BILL REQ. #:  H-2151.1 

Read first time .   Referred to .

     AN ACT Relating to ferry construction; adding new sections to chapter 47.60 RCW; creating a new section; and declaring an emergency.

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

NEW SECTION.  Sec. 1   (1) The legislature finds that there is a compelling need for the construction of up to five or more auto-passenger ferries to replace the four Steel Electric Class ferries in service and continue current service levels. The long-range travel demand for trips throughout the ferry system indicates a seventy-seven percent growth in passenger usage and a fifty-seven percent growth in vehicle usage over the next twenty years. In order to support the economic growth of the Puget Sound region and meet the forecasted citizen cross-sound travel demand, the Washington state ferry system must provide reliable ferry vessel operations that cannot be maintained by the existing aging Steel Electric Class ferry capacity and other noncomplying safety of life at sea vessels. The legislature further finds that the new construction and financing methods available from industry might provide knowledge that will result in cost savings and efficiencies in the construction of the five vessels, and it is essential for the welfare of the state and the economy to have the advantage of these cost savings, procedures, and efficiencies that can be achieved by the use of the design-build and possible finance construction process if prudent. "Prudent" means using the least cost method of financing when considered against available revenue.
     (2) The legislature intends to procure up to five or more ferries designated the San Juan Class to replace the four Steel Electric Class ferries and continue service from Anacortes to Sidney by using construction methods, equipment, techniques, and financing that delivers the highest quality ferries to the taxpayers with a financing program that allows the vessels to be procured at the best price.

NEW SECTION.  Sec. 2   Notwithstanding any other provision of law, the department shall enter into agreements for the construction and acquisition of two auto-passenger ferries from current funds and two auto-passenger ferries from new law budget and one ferry from operational savings as outlined in this act and also procure an option price to purchase additional boats for domestic use or resale. The five ferries must be of comparable quality and design to the Jumbo Mark II Class ferry and meet the certifications of the United States Coast Guard, the American Bureau of Shipping, and safety of life at sea. Operational savings are those funds saved from the normal day-to-day operational costs of the four Steel Electric Class vessels minus the actual operating costs of the San Juan Class ferries collected from the four Steel Electric route farebox recovery.

NEW SECTION.  Sec. 3   When constructing the ferries under section 2 of this act, the department shall require that:
     (1) Contractors comply with applicable laws, rules, and regulations including, but not limited to, those pertaining to the environment, worker health and safety, and prevailing wages;
     (2) The ferries are constructed within the boundaries of the state of Washington; except components, products, and systems that are standard manufactured items are not subject to the in-state requirement. For the purposes of this section, "constructed" means the fabrication, by the joining together of welded or fastening of all steel parts from which the total vessel is constructed, including, but not limited to, all shell frames, longitudinals, bulkheads, webs, piping runs, wire ways, and ducting. "Constructed" also means the installation of all components and systems, as required by the contract, including, but not limited to, equipment, machinery, castings, electrical, electronics, deck covering, lining, paint, and joiner work. "Constructed" also means the interconnection of all equipment, machinery, and services, such as piping, wiring, and ducting;
     (3) All warranty work on the vessels is performed within the boundaries of the state of Washington, insofar as practicable; and
     (4) Other requirements that are mandated by state or federal law as any requirements that are reasonably calculated to accomplish the purpose of section 2 of this act and this section.

NEW SECTION.  Sec. 4   Washington State Ferries must adhere to the criteria under this section when procuring new San Juan Class auto-passenger ferries to replace the four Steel Electric Class ferries under the process contained in RCW 47.60.010. The procurement of these vessels is authorized as required in RCW 47.60.010.
     The request for proposals must include instructions requiring the development of private placement of lease-backed certificates of participation financing for each proposal. The financing component of each proposal must be considered by Washington State Ferries as an integral component of each request for proposals, response, and bid. Washington State Ferries will use the office of financial management, the office of the state treasurer, the Washington state transportation commission, and the legislative transportation committee as advisers in evaluating the financing benefits of each response.
     The request for proposal must also contain:
     (1) A functional specification created by Washington State Ferries. The functional specification must include specification sufficient to depict the ferries' characteristics and identify design criteria. The development of the functional specification may not exceed a period of thirty days nor a total cost of two hundred fifty thousand dollars;
     (2) A provision that the construction of the ferries meets the regulatory requirements and certifications of the United States Coast Guard, the American Bureau of Shipping, and safety of life at sea;
     (3) A provision that the constructed ferries can navigate all scheduled routes, fit all existing terminals for auto-passenger ferries throughout the system, and be capable of maintaining existing schedules;
     (4) A stipulation that funds appropriated to Washington State Ferries for the purpose of this bid may not be used for honoraria for the development of private sector responses for the request for proposals; and
     (5) Other requirements that are mandated by state or federal law, as well as any requirements that are reasonably calculated to accomplish the mission of the Washington state ferry system.

NEW SECTION.  Sec. 5   The bidders seeking to construct the ferries authorized under section 4 of this act are responsible to the state as follows:
     (1) Within ninety days of the publication of the functional specification, bidders must respond with proposals containing sufficient technical detail for the Washington state ferry system to ascertain the technical viability of the proposal to meet the functional specification; and
     (2) The responsive bidder must take total responsibility for the delivery of the ferries as agreed to at the signing of the contract. The delivered ferries must meet all requirements of the contract including, but not limited to, adherence to all the specifications, certifications, and price, as agreed to at the signing of the contract.

NEW SECTION.  Sec. 6   Sections 2 through 5 of this act are each added to chapter 47.60 RCW.

NEW SECTION.  Sec. 7   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.