5768-S.E AMH ERIC LEAT 087

ESSB 5768 - H AMD TO TR COMM AMD (H-3051.1/09) 784

By Representative Ericksen

NOT ADOPTED 4/22/2009

On page 1, after line 12 of the striking amendment, strike the remainder of the section and insert the following:

"Therefore, it is the conclusion of the legislature that time is of the essence, and that Washington state cannot wait for a disaster to make it fully appreciate the urgency of the need to replace this vulnerable structure. The state must take the necessary steps to expedite the environmental review and design processes to replace the Alaskan Way viaduct with a deep bore tunnel under First Avenue from the vicinity of the sports stadiums in Seattle to Aurora Avenue north of the Battery Street tunnel. The tunnel must include four general purpose lanes in a stacked formation.

(2) The state route number 99 Alaskan Way viaduct replacement project finance plan shall be structured as a public private partnership as specified in this subsection and in sections 2, 3, and 4 of this act. State and private funds that constitute the finance plan must be used solely to build a replacement tunnel, as described in subsection (1) of this section, and to remove the existing state route number 99 Alaskan Way viaduct. All costs associated with city utility relocations for state work as described in this section must be borne by the city of Seattle and provided in a manner that meets project construction schedule requirements as determined by the department. State funding is not authorized for any utility relocation costs, or for central seawall or waterfront promenade improvements.

NEW SECTION. Sec. 2. A new section is added to chapter 47.01 RCW to read as follows:

(1) The state's contribution toward the Alaskan Way viaduct replacement project must not exceed two billion four hundred million dollars. The state's contribution shall be financed, in part, by a public private partnership as described in subsection (2) of this section.

(2) The secretary of transportation or the secretary's designee shall, after consultation with King County and the city of Seattle, solicit proposals and enter into an agreement with a private entity to finance at least fifty percent of the state's contribution of two billion four hundred million dollars through tolling, dedication of future tax revenues generated by development in the area of the tunnel and existing viaduct, tax incentives, tax increment financing, and other financing tools for construction of the deep bore tunnel and removal of the existing viaduct.

(a) The agreement must retain state ownership of the state route number 99 Alaskan Way viaduct.

(b) The department shall negotiate the terms and compensation due to the private entity under the agreement. The total amount of compensation to be agreed upon must be comprised of a mix of funds from tolling revenue and financing tools described in subsection (2) of this section. The department shall make every effort to maximize compensation from tax incentives and other financing tools, and minimize direct payments from toll revenue. Payments to private entities must be completed within twenty-five years of the date the project is complete.

(3) For the purpose of facilitating construction and to assist the private entity in the development, construction, maintenance, and operation of the deep bore tunnel, the agreement must, as required by the private entity, include provisions for the department of transportation to exercise its authority, including the following: Leasing of facilities, rights-of-way, and airspace; exercising the power of eminent domain; granting development rights and opportunities; granting necessary easements and rights of access; issuing permits and other authorizations; granting contractual and real property rights; and negotiating acquisition of rights-of-way in excess of appraised value and any other provision deemed necessary.

(4) Operation and maintenance services to be provided by the private entity include, but are not limited to, roadway maintenance and repair, drainage maintenance and repair, and tunnel maintenance.

NEW SECTION. Sec. 3. A new section is added to chapter 47.01 RCW to read as follows:

After entering into an agreement under section 2 of this act, the department shall retain at least one billion two hundred million dollars of the state's contribution to the Alaskan Way viaduct replacement project in the transportation partnership account for use on state highway safety and congestion relief projects identified by the legislature.

NEW SECTION. Sec. 4. A new section is added to chapter 82.32 RCW to read as follows:

The tax imposed and collected under chapters 82.08 and 82.12 RCW, less any credits allowed under chapter 82.14 RCW, on the initial construction for a deep bored tunnel must be transferred to the department of transportation to defray state costs of work on the Alaskan Way viaduct replacement project as described in section 2 of this act.

Sec. 5. RCW 47.56.820 and 2008 c 122 s 4 are each amended to read as follows:

(1) Unless otherwise delegated or agreed to by the state and private entity pursuant to section 2 of this act, only the legislature may authorize the imposition of tolls on eligible toll facilities.

(2) All revenue from an eligible toll facility must be used only to construct, improve, preserve, maintain, manage, or operate the eligible toll facility on or in which the revenue is collected. Expenditures of toll revenues are subject to appropriation and must be made only:

(a) To cover the operating costs of the eligible toll facility, including necessary maintenance, preservation, administration, and toll enforcement by public law enforcement within the boundaries of the facility;

(b) To meet obligations for the repayment of debt and interest on the eligible toll facilities, and any other associated financing costs including, but not limited to, required reserves and insurance;

(c) To meet any other obligations to provide funding contributions for any projects or operations on the eligible toll facilities;

(d) To provide for the operations of conveyances of people or goods; or

(e) For any other improvements to the eligible toll facilities."

On page 3, beginning on line 24, strike all of section 3

Renumber the remaining sections consecutively and correct any internal references accordingly.

EFFECT:

· Strikes the following provisions establishing that: state funding for the project must include at least $400 million in toll revenue; the Department of Transportation must provide updates cost estimates for the project; any contract entered into by the Department related to construction of the tunnel must include incentives and penalties to encourage on-time completion and to minimize potential cost overruns; the state, city, and county Department of Transportation must establish a single point of accountability for the project; the state, city, and county Departments of Transportation are responsible for costs, delivery, and risks related to their respective project components; and the state's contribution of $50 million for the South Spokane Street viaduct project is contingent on the city of Seattle funding and providing certain city street improvements.

· Requires that the Alaskan Way Viaduct Replacement Project finance plan be structured to include a public private partnership to finance at least 50 percent of the state's contribution of $2.4 billion, and directs the Secretary of Transportation to enter into such an agreement after consultation with the city of Seattle and King County.

· Authorizes the public private partnership agreement to utilize various financing tools, including tolling, dedication of future tax revenues generated by development in the area of the tunnel, tax incentives, and tax increment financing.

· Authorizes tolling of the deep bore tunnel without further legislative authorization, if tolling of the tunnel is agreed to by the Department and private entity as part of the public private partnership agreement.

· Directs the Department to, after entering into the public private partnership, retain at least $1.2 billion in the Transportation Partnership Account for use on state highway safety and congestion relief projects identified by the legislature.

· Requires that any sales and use taxes imposed and collected on the initial construction of the deep bore tunnel and removal of the existing viaduct be transferred to the Department to defray the state's costs.

· Directs the Department to negotiate the terms of, and compensation due to the private entity under, the public private partnership agreement, and to make every effort to minimize direct payments from tolling; and requires the private entity to provide operation and maintenance services for the tunnel.

· Requires that any bonds issued to support the public private partnership must be issued by the private entity.

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