BILL REQ. #:  H-1758.4 

READ FIRST TIME 02/25/11.   

     AN ACT Relating to improving and measuring performance of the management of the state ferry system; adding new sections to chapter 47.60 RCW; adding a new section to chapter 47.64 RCW; creating a new section; and declaring an emergency.

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

NEW SECTION.  Sec. 1   The legislature finds that the ferry system is an important driver of the Washington state economy, supporting jobs and businesses in communities around Puget Sound. The ferry system is also an integral part of the state highway system and, as such, benefits all citizens by connecting communities and markets around the state.
     The legislature further finds that funding for the ferry system remains insufficient to provide adequate service in support of this economic engine. Further, new funding sources will only be acceptable when the state can show that the ferry system manages its costs prudently, while delivering reliable, safe, and quality cross-sound transportation services.
     The legislature finds that the ferry system is subject to the statewide transportation system policy goals established in RCW 47.04.280 and yet performance criteria are not fully used by management to improve operations or demonstrate to the public that ferry service is being provided in the most cost-effective manner.
     Therefore, the legislature intends to: Strengthen performance incentives for Washington state ferries managers; increase the accountability and transparency of ferry management and operations; improve service to ferry riders; and realize cost savings in the ferry system.

NEW SECTION.  Sec. 2   A new section is added to chapter 47.60 RCW to read as follows:
     (1) For the purposes of this section and section 3 of this act:
     (a) "Management" means a Washington management services employee or exempt employee at the Washington state ferries.
     (b) "Performance criteria" means measurable standards to be used by the department to evaluate the sufficiency of the services being provided to ferry riders.
     (c) "Performance report" means a report that summarizes ferry system performance using the performance criteria under subsection (2) of this section, identifies whether performance targets were achieved, and includes a management discussion of the results.
     (2) Performance criteria may include, but not be limited to:
     (a) Safety performance as measured by passenger injuries per one million passenger miles and by injuries per ten thousand revenue service hours that are recordable by standards of the federal occupational safety and health administration and related to standard operating procedures;
     (b) Service effectiveness measures including, but not limited to, passenger satisfaction of interactions with ferry employees, cleanliness and comfort of vessels and terminals, and satisfactory response to requests for assistance. Passenger satisfaction must be measured by an evaluation that is created by a contracted market research company and conducted by the Washington state transportation commission as part of the ferry riders' opinion group survey. The Washington state transportation commission shall, to the extent possible, integrate the passenger satisfaction evaluation into the ferry user data survey described in RCW 47.60.286;
     (c) On-time performance by route within ten minutes of published sailing time. This measurement must exclude delays that are authorized or are outside of the control of the department including, but not limited to, medical issues, weather or tidal conditions, and security or other safety issues;
     (d) Cost containment measures including, but not limited to, operating cost per passenger mile, operating cost per revenue service mile, discretionary overtime as a percentage of straight time, and gallons of fuel consumed per revenue service mile;
     (e) Maintenance and capital program effectiveness measures including, but not limited to: Project delivery rate as measured by the number of projects completed on time and within the omnibus transportation appropriations act; vessel and terminal design and engineering costs as measured by a percentage of the total capital program, including measurement of the ongoing operating and maintenance costs; and total vessel out-of-service time.

NEW SECTION.  Sec. 3   A new section is added to chapter 47.60 RCW to read as follows:
     (1) Performance targets must be established by an ad hoc committee with members from and designated by the office of the governor. By July 1, 2011, the ad hoc committee shall present the performance targets to the representatives of the legislative transportation committees and the joint transportation committee for review and approval.
     (2) By October 1, 2011, the department shall complete a performance report that provides a baseline assessment of current performance using final 2009-2011 data. This report must be reviewed by the office of financial management and be provided to the legislative transportation committees by November 1, 2011.
     (3) By October 1, 2012, and each year thereafter, the department shall complete a performance report for the prior fiscal year. This report must be reviewed by the office of financial management, and the findings of the report must be incorporated into the governor's proposed biennial transportation budget. The office of financial management shall transmit a copy of the reviewed performance report to the legislature with the governor's proposed biennial transportation budget.
     (4)(a) By June 30, 2013, the Washington state ferries must meet or exceed the target performance level for seventy-five percent of the performance criteria under section 2(2) of this act. If the department does not meet or exceed the target performance level for seventy-five percent of the performance criteria, the department must competitively contract out ferry system management functions to a private management services firm.
     (b) The invitation for bid process for the contract may include a preliminary request for qualifications to inform the most effective way to contract for management functions.
     (c) Consistent with RCW 41.06.142(3), the contract is not subject to requirements for agencies purchasing services that have been customarily and historically provided by state employees.
     (d) The contract must be a fixed cost contract that requires the private management services firm to meet or exceed the target performance level for seventy-five percent of the performance criteria under section 2(2) of this act. Based on this performance criteria, the contract must provide for incentive or retained payment arrangements as a means of ensuring satisfactory performance of the contract and improved performance of the ferry system over time.
     (e) The contract must include a requirement that the firm retain existing and future collective bargaining agreements as negotiated between the state and the employees' labor representatives. The private management services firm may rehire Washington management services employees or exempt employees at the Washington state ferries.
     (f) The contract must be for a two-year period. If the private management services firm meets or exceeds the performance criteria under section 2(2) of this act, the contract is renewable for an additional two years for a maximum of ten years. After ten years, the department shall implement an invitation for bid process.

NEW SECTION.  Sec. 4   A new section is added to chapter 47.64 RCW to read as follows:
     A collective bargaining agreement may not allow for department of transportation Washington management services managers or exempt management services managers to belong to the same bargaining unit representing employees whom the managers supervise.

NEW SECTION.  Sec. 5   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.