Transportation & Infrastructure

Session Overview

Unfinished business -The Governor, the Senate and the House tackled transportation issues that were unresolved from the 2005 session. Most notable was ESHB 2871, the Regional Transportation Bill. This is considered the bookend to last year’s Transportation Partnership Package. The inclusion of modified Transportation Benefit District (TBD) authorities provides the most local transportation tools cities have received since 1991. This summer, AWC will work through the mechanics of the TBD authority and provide outreach on how this tool can work for cities. For more information on TBDs, please see www.awcnet.org/documents/TBDs.pdf.

Now that transportation funding is committed, we will continue to see an increased emphasis on accountability and project delivery methods. For example, the Senate introduced bill language to better define the use of Federal funds that passes through to locals (it was vetoed). WSDOT received increased authorities in the areas of design build legislation.

In the public works arena, we were successful in maintaining our current business practices in the areas of claims management and bidding contracts. However, we can expect continued pressure from the Legislature and the contracting community to revisit how all public owner’s deny claims. AWC has committed to working with the Associated General Contractors (and other public owners) during the interim to determine if AGC’s concerns can be resolved while continuing to protect our interests as public owners.

Major Bills

AWC Priority Bill: ESHB 2871 – Regional Transportation

The Governor is to be credited with bringing together the Senate and House to hammer out this compromise legislation. Of note:

• With the exception of King, Pierce, and Snohomish County (and respective cities), all other cities and counties have expanded TBD authorities. Most importantly, the previous requirement that locally generated TBD funds are to be proportionately used for Highways of Statewide Significance (60% minimum) and 40% maximum for local purposes is repealed. As a reminder, this includes voter approved revenue sources of up to a $100 motor vehicle fee, up to 2/10 percent sales tax and property tax authority. This was included in HB 3138.
• After December 1, 2007, King, Pierce and Snohomish County and their respective cities will be eligible to create Transportation Benefit Districts.
• A nine member commission is created to evaluate transportation governance in central Puget Sound. The commission is to develop a comprehensive financing strategy and recommend revenue options for improving transportation system performance within the region. They are to report to the legislature by January 1, 2007.
• The regional roads package and Sound Transit are required to be on the same ballot, at the 2007 general election. Both Sound Transit and the regional transportation plan (the new Regional Transportation Investment District) are required to pass together; if one passes and the other fails, they both fail.
• Revenue authority is granted to include up to 1/10 percent sales tax and 8/10 percent MVET (based on the new, substantially lesser rate).
• The local match requirement is reduced from 1/3 to 15%.
• The bill includes sub area equity requirements.
• Operations, preservation, and maintenance are generally prohibited. However, operational expenses for traffic mitigation relative to construction mitigation directly related to specific projects is permitted. The commission has the authority to continue transit investments after construction if performance measures are met.
• After December 1, 2007, if no RTID materializes, then King, Pierce, and Snohomish County receive this authority on an individual basis.

For a detailed summary on this bill please see www.awcnet.org/documents/regionalfinalsummary.pdf.

[C 311 L 06; Effective date: June 7, 2006]

SSB 6241 – Supplemental Transportation Budget

The transportation budget, SSB 6241, had a few project additions (and deletions), but also had the following highlights:

• $20 million for regional mobility grant projects. This is a result of last year’s new revenue package.
• $7 million for pedestrian and bicycle safety program projects and safe routes to schools program projects. This is a result of last year’s new revenue package.
• $4.65 million increase in Commute Trip Reduction funding. This is to support ESSB 6566, the Commute Trip Reduction bill (see following article for details).
• $525,000 to cities and counties for improving transportation permitting processes.
• $100,000 to study transportation concurrency and how it affects state highways. This proviso is in lieu of SB 6268 - Transportation Concurrency Under the Growth Management Act.

[C 370 L 06; Effective date: March 31, 2006]

ESSB 6839 – Modifying Transportation Accounts and Revenue Distributions

This has been a priority AWC bill. It codifies permanent transportation funding to our transportation partners and made a few technical adjustments to last year’s transportation package. Without this bill, the following would have been subject to biennial allocations:

• $7 million of the Transportation Improvement Board’s funding for each biennium. This includes $2 million for the Small City Pavement Preservation Program.
• $3 million for the County Road Administration Board
• $20 million for the Regional Mobility Grant Program
• Corrects some technical (legal) problems that allow the use of freight mobility funding and freight projects to proceed.
• Eliminates the requirement for Projects in Puget Sound to reprioritize projects if RTID does not have an adopted plan by January 2007.
• Re-directs funding for ferry operations purposes.
• Retains the $4 million department of transportation performance audit proviso from last years transportation package.

[C 337 L 06; Effective date: June 7, 2006]

HB 2544 – Authorizing Project Loans Recommended by the Public Works Board

The bill authorizes 51 public works project loans totaling $181.7 million for the 2006 loan cycle. This includes 34 city projects totaling over $118 million. The projects fall into the following categories: 11 domestic water projects totaling $33.2 million; 31 sanitary sewer projects totaling $128.8 million; 3 storm sewer project totaling $10.1 million; and six road projects totaling $9.6 million.

