BILL REQ. #:  H-2662.1 

READ FIRST TIME 2/28/07.   

     AN ACT Relating to the imposition of tolls; amending RCW 47.56.030, 47.56.070, 47.56.075, 47.56.0761, 47.56.240, and 35.74.050; and adding new sections to chapter 47.56 RCW.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 47.56 RCW to read as follows:
     (1) Unless otherwise delegated, only the legislature may authorize the imposition of tolls on a specific facility or corridor.
     (2) All revenue from a tolled facility or corridor must be used only to improve, preserve, or operate the tolled facility or corridor on or in which the revenue is collected. For the purposes of this chapter, "facility or corridor" means the following: (a) A bridge, highway, or roadway; (b) a vessel, bus, vehicle, or other conveyance of people or goods; or (c) a system of facilities or corridors as defined by the tolling authority. The expenditure of toll revenues is subject to section 3 of this act.
     (3) Any proposal for the initial establishment of a tolled facility or corridor shall consider the following policy guidelines:
     (a) Overall Direction. Washington should use tolling to encourage effective use of the transportation system and provide a supplementary source of transportation funding.
     (b) When to Use Tolling. Tolling should be used when it can be demonstrated to contribute a significant portion of the cost of a project that cannot be funded solely with existing sources or optimize the performance of the transportation system. Such tolling should in all cases be fairly and equitably applied in the context of the statewide transportation system and not have significant adverse impacts through the diversion of traffic to other routes.
     (c) Use of Toll Revenue. All revenue from a tolled facility or corridor must be used only to improve, preserve, or operate the tolled facility or corridor on or in which the revenue is collected.
     (d) Setting Toll Rates. Toll rates, which may include variable pricing, should be set to optimize system performance, recognizing necessary trade-offs to generate revenue.
     (e) Duration of Toll Collection. Because transportation infrastructure projects have costs and benefits that extend well beyond those paid for by initial construction funding, tolls should remain in place to fund additional capacity, capital rehabilitation, maintenance, and operations, and to optimize performance of the system.
     (4) A citizen advisory committee may be created at the direction of the legislature or the transportation commission for any tolled facility or corridor. The governor shall appoint nine members to the committee, all of whom must be permanent residents of the affected project area as defined for each project. Members of the committee shall serve without receiving compensation.
     (a) The citizen advisory committee shall serve in an advisory capacity to the transportation commission on all matters related to the imposition of tolls including, but not limited to: (i) The feasibility of providing discounts to frequent users, electronic transponder users, senior citizens, or students; (ii) the trade-off of lower tolls versus the early retirement of debt; and (iii) consideration of variable or time of day pricing.
     (b) If a citizen advisory committee is created, a toll rate or variable tolling plan may not be imposed or modified unless the citizen advisory committee has been given at least twenty days to review and comment on any proposed toll rate schedule. In setting toll rates, the transportation commission shall consider recommendations of the citizen advisory committee.

NEW SECTION.  Sec. 2   A new section is added to chapter 47.56 RCW to read as follows:
     (1) In addition to any other powers granted under law, the transportation commission, as the tolling authority in the state, may:
     (a) Set toll rates, establish appropriate exemptions, and make adjustments as conditions warrant;
     (b) Establish and approve toll collection and toll operations policies on the affected facility or corridor;
     (c) Collect and remit toll revenues to the custody of the state treasurer for deposit in a special toll account or, where the authority is specifically authorized by law, pledge revenues for the repayment of debt or as a capital contribution to improvements on the facility or corridor;
     (d) Enter into contracts for the necessary construction, reconstruction, operations, maintenance, preservation, or other improvements to the facility or corridor.
     (2) The commission, in determining toll rates, shall consider the policy guidelines established in section 1 of this act.
     (3) In setting and periodically adjusting toll rates, the toll authority must ensure that toll rates will generate revenue sufficient to:
     (a) Cover the operating costs of the facility or corridor, including necessary maintenance, preservation, administration, and toll enforcement by public law enforcement;
     (b) Meet obligations for the repayment of debt and interest thereon, and any other associated financing costs including, but not limited to, required reserves and insurance; and
     (c) Meet any other obligations of the toll authority to provide its proportionate share of funding contributions for any projects or operations in the facility or corridor.
     (4) The established toll rates may include variable pricing, and should be set to optimize system performance, recognizing necessary trade-offs to generate revenue for the purposes specified in subsection (3) of this section. Tolls may vary for type of vehicle, time of day, traffic conditions, or other factors designed to improve performance of the system.

