S-3639               _______________________________________________

                                                   SENATE BILL NO. 6641

                        _______________________________________________

State of Washington                               51st Legislature                              1990 Regular Session

By Senators McMullen, von Reichbauer and Smitherman

Read first time 1/19/90 and referred to Committee on  Transportation.

AN ACT Relating to considerations in the granting of state ferry concessions contracts; and amending RCW 47.60.140.

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

        Sec. 1.  Section 47.60.140, chapter 13, Laws of 1961 as last amended by section 1, chapter 69, Laws of 1987 and RCW 47.60.140 are each amended to read as follows:

          (1) The department is empowered to operate such ferry system, including all operations, whether intrastate or international, upon any route or routes, and toll bridges as a revenue-producing and self-liquidating undertaking.  The department has full charge of the construction, rehabilitation, rebuilding, enlarging, improving, operation, and maintenance of the ferry system, including toll bridges, approaches, and roadways incidental thereto that may be authorized by the department, including the collection of tolls and other charges for the services and facilities of the undertaking.  The department has the exclusive right to enter into leases and contracts for use and occupancy by other parties of the concessions and space located on the ferries, wharves, docks, approaches, and landings, but, except as provided in subsection (2) of this section, no such leases or contracts may be entered into for more than five years, nor without public advertisement for bids as may be prescribed by the department.  However, except as provided in subsection (2) of this section, the Colman Dock facilities may be leased for a period not to exceed ten years.

          (2) As part of a joint development agreement under which a public or private developer constructs improvements on ferry system property, the department may lease such property and improvements to such developers for that period of time, not to exceed fifty-five years, or not to exceed thirty years for those areas located within harbor areas, which the department determines is necessary to allow the developer to make reasonable recovery on its initial investment.  Any lease entered into as provided for in this subsection that involves state aquatic lands shall conform with the Washington state Constitution and applicable statutory requirements as determined by the department of natural resources.  That portion of the lease rate attributable to the state aquatic lands shall be distributed in the same manner as other lease revenues derived from state aquatic lands as provided in RCW 79.24.580.

(3) If the department considers contracting out the concessions contract, under the authority of this section, when judging bids received for the concessions contract it shall consider the level of service, quality of service, and proposed selection and pricing of food and beverage items to be offered to the public.  The department shall also consider the wage and benefit package proposed for the employees, proposed working conditions for the employees, and the level of capital investment offered by the bidders in addition to the economic benefit to the state.