Effective Date of Rule: Thirty-one days after filing.

     Purpose: To better define and establish new rules for the county ferry capital improvement program.

     Citation of Existing Rules Affected by this Order: Amending WAC 136-400-010, 136-400-020, 136-400-030, 136-400-040, 136-400-050, 136-400-060, 136-400-070, 136-400-080, 136-400-090, 136-400-100, 136-400-110 and 136-400-120; and new sections WAC [136-400-045] and 136-400-065.

     Statutory Authority for Adoption: Chapter 36.79 RCW.

      Adopted under notice filed as WSR 08-06-051 on February 28, 2008.

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.

     Date Adopted: April 17, 2008.

Jay P. Weber

Executive Director

OTS-9725.6

AMENDATORY SECTION(Amending WSR 99-01-021, filed 12/7/98, effective 1/7/99)

WAC 136-400-010   Purpose and authority.   RCW 47.56.725(4) provides that the county road administration board may evaluate requests for county ferry capital improvement funds by Pierce, Skagit, Wahkiakum, and Whatcom counties, and, if approved by the board, submit said requests to the legislature for funding. This chapter describes the manner in which the county road administration board will implement the provisions of the act.

[Statutory Authority: Chapter 36.79 RCW. 99-01-021, § 136-400-010, filed 12/7/98, effective 1/7/99. Statutory Authority: RCW 36.78.070 and 36.79.060. 96-17-013, § 136-400-010, filed 8/12/96, effective 9/12/96. Statutory Authority: 1991 c 310 § 1(4). 91-21-138 (Order 85), § 136-400-010, filed 10/23/91, effective 11/23/91.]

     (2) For the project to be eligible it must be included in both the county's six-year transportation program and its ferry system fourteen-year long range capital improvement plan as described in WAC 136-400-040.

     (3) Any county holding an approved and executed county ferry capital improvement program contract is ineligible to submit a project funding application for additional ferry capital improvement funds until the existing contract is fully performed or has been mutually terminated.

[Statutory Authority: 1991 c 310 § 1(4). 91-21-138 (Order 85), § 136-400-020, filed 10/23/91, effective 11/23/91.]

     (1) Purchase of new vessels;

     (2) Major vessel refurbishment (e.g., engines, structural steel, controls) that substantially extends the life of the vessel;

     (3) Facility refurbishment/replacement (e.g., complete replacement, major rebuilding or redecking of a dock) that substantially extends the life of the facility;

     (4) Installation of items that substantially improve ferry facilities or operations; and/or

     (5) Construction of infrastructure that provides new or additional access or increases the capacity of terminal facilities((; and/or

     (6) Emergency repairs to correct damage to vessels or facilities caused by accidents or natural phenomena)).

[Statutory Authority: 1991 c 310 § 1(4). 91-21-138 (Order 85), § 136-400-030, filed 10/23/91, effective 11/23/91.]

     (2) Any proposed county ferry capital improvement project must be included in both the county's six-year transportation program and ferry system fourteen-year ((ferry)) capital improvement plan ((submitted in each odd-numbered year shall include all projects for which the county may request ferry capital improvement funds during the biennium beginning on July 1st of that year. Project cost estimates shall be considered preliminary until a project application is submitted.)) and must remain on both during all of the phases of the project including:

     (a) At the time a county requests a call for projects;

     (b) At the time the county submits a project funding application; and

     (c) Until the project is completed or the project is otherwise terminated.

     (3) The county ferry capital improvement project cost estimates that are included in the county's six-year transportation programs and ferry system fourteen-year plans shall be considered preliminary and are not binding on actual county ferry capital improvement project applications.

[Statutory Authority: Chapter 36.79 RCW. 99-01-021, § 136-400-040, filed 12/7/98, effective 1/7/99. Statutory Authority: 1991 c 310 § 1(4). 91-21-138 (Order 85), § 136-400-040, filed 10/23/91, effective 11/23/91.]

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     Project applications shall be submitted on application forms supplied by the county road administration board and shall include the following information:

     (1) Project description and scope;

     (2) Engineering drawings accurately describing the complete project;

     (3) Engineering analysis and cost estimate;

     (((3))) (4) Evidence ((of application for outside)) the applicant first sought funding through the public works trust fund or any other available revenue source; and

     (((4) Plan for utilization of outside funding that has been, will be, or may be awarded; and))

     (5) Comprehensive project financial plan including match funding amounts and sources as required by WAC 136-400-065 and amortization and cash flow schedules.

