State of Washington | 60th Legislature | 2007 Regular Session |
READ FIRST TIME 03/05/07.
AN ACT Relating to state ferries; amending RCW 47.06.140, 47.60.290, and 47.60.330; adding new sections to chapter 47.60 RCW; creating a new section; repealing RCW 47.60.150 and 47.60.326; and providing expiration dates.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 47.06.140 and 1998 c 171 s 7 are each amended to read
as follows:
(1) The legislature declares the following transportation
facilities and services to be of statewide significance: The
interstate highway system, interregional state principal arterials
including ferry connections that serve statewide travel, intercity
passenger rail services, intercity high-speed ground transportation,
major passenger intermodal terminals excluding all airport facilities
and services, the freight railroad system, the Columbia/Snake navigable
river system, marine port facilities and services that are related
solely to marine activities affecting international and interstate
trade, and high-capacity transportation systems serving regions as
defined in RCW 81.104.015. The department, in cooperation with
regional transportation planning organizations, counties, cities,
transit agencies, public ports, private railroad operators, and private
transportation providers, as appropriate, shall plan for improvements
to transportation facilities and services of statewide significance in
the statewide multimodal plan. Improvements to facilities and services
of statewide significance identified in the statewide multimodal plan
are essential state public facilities under RCW 36.70A.200.
(2) The department of transportation, in consultation with local
governments, shall set level of service standards for state highways
and state ferry routes of statewide significance. Although the
department shall consult with local governments when setting level of
service standards, the department retains authority to make final
decisions regarding level of service standards for state highways and
state ferry routes of statewide significance. In establishing level of
service standards for state highways and state ferry routes of
statewide significance, the department shall consider the necessary
balance between providing for the free interjurisdictional movement of
people and goods and the needs of local communities using these
facilities. When setting the level of service standards under this
section for state ferry routes, the department may allow for a standard
that is adjustable for seasonality.
NEW SECTION. Sec. 2 A new section is added to chapter 47.60 RCW
to read as follows:
The definitions in this section apply throughout this chapter
unless the context clearly requires otherwise.
(1) "Capital plan" means the state ferry system plan as described
in RCW 47.06.050(2) and adopted by the commission.
(2) "Capital project" has the same meaning as used in capital
budget instructions developed by the office of financial management.
(3) "Commission" means the transportation commission created in RCW
47.01.051.
(4) "Improvement project" has the same meaning as in the capital
budget instructions developed by the office of financial management.
If the capital budget instructions do not define improvement project,
then it has the same meaning as "program project" in the capital budget
instructions. If a project meets both the improvement project and
preservation project definitions in this section it must be defined as
an improvement project. New vessel acquisitions must be defined as
improvement projects.
(5) "Life-cycle cost model" means that portion of a capital asset
inventory system which, among other things, is used to estimate future
preservation cost needs.
(6) "Maintenance cost" has the same meaning as used in capital
budget instructions developed by the office of financial management.
(7) "Preservation project" has the same meaning as used in capital
budget instructions developed by the office of financial management.
(8) "Route" means all ferry sailings from one location to another,
such as the Seattle to Bainbridge route or the Port Townsend to
Keystone route.
(9) "Sailing" means an individual ferry sailing for a specific
route, such as the 5:00 p.m. sailing from Seattle to Bremerton.
(10) "Travel shed" means one or more ferry routes with distinct
characteristics as determined by the department.
NEW SECTION. Sec. 3 A new section is added to chapter 47.60 RCW
to read as follows:
(1) The commission shall, with the involvement of the department,
conduct a market survey to gather data on ferry users to help inform
level of service, operational, pricing, planning, and investment
decisions. The survey must include, but is not limited to:
(a) Recreational use;
(b) Vehicle customer use;
(c) Freight and goods movement demand; and
(d) Reactions to potential operational and pricing strategies
described under section 4 of this act and RCW 47.60.290.
(2) The survey must be developed with input from ferry advisory
committees.
(3) The market survey must be updated at least every two years.
NEW SECTION. Sec. 4 A new section is added to chapter 47.60 RCW
to read as follows:
(1) The department shall develop, and the commission shall review,
operational strategies to ensure existing assets are fully utilized and
to guide future investment decisions. These operational strategies
must, at a minimum:
(a) Recognize that each travel shed is unique and should be
evaluated separately;
(b) Use data from the current market survey conducted under section
3 of this act;
(c) Be consistent with vehicle level of service standards;
(d) Use a life-cycle cost analysis that considers capital and
operating costs and the most efficient balance between these costs; and
(e) Use methods of collecting fares that maximize efficiency and
achieve revenue management control.
(2) In developing operational strategies, the following, at a
minimum, must be considered:
(a) The feasibility of using reservation systems;
(b) Methods of shifting vehicular traffic to other modes of
transportation;
(c) Methods of improving on-dock operations to maximize efficiency
and minimize operating and capital costs;
(d) A cost-benefit analysis of remote holding versus over-water
holding;
(e) Methods of reorganizing holding areas and minimizing on-dock
employee parking to maximize dock size available for customer vehicles;
(f) Schedule modifications;
(g) Efficiencies in exit queuing and metering; and
(h) Interoperability with other transportation services.
