of the facility to the state.
(((6))) (5)
For the purpose of facilitating these projects and to assist the private entity
in the financing, development, construction, and operation of the
transportation systems and facilities, the agreements may include provisions
for the department to exercise its authority, including the lease of
facilities, rights of way, and airspace, exercise of the power of eminent
domain, granting of development rights and opportunities, granting of necessary
easements and rights of access, issuance of permits and other authorizations,
protection from competition, remedies in the event of default of either of the parties,
granting of contractual and real property rights, liability during construction
and the term of the lease, authority to negotiate acquisition of rights of way
in excess of appraised value, and any other provision deemed necessary by the
secretary.
(((7))) (6)
The agreements entered into under this section may include provisions
authorizing the state to grant necessary easements and lease to a private
entity existing rights of way or rights of way subsequently acquired with
public or private financing. The agreements may also include provisions to
lease to the entity airspace above or below the right of way associated or to
be associated with the private entity's transportation facility. In
consideration for the reversion rights in these privately constructed
facilities, the department may negotiate a charge for the lease of airspace
rights during the term of the agreement for a period not to exceed fifty
years. If, after the expiration of this period, the department continues to
lease these airspace rights to the private entity, it shall do so only at fair
market value. The agreement may also provide the private entity the right of
first refusal to undertake projects utilizing airspace owned by the state in
the vicinity of the public-private project.
(((8))) (7)
Agreements under this section may include any contractual provision that is
necessary to protect the project revenues required to repay the costs incurred
to study, plan, design, finance, acquire, build, install, operate, enforce
laws, and maintain toll highways, bridges, and tunnels and which will not
unreasonably inhibit or prohibit the development of additional public
transportation systems and facilities. Agreements under this section must
secure and maintain liability insurance coverage in amounts appropriate to
protect the project's viability and may address state indemnification of the
private entity for design and construction liability where the state has
approved relevant design and construction plans.
(((9))) (8)
Agreements entered into under this section shall include a process that
provides for public involvement in decision making with respect to the
development of the projects.
(((10))) (9)(a)
In carrying out the public involvement process required in subsection (((9)))
(8) of this section, the private entity shall proactively seek public
participation through a process appropriate to the characteristics of the
project that assesses and demonstrates public support among: Users of the
project, residents of communities in the vicinity of the project, and residents
of communities impacted by the project.
(b) The private entity
shall conduct a comprehensive public involvement process that provides,
periodically throughout the development and implementation of the project,
users and residents of communities in the affected project area an opportunity
to comment upon key issues regarding the project including, but not limited
to: (i) Alternative sizes and scopes; (ii) design; (iii) environmental
assessment; (iv) right of way and access plans; (v) traffic impacts; (vi)
tolling or user fee strategies and tolling or user fee ranges; (vii) project
cost; (viii) construction impacts; (ix) facility operation; and (x) any other
salient characteristics.
(c) If the affected
project area has not been defined, the private entity shall define the affected
project area by conducting, at a minimum: (i) A comparison of the estimated
percentage of residents of communities in the vicinity of the project and in
other communities impacted by the project who could be subject to tolls or user
fees and the estimated percentage of other users and transient traffic that
could be subject to tolls or user fees; (ii) an analysis of the anticipated
traffic diversion patterns; (iii) an analysis of the potential economic impact
resulting from proposed toll rates or user fee rates imposed on residents,
commercial traffic, and commercial entities in communities in the vicinity of
and impacted by the project; (iv) an analysis of the economic impact of tolls
or user fees on the price of goods and services generally; and (v) an analysis
of the relationship of the project to state transportation needs and benefits.
The agreement may
require an advisory vote by users of and residents in the affected project
area.
