AN
ACT Relating to modifying the Public-Private Transportation Initiatives Act by
authorizing state financing and administration of toll facilities; amending RCW
47.56.010, 47.46.030, 47.46.040, 47.46.050, 47.46.060, 47.56.030, 47.56.270,
47.56.271, 39.46.070, and 47.56.245; reenacting and amending RCW 43.84.092;
adding new sections to chapter 47.46 RCW; and creating new sections.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1.
INTENT. The legislature finds that greater flexibility to
provide state financing for projects developed under chapter 47.46 RCW will
result in better use of public resources, lower financing costs, and potential
savings to taxpayers. The legislature intends to: Clarify the ability of the
department of transportation to use public and private financing for projects
selected and developed under chapter 47.46 RCW; provide the department with
specific means of state financing where that financing is in the public's best
interest; provide citizens living in the impacted areas a statutory mechanism
to review proposed toll rates and provide input before adoption of toll
schedules by the toll authority; and prevent unreasonable delay of critical
transportation projects that are essential for public safety and welfare.
Sec.
2. RCW
47.56.010 and 1984 c 7 s 246 are each amended to read as follows:
PROVIDING
DEFINITION FOR 1950 TACOMA NARROWS BRIDGE. As used in this chapter:
(1)
"Toll bridge" means a bridge constructed or acquired under this
chapter, upon which tolls are charged, together with all appurtenances,
additions, alterations, improvements, and replacements thereof, and the
approaches thereto, and all lands and interests used therefor, and buildings
and improvements thereon.
(2)
"Toll road" means any express highway, superhighway, or motorway at
such locations and between such termini as may be established by law, and
constructed or to be constructed as a limited access highway under the
provisions of this chapter by the department, and shall include, but not be
limited to, all bridges, tunnels, overpasses, underpasses, interchanges,
entrance plazas, approaches, toll houses, service areas, service facilities,
communications facilities, and administration, storage, and other buildings
that the department may deem necessary for the operation of the project,
together with all property, rights, easements, and interests that may be
acquired by the department for the construction or the operation of the
project, all of which shall be conducted in the same manner and under the same
procedure as provided for the establishing, constructing, operating, and
maintaining of toll bridges by the department, insofar as those procedures are
reasonably consistent and applicable.
(3)
"1950 Tacoma Narrows bridge" means the bridge crossing the Tacoma
Narrows that was opened to vehicle travel in 1950.
Sec.
3. RCW
47.46.030 and 1996 c 280 s 1 are each amended to read as follows:
DEMONSTRATION
PROJECTS‑-SELECTION‑-PUBLIC INVOLVEMENT. (1) The secretary or a
designee shall solicit proposals from, and negotiate and enter into agreements
with, private entities to undertake as appropriate, together with the
department and other public entities, all or a portion of the study, planning,
design, construction, operation, and maintenance of transportation systems and
facilities, using in whole or in part public or private sources of
financing.
The
public-private initiatives program may develop up to six demonstration
projects. Each proposal shall be weighed on its own merits, and each of the
six agreements shall be negotiated individually, and as a stand-alone project.
(2)
If project proposals selected prior to September 1, 1994, are terminated by the
public or private sectors, the department shall not select any new projects,
including project proposals submitted to the department prior to September 1,
1994, and designated by the transportation commission as placeholder projects,
after June 16, 1995, until June 30, 1997.
The
department, in consultation with the legislative transportation committee,
shall conduct a program and fiscal audit of the public-private initiatives
program for the biennium ending June 30, 1997. The department shall submit a
progress report to the legislative transportation committee on the program and
fiscal audit by June 30, 1996, with preliminary and final audit reports due
December 1, 1996, and June 30, 1997, respectively.
The
department shall develop and submit a proposed public involvement plan to the
1997 legislature to identify the process for selecting new potential projects
and the associated costs of implementing the plan. The legislature must adopt
the public involvement plan before the department may proceed with any activity
related to project identification and selection. Following legislative
adoption of the public involvement plan, the department is authorized to
implement the plan and to identify potential new projects.
The
public involvement plan for projects selected after June 30, 1997, shall, at a
minimum, identify projects that: (a) Have the potential of achieving overall
public support among users of the projects, residents of communities in the
vicinity of the projects, and residents of communities impacted by the
projects; (b) meet a state transportation need; (c) provide a significant state
benefit; and (d) provide competition among proposers and maximum cost benefits
to users. Prospective projects may include projects identified by the
department or submitted by the private sector.
Projects
that meet the minimum criteria established under this section and the
requirements of the public involvement plan developed by the department and
approved by the legislature shall be submitted to the Washington state
transportation commission for its review. The commission, in turn, shall
submit a list of eligible projects to the legislative transportation committee
for its consideration. Forty-five days after the submission to the legislative
transportation committee of the list of eligible projects, the secretary is
authorized to solicit proposals for the eligible project.
(3)
Prior to entering into agreements with private entities under the requirements
of RCW 47.46.040 for any project proposal selected before September 1, 1994, or
after June 30, 1997, except as provided for in subsections (((11) and))
(12) and (13) of this section, the department shall require an advisory
vote as provided under subsections (5) through (10) of this section.
(4)
The advisory vote shall apply to project proposals selected prior to September
1, 1994, or after June 30, 1997, that receive public opposition as demonstrated
by the submission to the department of original petitions bearing at least five
thousand signatures of individuals opposing the project collected and submitted
in accordance with the dates established in subsections (12) and (13) of this
section. The advisory vote shall be on the preferred alternative identified
under the requirements of chapter 43.21C RCW and, if applicable, the national
environmental policy act, 42 U.S.C. 4321 et seq. The execution by the
department of the advisory vote process established in this section is subject
to the prior appropriation of funds by the legislature for the purpose of
conducting environmental impact studies, a public involvement program, local
involvement committee activities, traffic and economic impact analyses,
engineering and technical studies, and the advisory vote.
