SENATE BILL REPORT

SB 5417

BYSenators Peterson, Patterson and Hansen; by request of Department of Transportation

Extending maximum term for ferry system leases.

Senate Committee on Transportation

Senate Hearing Date(s):February 12, 1987; February 23, 1987

Majority Report:  That Substitute Senate Bill No. 5417 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Peterson, Chairman; Hansen, Vice Chairman; Tanner, Vice Chairman; Bailey, Barr, Bender, Conner, DeJarnatt, Garrett, Halsan, Johnson, Nelson, Patterson, Sellar, Smitherman, von Reichbauer, West.

Senate Staff:Vicki Fabre (786-7313)

                  February 25, 1987

AS REPORTED BY COMMITTEE ON TRANSPORTATION, FEBRUARY 23, 1987

BACKGROUND:

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

SUMMARY:

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

EFFECT OF PROPOSED SUBSTITUTE:

Background:  Article 15, Section 2 of the State Constitution restricts leases to build on wharves and docks to a period of no longer than 30 years.

Summary:  Lease agreements that involve state aquatic lands are restricted to a period of not more than 30 years and must conform to state constitutional and statutory requirements.  Lease revenues that are attributable to state aquatic lands are distributed according to current statutory requirements.

Fiscal Note:      available

Senate Committee - Testified: Jim Sainsbury, Department of Transportation, Marine Division; Bob Bernard, Department of Transportation