(d) In seeking public
participation, the private entity shall establish a local involvement committee
or committees comprised of residents of the affected project area, individuals
who represent cities and counties in the affected project area, organizations formed
to support or oppose the project, if such organizations exist, and users of the
project. The private entity shall, at a minimum, establish a committee as
required under the specifications of RCW 47.46.030(6)(b) (ii) and (iii) and
appointments to such committee shall be made no later than thirty days after
the project area is defined.
(e) Local involvement
committees shall act in an advisory capacity to the department and the private
entity on all issues related to the development and implementation of the
public involvement process established under this section.
(f) The department and
the private entity shall provide the legislative transportation committee and
local involvement committees with progress reports on the status of the public
involvement process including the results of an advisory vote, if any occurs.
(((11))) (10)
Nothing in this chapter limits the right of the secretary and his or her agents
to render such advice and to make such recommendations as they deem to be in
the best interests of the state and the public.
Sec. 17. RCW 47.46.050 and 1995
2nd sp.s. c 19 s 4 are each amended to read as follows:
FINANCIAL
ARRANGEMENTS. (1) The department may enter into agreements using federal,
state, and local financing in connection with the projects, including without
limitation, grants, loans, and other measures authorized by section 1012 of
ISTEA, and to do such things as necessary and desirable to maximize the funding
and financing, including the formation of a revolving loan fund to implement
this section.
(2) Agreements entered
into under this section ((shall)) may authorize the private
entity to lease the facilities within a designated area or areas from the state
and to impose user fees or tolls within the designated area to allow a
reasonable rate of return on investment, as established through a negotiated
agreement between the state and the private entity. The negotiated agreement
shall determine a maximum development fee and, where appropriate, a
maximum rate of return on investment, based on project and financing
characteristics. If the negotiated rate of return on investment or
development fee is not affected, the private entity may establish and
modify toll rates and user fees.
(3) Agreements that
include a maximum rate of return may establish "incentive" rates
of return beyond the negotiated maximum rate of return on investment. The
incentive rates of return shall be designed to provide financial benefits to
the affected public jurisdictions and the private entity, given the attainment
of various safety, performance, or transportation demand management goals. The
incentive rates of return shall be negotiated in the agreement.
(4) Agreements shall
require that over the term of the ownership or lease the user fees or toll
revenues be applied only to payment of ((the private entity's)):
(a) The capital
outlay costs for the project, including ((project development costs,
interest expense,)) the costs associated with planning, design, development,
financing, construction, improvement, operations, toll collection,
maintenance, and administration of the project((,));
(b) The
reimbursement to the state for all costs associated with an election as
required under RCW 47.46.030, the costs of project review and oversight, and
technical and law enforcement services((,));
(c) The
establishment of a fund to assure the adequacy of maintenance expenditures((,));
and
(d) A reasonable
return on investment to the private entity. A negotiated agreement shall not
extend the term of the ownership or lease beyond the period of time required
for payment of the private entity's capital outlay costs for the project under
this subsection.
Sec. 18. RCW 47.46.060 and 1998 c
179 s 4 are each amended to read as follows:
DEFERRAL OF TAXES. (1)
Any person, including the department of transportation and any private
entity ((that is party to an agreement under this chapter)) or
entities, may apply for deferral of taxes on the site preparation for, the
construction of, the acquisition of any related machinery and equipment which
will become a part of, and the rental of equipment for use in the state route
number 16 corridor improvements project under this chapter. Application shall
be made to the department of revenue in a form and manner prescribed by the
department of revenue. The application shall contain information regarding
estimated or actual costs, time schedules for completion and operation, and
other information required by the department of revenue. The department of
revenue shall approve the application within sixty days if it meets the
requirements of this section.
(2) The department of
revenue shall issue a sales and use tax deferral certificate for state and
local sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW on the
project. ((The use of the certificate shall be governed by rules
established by the department of revenue.))