(5)
In preparing for the advisory vote, the department shall conduct a
comprehensive analysis of traffic patterns and economic impact to define the
geographical boundary of the project area that is affected by the imposition of
tolls or user fees authorized under this chapter. The area so defined is
referred to in this section as the affected project area. In defining the
affected project area, the department shall, at a minimum, undertake: (a) A
comparison of the estimated percentage of residents of communities in the
vicinity of the project and in other communities impacted by the project who
could be subject to tolls or user fees and the estimated percentage of other
users and transient traffic that could be subject to tolls or user fees; (b) an
analysis of the anticipated traffic diversion patterns; (c) an analysis of the
potential economic impact resulting from proposed toll rates or user fee rates
imposed on residents, commercial traffic, and commercial entities in
communities in the vicinity of and impacted by the project; (d) an analysis of
the economic impact of tolls or user fees on the price of goods and services
generally; and (e) an analysis of the relationship of the project to state
transportation needs and benefits.
(6)(a)
After determining the definition of the affected project area, the department
shall establish a committee comprised of individuals who represent cities and
counties in the affected project area; organizations formed to support or
oppose the project; and users of the project. The committee shall be named the
public-private local involvement committee, and be known as the local
involvement committee.
(b)
The members of the local involvement committee shall be: (i) An elected
official from each city within the affected project area; (ii) an elected official
from each county within the affected project area; (iii) two persons from each
county within the affected project area who represent an organization formed in
support of the project, if the organization exists; (iv) two persons from each
county within the affected project area who represent an organization formed to
oppose the project, if the organization exists; and (v) four public members
active in a statewide transportation organization. If the committee makeup
results in an even number of committee members, there shall be an additional
appointment of an elected official from the county in which all, or the
greatest portion of the project is located.
(c)
City and county elected officials shall be appointed by a majority of the
members of the city or county legislative authorities of each city or county
within the affected project area, respectively. The county legislative
authority of each county within the affected project area shall identify and
validate organizations officially formed in support of or in opposition to the
project and shall make the appointments required under this section from a list
submitted by the chair of the organizations. Public members shall be appointed
by the governor. All appointments to the local involvement committee shall be
made and submitted to the department of transportation no later than January 1,
1996, for projects selected prior to September 1, 1994, and no later than
thirty days after the affected project area is defined for projects selected
after June 30, 1997. Vacancies in the membership of the local involvement
committee shall be filled by the appointing authority under (b)(i) through (v)
of this subsection for each position on the committee.
(d)
The local involvement committee shall serve in an advisory capacity to the
department on all matters related to the execution of the advisory vote.
(e)
Members of the local involvement committee serve without compensation and may
not receive subsistence, lodging expenses, or travel expenses.
(7)
The department shall conduct a minimum thirty-day public comment period on the
definition of the geographical boundary of the project area. The department,
in consultation with the local involvement committee, shall make adjustments,
if required, to the definition of the geographical boundary of the affected
project area, based on comments received from the public. Within fourteen
calendar days after the public comment period, the department shall set the
boundaries of the affected project area in units no smaller than a precinct as
defined in RCW 29.01.120.
(8)
The department, in consultation with the local involvement committee, shall
develop a description for selected project proposals. After developing the
description of the project proposal, the department shall publish the project
proposal description in newspapers of general circulation for seven calendar
days in the affected project area. Within fourteen calendar days after the
last day of the publication of the project proposal description, the department
shall transmit a copy of the map depicting the affected project area and the
description of the project proposal to the county auditor of the county in
which any portion of the affected project area is located.
(9)
The department shall provide the legislative transportation committee with
progress reports on the status of the definition of the affected project area
and the description of the project proposal.
(10)
Upon receipt of the map and the description of the project proposal, the county
auditor shall, within thirty days, verify the precincts that are located within
the affected project area. The county auditor shall prepare the text
identifying and describing the affected project area and the project proposal
using the definition of the geographical boundary of the affected project area
and the project description submitted by the department and shall set an
election date for the submission of a ballot proposition authorizing the
imposition of tolls or user fees to implement the proposed project within the
affected project area, which date may be the next succeeding general election
to be held in the state, or at a special election, if requested by the
department. The text of the project proposal must appear in a voter's pamphlet
for the affected project area. The department shall pay the costs of
publication and distribution. The special election date must be the next date
for a special election provided under RCW 29.13.020 that is at least sixty days
but, if authorized under RCW 29.13.020, no more than ninety days after the
receipt of the final map and project description by the auditor. The
department shall pay the cost of an election held under this section.
(11)
Notwithstanding any other provision of law, the department may contract with a
private developer of a selected project proposal to conduct environmental
impact studies, a public involvement program, and engineering and technical
studies funded by the legislature. For projects subject to this subsection,
the department shall not enter into an agreement under RCW 47.46.040 prior to
the advisory vote on the preferred alternative.
(12)
Subsections (5) through (10) of this section shall not apply to project
proposals selected prior to September 1, 1994, that have no organized public opposition
as demonstrated by the submission to the department of original petitions
bearing at least five thousand signatures of individuals opposing the project,
collected and submitted after September 1, 1994, and by thirty calendar days
after June 16, 1995.
(13)
Subsections (5) through (10) of this section shall not apply to project
proposals selected after June 30, 1997, that have no organized public
opposition as demonstrated by the submission to the department of original
petitions bearing at least five thousand signatures of individuals opposing the
project, collected and submitted by ninety calendar days after project
selection.
NEW
SECTION. Sec. 4. A
new section is added to chapter 47.46 RCW to read as follows:
USE
OF STATE BONDS ON CERTAIN PROJECTS. (1) To the extent that the legislature
specifically appropriates funding for a project developed under this chapter
using the proceeds of bonds issued by the state, an agreement for the design or
construction of the project entered into by the secretary must incorporate
provisions that are consistent with the use of the state financing provided by
the appropriation.
