Legislature(2005 - 2006)CAPITOL 17
03/21/2006 01:30 PM House TRANSPORTATION
| Audio | Topic |
|---|---|
| Start | |
| HB432 | |
| HJR18 | |
| HB417 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 432 | TELECONFERENCED | |
| *+ | HB 417 | TELECONFERENCED | |
| += | HJR 18 | TELECONFERENCED | |
HB 432-YUKON RIVER FERRY SERVICE 1:39:12 PM CO-CHAIR GATTO announced that the first order of business would be HOUSE BILL NO. 432, "An Act expanding the Alaska marine highway system to Yukon River locations." REPRESENTATIVE SALMON, speaking as the sponsor of HB 432, explained that HB 432 would require the [Department of Transportation & Public Facilities] to study the feasibility of a state ferry system on the Yukon River. [A ferry running on the Yukon River] will impact around 30 villages. He opined that tourists from surrounding areas [and outside of the state] would be interested in riding routes once traveled by the steamships in the late 1800s. He pointed out that the infrastructure necessary for this operation wouldn't be major because [the routes] would only be in operation for four months of the year. Furthermore, [regular] ferry [service] on the Yukon River will provide those living along the Yukon River with another option for the shipment of goods. He then noted the connecting roads from the villages along the Yukon River. Representative Salmon opined that the ferry system could also be utilized on the Kuskokwim River and the Stikine River. Utilizing the ferry system will provide residents with safe transportation. 1:44:41 PM CO-CHAIR ELKINS inquired as to the cost of a study as is proposed in HB 432. REPRESENTATIVE SALMON drew the committee's attention to the fiscal note specifying that the feasibility study will cost about $250,000. CO-CHAIR GATTO recalled his many canoe trips from Dawson to Eagle and also recalled that there's a private ferry, Yukon Queen, that is fast. From that he surmised that it's possible to make money with a ferry. He then expressed concern with the new language in Section 2, which requires the department to construct or obtain ferry terminal facilities at locations "including communities along the Yukon River". The aforementioned requires a different fiscal note. REPRESENTATIVE SALMON said that although it sounds like the state would be purchasing, this would require the approval of DOT&PF. CO-CHAIR GATTO suggested that perhaps the language in Section 2 should specify that the department "may" rather than "shall" construct or obtain ferry terminal facilities depending upon the results of the Section 1 study. Such language wouldn't require a costly fiscal note. REPRESENTATIVE SALMON said he is always open to amendments. 1:48:25 PM ROBIN TAYLOR, Deputy Director/Director of Marine Operations, Alaska Marine Highway System, Department of Transportation & Public Facilities, drew attention to the existing statutory language in Section 2 of "it selects". The aforementioned allows the department to move forward with the purchase, construction, or lease of terminal facilities but doesn't require the department to do so. He said that he didn't disagree with Co-Chair Gatto's suggestion, but opined that "may" and "it selects" accomplish the same thing. CO-CHAIR GATTO suggested a conceptual amendment, which would insert language in Section 2 to ensure the department is not required to construct, maintain, or purchase facilities until the legislature approves the expansion of the ferry system to the Yukon River locations. CO-CHAIR ELKINS asked whether the "shall" in Section 2 could merely be changed to "may" and accomplish the same goal. CO-CHAIR GATTO replied yes, but he expressed the need to be very clear. REPRESENTATIVE SALMON pointed out that changing "shall" to "may" will change the current statute and impact the main ferry system. MR. TAYLOR agreed, adding that is why he believes the existing language "it selects" addresses the concern. Furthermore, the department is unable to purchase any facility unless the legislature includes funding in the budget for it. Mr. Taylor opined that [the new language in Section 2] may be a bit premature until the study is completed and thus may not be necessary until the study is completed. 