[C 273 L 06; Effective date: Mardch 28, 2006]

Minor Bills

ESSB 6566 – Revising Commute Trip Reduction (CTR) Provisions

This bill revises the CTR provisions to include the following:

• Modifies the scope of the CTR Program to focus on urban growth areas with the most congested state highway corridors.
• Creates a new CTR Board with expanded duties (and fewer members).
• Allows local jurisdictions to create growth and transportation efficiency centers to obtain funding and flexibility in implementing programs.
• Expands the role of the Department of Transportation and regional transportation planning organizations in CTR planning.

Of note, the final budget included $150,000 for the Whatcom Council of Governments to develop a Transportation Demand Management program.

[C 329 L 06; Effective date: June 7, 2006]

HB 1439 – Electronic and Web-based Bidding – Partial Veto

HB 1439 was amended in executive session (no public testimony allowed) to include SSB 6509. SSB 6509 added the provision preventing state agencies, cities with a population over 100,000, and counties with a population over 500,000 from canceling all public works bids after opening unless there is a compelling reason.

[C 363 L 06; Effective date: June 7, 2006]

Partial Veto: Sections 4, 5, and 6 were vetoed, which relate to the rejection of bids without a compelling reason for (1) public works projects undertaken by any state agency, city with a population greater than 100,000, or county with a population greater than 500,000; (2) any agency or institution of state government for personal services contracts; and (3) the Information Services Board when purchasing, leasing, renting, or acquiring equipment, proprietary software, or other purchased services.

In her veto letter, the Governor stated that she does not look favorably on agencies irresponsibly canceling all bids after bid opening and commencing a re-bidding process.

However, she further stated that this is too important an issue to be addressed through language that does not comprehensively address the complex differences between the contracting processes. The Governor urged the Legislature to revisit this issue with input from all stakeholders: cities, counties, and the business community, and to propose cancellation language appropriate for the state’s contracting system.

EHB 3192 – Authorizing a Contract Extension for Reimbursement by Property Owners for Street, Road, and Water Sewer Projects

This bill will allow for an extension of the current 15 year period if a moratorium, phasing ordinance, or concurrency designation or other governmental action that restricts new developments from being applied for within the benefit area is implemented. The bill now includes notice requirements and the ability for local jurisdictions to collect fees.

[C 88 L 06; Effective date: June 7, 2006]

ESSB 6679 – Regulating Train Speeds

This bill requires that before increasing operating speeds, a railroad operator must provide 60 days written notice to the Utilities and Transportation Commission and the applicable local government or road authority.

[C 70 L 06; Effective date: June 7, 2006]

SSB 5236 – Providing Additional Funding to the Prevailing Wage Program

This bill provides for additional funding to the Department of Labor and Industries’ prevailing wage program by discontinuing the transfer of moneys from the public works administration account to the state general fund. AWC supported this legislation to ensure that L&I has adequate resources to conduct sound prevailing wage surveys.

[C 230 L 06; Effective date: July 1, 2006]

Bills That Failed

AWC Priority Bill: SHB 1989 – Providing Local Transportation Funding Options

The proposed bill would have authorized a $20 motor vehicle license fee and is intended to replace I-776 funding. (The original bill from last year authorized four local options: the $20 motor vehicle license fee, street utility, local option gas tax, and weight fee).

AWC Priority Bill: SB 6563 – Failing to Wear a Seat Belt

This bill would have made failure to comply with the safety belt assembly and child restraint system requirements admissible in any civil action.

SB 5936/HB 1613 – Limiting the Effect of Contract Provisions

Introduced last year, this would have required Public Owners who wish to deny claims based on procedural defenses (i.e. lack of timely written notice, failure to follow contract claims procedures) to bear the burden of proving that the owner has actually been prejudiced.

This legislation is sought by the Associated General Contractors, who have publicly stated this is a top priority issue. This is their response to the Michael M. Johnson ruling from a few years ago.

AWC opposed this legislation. The court decision on Michael M Johnson affirmed our contracting procedures, and we have a long-standing position that public owners should fully retain the authority to require contractors to follow contracting procedures.

SB 6162 – Harmonizing and Updating Various Aspects of the Urban Arterial Program

This bill proposed three changes to the Transportation Improvement Board (TIB):

• The names of several programs are changed to better align with funding sources and program delivery;
• The number of TIB members is reduced from 21 to 20 by eliminating one of the public transit system appointments. The Executive Director of CRAB is also removed from the TIB Board and replaced by a county engineer or public works director from a county with a population of less than 125,000; and
• The Governor makes TIB appointments instead of the Secretary of the Department of Transportation.

SB 6339 – Allocating Federal Surface Transportation Program Enhancement Funds

When allocating federal surface transportation program enhancement funds, the state Transportation Enhancement Committee and RTPOs would have been required to ensure, to the greatest extent practicable, that funding for each transportation enhancement activity is allocated such that the allocation meets or exceeds the national average of allocations made for each of the twelve respective activities.

Beginning December 1, 2007, WSDOT would have been required to report to the Legislature every two years on whether the state has met or exceeded the national average of allocations made for each transportation enhancement activity.

SB 6238 – Traffic Safety Cameras

SB 6238 would have expanded the automated traffic safety camera law to include authorizing local governments to use cameras to detect speed violations on arterial highways within cities over 500,000 persons.

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