BILL REQ. #:  H-0575.1 

     AN ACT Relating to privatizing the management of the state ferry system; adding new sections to chapter 47.60 RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   The legislature finds that the ferry system is an important driver of the Washington state economy, supporting jobs and businesses in communities around Puget Sound. The ferry system is also an integral part of the state highway system and, as such, benefits all citizens by connecting communities and markets around the state.
     The legislature further finds that funding for the ferry system remains insufficient to provide adequate service in support of this economic engine. Further, new funding sources will only be acceptable when the state can show that the ferry system manages its costs prudently, while delivering reliable, safe, and quality cross-sound transportation services.
     Therefore, the legislature intends to privatize management functions of the ferry system, making the system contractually accountable for efficient and quality service. In doing so, the legislature intends to: Improve the management of ferry operations; increase the accountability and transparency of ferry management and operations; and realize cost savings in ferry management.

NEW SECTION.  Sec. 2   A new section is added to chapter 47.60 RCW to read as follows:
     (1) For the purposes of this section and section 3 of this act:
     (a) "Management" means a nonrepresented employee position at the Washington state ferries that includes management responsibilities.
     (b) "Performance criteria" means measurable standards included in a contract for the private provision of ferry system management functions to be used by the department to evaluate the sufficiency of the services being provided by the contractor.
     (2) Performance criteria may include, but not be limited to:
     (a) Customer satisfaction;
     (b) On-time performance;
     (c) Fuel consumption improvements;
     (d) Administrative cost per rider for both vehicle and passenger and passenger-only vessels;
     (e) Unit cost of services delivered;
     (f) Incident and accident rates;
     (g) Employee satisfaction;
     (h) Performance metrics of state employees;
     (i) Project delivery rate;
     (j) Vessel performance;
     (k) A preservation and capital asset audit as described in section 15, chapter 512, Laws of 2007.
     (3) Based on the performance criteria under subsection (2) of this section, contracts for ferry system management functions must provide for incentive or retained payment arrangements as a means of ensuring satisfactory performance of the contract and improved performance of the ferry system over time.

NEW SECTION.  Sec. 3   A new section is added to chapter 47.60 RCW to read as follows:
     (1) By June 30, 2012, the department must competitively contract out ferry system management functions to a private management services firm. The contract must include specific performance criteria and measures to be achieved by the firm and must require that the firm retain existing collective bargaining agreements between the state and the employees' labor representatives. The contract must be for a six-year period, with a ten-year extension option.
     (2) The invitation for bid process for the contract may include a preliminary request for qualifications to inform the most effective way to contract for management functions.
     (3) Consistent with RCW 41.06.142(3), the contract is not subject to requirements for agencies purchasing services that have been customarily and historically provided by state employees.
     (4) By November 1, 2011, the department shall report to the governor and the legislature on the management services to be privatized, any statutory changes required, the efforts to ensure competition for the contract, planned methods for contract management, the provisions in the contract ensuring accountability to performance criteria, and expected savings in staff and funding levels to the omnibus transportation appropriations act. The report must also include the competitive solicitation documents.