NEW SECTION.  Sec. 3   A new section is added to chapter 47.56 RCW to read as follows:
     Expenditures of toll revenues shall be made only: To cover the operating costs of the facility or corridor, including necessary maintenance, preservation, administration, and toll enforcement by public law enforcement; to meet obligations for the repayment of debt and interest thereon, and any other associated financing costs including, but not limited to, required reserves and insurance; to meet any other obligations to provide funding contributions for any projects or operations on the facility or corridor; or for any other improvements to the facility or corridor.

Sec. 4   RCW 47.56.030 and 2002 c 114 s 19 are each amended to read as follows:
     (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) Subject to section 2 of this act, 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) The department shall utilize and administer toll collection systems that are simple, unified, and interoperable. To the extent practicable, the department shall avoid the use of toll booths.
     (e) 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 (((d))) (e)(i) and (ii) of this subsection:
     (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
     (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. 5   RCW 47.56.070 and 1977 ex.s. c 151 s 67 are each amended to read as follows:
     The department of transportation may, with the approval of the transportation commission, provide for the establishment, construction, and operation of toll tunnels, toll roads, and other facilities necessary for their construction and connection with public highways of the state. It may cause surveys to be made to determine the propriety of their establishment, construction, and operation, and may acquire rights of way and other facilities necessary to carry out the provisions hereof; and may issue, sell, and redeem bonds, and deposit and expend them; secure and remit financial and other assistance in the construction thereof; carry insurance thereon; and handle any other matters pertaining thereto, 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 reasonably consistent and applicable. ((No toll facility, toll bridge, toll road, or toll tunnel, shall be combined with any other toll facility for the purpose of financing unless such facilities form a continuous project, to the end that each such facility or project be self-liquidating and self-sustaining.))

Sec. 6   RCW 47.56.075 and 2002 c 56 s 404 are each amended to read as follows:
     The department shall approve for construction only such toll roads as the legislature specifically authorizes or such toll facilities as are specifically sponsored by a regional transportation investment district, transportation benefit district, city, town, or county.

Sec. 7   RCW 47.56.0761 and 2006 c 311 s 20 are each amended to read as follows:
     Notwithstanding any provision to the contrary in this chapter, a regional transportation investment district may authorize vehicle tolls, only with the approval of the transportation commission, on either Lake Washington bridge within its boundaries to implement a regional transportation investment plan as authorized in chapter 36.120 RCW and RCW 47.56.076.

Sec. 8   RCW 47.56.240 and 1984 c 7 s 265 are each amended to read as follows:
     Subject to section 2 of this act, the commission is hereby empowered to fix the rates of toll and other charges for all toll bridges built under the terms of this chapter. Toll charges so fixed may be changed from time to time as conditions warrant. The commission, in establishing toll charges, shall give due consideration to the cost of operating and maintaining such toll bridge or toll bridges including the cost of insurance, and to the amount required annually to meet the redemption of bonds and interest payments on them. The tolls and charges shall be at all times fixed at rates to yield annual revenue at least equal to annual operating and maintenance expenses including insurance costs and all redemption payments and interest charges of the bonds, including applicable excess coverage, issued for any particular toll bridge or toll bridges as the bonds become due. The bond redemption and interest payments constitute a first direct ((and exclusive)) charge and lien on all such tolls and other revenues and interest thereon. Sinking funds created therefrom received from the use and operation of the toll bridge or toll bridges, and such tolls and revenues together with the interest earned thereon shall constitute a trust fund for the security and payment of such bonds and shall not be used or pledged for any other purpose as long as any of these bonds are outstanding and unpaid, except to the extent that the tolls and charges exceed the amount necessary to achieve the purpose of this section.

Sec. 9   RCW 35.74.050 and 1965 c 7 s 35.74.050 are each amended to read as follows:
     A city or town may build and maintain toll bridges and charge and collect tolls thereon, and to that end may provide a system and elect or appoint persons to operate the same, or the said bridges may be made free, as it may elect.
     Any toll proposed under this section must first be approved by the state transportation commission or its successor statewide tolling authority.