(3) The department
of transportation or a private entity granted a tax deferral under this
section shall begin paying the deferred taxes in the fifth year after the date
certified by the department of revenue as the date on which the project is
operationally complete. The first payment is due on December 31st of the fifth
calendar year after such certified date, with subsequent annual payments due on
December 31st of the following nine years. Each payment shall equal ten
percent of the deferred tax. The project is operationally complete under
this section when the collection of tolls is commenced for the state route
number 16 improvements covered by the deferral.
(4) The department of
revenue may authorize an accelerated repayment schedule upon request of the
department of transportation or a private entity granted a deferral under
this section.
(5) Interest shall not
be charged on any taxes deferred under this section for the period of deferral,
although all other penalties and interest applicable to delinquent excise taxes
may be assessed and imposed for delinquent payments under this section. The
debt for deferred taxes is not extinguished by insolvency or other failure of
the private entity. Transfer of ownership does not terminate the deferral.
(6) Applications and
any other information received by the department of revenue under this section
are not confidential and are subject to disclosure. Chapter 82.32 RCW applies
to the administration of this section.
Sec. 19. RCW 47.56.030 and 2001 c
59 s 1 are each amended to read as follows:
DEPARTMENT'S POWERS AND
DUTIES REGARDING TOLL FACILITIES. (1) Except as permitted under chapter
47.46 RCW:
(a) The
department of transportation shall have full charge of the construction of all
toll bridges and other toll facilities including the Washington state ferries,
and the operation and maintenance thereof.
(b) The
transportation commission shall determine and establish the tolls and charges
thereon, and shall perform all duties and exercise all powers relating to the
financing, refinancing, and fiscal management of all toll bridges and other
toll facilities including the Washington state ferries, and bonded indebtedness
in the manner provided by law.
(c) The
department shall have full charge of design of all toll facilities.
(d) Except as
provided in this section, the department shall proceed with the construction of
such toll bridges and other facilities and the approaches thereto by contract
in the manner of state highway construction immediately upon there being made
available funds for such work and shall prosecute such work to completion as
rapidly as practicable. The department is authorized to negotiate contracts
for any amount without bid under (((a))) (d)(i) and (((b)))
(ii) of this subsection:
(((a))) (i)
Emergency contracts, in order to make repairs to ferries or ferry terminal
facilities or removal of such facilities whenever continued use of ferries or
ferry terminal facilities constitutes a real or immediate danger to the
traveling public or precludes prudent use of such ferries or facilities; and
(((b))) (ii)
Single source contracts for vessel dry dockings, when there is clearly and
legitimately only one available bidder to conduct dry dock-related work for a
specific class or classes of vessels. The contracts may be entered into for a
single vessel dry docking or for multiple vessel dry dockings for a period not
to exceed two years.
(2) The department
shall proceed with the procurement of materials, supplies, services, and
equipment needed for the support, maintenance, and use of a ferry, ferry
terminal, or other facility operated by Washington state ferries, in accordance
with chapter 43.19 RCW except as follows:
(a) Except as provided
in (d) of this subsection, when the secretary of the department of
transportation determines in writing that the use of invitation for bid is
either not practicable or not advantageous to the state and it may be necessary
to make competitive evaluations, including technical or performance evaluations
among acceptable proposals to complete the contract award, a contract may be entered
into by use of a competitive sealed proposals method, and a formal request for
proposals solicitation. Such formal request for proposals solicitation shall
include a functional description of the needs and requirements of the state and
the significant factors.