(3) Operational strategies must be reevaluated periodically, at a
minimum, before developing a new capital plan.
Sec. 5 RCW 47.60.290 and 1983 c 3 s 136 are each amended to read
as follows:
((Subject to the provisions of RCW 47.60.326,)) (1) The department
((is hereby authorized and directed to)) shall annually review
((tariffs and charges as)) fares and pricing strategies applicable to
the operation of the Washington state ferries ((for the purpose of
establishing a more fair and equitable tariff to be charged passengers,
vehicles, and commodities on the routes of the Washington state
ferries)).
(2) Beginning in 2008, the fares and pricing strategies developed
by the department must:
(a) Recognize that each travel shed is unique and should be
evaluated separately;
(b) Use data from the current market survey conducted under section
3 of this act;
(c) Be developed with input from affected ferry users by public
hearing and by review with the affected ferry advisory committees, in
addition to the data gathered from the market survey conducted in
section 3 of this act;
(d) Generate the amount of revenue required by the biennial
transportation budget; and
(e) Keep fare schedules as simple as possible.
(3) The fares and pricing strategies developed by the department
must consider the following:
(a) Options for using pricing to level vehicle peak demand; and
(b) Options for using pricing to increase off-peak ridership.
(4) Fares and pricing strategies must be adopted by rule, under
chapter 34.05 RCW, by the commission, according to the following
schedule:
(a) Each year the department shall provide the commission a report
of its review of fares and pricing strategies, with recommendations for
the revision of fares for the ensuing year;
(b) In October of each year, beginning in 2008, the commission
shall adopt by rule fares and pricing policies for the ensuing year.
The schedule may initially be adopted as an emergency rule if necessary
to take effect in, or as near as possible to, the month of October.
(5) The commission may adopt by rule fares that are effective for
more or less than one year for the purposes of transitioning to the
fare schedule in subsection (4) of this section.
(6) The commission may increase ferry tolls included in the
schedule of charges adopted under this section by a percentage that
exceeds the fiscal growth factor.
(7) Using sound business judgment, the chief executive officer of
the ferry system may authorize the use of promotional, discounted, and
special event fares to the general public and commercial enterprises
for the purpose of maximizing capacity use and the revenues collected
by the ferry system. The department shall report to the commission a
summary of the promotional, discounted, and special event fares offered
during each fiscal year and the financial results from these
activities.
(8) Fare revenues and other revenues deposited in the Puget Sound
ferry operations account created in RCW 47.60.530 may not be used to
support the Puget Sound capital construction account created in RCW
47.60.505, unless the support for capital is separately identified in
the fare.
Sec. 6 RCW 47.60.330 and 2003 c 374 s 5 are each amended to read
as follows:
(1) Before a substantial change to the service levels provided to
ferry users, the department shall consult with affected ferry users by
public hearing and by review with the affected ferry advisory
committees.
(2) Before ((a substantial expansion or curtailment in the level of
service provided to ferry users, or a revision in the schedule of ferry
tolls or charges)) adding or eliminating a ferry route, the department
((of transportation)) shall consult with affected ferry users and
receive legislative approval. ((The consultation shall be: (a) By
public hearing in affected local communities; (b) by review with the
affected ferry advisory committees pursuant to RCW 47.60.310; (c) by
conducting a survey of affected ferry users; or (d) by any combination
of (a) through (c).))
Promotional, discount, and special event fares that are not part of
the published schedule of ferry charges or tolls are exempt. The
department shall report an accounting of all exempt revenues to the
transportation commission each fiscal year.
(2) There is created a ferry system productivity council consisting
of a representative of each ferry advisory committee empanelled under
RCW 47.60.310, elected by the members thereof, and two representatives
of employees of the ferry system appointed by mutual agreement of all
of the unions representing ferry employees, which shall meet from time
to time with ferry system management to discuss means of improving
ferry system productivity.
(3) Before increasing ferry tolls the department of transportation
shall consider all possible cost reductions with full public
participation as provided in subsection (1) of this section and,
consistent with public policy, shall consider adapting service levels
equitably on a route-by-route basis to reflect trends in and forecasts
of traffic usage. Forecasts of traffic levels shall be developed by
the bond covenant traffic engineering firm appointed under the
provisions of RCW 47.60.450. Provisions of this section shall not
alter obligations under RCW 47.60.450. Before including any toll
increase in a budget proposal by the commission, the department of
transportation shall consult with affected ferry users in the manner
prescribed in (1)(b) of this section plus the procedure of either
(1)(a) or (c) of this section.
NEW SECTION. Sec. 7 A new section is added to chapter 47.60 RCW
to read as follows:
(1) Appropriations made for the Washington state ferries capital
program may not be used for maintenance costs.
(2) Systemwide and administrative capital program costs shall be
allocated to specific capital projects using a cost allocation plan
developed by the department. Systemwide and administrative capital
program costs shall be identifiable.