[Statutory Authority: Chapter 36.79 RCW. 99-01-021, § 136-400-050, filed 12/7/98, effective 1/7/99. Statutory Authority: 1991 c 310 § 1(4). 91-21-138 (Order 85), § 136-400-050, filed 10/23/91, effective 11/23/91.]

     (2) The committee shall be composed of the following members or their designees:

     (a) Executive director of the county road administration board((, WSDOT assistant secretary for transaid, WSDOT));

     (b) Washington state department of transportation highways and local programs director;

     (c) A Washington state department of transportation marine ((division)) engineer((, and));

     (d) One public works department representative((s)) from each of the ((four participating)) WAC 136-400-010 named counties((.

     The county representatives)), each of whom shall serve as an ex officio, nonvoting member((s)) of the technical review committee.

     (3) The technical review committee shall ((recommend approval of projects that have been submitted in a timely manner and that)) ensure that the project applications:

     (((1))) (a) Meet the applicable statutes and the standards of this chapter; ((and

     (2))) (b) Adhere to commonly held engineering practices and cost effectiveness; and

     (c) Are complete and meet the project application requirements listed in WAC 136-400-050, including evidence the applicant first sought funding through the public works trust fund, or other available revenue source.

     (4) The technical review committee shall ((recommend an appropriate local match on a project-by-project basis based upon the availability of local matching funds)) also develop a written report on each project application. The written report will include the following elements:

     (a) A project summary;

     (b) A committee evaluation; and

     (c) A committee recommendation based upon WAC 136-400-065 guidance and including any additional or clarifying terms established by the county road administration board's call for projects.

     (5) The technical review committee's written report((s)) on each project ((recommended for approval)) application shall be submitted to the county road administration board no later than thirty days prior to ((its)) the next regularly scheduled spring meeting after the project application deadline.

     (6) Technical review committee meetings shall be convened on an "as needed" basis by the executive director of the county road administration board, who shall serve as chairperson.

[Statutory Authority: Chapter 36.79 RCW. 99-01-021, § 136-400-060, filed 12/7/98, effective 1/7/99. Statutory Authority: RCW 36.78.070 and 36.79.060. 96-17-013, § 136-400-060, filed 8/12/96, effective 9/12/96. Statutory Authority: 1991 c 310 § 1(4). 91-21-138 (Order 85), § 136-400-060, filed 10/23/91, effective 11/23/91.]

     (2) Depending on whether a county applicant has formed a ferry district pursuant to RCW 36.54.110 and generated revenue to finance the project, project cost sharing for each applicant shall be as follows:

     (a) If ferry district revenues finance greater than thirty percent of the proposed project costs, the ferry capital improvement program may contribute up to the remaining project cost, subject to the maximum described in subsection (1) of this section;

     (b) If ferry district revenues finance greater than five percent but less than or equal to thirty percent of the proposed project costs, the ferry capital improvement program may contribute up to fifty percent of the project cost, subject to the maximum described in subsection (1) of this section;

     (c) If ferry district revenues finance less than or equal to five percent of the project costs, or the county has not formed a ferry district, the ferry capital improvement program may contribute up to thirty percent of the project cost, subject to the maximum described in subsection (1) of this section.

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     (2) At that time ((it shall approve those projects which it finds:

     (1) Meet the applicable statutes and the standards of this chapter; and

     (2) Adhere to commonly held engineering practices and cost effectiveness, specifying the amount of approved funding which it recommends for such projects.

     The board shall determine a local matching percentage on a case-by-case basis, considering the availability of local matching funds and the recommendation of the technical review committee. Emergent projects may be considered by the county road administration board at any time upon recommendation by the executive director. The board shall require evidence that each applicant has first sought funding through the public works trust fund, and other available revenue sources)), the county road administration board may approve, deny or return the application to the technical review committee for further review.

     (3) If the county road administration board returns the application to the technical review committee, the board may develop supplemental questions and criteria for the technical review committee to address.

     (4) Final action by the county road administration board on project applications must occur no later than at the next regularly scheduled summer meeting following project application deadline.

[Statutory Authority: Chapter 36.79 RCW. 99-01-021, § 136-400-070, filed 12/7/98, effective 1/7/99. Statutory Authority: 1991 c 310 § 1(4). 91-21-138 (Order 85), § 136-400-070, filed 10/23/91, effective 11/23/91.]