(b) When purchases are
made through a formal request for proposals solicitation the contract shall be
awarded to the responsible proposer whose competitive sealed proposal is
determined in writing to be the most advantageous to the state taking into
consideration price and other evaluation factors set forth in the request for
proposals. No significant factors may be used in evaluating a proposal that
are not specified in the request for proposals. Factors that may be considered
in evaluating proposals include but are not limited to: Price;
maintainability; reliability; commonality; performance levels; life cycle cost
if applicable under this section; cost of transportation or delivery; delivery
schedule offered; installation cost; cost of spare parts; availability of parts
and service offered; and the following:
(i) The ability,
capacity, and skill of the proposer to perform the contract or provide the
service required;
(ii) The character,
integrity, reputation, judgment, experience, and efficiency of the proposer;
(iii) Whether the
proposer can perform the contract within the time specified;
(iv) The quality of
performance of previous contracts or services;
(v) The previous and
existing compliance by the proposer with laws relating to the contract or
services;
(vi) Objective,
measurable criteria defined in the request for proposal. These criteria may
include but are not limited to items such as discounts, delivery costs,
maintenance services costs, installation costs, and transportation costs; and
(vii) Such other
information as may be secured having a bearing on the decision to award the
contract.
(c) When purchases are
made through a request for proposal process, proposals received shall be
evaluated based on the evaluation factors set forth in the request for
proposal. When issuing a request for proposal for the procurement of
propulsion equipment or systems that include an engine, the request for proposal
must specify the use of a life cycle cost analysis that includes an evaluation
of fuel efficiency. When a life cycle cost analysis is used, the life cycle
cost of a proposal shall be given at least the same relative importance as the
initial price element specified in the request of proposal documents. The
department may reject any and all proposals received. If the proposals are not
rejected, the award shall be made to the proposer whose proposal is most
advantageous to the department, considering price and the other evaluation
factors set forth in the request for proposal.
(d) If the department
is procuring large equipment or systems (e.g., electrical, propulsion) needed
for the support, maintenance, and use of a ferry operated by Washington state ferries,
the department shall proceed with a formal request for proposal solicitation
under this subsection (2) without a determination of necessity by the
secretary.
Sec. 20. RCW 47.56.270 and 1983 c
3 s 129 are each amended to read as follows:
LAKE WASHINGTON AND
1950 TACOMA NARROWS BRIDGE MADE PART OF PRIMARY HIGHWAYS. The Lake Washington
bridge and the 1950 Tacoma Narrows bridge in chapter 47.17 RCW made a
part of the primary state highways of the state of Washington, shall, upon
completion, be operated, maintained, kept up, and repaired by the department in
the manner provided in this chapter, and the cost of such operation,
maintenance, upkeep, and repair shall be paid from funds appropriated for the
use of the department for the construction and maintenance of the primary state
highways of the state of Washington. This section does not apply to that
portion of the Tacoma Narrows bridge facility first opened to traffic after the
effective date of this act.
Sec. 21. RCW 47.56.271 and 1983 c
3 s 130 are each amended to read as follows:
1950 TACOMA NARROWS
BRIDGE TO REMAIN TOLL-FREE‑-EXCEPTION. Except as otherwise provided
in this section, the 1950 Tacoma Narrows bridge hereinbefore by the
provisions of RCW 47.17.065 and 47.56.270 made a part of the primary state
highways of the state shall be operated and maintained by the department as a
toll-free facility at such time as the ((present)) bonded indebtedness
relating ((thereto)) to the construction of the 1950 Tacoma Narrows
bridge is wholly retired and tolls equaling the ((present))
indebtedness of the toll bridge authority incurred for the construction of
the 1950 Tacoma Narrows bridge to the county of Pierce have been
collected. ((It is the express intent of the legislature that the
provisions of RCW 47.56.245 (section 47.56.245, chapter 13, Laws of 1961) shall
not be applicable to the Tacoma Narrows bridge.)) Toll charges may be
imposed upon the 1950 Tacoma Narrows bridge only if that bridge is included as
part of a public toll bridge facility that includes an additional toll bridge
adjacent to the 1950 Tacoma Narrows bridge and constructed under section 5 of
this act.
