SENATE BILL REPORT

SB 6897

BYSenators Patterson, Bender and Murray

Funding a headquarters facility for the department of transportation.

Senate Committee on Transportation

Senate Hearing Date(s):February 19, 1990

Majority Report:     Do pass.

     Signed by Senators Patterson, Chairman; Thorsness, Vice Chairman; von Reichbauer, Vice Chairman; Bender, Benitz, Hansen, McMullen, Madsen, Murray, Nelson, Patrick, Sellar.

Senate Staff:Robin Rettew (786-7306)

                March 2, 1990

AS PASSED SENATE, MARCH 1, 1990

BACKGROUND:

The Department of Transportation (DOT) district one headquarters facility is currently located at the Eastgate complex in Bellevue.  The lease on this facility expires in June 1992.  In order to have adequate lead time to find a replacement, the DOT began investigating a variety of options in the spring of 1989.

Options considered included continuation of the current Eastgate lease, purchase of the Eastgate complex, generic design/build plans at various industrial parks and purchase of one of a number of existing structures.

After analyzing initial and fifty year life cycle costs, the DOT and the Transportation Commission recommended buying the Blue Cross building in North Seattle.  Non-financial considerations were also considered including location, parking, access to public transportation, adequate work space, cafeteria amenities, and housing and day care provisions.

SUMMARY:

The DOT has obtained a ninety day option to purchase the Blue Cross building subject to legislative approval.  A general obligation bond bill for $15 million is requested.  Motor vehicle fuel and special fuel excise taxes are pledged to the payment of the principal and interest of the bonds.

A loan of up to $15 million will be made from the motor vehicle fund to the transportation capital facilities account in the 1990 supplemental budget to cover the initial costs of purchasing the facility.  This loan will be repaid to the motor vehicle fund when bonds are actually sold, probably in the winter of 1992.

Appropriation:  none

Revenue:   yes

Fiscal Note:    none requested

Senate Committee - Testified:   Del Vandehey, DOT; Ron Anderson, District 1 Administrator; DOT