     The county road administration board shall, within ten days of the signing of the transportation budget, notify each county having an approved project of such approval and of the amount of county ferry capital improvement funding allocated to each approved project. The county road administration board shall offer each county a contract for each approved project setting forth the terms and conditions under which funds will be provided.

[Statutory Authority: Chapter 36.79 RCW. 99-01-021, § 136-400-080, filed 12/7/98, effective 1/7/99. Statutory Authority: 1991 c 310 § 1(4). 91-21-138 (Order 85), § 136-400-080, filed 10/23/91, effective 11/23/91.]

[Statutory Authority: Chapter 36.79 RCW. 99-01-021, § 136-400-090, filed 12/7/98, effective 1/7/99. Statutory Authority: 1991 c 310 § 1(4). 91-21-138 (Order 85), § 136-400-090, filed 10/23/91, effective 11/23/91.]

     (1) Such ((contract shall be valid and binding (and the county shall be entitled to receive ferry capital improvement funds) only if such)) contract ((is)) must be signed and returned to the county road administration board within forty-five days of its mailing by the county road administration board.

     (2) The project will be constructed in accordance with:

     (a) The information furnished to the county road administration board; and

     (b) The plans and specifications prepared under the supervision of the county engineer.

     (3) The county will notify the county road administration board when a contract has been awarded ((and)), when construction has started, and when the project has been completed.

     (4) The county road administration board will reimburse counties based on ((the basis of)) progress vouchers received and approved on individual projects, subject to the availability of county ferry capital improvement funds appropriated by the legislature.

     (5) The county will reimburse the county road administration board in the event that a project post audit reveals ineligible expenditure of county ferry capital improvement funds. Said funds will be returned to the ((county-wide)) county fuel tax account for distribution in accordance with RCW 46.68.120.

[Statutory Authority: Chapter 36.79 RCW. 99-01-021, § 136-400-100, filed 12/7/98, effective 1/7/99. Statutory Authority: RCW 36.78.070 and 36.79.060. 96-17-013, § 136-400-100, filed 8/12/96, effective 9/12/96. Statutory Authority: 1991 c 310 § 1(4). 91-21-138 (Order 85), § 136-400-100, filed 10/23/91, effective 11/23/91.]

     ((The county constructing each ferry capital improvement project may submit vouchers monthly as the work progresses and shall submit a final voucher after completion of each project for payment of the approved and funded share of the project cost.))

     The county road administration board shall approve such vouchers for payment to the county submitting the voucher. County ferry capital improvement fund warrants shall be transmitted directly to each county submitting a voucher. In the event that project funds remain unspent after the final project payment has been made, the unspent balance will be returned to the county-wide fuel tax account for distribution in accordance with RCW 46.68.120.

[Statutory Authority: Chapter 36.79 RCW. 99-01-021, § 136-400-110, filed 12/7/98, effective 1/7/99. Statutory Authority: RCW 36.78.070 and 36.79.060. 96-17-013, § 136-400-110, filed 8/12/96, effective 9/12/96. Statutory Authority: 1991 c 310 § 1(4). 91-21-138 (Order 85), § 136-400-110, filed 10/23/91, effective 11/23/91.]

     An audit of any county ferry capital improvement project shall include, but not be limited to, a review of the county's compliance with the provisions of the statute and these rules. The audit shall also include a review of the financial accounting and reporting of those funds associated with and received for the county ferry capital improvement project.

     In the event that an exception is noted in the audit report, the county road administration board shall evaluate the noted discrepancy. Discrepancies may be cause for the county road administration board to order the payback of improperly expended county ferry capital improvement funds as provided in the county road administration board/county contract. Any such funds returned by a county to the county road administration board shall be returned to the ((county-wide)) county fuel tax account for distribution in accordance with RCW 46.68.120.

[Statutory Authority: Chapter 36.79 RCW. 99-01-021, § 136-400-120, filed 12/7/98, effective 1/7/99. Statutory Authority: RCW 36.78.070 and 36.79.060. 96-17-013, § 136-400-120, filed 8/12/96, effective 9/12/96. Statutory Authority: 1991 c 310 § 1(4). 91-21-138 (Order 85), § 136-400-120, filed 10/23/91, effective 11/23/91.]

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