Sec. 22. RCW 39.46.070 and 1983 c
167 s 7 are each amended to read as follows:
BONDS‑-PAYMENT OF
COSTS OF ISSUANCE AND SALE. (1) Except as provided in subsection (2) of
this section, the proceeds of any bonds issued by the state or a local
government may be used to pay incidental costs and costs related to the sale
and issuance of the bonds. Such costs include payments for fiscal and legal
expenses, obtaining bond ratings, printing, engraving, advertising,
establishing and funding reserve accounts and other accounts, an amount for
working capital, capitalized interest for up to six months after completion
of construction, necessary and related engineering, architectural,
planning, and inspection costs, and other similar activities or purposes.
(2) In
addition to the costs enumerated in subsection (1) of this section, costs
authorized under this section include capitalized interest for up to
seventy-two months from the date of issuance for bonds issued by the state for
the construction of a public toll bridge under chapter 47.46 RCW.
Sec. 23. RCW 47.56.245 and 1984 c
7 s 267 are each amended to read as follows:
TOLL CHARGES RETAINED
UNTIL COSTS PAID. The department shall retain toll charges on all existing and
future facilities until all costs of investigation, financing, acquisition of
property, and construction advanced from the motor vehicle fund, and
obligations incurred under RCW 47.56.250 and chapter 16, Laws of 1945 have been
fully paid.
(1) Except as
provided in subsection (2) of this section, with respect to every facility
completed after March 19, 1953, costs of maintenance((, management,))
and operation shall be paid periodically out of the revenues of the facility in
which such costs were incurred.
(2) Where a state
toll facility is constructed under chapter 47.46 RCW adjacent to or within two
miles of an existing bridge that was constructed under this chapter, revenue
from the toll facility may not be used to pay for costs of maintenance on the
existing bridge.
Sec. 24. RCW 43.84.092 and 2001
2nd sp.s. c 14 s 608, 2001 c 273 s 6, 2001 c 141 s 3, and 2001 c 80 s 5 are
each reenacted and amended to read as follows:
(1) All earnings of
investments of surplus balances in the state treasury shall be deposited to the
treasury income account, which account is hereby established in the state
treasury.
(2) The treasury income
account shall be utilized to pay or receive funds associated with federal
programs as required by the federal cash management improvement act of 1990.
The treasury income account is subject in all respects to chapter 43.88 RCW,
but no appropriation is required for refunds or allocations of interest
earnings required by the cash management improvement act. Refunds of interest
to the federal treasury required under the cash management improvement act fall
under RCW 43.88.180 and shall not require appropriation. The office of
financial management shall determine the amounts due to or from the federal
government pursuant to the cash management improvement act. The office of
financial management may direct transfers of funds between accounts as deemed
necessary to implement the provisions of the cash management improvement act,
and this subsection. Refunds or allocations shall occur prior to the
distributions of earnings set forth in subsection (4) of this section.
(3) Except for the
provisions of RCW 43.84.160, the treasury income account may be utilized for
the payment of purchased banking services on behalf of treasury funds
including, but not limited to, depository, safekeeping, and disbursement
functions for the state treasury and affected state agencies. The treasury
income account is subject in all respects to chapter 43.88 RCW, but no
appropriation is required for payments to financial institutions. Payments
shall occur prior to distribution of earnings set forth in subsection (4) of
this section.