NEW SECTION. Sec. 8 A new section is added to chapter 47.60 RCW
to read as follows:
(1) The department shall maintain a life-cycle cost model on
capital assets such that:
(a) Available industry standards are used for estimating the life
of an asset, or department-adopted standard life cycles are used when
industry standards are not available;
(b) Standard estimated life is adjusted for asset condition when
inspections are made; and
(c) It does not include utilities or other systems that are not
replaced on a standard life cycle.
(2) All assets in the life-cycle cost model must be inspected and
updated in the life-cycle cost model for asset condition at least every
three years.
(3) The life-cycle cost model shall be used in estimating future
system preservation costs.
(4) Preservation funding requests shall only be for items in the
life-cycle cost model.
(5) Preservation funding requests that exceed five million dollars
per project must be accompanied by a predesign study that includes all
elements required in the office of financial management's predesign
manual.
(6) Appropriations made for preservation projects shall be spent
only on preservation projects when warranted by the asset condition.
NEW SECTION. Sec. 9 A new section is added to chapter 47.60 RCW
to read as follows:
The department shall develop terminal design standards that adhere
to the following:
(1) Vehicle level of service standards as described in RCW
47.06.140;
(2) Operational strategies as described in section 4 of this act;
(3) Pricing strategies as described in RCW 47.60.290;
(4) Life-cycle costs and the most efficient balance between capital
and operating investments are chosen; and
(5) A recognition that each travel shed is unique and should be
evaluated separately.
NEW SECTION. Sec. 10 A new section is added to chapter 47.60 RCW
to read as follows:
The capital plan must adhere to the following:
(1) A current ridership demand forecast;
(2) Vehicle level of service standards as described in RCW
47.06.140;
(3) Operational strategies as described in section 4 of this act;
(4) Pricing strategies as described in RCW 47.60.290; and
(5) Terminal design standards as described in section 9 of this
act.
NEW SECTION. Sec. 11 A new section is added to chapter 47.60 RCW
to read as follows:
(1) Terminal improvement project funding requests for design and
construction work must adhere to the capital plan.
(2) Terminal improvement funding requests for design and
construction work must be submitted with a predesign study that
includes all elements required in the office of financial management's
predesign manual.
(3) The predesign study must also:
(a) Separately identify basic terminal elements essential for
operation and their costs;
(b) Separately identify additional elements to provide ancillary
revenue and customer comfort and their costs;
(c) Include construction phasing options that fit with forecasted
ridership increases;
(d) Identify additional elements requested by local governments and
the cost and proposed funding source of those elements;
(e) Identify multimodal elements and the cost and proposed funding
source of those elements; and
(f) Identify all contingency amounts.
NEW SECTION. Sec. 12 A new section is added to chapter 47.60 RCW
to read as follows:
(1) The joint legislative audit and review committee shall assess
and report as follows:
(a) Audit the implementation of the cost allocation methodology
evaluated under chapter . . . (House Bill No. 1094), Laws of 2007, as
it exists on the effective date of this section, assessing whether
actual costs are allocated consistently with the methodology, whether
there are sufficient internal controls to ensure proper allocation, and
the adequacy of staff training; and
(b) Review the assignment of preservation costs and improvement
costs for fiscal year 2009 to determine whether:
(i) The costs are capital costs;
(ii) The costs meet the statutory requirements for preservation
activities and for improvement activities; and
(iii) Improvement costs are within the scope of legislative
appropriations.
(2) The report on the evaluations in this section is due by January
31, 2010.
(3) This section expires December 31, 2010.
NEW SECTION. Sec. 13 (1) The joint transportation committee
shall participate in and provide an independent review of (a) through
(f) of this subsection. In addition to committee members, or their
designees, the governor shall appoint a representative for this review.
The committee may also appoint other persons to assist in this review.
(a) Development and interpretation of the market survey of ferry
customers described in section 3 of this act;
(b) Analysis and reestablishment of vehicle level of service
standards as described in RCW 47.06.140. In reestablishing the
standards, consideration shall be given to whether boat wait is the
appropriate measure;
(c) Development of operational strategies as described in section
4 of this act;
(d) Development of pricing strategies as described in RCW
47.60.290. In developing these strategies, the one-way fare policy in
effect on some routes shall be evaluated;
(e) Development of terminal design standards as described in
section 9 of this act; and
(f) Development of a long-range capital plan as described in
section 10 of this act.
(2) This section expires June 30, 2009.
NEW SECTION. Sec. 14 The following acts or parts of acts are
each repealed:
(1) RCW 47.60.150 (Fixing of charges -- Deposit of revenues) and 2003
c 374 s 3, 1999 c 94 s 26, & 1990 c 42 s 405; and
(2) RCW 47.60.326 (Schedule of charges for state ferries -- Review by
department, factors considered -- Rule making by commission) and 2005 c
270 s 1, 2003 c 374 s 4, 2001 1st sp.s. c 1 s 1, 1999 c 94 s 27, 1990
c 42 s 406, 1983 c 15 s 25, & 1981 c 344 s 5.