(2)
The secretary shall amend existing agreements or execute new agreements to
comply with subsection (1) of this section.
(3)
If the secretary is unable to reach agreement with other parties on contractual
provisions providing for state financing, the secretary shall not enter into an
agreement, or shall take no action with respect to an agreement, or shall exercise
termination provisions, whichever option in the secretary's determination will
result in the lowest net cost to the state.
NEW
SECTION. Sec. 5. A
new section is added to chapter 47.46 RCW to read as follows:
STATE
TOLL FACILITIES AUTHORIZED FOR PPI PROJECTS. The department may provide for
the establishment and construction of state toll bridge facilities upon any
public highways of this state together with approaches to them under agreements
entered into under this chapter to develop such facilities. A state toll
bridge facility authorized under this section includes, but is not limited to,
the construction of an additional toll bridge, including approaches, adjacent
to and within two miles of an existing bridge, the imposition of tolls on both
bridges, and the operation of both bridges as one toll facility.
NEW
SECTION. Sec. 6. A
new section is added to chapter 47.46 RCW to read as follows:
CITIZEN
ADVISORY COMMITTEE CREATED. (1) A citizen advisory committee must be created
for any project developed under this chapter that imposes toll charges for use
of a transportation facility. The governor shall appoint nine members to the
committee, all of whom must be permanent residents of the affected project
area, as that term is used in RCW 47.46.030.
(2)
The citizen advisory committee shall serve in an advisory capacity to the
commission on all matters related to the imposition of tolls. Members of the
committee shall serve without compensation.
(3)
No toll charge may be imposed or modified unless the citizen advisory committee
has been given at least twenty days to review and comment on any proposed toll
charge schedule. In setting toll rates, the commission shall give
consideration to any recommendations of the citizen advisory committee.
NEW
SECTION. Sec. 7. A
new section is added to chapter 47.46 RCW to read as follows:
COMMISSION
TO ESTABLISH TOLL CHARGES. (1) The commission shall fix the rates of toll and
other charges for all toll bridges built under this chapter that are financed
primarily by bonds issued by the state. Subject to section 6 of this act, the
commission may impose and modify toll charges from time to time as conditions
warrant.
(2)
In establishing toll charges, the commission shall give due consideration to
any required costs for operating and maintaining the toll bridge or toll
bridges, including the cost of insurance, and to any amount required by law to
meet the redemption of bonds and interest payments on them.
(3)
The toll charges must be imposed in amounts sufficient to:
(a)
Provide annual revenue sufficient to provide for annual operating and
maintenance expenses, except as provided in RCW 47.56.245;
(b)
Make payments required under sections 11 and 12 of this act, including
insurance costs and the payment of principal and interest on bonds issued for
any particular toll bridge or toll bridges; and
(c)
Repay the motor vehicle fund under sections 8, 11, and 12 of this act.
(4)
The bond principal and interest payments, including repayment of the motor
vehicle fund for amounts transferred from that fund to provide for such
principal and interest payments, constitute a first direct and exclusive charge
and lien on all tolls and other revenues from the toll bridge concerned,
subject to operating and maintenance expenses.
NEW
SECTION. Sec. 8. A
new section is added to chapter 47.46 RCW to read as follows:
TERM
OF TOLLS. (1) The commission shall retain toll charges on any existing and
future facilities constructed under this chapter and financed primarily by
bonds issued by the state until:
(a)
All costs of investigation, financing, acquisition of property, and
construction advanced from the motor vehicle fund have been fully repaid,
except as provided in subsection (2)(b) of this section;
(b)
Obligations incurred in constructing that facility have been fully paid; and
(c)
The motor vehicle fund is fully repaid under section 12 of this act.
(2)
This section does not:
(a)
Prohibit the use of toll revenues to fund maintenance, operations, or
management of facilities constructed under this chapter except as prohibited by
RCW 47.56.245;
(b)
Require repayment of funds specifically appropriated as a nonreimbursable state
financial contribution to a project.
(3)
Notwithstanding the provisions of subsection (2)(a) of this section, upon
satisfaction of the conditions enumerated in subsection (1) of this section:
(a)
The facility must be operated as a toll-free facility; and
(b)
The operation, maintenance, upkeep, and repair of the facility must be paid
from funds appropriated for the use of the department for the construction and
maintenance of the primary state highways of the state of Washington.
NEW
SECTION. Sec. 9. A
new section is added to chapter 47.46 RCW to read as follows:
TOLL
INCREASES IN EXCESS OF FISCAL GROWTH FACTOR. Pursuant to RCW 43.135.055, the
legislature authorizes the transportation commission to increase bridge tolls
in excess of the fiscal growth factor.
NEW
SECTION. Sec. 10. A
new section is added to chapter 47.46 RCW to read as follows:
USE
OF STATE BOND PROCEEDS. Proceeds of the sale of bonds issued by the state for
projects constructed under this chapter must be deposited in the state treasury
to the credit of a special account designated for those purposes. Those
proceeds must be expended only for the purposes enumerated in this chapter, for
payment of the expense incurred in the issuance and sale of any such bonds, and
to repay the motor vehicle fund for any sums advanced to pay the cost of
surveys, location, design, development, right‑of‑way, and other
activities related to the financing and construction of the bridge and its
approaches.
NEW
SECTION. Sec. 11.
TACOMA NARROWS TOLL BRIDGE ACCOUNT CREATED. A special account to be known as
the Tacoma Narrows toll bridge account is created in the motor vehicle fund in
the state treasury.