(4) Monthly, the state
treasurer shall distribute the earnings credited to the treasury income
account. The state treasurer shall credit the general fund with all the
earnings credited to the treasury income account except:
(a) The following
accounts and funds shall receive their proportionate share of earnings based
upon each account's and fund's average daily balance for the period: The
capitol building construction account, the Cedar River channel construction and
operation account, the Central Washington University capital projects account,
the charitable, educational, penal and reformatory institutions account, the
common school construction fund, the county criminal justice assistance
account, the county sales and use tax equalization account, the data processing
building construction account, the deferred compensation administrative
account, the deferred compensation principal account, the department of
retirement systems expense account, the drinking water assistance account, the
drinking water assistance administrative account, the drinking water assistance
repayment account, the Eastern Washington University capital projects account,
the education construction fund, the emergency reserve fund, the federal forest
revolving account, the health services account, the public health services
account, the health system capacity account, the personal health services account,
the state higher education construction account, the higher education
construction account, the highway infrastructure account, the industrial
insurance premium refund account, the judges' retirement account, the judicial
retirement administrative account, the judicial retirement principal account,
the local leasehold excise tax account, the local real estate excise tax
account, the local sales and use tax account, the medical aid account, the
mobile home park relocation fund, the multimodal transportation account, the
municipal criminal justice assistance account, the municipal sales and use tax
equalization account, the natural resources deposit account, the oyster reserve
land account, the perpetual surveillance and maintenance account, the public
employees' retirement system plan 1 account, the public employees' retirement
system combined plan 2 and plan 3 account, the public health supplemental
account, the Puyallup tribal settlement account, the resource management cost
account, the site closure account, the special wildlife account, the state
employees' insurance account, the state employees' insurance reserve account,
the state investment board expense account, the state investment board
commingled trust fund accounts, the supplemental pension account, the Tacoma
Narrows toll bridge account, the teachers' retirement system plan 1
account, the teachers' retirement system combined plan 2 and plan 3 account,
the tobacco prevention and control account, the tobacco settlement account, the
transportation infrastructure account, the tuition recovery trust fund, the
University of Washington bond retirement fund, the University of Washington
building account, the volunteer fire fighters' and reserve officers' relief and
pension principal fund, the volunteer fire fighters' and reserve officers'
administrative fund, the Washington fruit express account, the Washington
judicial retirement system account, the Washington law enforcement officers'
and fire fighters' system plan 1 retirement account, the Washington law
enforcement officers' and fire fighters' system plan 2 retirement account, the
Washington school employees' retirement system combined plan 2 and 3 account,
the Washington state health insurance pool account, the Washington state patrol
retirement account, the Washington State University building account, the
Washington State University bond retirement fund, the water pollution control
revolving fund, and the Western Washington University capital projects
account. Earnings derived from investing balances of the agricultural
permanent fund, the normal school permanent fund, the permanent common school
fund, the scientific permanent fund, and the state university permanent fund
shall be allocated to their respective beneficiary accounts. All earnings to
be distributed under this subsection (4)(a) shall first be reduced by the
allocation to the state treasurer's service fund pursuant to RCW 43.08.190.
(b) The following
accounts and funds shall receive eighty percent of their proportionate share of
earnings based upon each account's or fund's average daily balance for the
period: The aeronautics account, the aircraft search and rescue account, the
county arterial preservation account, the department of licensing services
account, the essential rail assistance account, the ferry bond retirement fund,
the grade crossing protective fund, the high capacity transportation account,
the highway bond retirement fund, the highway safety account, the motor vehicle
fund, the motorcycle safety education account, the pilotage account, the public
transportation systems account, the Puget Sound capital construction account,
the Puget Sound ferry operations account, the recreational vehicle account, the
rural arterial trust account, the safety and education account, the special
category C account, the state patrol highway account, the transportation
equipment fund, the transportation fund, the transportation improvement
account, the transportation improvement board bond retirement account, and the
urban arterial trust account.
(5) In conformance with
Article II, section 37 of the state Constitution, no treasury accounts or funds
shall be allocated earnings without the specific affirmative directive of this
section.
NEW SECTION. Sec.
25. A new section is added
to chapter 47.46 RCW to read as follows:
LEGISLATIVE OVERSIGHT
COMMITTEE. A legislative oversight committee is established to monitor and
report on the progress, execution, and efficiency of design-build contracts
issued under this chapter. The legislative oversight committee will be
comprised of one legislator from each caucus of each chamber of the
legislature. The leadership of each caucus shall appoint one member from his
or her respective caucus to serve on the legislative oversight committee
authorized by this section.
NEW
SECTION. Sec. 26. CAPTIONS. Captions used
in this act do not constitute any part of the law.
