04/13/2000 01:08 PM House TRA

SB 288 - APPROVE CLARKE BAY TERMINAL AGREEMENT                                                                                  
                                                                                                                                
CHAIRMAN HALCRO announced the first order of business as Senate                                                                 
Bill 288, "An Act authorizing the Department of Transportation and                                                              
Public Facilities to enter into an agreement with the Inter-Island                                                              
Ferry Authority regarding the operation of the Clarke Bay Terminal,                                                             
Prince of Wales Island."                                                                                                        
                                                                                                                                
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DAVID GRAY, Staff to Senator Jerry Mackie, Alaska State                                                                         
Legislature, came before the committee to present SB 288 on behalf                                                              
of the sponsor.  Clark Bay, he explained, is where the Hollis ferry                                                             
terminal for the Alaska Marine Highway System is located.  Hollis                                                               
is a community on Prince of Wales Island.  About four years ago, he                                                             
stated, all the communities on the island felt that they would not                                                              
be able to get daily ferry service between Ketchikan and Hollis                                                                 
unless they took action into their own hands.  As a result, they                                                                
created a municipal port authority [Inter-Island Ferry Authority],                                                              
an action that is authorized in state law.  The authority has also                                                              
secured funding from federal sources and has committed some of                                                                  
their own funding from municipal revenue bonds.  The first ferry is                                                             
due for bid this spring, and is expected to be completed by June of                                                             
next year.  The authority expects service to begin next summer.  AS                                                             
29.35.722(2) indicates that any agreement such as this requires                                                                 
legislative approval, which is exactly what SB 288 provides for.                                                                
Mr. Gray lastly stated that the bill comes with a "friendly" fiscal                                                             
note; it would save the state some money.                                                                                       
                                                                                                                                
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REPRESENTATIVE BILL HUDSON asked Mr. Gray whether it's correct to                                                               
say that the new ferry would operate out of the Hollis terminal,                                                                
and therefore the operation of the ferries would be transferred                                                                 
from the Department of Transportation & Public Facilities to the                                                                
Inter-Island Ferry Authority.                                                                                                   
                                                                                                                                
MR. GRAY replied the Inter-Island Ferry Authority would be making                                                               
improvements to the Hollis terminal in order to dock a new ferry.                                                               
The authority would also construct new terminal facilities.  There                                                              
would be a quid-pro-quo type of exchange in that - at times - the                                                               
Alaska Marine Highway System would be selling tickets and tying                                                                 
ferries.                                                                                                                        
                                                                                                                                
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CHAIRMAN HALCRO closed the meeting to public testimony.                                                                         
                                                                                                                                
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REPRESENTATIVE HUDSON indicated that this feels like deja vu in                                                                 
that when he was director of the Alaska Marine Highway System he                                                                
flew to Hollis to look into this very issue.                                                                                    
                                                                                                                                
Number 0383                                                                                                                     
                                                                                                                                
REPRESENTATIVE HUDSON made a motion to move SB 288, version                                                                     
1-LS1524\A, out of committee with individual recommendations and                                                                
attached fiscal note.  There being no objection, SB 288 so moved                                                                
from the House Transportation Standing Committee.