(1)
Deposits to the account must include:
(a)
All proceeds of bonds issued for construction of the Tacoma Narrows
public-private initiative project, including any capitalized interest;
(b)
All of the toll charges and other revenues received from the operation of the
Tacoma Narrows bridge as a toll facility, to be deposited at least monthly; and
(c)
Any interest that may be earned from the deposit or investment of those
revenues.
(2)
Proceeds of bonds shall be used consistent with section 10 of this act,
including the reimbursement of expenses and fees incurred under agreements
entered into under RCW 47.46.040 as required by those agreements.
(3)
Toll charges, other revenues, and interest may be used to:
(a)
Pay any required costs of financing, operation, maintenance, and management and
necessary repairs of the facility; and
(b)
Repay amounts to the motor vehicle fund as required under section 12 of this
act.
(4)
When repaying the motor vehicle fund under section 12 of this act, the state
treasurer shall transfer funds from the Tacoma Narrows toll bridge account to
the motor vehicle fund on or before each debt service date for bonds issued for
the Tacoma Narrows public-private initiative project in an amount sufficient to
repay the motor vehicle fund for amounts transferred from that fund to the
highway bond retirement fund to provide for any bond principal and interest due
on that date. The state treasurer may establish subaccounts for the purpose of
segregating toll charges, bond sale proceeds, and other revenues.
NEW
SECTION. Sec. 12. A
new section is added to chapter 47.46 RCW to read as follows:
TOLL
CHARGES REMAIN ON FACILITY TO REPAY MOTOR VEHICLE FUND. Toll charges must be
used to repay the motor vehicle fund consistent with section 11 of this act for
any amounts transferred from the motor vehicle fund to the highway bond
retirement fund under RCW 47.10.847 to provide for bond retirement and interest
on bonds issued for the Tacoma Narrows public-private initiative project. Toll
charges must remain on any facility financed by bonds issued by the state for a
length of time necessary to repay the motor vehicle fund for any amounts
expended from that fund for the design, development, right-of-way, financing,
construction, maintenance, repair, or operation of the toll facility or for
amounts transferred from the motor vehicle fund to the highway bond retirement
fund under RCW 47.10.847 to provide for bond retirement and interest on bonds
issued for the Tacoma Narrows public-private initiative project. Funds specifically
appropriated as a nonreimbursable state financial contribution to the project
do not require repayment.
NEW
SECTION. Sec. 13. A
new section is added to chapter 47.46 RCW to read as follows:
ALTERATION
DOES NOT CONSTITUTE NEW PROPOSAL. If a proposal is or has been selected for
the design, development, construction, maintenance, or operation of
transportation systems or facilities under this chapter, subsequent agreements
may be made to implement portions of the proposal that modify the proposal or
that do not incorporate all the features of the proposal. Any such modified
agreement does not require the solicitation or consideration of additional
proposals for all or any portion of the services rendered under that modified
agreement. Modified agreements may provide for the reimbursement of expenses
and fees incurred under earlier agreements.
NEW
SECTION. Sec. 14. A
new section is added to chapter 47.46 RCW to read as follows:
APPLICABLE
RULES AND STATUTES. All projects designed, constructed, and operated under
this chapter must comply with all applicable rules and statutes in existence at
the time the agreement is executed, including but not limited to the following
provisions: Chapter 39.12 RCW, this title, RCW 41.06.380, chapter 47.64 RCW,
RCW 49.60.180, and 49 C.F.R. Part 21.
NEW
SECTION. Sec. 15. A
new section is added to chapter 47.46 RCW to read as follows:
APPLICATION
OF RCW 47.46.040 AND 47.46.050. RCW 47.46.040 and 47.46.050 apply only to
those agreements that include private sources of financing in whole or in part.
Sec.
16. RCW
47.46.040 and 2001 c 64 s 14 are each amended to read as follows:
DEMONSTRATION
PROJECTS‑-TERMS OF AGREEMENTS‑-PUBLIC PARTICIPATION. (1) ((All
projects designed, constructed, and operated under this authority must comply
with all applicable rules and statutes in existence at the time the agreement
is executed, including but not limited to the following provisions: Chapter
39.12 RCW, this title, RCW 41.06.380, chapter 47.64 RCW, RCW 49.60.180, and 49
C.F.R. Part 21.
(2))) The
secretary or a designee shall consult with legal, financial, and other experts
within and outside state government in the negotiation and development of the
agreements.
(((3)))
(2) Agreements ((shall)) may provide for private ownership
of the projects during the construction period. After completion and final
acceptance of each project or discrete segment thereof, the agreement ((shall))
may provide for state ownership of the transportation systems and facilities
and lease to the private entity unless the state elects to provide for
ownership of the facility by the private entity during the term of the
agreement.
The
state ((shall)) may lease each of the demonstration projects, or
applicable project segments, to the private entities for operating purposes for
up to fifty years.
(((4)))
(3) The department may exercise any power possessed by it to facilitate
the development, construction, financing operation, and maintenance of
transportation projects under this ((chapter)) section.
Agreements for maintenance services entered into under this section shall
provide for full reimbursement for services rendered by the department or other
state agencies. Agreements for police services for projects, involving state
highway routes, developed under agreements shall be entered into with the
Washington state patrol. The agreement for police services shall provide that
the state patrol will be reimbursed for costs on a comparable basis with the
costs incurred for comparable service on other state highway routes. The
department may provide services for which it is reimbursed, including but not
limited to preliminary planning, environmental certification, and preliminary
design of the demonstration projects.
(((5)))
(4) The plans and specifications for each project constructed under this
section shall comply with the department's standards for state projects. A
facility constructed by and leased to a private entity is deemed to be a part
of the state highway system for purposes of identification, maintenance, and
enforcement of traffic laws and for the purposes of applicable sections of this
title. Upon reversion of the facility to the state, the project must meet all
applicable state standards. Agreements shall address responsibility for
reconstruction or renovations that are required in order for a facility to meet
all applicable state standards upon reversion of the facility to the state.
