AN ACT Relating to public transit; amending RCW 36.57.050; adding a new section to chapter 36.57 RCW; adding new sections to chapter 36.57A RCW; and prescribing penalties.

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

NEW SECTION. Sec. 1. Once a year, at a meeting of the authority, the members of the authority shall elect a chair from among their number. In addition to the duties conferred upon a person as chair, the chair shall continue to have all the rights, privileges, and immunities of a member of the authority. If a vacancy occurs in the office of the chair, the members of the authority at their next regular meeting shall elect a chair from among their number for the unexpired term.

The chair shall preside at the meetings of the authority, and be recognized as the official representative of the authority. In case of the chair's absence, an alternate individual selected by the members of the authority from among their number shall act as chair.

NEW SECTION. Sec. 2. After consultation with the general manager, the authority may create such departments, offices, and employments as may be found necessary and may determine the powers and duties of each department or office.

NEW SECTION. Sec. 3. The authority shall appoint a general manager, establish the manager's salary and benefits, and determine what expenses will be allowed to the manager. The authority shall choose the general manager on the basis of executive, administrative, and technical qualifications with special reference to actual experience in, or knowledge of, accepted transit practices. No person serving on the authority is eligible for appointment as general manager until one year has elapsed after the expiration of the term for which the member was selected. The authority may designate a qualified administrative officer to carry out the duties of the general manager during the absence, disability, or suspension of the manager or during the period of the selection and appointment of a new general manager.

In lieu of appointment of a general manager, the authority may appoint other such administrative personnel as deemed appropriate by the authority to carry out the directions and represent the interests of the authority, or the authority may choose not to appoint staff.

NEW SECTION. Sec. 4. (1) The authority and the general manager may enter into an employment contract specifying a term of employment, conditions of service, duties of the general manager and the authority, including adjustment of or addition to the powers set forth in sections 2 and 5 of this act, and provisions for extension, renewal, or termination of the contract. If the authority and the general manager do not enter into an employment contract, the appointment of the general manager shall be for an indefinite term, during which the general manager may be removed by a majority vote of the authority.

(2) At least sixty days before termination of an employment contract or removal of a general manager serving at the pleasure of the authority, the authority shall furnish the general manager with a written statement from a majority of the authority stating the authority's reasons for the intended termination or removal. Such action is subject to the requirements established under chapter 42.30 RCW. The authority by majority vote may suspend the general manager from duty, but compensation shall continue until the termination or removal becomes effective. Nothing in this subsection constrains the authority from suspending without pay a general manager found to be grossly negligent in the conduct of the affairs of the authority.

The general manager may, within thirty days after receiving a notice of pending termination or removal, reply in writing to the authority's notice. If a reply is filed in a timely manner with the authority, the authority shall fix a time for a public hearing upon the question of the general manager's termination or removal, and a final resolution terminating or removing the general manager shall not be adopted until a public hearing has been held. The action of the authority in terminating or removing the general manager is final.

(3) Those contracts in effect on the effective date of this act remain in effect until the contract expires.

NEW SECTION. Sec. 5. (1) The general manager has the following powers and duties:

(a) Administer and supervise the administrative affairs of the authority;

(b) Appoint and remove at any time department heads, officers, and employees of the authority, except members of the authority. However, the authority may provide for the appointment of clerks of the authority, legal counsel, auditors, and committees advisory to the authority;

(d) Ensure that all laws, resolutions, and ordinances are faithfully executed;

(e) Recommend for adoption by the authority such measures as may be considered necessary or expedient;

(f) Prepare and submit to the authority such reports as may be required by that body or as may be considered advisable to submit;

(g) Advise the authority of its financial condition and future financial needs;

(h) Prepare and submit to the authority a tentative budget for each fiscal year; and

(i) Perform such other duties as the authority may determine by ordinance or resolution.

(2) The general manager may authorize the head of a department or office to appoint and remove subordinates in the department or office. Any officer or employee who may be appointed by the general manager, or by the head of a department or office, may be removed by the general manager or other such appointing officer at any time except when employment contracts are in effect.

Appointments made by or under the authority of the general manager shall be on the basis of executive, administrative, and technical ability and of training and experience of the appointee in the work which is to be performed.

NEW SECTION. Sec. 6. Neither the authority nor any of its committees or members may direct or request the appointment of any person to or removal from an office by the general manager or any of the subordinates of the general manager. Except for the purpose of inquiry, the authority and its members shall deal with the administrative service solely through the general manager, and neither the authority nor any committee or member thereof may give orders to any subordinate of the general manager, either publicly or privately. However, nothing in this section prohibits the authority, while in open session, from fully and freely discussing with the general manager anything pertaining to appointments and removals of authority officers and employees and authority affairs.

