THE TAXPAYER'S TITANIC: THE WASHINGTON STATE FERRY SYSTEM

Special Report: Once rumors surfaced that EFF was on the brink of voicing grave and very serious concerns over the Washington State Ferry (WSF) system, EFF endured a `blitz-krieg' of lobbyist protest. Lobbyists in favor of the new Jumbo Mark II Vessel even came to the office to express their views.

At issue is the legislature's intention to give a sole source bid to Todd Shipyards for a fourth Jumbo ferry. With the help of past legislatures, the current legislature is faced with a very hard to win situation.

Concerns of the Evergreen Freedom Foundation:

• If the legislature grants a sole-source bid to Todd Shipyards, it may save some money on the fourth Jumbo Ferry. But it may also violate the state constitution, which must not be violated, especially for convenience. A sole source bid sets a bad precedent for the future. Sole source bids prevent the cost saving incentives of market competition.

• The amount of the fourth Jumbo ferry bid exceeds the amount of the third vessel's bid by about $12.5 million. The funding mechanism for the Jumbo Ferry is reminiscent of the "don't rob Peter to pay Paul" lesson we learned in our youth. The Washington State Ferry System is going to pay for the new vessel by deferring maintenance on other select ferries. This sounds about as logical as not putting oil in your car and using the savings to pay for a new one.

• State Auditor Sonntag's numerous suggestions concerning the WSF have been ignored, and he is still denied the ability to perform a performance audit.

• In 1991, the Booz-Allen and Hamilton Report made 22 recommendations, the bulk of which appear not to have been implemented. The same report also noted that, when compared to British Columbia, Nova Scotia, and Alaska, WSF refurbishment contract award cost growth was between 50 and 93 percent higher.

• The history of the WSF system indicates there is a very strong likelihood that they will come to the legislature in a couple of years and request a similar bailout on the maintenance and renovation of the other ferries. What is to prevent the WSF system from using the same excuse in a couple of years for awarding a fifth Jumbo Mark II ferry contract on a sole source bid?

• When will the legislature recognize that they have rid the system of competition through its "Build 'em in Washington" requirement? How competitive can it be when there is only one company in Washington that can handle the biggest projects?

Conclusion:

Questions on the WSF abound. The lack of accountability has been deplorable, based on State Auditor Sonntag's findings alone. The legislature needs to adopt a plan of action concerning the WSF system or it will find itself in the same frustrating predicament in future sessions, and the taxpayers will continue to foot the extravagant bill.

Prepared by David Boze, Research Analyst

Evergreen Freedom Foundation P.O. Box 552, Olympia, WA 98507 Phone: (360) 956-3482, Fax: (360) 352-1874 Email: effwa@effwa.org