(((6)))
(5) For the purpose of facilitating these projects and to assist the
private entity in the financing, development, construction, and operation of
the transportation systems and facilities, the agreements may include
provisions for the department to exercise its authority, including the lease of
facilities, rights of way, and airspace, exercise of the power of eminent
domain, granting of development rights and opportunities, granting of necessary
easements and rights of access, issuance of permits and other authorizations,
protection from competition, remedies in the event of default of either of the
parties, granting of contractual and real property rights, liability during
construction and the term of the lease, authority to negotiate acquisition of
rights of way in excess of appraised value, and any other provision deemed
necessary by the secretary.
(((7)))
(6) The agreements entered into under this section may include
provisions authorizing the state to grant necessary easements and lease to a
private entity existing rights of way or rights of way subsequently acquired
with public or private financing. The agreements may also include provisions
to lease to the entity airspace above or below the right of way associated or
to be associated with the private entity's transportation facility. In
consideration for the reversion rights in these privately constructed
facilities, the department may negotiate a charge for the lease of airspace
rights during the term of the agreement for a period not to exceed fifty
years. If, after the expiration of this period, the department continues to
lease these airspace rights to the private entity, it shall do so only at fair
market value. The agreement may also provide the private entity the right of
first refusal to undertake projects utilizing airspace owned by the state in
the vicinity of the public-private project.
(((8)))
(7) Agreements under this section may include any contractual provision
that is necessary to protect the project revenues required to repay the costs
incurred to study, plan, design, finance, acquire, build, install, operate,
enforce laws, and maintain toll highways, bridges, and tunnels and which will
not unreasonably inhibit or prohibit the development of additional public
transportation systems and facilities. Agreements under this section must
secure and maintain liability insurance coverage in amounts appropriate to
protect the project's viability and may address state indemnification of the
private entity for design and construction liability where the state has
approved relevant design and construction plans.
(((9)))
(8) Agreements entered into under this section shall include a
process that provides for public involvement in decision making with respect to
the development of the projects.
(((10)))
(9)(a) In carrying out the public involvement process required in
subsection (((9))) (8) of this section, the private entity shall
proactively seek public participation through a process appropriate to the
characteristics of the project that assesses and demonstrates public support
among: Users of the project, residents of communities in the vicinity of the
project, and residents of communities impacted by the project.
(b)
The private entity shall conduct a comprehensive public involvement process
that provides, periodically throughout the development and implementation of
the project, users and residents of communities in the affected project area an
opportunity to comment upon key issues regarding the project including, but not
limited to: (i) Alternative sizes and scopes; (ii) design; (iii) environmental
assessment; (iv) right of way and access plans; (v) traffic impacts; (vi)
tolling or user fee strategies and tolling or user fee ranges; (vii) project
cost; (viii) construction impacts; (ix) facility operation; and (x) any other
salient characteristics.
(c)
If the affected project area has not been defined, the private entity shall
define the affected project area by conducting, at a minimum: (i) A comparison
of the estimated percentage of residents of communities in the vicinity of the
project and in other communities impacted by the project who could be subject
to tolls or user fees and the estimated percentage of other users and transient
traffic that could be subject to tolls or user fees; (ii) an analysis of the
anticipated traffic diversion patterns; (iii) an analysis of the potential
economic impact resulting from proposed toll rates or user fee rates imposed on
residents, commercial traffic, and commercial entities in communities in the vicinity
of and impacted by the project; (iv) an analysis of the economic impact of
tolls or user fees on the price of goods and services generally; and (v) an
analysis of the relationship of the project to state transportation needs and
benefits.
The
agreement may require an advisory vote by users of and residents in the
affected project area.
(d)
In seeking public participation, the private entity shall establish a local
involvement committee or committees comprised of residents of the affected
project area, individuals who represent cities and counties in the affected
project area, organizations formed to support or oppose the project, if such
organizations exist, and users of the project. The private entity shall, at a
minimum, establish a committee as required under the specifications of RCW
47.46.030(6)(b) (ii) and (iii) and appointments to such committee shall be made
no later than thirty days after the project area is defined.
(e)
Local involvement committees shall act in an advisory capacity to the
department and the private entity on all issues related to the development and
implementation of the public involvement process established under this
section.
(f)
The department and the private entity shall provide the legislative
transportation committee and local involvement committees with progress reports
on the status of the public involvement process including the results of an
advisory vote, if any occurs.
(((11)))
(10) Nothing in this chapter limits the right of the secretary and his
or her agents to render such advice and to make such recommendations as they
deem to be in the best interests of the state and the public.
Sec.
17. RCW
47.46.050 and 1995 2nd sp.s. c 19 s 4 are each amended to read as follows:
FINANCIAL
ARRANGEMENTS. (1) The department may enter into agreements using federal,
state, and local financing in connection with the projects, including without
limitation, grants, loans, and other measures authorized by section 1012 of
ISTEA, and to do such things as necessary and desirable to maximize the funding
and financing, including the formation of a revolving loan fund to implement
this section.
(2)
Agreements entered into under this section ((shall)) may
authorize the private entity to lease the facilities within a designated area
or areas from the state and to impose user fees or tolls within the designated
area to allow a reasonable rate of return on investment, as established through
a negotiated agreement between the state and the private entity. The
negotiated agreement shall determine a maximum development fee and, where
appropriate, a maximum rate of return on investment, based on project and
financing characteristics. If the negotiated rate of return on investment or
development fee is not affected, the private entity may establish and
modify toll rates and user fees.
(3)
Agreements that include a maximum rate of return may establish
"incentive" rates of return beyond the negotiated maximum rate of
return on investment. The incentive rates of return shall be designed to
provide financial benefits to the affected public jurisdictions and the private
entity, given the attainment of various safety, performance, or transportation
demand management goals. The incentive rates of return shall be negotiated in
the agreement.