1:53:09 PM CO-CHAIR GATTO said he was surprised that the original language doesn't specify that the ferry terminals shall be constructed subject to the approval of the legislature. MR. TAYLOR noted that oftentimes [DOT&PF] has had to move with some dispatch. Furthermore, these often aren't major options to acquire property for terminal facilities. Mr. Taylor highlighted that terminal facilities aren't built without federal funding, which has to move through the Statewide Transportation Improvement Program (STIP) and the full legislative appropriation process during the capital budget. CO-CHAIR GATTO opined that the language is fairly broad approval for spending state money. MR. TAYLOR said, "We've not utilized it in recent years. In fact, legislative drafters are very reluctant to put the word 'shall' in." He said that the language has worked well. CO-CHAIR GATTO indicated disagreement that the language is working well because [the state] spends $3.00 for every $1.00 of revenue. CO-CHAIR ELKINS pointed out that the state receives $5 [in federal funds] for every $1.00 spent. Therefore, there isn't a highway in the state that makes money. CO-CHAIR GATTO moved that the committee adopt Amendment 1, as follows: Page 1, line 12; Delete "shall" Insert "may" CO-CHAIR ELKINS announced that he would support HB 432. However, he commented that Representative Salmon has his work cut out for him because [the legislature] is fighting to return the 10 percent that was cut from AMHS's budget back. Co-Chair Elkins highlighted that the notion is to return AMHS back to what it was 25 years ago with regard to quality and vessels. Although this legislation would fit with those goals, there are members of the legislature who would like to eliminate the entire ferry system. CO-CHAIR GATTO asked if AMHS always encompassed the facilities that it currently has. MR. TAYLOR replied no, informing the committee that AMHS began with three vessels serving from Seattle or Prince Rupert to Skagway. Over the years two vessels were added in order to provide service to the outer villages of Craig, Klawock, and Hydaburg. Over about 20 years ago, service was expanded such that two vessels served Hoonah, Angoon, Pelican, and Kake. With the purchase of the M/V Kennicott, service was expanded across the Gulf. Two other vessels were used to expand service in Prince William Sound and to the Aleutian Chain. The run from the Pacific Northwest to Skagway remains the basic core level of service that was expanded out to the Aleutian Chain as detailed above. In further response to Co-Chair Gatto, Mr. Taylor informed the committee that in 1973 DOT&PF performed a study regarding the concept of a shallow-draft ferry that would push a small barge in front of it. He offered to provide the committee a quick presentation on the concept. CO-CHAIR GATTO said he would pass on the presentation at the moment. He then inquired as to the situation with the M/V Tustumena. MR. TAYLOR clarified that the M/V Tustumena is undergoing a major overhaul, an almost $3.5 million project. The aforementioned is funded by federal money. However, he noted that typically a portion of each of these contracts is state money appropriated from the general fund for vessel repair and maintenance. To the extent possible, such contracts are kept in state. 2:01:01 PM MR. TAYLOR related that DOT&PF is moderately supportive of HB 432 due to the struggles to fund the current budget. He cautioned against having 30 villages reliant on the ferry system as is the case with the isolated communities of Southeast Alaska, Prince William Sound, and the Aleutian Chain. He suggested that such dependence on the ferry system could result in the communities of the Yukon River facing concerns related to increased costs. Mr. Taylor highlighted that the private sector can and does provide service where it's economically feasible, as is the case with the barge service currently provided on the Yukon River. He projected that to provide ferry service to an area with very little revenue base will be costly. 2:03:04 PM REPRESENTATIVE SALMON, in response to Co-Chair Gatto, explained that Yutana Barge Lines, a private company, only carries freight and only services some areas along the Yukon River once or twice yearly. CO-CHAIR GATTO asked if $250,000 is the correct amount to perform the study. MR. TAYLOR replied yes, it should allow adequate assessment of the proposal and promptly return to the legislature with information. REPRESENTATIVE SALMON, in response to Co-Chair Elkins, answered that the Yukon River is free of ice mid-May to the end of September. 2:04:43 PM CO-CHAIR GATTO related his understanding that the ferry at Dawson City is operated by the government since it's free. CO-CHAIR GATTO reminded the committee of the pending motion to adopt Amendment 1 and asked if there was any objection. There being no objection, Amendment 1 was adopted. REPRESENTATIVE THOMAS moved to report HB 432, as amended, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 432(TRA) was reported from the House Transportation Standing Committee. 2:06:21 PM
| Document Name | Date/Time | Subjects |
|---|