READ FIRST TIME 03/04/10.   

     AN ACT Relating to managing costs of the ferry system; amending RCW 47.64.200, 47.64.320, and 47.28.030; creating new sections; making an appropriation; and declaring an emergency.

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

NEW SECTION.  Sec. 1   The legislature finds that the Washington state ferries system is a critical component of the state's highway system. The legislature further finds that ferry system revenues are inadequate to support the capital requirements of aging vessels and terminals, and operating cost growth is fast outpacing the growth of fare revenue and gas tax revenue dedicated to the ferry system. As such, and drawing on more than four consecutive years of legislative analysis and operating policy reforms, the legislature finds that a realignment of the ferry compensation policy framework is an appropriate next step toward the legislature's long-term goal of assuring sustainable, cost-effective ferry service. The legislature further intends to address increasing costs of operating the ferry system in a manner that balances the interests of the ferry system, ferry workforce, and the fare payers.

Sec. 2   RCW 47.64.200 and 2006 c 164 s 7 are each amended to read as follows:
     As the first step in the performance of their duty to bargain, the employer and the employee organization shall endeavor to agree upon impasse procedures. Unless otherwise agreed to by the employee organization and the employer in their impasse procedures, the arbitrator or panel ((is limited to selecting the most reasonable offer, in its judgment, of the final offers on each impasse item submitted by the parties. The employee organization and the employer may mutually agree to the impasse procedure under which the arbitrator or panel may)) shall issue a decision it deems just and appropriate with respect to each impasse item. If the parties fail to agree upon impasse procedures under this section, the impasse procedures provided in RCW 47.64.210 and 47.64.230 and 47.64.300 through 47.64.320 apply. It is unlawful for either party to refuse to participate in the impasse procedures provided in RCW 47.64.210 and 47.64.230 and 47.64.300 through 47.64.320.

Sec. 3   RCW 47.64.320 and 2006 c 164 s 14 are each amended to read as follows:
     (1) The mediator, arbitrator, or arbitration panel may consider only matters that are subject to bargaining under this chapter.
     (2) The decision of an arbitrator or arbitration panel is not binding on the legislature and, if the legislature does not approve the funds necessary to implement provisions pertaining to compensation and fringe benefit provisions of an arbitrated collective bargaining agreement, is not binding on the state, the department of transportation, or the ferry employee organization.
     (3) In making its determination, the arbitrator or arbitration panel shall be mindful of the legislative purpose under RCW 47.64.005 and 47.64.006 and, as additional standards or guidelines to aid it in reaching a decision, shall take into consideration the following factors:
     (a) The financial ability of the department to pay for the compensation and fringe benefit provisions of a collective bargaining agreement;
     (b) Past collective bargaining contracts between the parties including the bargaining that led up to the contracts;
     (((b))) (c) The constitutional and statutory authority of the employer;
     (((c))) (d) Stipulations of the parties;
     (((d))) (e) The results of the salary survey as required in RCW 47.64.220;
     (((e))) (f) Comparison of wages, hours, employee benefits, and conditions of employment of the involved ferry employees with those of: (i) Public and private sector employees in states along the west coast of the United States, including Alaska, and in British Columbia doing directly comparable but not necessarily identical work, giving consideration to factors peculiar to the area and the classifications involved, or (ii) other state employees doing directly comparable but not necessarily identical work, giving consideration to factors peculiar to the area and the classifications involved;
     (((f))) (g) Changes in any of the foregoing circumstances during the pendency of the proceedings;
     (((g))) (h) The limitations on ferry toll increases and operating subsidies as may be imposed by the legislature; and
     (((h))) (i) Other factors that are normally or traditionally taken into consideration in the determination of matters that are subject to bargaining under this chapter.

Sec. 4   RCW 47.28.030 and 2007 c 218 s 90 are each amended to read as follows:
     A state highway shall be constructed, altered, repaired, or improved, and improvements located on property acquired for right-of-way purposes may be repaired or renovated pending the use of such right-of-way for highway purposes, by contract or state forces. The work or portions thereof may be done by state forces when the estimated costs thereof are less than fifty thousand dollars and effective July 1, 2005, sixty thousand dollars, or less than one hundred twenty thousand dollars for work performed on ferry vessels or terminals: PROVIDED, That when delay of performance of such work would jeopardize a state highway or constitute a danger to the traveling public, the work may be done by state forces when the estimated cost thereof is less than eighty thousand dollars and effective July 1, 2005, one hundred thousand dollars. When the department of transportation determines to do the work by state forces, it shall enter a statement upon its records to that effect, stating the reasons therefor. To enable a larger number of small businesses, and minority, and women contractors to effectively compete for department of transportation contracts, the department may adopt rules providing for bids and award of contracts for the performance of work, or furnishing equipment, materials, supplies, or operating services whenever any work is to be performed and the engineer's estimate indicates the cost of the work would not exceed eighty thousand dollars and effective July 1, 2005, one hundred thousand dollars. The rules adopted under this section:
     (1) Shall provide for competitive bids to the extent that competitive sources are available except when delay of performance would jeopardize life or property or inconvenience the traveling public; and
     (2) Need not require the furnishing of a bid deposit nor a performance bond, but if a performance bond is not required then progress payments to the contractor may be required to be made based on submittal of paid invoices to substantiate proof that disbursements have been made to laborers, material suppliers, mechanics, and subcontractors from the previous partial payment; and
     (3) May establish prequalification standards and procedures as an alternative to those set forth in RCW 47.28.070, but the prequalification standards and procedures under RCW 47.28.070 shall always be sufficient.
     The department of transportation shall comply with such goals and rules as may be adopted by the office of minority and women's business enterprises to implement chapter 39.19 RCW with respect to contracts entered into under this chapter. The department may adopt such rules as may be necessary to comply with the rules adopted by the office of minority and women's business enterprises under chapter 39.19 RCW.

NEW SECTION.  Sec. 5    The department shall develop a methodology for giving public visibility to the cost service tradeoffs among sailing schedules, crew schedules, crew costs, and operating costs with a goal of enabling crew and passenger cost lowering suggestions to be considered during each schedule development cycle. The methodology is to be reported to the transportation committees of the legislature by September 1, 2010.

NEW SECTION.  Sec. 6   The governor shall consult with the affected unions to conduct a comprehensive review of the current array of bargaining units and contracts associated with the Washington ferry service with a view to proposing any appropriate improvements which may assure the long-term viability of a career workforce within a cost-effective service.

NEW SECTION.  Sec. 7   The sum of seven million three hundred thousand dollars, or as much thereof as may be necessary, is appropriated from the Puget Sound ferry operations account to the department of transportation solely for the purposes of travel time associated with Washington state ferries employees. The amounts provided in this section are contingent upon the provision of data to the legislature for a transparent analysis of travel pay policies.

NEW SECTION.  Sec. 8   If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION.  Sec. 9   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.