(4)
Agreements shall require that over the term of the ownership or lease the user
fees or toll revenues be applied only to payment of ((the private entity's)):
(a)
The capital outlay costs for the project, including ((project development
costs, interest expense,)) the costs associated with planning,
design, development, financing, construction, improvement,
operations, toll collection, maintenance, and administration of the
project((,));
(b)
The reimbursement to the state for all costs associated with an election as
required under RCW 47.46.030, the costs of project review and oversight, and
technical and law enforcement services((,));
(c)
The establishment of a fund to assure the adequacy of maintenance
expenditures((,)); and
(d)
A reasonable return on investment to the private entity. A negotiated
agreement shall not extend the term of the ownership or lease beyond the period
of time required for payment of the private entity's capital outlay costs for
the project under this subsection.
Sec.
18. RCW
47.46.060 and 1998 c 179 s 4 are each amended to read as follows:
DEFERRAL
OF TAXES. (1) Any person, including the department of transportation and
any private entity ((that is party to an agreement under this chapter))
or entities, may apply for deferral of taxes on the site preparation
for, the construction of, the acquisition of any related machinery and
equipment which will become a part of, and the rental of equipment for use in
the state route number 16 corridor improvements project under this chapter.
Application shall be made to the department of revenue in a form and manner
prescribed by the department of revenue. The application shall contain
information regarding estimated or actual costs, time schedules for completion
and operation, and other information required by the department of revenue.
The department of revenue shall approve the application within sixty days if it
meets the requirements of this section.
(2)
The department of revenue shall issue a sales and use tax deferral certificate
for state and local sales and use taxes due under chapters 82.08, 82.12, and
82.14 RCW on the project. ((The use of the certificate shall be governed by
rules established by the department of revenue.))
(3)
The department of transportation or a private entity granted a tax
deferral under this section shall begin paying the deferred taxes in the fifth
year after the date certified by the department of revenue as the date on which
the project is operationally complete. The first payment is due on December
31st of the fifth calendar year after such certified date, with subsequent
annual payments due on December 31st of the following nine years. Each payment
shall equal ten percent of the deferred tax. The project is operationally
complete under this section when the collection of tolls is commenced for the
state route number 16 improvements covered by the deferral.
(4)
The department of revenue may authorize an accelerated repayment schedule upon
request of the department of transportation or a private entity granted
a deferral under this section.
(5)
Interest shall not be charged on any taxes deferred under this section for the
period of deferral, although all other penalties and interest applicable to delinquent
excise taxes may be assessed and imposed for delinquent payments under this
section. The debt for deferred taxes is not extinguished by insolvency or
other failure of the private entity. Transfer of ownership does not
terminate the deferral.
(6)
Applications and any other information received by the department of revenue
under this section are not confidential and are subject to disclosure. Chapter
82.32 RCW applies to the administration of this section.
Sec.
19. RCW
47.56.030 and 2001 c 59 s 1 are each amended to read as follows:
DEPARTMENT'S
POWERS AND DUTIES REGARDING TOLL FACILITIES. (1) Except as permitted under
chapter 47.46 RCW:
(a)
The department of transportation shall have full charge of the construction of
all toll bridges and other toll facilities including the Washington state
ferries, and the operation and maintenance thereof.
(b)
The transportation commission shall determine and establish the tolls and
charges thereon, and shall perform all duties and exercise all powers relating
to the financing, refinancing, and fiscal management of all toll bridges and
other toll facilities including the Washington state ferries, and bonded
indebtedness in the manner provided by law.
(c)
The department shall have full charge of design of all toll facilities.
(d)
Except as provided in this section, the department shall proceed with the
construction of such toll bridges and other facilities and the approaches
thereto by contract in the manner of state highway construction immediately
upon there being made available funds for such work and shall prosecute such
work to completion as rapidly as practicable. The department is authorized to
negotiate contracts for any amount without bid under (((a))) (d)(i)
and (((b))) (ii) of this subsection:
(((a)))
(i) Emergency contracts, in order to make repairs to ferries or ferry
terminal facilities or removal of such facilities whenever continued use of
ferries or ferry terminal facilities constitutes a real or immediate danger to
the traveling public or precludes prudent use of such ferries or facilities;
and
(((b)))
(ii) Single source contracts for vessel dry dockings, when there is
clearly and legitimately only one available bidder to conduct dry dock-related
work for a specific class or classes of vessels. The contracts may be entered
into for a single vessel dry docking or for multiple vessel dry dockings for a
period not to exceed two years.
(2)
The department shall proceed with the procurement of materials, supplies, services,
and equipment needed for the support, maintenance, and use of a ferry, ferry
terminal, or other facility operated by Washington state ferries, in accordance
with chapter 43.19 RCW except as follows:
(a)
Except as provided in (d) of this subsection, when the secretary of the
department of transportation determines in writing that the use of invitation
for bid is either not practicable or not advantageous to the state and it may
be necessary to make competitive evaluations, including technical or performance
evaluations among acceptable proposals to complete the contract award, a
contract may be entered into by use of a competitive sealed proposals method,
and a formal request for proposals solicitation. Such formal request for
proposals solicitation shall include a functional description of the needs and
requirements of the state and the significant factors.