NEW SECTION. Sec. 7. The legislature finds that the public interest is best served when materials, services, supplies, and equipment are procured through competitive solicitation. Personal service contracts exempted from competitive solicitation are subject to disclosure and scrutiny to document that competitive solicitation is not appropriate or cost-effective.

NEW SECTION. Sec. 8. The definitions set forth in this section apply throughout this chapter.

(1) "Competitive solicitation" means a documented formal process providing an equal and open opportunity to qualified parties and culminating in a selection based on criteria that may include such factors as the consultant's fees or costs, ability, capacity, experience, reputation, responsiveness to time limitations, responsiveness to solicitation requirements, quality of previous performance, and compliance with statutes and rules relating to contracts or services.

(2) "Consultant" means an independent individual or firm contracting with an authority to perform a service or render an opinion or recommendation according to the consultant's methods and without being subject to the control of the authority except as to the result of the work. The authority shall monitor progress under the contract and authorize payment.

(3) "Emergency" means a set of unforeseen circumstances beyond the control of the authority that either:

(a) Present a real, immediate threat to the proper performance of essential functions; or

(b) May result in material loss or damage to property, bodily injury, or loss of life if immediate action is not taken.

(4) "Personal service" means professional or technical expertise provided by a consultant to accomplish a specific study, project, task, or other work statement.

(5) "Personal service contract" means an agreement, or any amendment to the agreement, with a consultant for the rendering of personal services.

(6) "Sole source" means a consultant providing professional or technical expertise of such a unique nature that the consultant is clearly and justifiably the only practicable source to provide the service. The justification shall be based on either the uniqueness of the service or sole availability at the location required.

NEW SECTION. Sec. 9. All personal service contracts shall be entered into pursuant to competitive solicitation, except for:

(1) Emergency contracts;

(2) Sole source contracts;

(3) Contract amendments;

(4) Contracts between a consultant and an authority of less than ten thousand dollars, which contracts shall not be constructed to evade this requirement;

(5) Contracts awarded to companies that furnish a service where the tariff is established by the utilities and transportation commission or other public entity;

(6) Intergovernmental agreements awarded to any governmental entity, whether federal, state, or local, or any department, division, or subdivision thereof;

(7) Contracts awarded for services to be performed for a standard fee, when the standard fee is established by the authority and a like contract is available to all qualified applicants;

(8) Contracts for architectural and engineering services as defined in RCW 39.80.020(5), which contracts shall be entered into under chapter 39.80 RCW;

(9) Contracts for employment of expert witnesses for the purposes of litigation; and

(10) Other contracts exempted from the competitive solicitation process when it has been determined that a competitive solicitation process is not appropriate or cost-effective.

Determination of exemption from competitive solicitation as described in this section shall be documented in writing by the contracting authority and attached to and made a part of the exempt contract.

All exempt contracts executed under this section shall be filed with the department of transportation within three working days of execution and be made immediately available for public inspection.

NEW SECTION. Sec. 10. No authority subject to this chapter may spend any funds for personal service contracts unless the authority has complied with the competitive solicitation and other requirements of this chapter. The person or persons executing personal service contracts is responsible for compliance with the requirements of this chapter. Failure to comply with the requirements of this chapter subjects the person or persons responsible to a civil penalty in the amount of three hundred dollars. A consultant who knowingly violates this chapter in seeking or performing work under a personal service contract is subject to a civil penalty of three hundred dollars or twenty-five percent of the amount of the contract, whichever is greater. The state auditor shall audit compliance with or violations of this chapter. The attorney general shall prosecute violations of this chapter.

All contracts entered into under this chapter are subject to the requirements established under chapter 39.19 RCW.

Sec. 11. Section 5, chapter 167, Laws of 1974 ex. sess. and RCW 36.57.050 are each amended to read as follows:

The authority shall elect a ((~~chairman,~~)) chair and may appoint a general manager ((who shall be experienced in administration, and who shall act as executive secretary to, and administrative officer for the authority. He shall also be empowered to employ such technical and other personnel as approved by the authority. The general manager shall be paid such salary and allowed such expenses as shall be determined by the authority. The general manager shall hold office at the pleasure of the authority, and shall not be removed until after notice is given him, and an opportunity for a hearing before the authority as to the reason for his removal)). The chair and general manager, if appointed, shall be elected and appointed in the same manner, have the same powers and duties, and are subject to the same procedures as provided in sections 1 through 6 of this act.

NEW SECTION. Sec. 12. A new section is added to chapter 36.57 RCW to read as follows:

Sections 7 through 10 of this act apply to the authority under this chapter as if fully set forth in this chapter.

NEW SECTION. Sec. 13. Sections 1 through 10 of this act are each added to chapter 36.57A RCW.

NEW SECTION. Sec. 14. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other person or circumstances is not affected.