Infrastructure, Transportation & Economic Development

AWC would like to thank Representative Takko (D-Longview) and Senator Kilmer (D-Gig Harbor) for their superlative session during our CLAC. We appreciate their candor and their willingness to support additional infrastructure and economic development funding.

This Week in Infrastructure

This week will be "infrastructure" week in the House Capital Budget Committee and Senate Ways and Means Committee.

Regarding the Public Works Assistance Account (HB 3301 and HB 3302)

Both bills will be heard on Monday February 4 at 6 pm in the House Capital Budget Committee. HB 3301 would allow the Public Works Board to reimburse projects for allowable expenses incurred during the preceding fiscal year. HB 3302 has the same provisions as HB 3301, but also states that if the legislature doesn’t approve the Public Works Board project list by February 1, it is considered adopted. These bills will provide an option for cities to advance construction projects by one season. AWC will testify in strong support of both bills.

Regarding Public Works Projects (HB 3264/SB 6853)

This legislation is a result of the Public Infrastructure Programs and Funding Structures Task Force recommendations from last December. If enacted, the legislature could:

• Set funding levels for the existing categories that are eligible in the Public Works Assistance Account (sewer, water, roads, bridges, and solid waste facilities); and
• Add additional infrastructure categories to the Public Works Assistance Account that are aligned with state priorities.
• Once the appropriation and categories are determined, the Public Works Board would not be required to return to the Legislature the following year for project list approval.

Although we appreciate the Task Force's recognition and support of local governments need for infrastructure funding, we do not support this particular proposal.  We will continue to work with legislators to seek additional infrastructure funding, rather than add categories to the Public Works Assistance Account without commensurate funding. SB 6856 is an alternative proposal that we support and will pursue as a long term proposal that benefits cities (please see below).

Supporting Infrastructure and Economic Development Funding (SB 6856)

We anticipate a hearing on either Wednesday, February 6 or Friday, February 8 in the Senate Ways and Means Committee. Senator Prentice (D-Renton) and Senator Fraser (D-Thurston County) have introduced SB 6856, supporting infrastructure and economic development. This legislation is supportive of AWC’s effort to build upon the Public Infrastructure Programs and Funding Structures Task Force’s recognition that infrastructure funding for basic services and economic development is badly needed in Washington State. This bill enhances the Public Works Trust Fund by $100 million each biennium.

As a result of this legislation, cities, counties, and public utilities districts will be eligible for an additional $60 million in low interest loans to repair and replace basic infrastructure: sewer, water, solid waste, and roads.  An additional $40 million in grants is targeted toward cities and counties experiencing high population growth that is outpacing their ability to provide basic infrastructure.

"Cities want to thank Senator Prentice and Senator Fraser for their leadership in introducing this bill.  This triggers genuine dialogue about how the state can best partner with local governments to invest in infrastructure needs for the future." AWC President, Richard Munson, Mayor, Spokane Valley, said at this week's City Legislative Action Conference (CLAC).

Authorizing Public Works Board Projects (HB 2437)

This bill will be heard in the Senate Ways and Means Committee on Wednesday, February 6. As recommended by the Board, 52 project loans totaling $278 million are authorized for the 2008 loan cycle. All of the appropriation available for construction loans in the 2007-09 biennium is being used for the 2008 loan list. Cities represent 32 projects totaling $182 million. Please see www.pwb.wa.gov for more detailed project information.

This Week in Transportation

The third week of session focused on safety, multimodal transportation, and briefings on SR 520. Beginning next week, the Senate will have the most discussed legislation on Tuesday, February 5, when it focuses on regional transportation governance.

Eliminating Regional Transportation Investment Districts (SB 6771)

As the title indicates, this would repeal RTID. If this legislation advances, and SB 6772 does not (see last week’s Bulletin for an explanation of SB 6772), then the Transportation Benefit District enabling legislation (RCW 36.73) will likely be looked to fund regional and local transportation investments.

Creating a Puget Sound Regional Tolling Authority (SB 6543)

As an apparent alternative to SB 6335 (Tolling), this legislation would create a separate tolling authority exclusive to King, Pierce, Kitsap, and Snohomish Counties. The Puget Sound Regional Council would authorize tolling on portions of state highways.

Concerning the Disposition of Publicly Owned Railroad Infrastructure (SB 6800)

Scheduled for public hearing in the Senate Transportation Committee on Wednesday, February 6 at 1:30 pm, this bill states that a local government, port district, rail district, or other special purpose district may not remove or disassemble railroad infrastructure that it owns, operates, or controls within the state of Washington, except:

• To comply with statutory obligations;
• To immediately realign or improve the railroad infrastructure; or
• As authorized by express, prior approval of the Legislature.

AWC will raise concerns regarding this proposal. If a city owned rail system does not meet the standards identified in (a) or (b), it will not want to wait on (or chance) legislative approval.

Requiring Local Bridge Owners to Maintain, Replace, or Appropriate Funds for Bridges Deemed to be Especially Deficient (SB 6808/HB 2969)

As the bill title indicates, if a city has a bridge rating of 9 or less (out of 100), the state treasurer would be required to withhold twenty-five percent of their state gas tax revenues until enough revenue is accrued to fund 50% of the estimated cost to replace the bridge or rehabilitated at a rating of 80 or better. The Senate version is scheduled for public hearing in the Senate Transportation Committee on Thursday, February 7 at 1:30 pm. AWC staff will testify in opposition to this bill.

Exempting Park Maintenance Equipment Operated by Certain Local Jurisdictions From Vehicle License and License Plate Requirements (HB 3183)

This good little bill will allow cities to operate and move park maintenance equipment on city streets without requiring a police escort (current law).

Addressing Concurrency and Impact Fees for Transportation Purposes (SB 6566/ HB 2950)

Supported by the Association of Washington Business, this bill states that the payment of impact fees would constitute an acceptable strategy for meeting the established transportation standards – if a developer pays impact fees, it would be considered concurrent. AWC, as well as several other organizations testified with concerns on its companion bill HB 2950. Our expectation is that this legislation will not advance this year.

Prevailing Wage Statements (SB 6694/HB 2942)

Increases the fee for approval of statements of intent to pay prevailing wages and certification of affidavits of wages paid from no greater than $25 to $40. The Senate version is scheduled for public hearing on Monday, February 4 in the Senate Labor, Commerce and Research & Development at 10 am.

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