(b)
When purchases are made through a formal request for proposals solicitation the
contract shall be awarded to the responsible proposer whose competitive sealed
proposal is determined in writing to be the most advantageous to the state
taking into consideration price and other evaluation factors set forth in the
request for proposals. No significant factors may be used in evaluating a
proposal that are not specified in the request for proposals. Factors that may
be considered in evaluating proposals include but are not limited to: Price;
maintainability; reliability; commonality; performance levels; life cycle cost
if applicable under this section; cost of transportation or delivery; delivery
schedule offered; installation cost; cost of spare parts; availability of parts
and service offered; and the following:
(i)
The ability, capacity, and skill of the proposer to perform the contract or provide
the service required;
(ii)
The character, integrity, reputation, judgment, experience, and efficiency of
the proposer;
(iii)
Whether the proposer can perform the contract within the time specified;
(iv)
The quality of performance of previous contracts or services;
(v)
The previous and existing compliance by the proposer with laws relating to the
contract or services;
(vi)
Objective, measurable criteria defined in the request for proposal. These
criteria may include but are not limited to items such as discounts, delivery
costs, maintenance services costs, installation costs, and transportation
costs; and
(vii)
Such other information as may be secured having a bearing on the decision to
award the contract.
(c)
When purchases are made through a request for proposal process, proposals
received shall be evaluated based on the evaluation factors set forth in the
request for proposal. When issuing a request for proposal for the procurement
of propulsion equipment or systems that include an engine, the request for
proposal must specify the use of a life cycle cost analysis that includes an
evaluation of fuel efficiency. When a life cycle cost analysis is used, the
life cycle cost of a proposal shall be given at least the same relative
importance as the initial price element specified in the request of proposal
documents. The department may reject any and all proposals received. If the
proposals are not rejected, the award shall be made to the proposer whose
proposal is most advantageous to the department, considering price and the
other evaluation factors set forth in the request for proposal.
(d)
If the department is procuring large equipment or systems (e.g., electrical,
propulsion) needed for the support, maintenance, and use of a ferry operated by
Washington state ferries, the department shall proceed with a formal request
for proposal solicitation under this subsection (2) without a determination of
necessity by the secretary.
Sec.
20. RCW
47.56.270 and 1983 c 3 s 129 are each amended to read as follows:
LAKE
WASHINGTON AND 1950 TACOMA NARROWS BRIDGE MADE PART OF PRIMARY HIGHWAYS. The
Lake Washington bridge and the 1950 Tacoma Narrows bridge in chapter
47.17 RCW made a part of the primary state highways of the state of Washington,
shall, upon completion, be operated, maintained, kept up, and repaired by the
department in the manner provided in this chapter, and the cost of such
operation, maintenance, upkeep, and repair shall be paid from funds
appropriated for the use of the department for the construction and maintenance
of the primary state highways of the state of Washington. This section does
not apply to that portion of the Tacoma Narrows bridge facility first opened to
traffic after the effective date of this act.
Sec.
21. RCW
47.56.271 and 1983 c 3 s 130 are each amended to read as follows:
1950
TACOMA NARROWS BRIDGE TO REMAIN TOLL-FREE‑-EXCEPTION. Except as
otherwise provided in this section, the 1950 Tacoma Narrows bridge
hereinbefore by the provisions of RCW 47.17.065 and 47.56.270 made a part of
the primary state highways of the state shall be operated and maintained by the
department as a toll-free facility at such time as the ((present))
bonded indebtedness relating ((thereto)) to the construction of the
1950 Tacoma Narrows bridge is wholly retired and tolls equaling the ((present))
indebtedness of the toll bridge authority incurred for the construction of
the 1950 Tacoma Narrows bridge to the county of Pierce have been
collected. ((It is the express intent of the legislature that the
provisions of RCW 47.56.245 (section 47.56.245, chapter 13, Laws of 1961) shall
not be applicable to the Tacoma Narrows bridge.)) Toll charges may be
imposed upon the 1950 Tacoma Narrows bridge only if that bridge is included as
part of a public toll bridge facility that includes an additional toll bridge
adjacent to the 1950 Tacoma Narrows bridge and constructed under section 5 of
this act.
Sec.
22. RCW
39.46.070 and 1983 c 167 s 7 are each amended to read as follows:
BONDS‑-PAYMENT
OF COSTS OF ISSUANCE AND SALE. (1) Except as provided in subsection (2) of
this section, the proceeds of any bonds issued by the state or a local
government may be used to pay incidental costs and costs related to the sale
and issuance of the bonds. Such costs include payments for fiscal and legal
expenses, obtaining bond ratings, printing, engraving, advertising,
establishing and funding reserve accounts and other accounts, an amount for
working capital, capitalized interest for up to six months after completion
of construction, necessary and related engineering, architectural,
planning, and inspection costs, and other similar activities or purposes.
(2) In addition to the costs enumerated in subsection (1) of
this section, costs authorized under this section include capitalized interest
for up to seventy-two months from the date of issuance for bonds issued by the
state for the construction of a public toll bridge under chapter 47.46 RCW.
Sec.
23. RCW
47.56.245 and 1984 c 7 s 267 are each amended to read as follows:
TOLL
CHARGES RETAINED UNTIL COSTS PAID. The department shall retain toll charges on
all existing and future facilities until all costs of investigation, financing,
acquisition of property, and construction advanced from the motor vehicle fund,
and obligations incurred under RCW 47.56.250 and chapter 16, Laws of 1945 have
been fully paid.
(1)
Except as provided in subsection (2) of this section, with respect to every
facility completed after March 19, 1953, costs of maintenance((, management,))
and operation shall be paid periodically out of the revenues of the facility in
which such costs were incurred.
(2)
Where a state toll facility is constructed under chapter 47.46 RCW adjacent to
or within two miles of an existing bridge that was constructed under this
chapter, revenue from the toll facility may not be used to pay for costs of
maintenance on the existing bridge.
Sec.
24. RCW
43.84.092 and 2001 2nd sp.s. c 14 s 608, 2001 c 273 s 6, 2001 c 141 s 3, and
2001 c 80 s 5 are each reenacted and amended to read as follows:
(1)
All earnings of investments of surplus balances in the state treasury shall be
deposited to the treasury income account, which account is hereby established
in the state treasury.
(2)
The treasury income account shall be utilized to pay or receive funds
associated with federal programs as required by the federal cash management
improvement act of 1990. The treasury income account is subject in all
respects to chapter 43.88 RCW, but no appropriation is required for refunds or
allocations of interest earnings required by the cash management improvement
act. Refunds of interest to the federal treasury required under the cash
management improvement act fall under RCW 43.88.180 and shall not require
appropriation. The office of financial management shall determine the amounts
due to or from the federal government pursuant to the cash management
improvement act. The office of financial management may direct transfers of
funds between accounts as deemed necessary to implement the provisions of the
cash management improvement act, and this subsection. Refunds or allocations
shall occur prior to the distributions of earnings set forth in subsection (4)
of this section.
(3)
Except for the provisions of RCW 43.84.160, the treasury income account may be
utilized for the payment of purchased banking services on behalf of treasury
funds including, but not limited to, depository, safekeeping, and disbursement
functions for the state treasury and affected state agencies. The treasury
income account is subject in all respects to chapter 43.88 RCW, but no
appropriation is required for payments to financial institutions. Payments
shall occur prior to distribution of earnings set forth in subsection (4) of
this section.
(4)
Monthly, the state treasurer shall distribute the earnings credited to the
treasury income account. The state treasurer shall credit the general fund
with all the earnings credited to the treasury income account except:
(a)
The following accounts and funds shall receive their proportionate share of
earnings based upon each account's and fund's average daily balance for the
period: The capitol building construction account, the Cedar River channel
construction and operation account, the Central Washington University capital
projects account, the charitable, educational, penal and reformatory
institutions account, the common school construction fund, the county criminal
justice assistance account, the county sales and use tax equalization account,
the data processing building construction account, the deferred compensation
administrative account, the deferred compensation principal account, the
department of retirement systems expense account, the drinking water assistance
account, the drinking water assistance administrative account, the drinking
water assistance repayment account, the Eastern Washington University capital
projects account, the education construction fund, the emergency reserve fund,
the federal forest revolving account, the health services account, the public
health services account, the health system capacity account, the personal
health services account, the state higher education construction account, the
higher education construction account, the highway infrastructure account, the
industrial insurance premium refund account, the judges' retirement account,
the judicial retirement administrative account, the judicial retirement
principal account, the local leasehold excise tax account, the local real
estate excise tax account, the local sales and use tax account, the medical aid
account, the mobile home park relocation fund, the multimodal transportation
account, the municipal criminal justice assistance account, the municipal sales
and use tax equalization account, the natural resources deposit account, the
oyster reserve land account, the perpetual surveillance and maintenance
account, the public employees' retirement system plan 1 account, the public
employees' retirement system combined plan 2 and plan 3 account, the public
health supplemental account, the Puyallup tribal settlement account, the
resource management cost account, the site closure account, the special
wildlife account, the state employees' insurance account, the state employees'
insurance reserve account, the state investment board expense account, the
state investment board commingled trust fund accounts, the supplemental pension
account, the Tacoma Narrows toll bridge account, the teachers'
retirement system plan 1 account, the teachers' retirement system combined plan
2 and plan 3 account, the tobacco prevention and control account, the tobacco
settlement account, the transportation infrastructure account, the tuition
recovery trust fund, the University of Washington bond retirement fund, the
University of Washington building account, the volunteer fire fighters' and
reserve officers' relief and pension principal fund, the volunteer fire
fighters' and reserve officers' administrative fund, the Washington fruit
express account, the Washington judicial retirement system account, the
Washington law enforcement officers' and fire fighters' system plan 1
retirement account, the Washington law enforcement officers' and fire fighters'
system plan 2 retirement account, the Washington school employees' retirement
system combined plan 2 and 3 account, the Washington state health insurance
pool account, the Washington state patrol retirement account, the Washington
State University building account, the Washington State University bond
retirement fund, the water pollution control revolving fund, and the Western
Washington University capital projects account. Earnings derived from
investing balances of the agricultural permanent fund, the normal school
permanent fund, the permanent common school fund, the scientific permanent
fund, and the state university permanent fund shall be allocated to their
respective beneficiary accounts. All earnings to be distributed under this
subsection (4)(a) shall first be reduced by the allocation to the state
treasurer's service fund pursuant to RCW 43.08.190.
(b)
The following accounts and funds shall receive eighty percent of their
proportionate share of earnings based upon each account's or fund's average
daily balance for the period: The aeronautics account, the aircraft search and
rescue account, the county arterial preservation account, the department of
licensing services account, the essential rail assistance account, the ferry
bond retirement fund, the grade crossing protective fund, the high capacity
transportation account, the highway bond retirement fund, the highway safety
account, the motor vehicle fund, the motorcycle safety education account, the
pilotage account, the public transportation systems account, the Puget Sound
capital construction account, the Puget Sound ferry operations account, the
recreational vehicle account, the rural arterial trust account, the safety and
education account, the special category C account, the state patrol highway
account, the transportation equipment fund, the transportation fund, the
transportation improvement account, the transportation improvement board bond
retirement account, and the urban arterial trust account.
(5)
In conformance with Article II, section 37 of the state Constitution, no
treasury accounts or funds shall be allocated earnings without the specific
affirmative directive of this section.
NEW
SECTION. Sec. 25. A
new section is added to chapter 47.46 RCW to read as follows:
LEGISLATIVE
OVERSIGHT COMMITTEE. A legislative oversight committee is established to
monitor and report on the progress, execution, and efficiency of design-build
contracts issued under this chapter. The legislative oversight committee will
be comprised of one legislator from each caucus of each chamber of the
legislature. The leadership of each caucus shall appoint one member from his
or her respective caucus to serve on the legislative oversight committee
authorized by this section.
NEW
SECTION. Sec. 26.
CAPTIONS. Captions used in this act do not constitute any part of the law.
