Legislature(1997 - 1998)
03/18/1997 03:37 PM Senate STA
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
Number 500
SB 21 ALASKA MARINE HIGHWAY AUTHORITY
CHAIRMAN GREEN brought SB 21 before the committee as the final
order of business.
SENATOR ROBIN TAYLOR , prime sponsor of SB 21, read the following
sponsor statement into the record:
"SB 21 will establish the Alaska Marine Highway Authority to assume
management of the Marine Highway System from the Department of
Transportation & Public Facilities.
"The Authority would be a public corporation of the state as an
instrumentality of DOT/PF, but would have a legal existence
independent and separate from the state. The new Authority would
be comparable to the Alaska Housing Finance Corporation or the
Alaska Industrial Development and Export Authority. However, it is
different from the Alaska Railroad Board; it would not own its own
assets, and would not be able to be self sufficient.
"Establishment of such an authority boards would bring maritime
experience and continuity to the management of the Alaska Marine
Highway System.
"Based on information gathered at public hearing over the interim,
the Senate Task Force on the Alaska Marine Highway System concluded
that the legislature should consider the creation of such an
Authority.
"Testimony received by the Task Force indicated that DOT management
of the marine highway lacks focus and that AMHS administration
under DOT lacks maritime experience.
"Management under DOT has become insular and is unresponsive to
input from vessel employees and the general public. Scheduling is
chaotic and the fare structure has discouraged ridership. The
reservations system has been an abject failure.
"While concerns over funding levels are valid, the naturally
bureaucratic mind-set of the Department has tightened what former
director Jim Ayers termed a "death spiral".
"Establishment of the Alaska Marine Highway Authority will not be
a panacea, but will give the system a new perspective. It will
also give it some history and background in maritime management,
which it does not have now, as well as it will provide an
opportunity for some major changes that will all to the benefit of
the system itself, the legislature and the people of Alaska."
Number 515
SENATOR TAYLOR directed attention to two proposed amendments to SB
21. He explained the first amendment would tighten up the
designation of the maritime union representative by providing that
the union representative would be a representative of the largest
number of onboard employees in the authority. It also makes
certain the commissioner of DOT would not end up being the chairman
of the board.
SENATOR MACKIE commented that IBU would be the representative of
the largest number of onboard employees, and he questioned why the
representation was being limited to one particular union. SENATOR
TAYLOR replied that there is another union seat available, and it
was just felt that at least one seat ought to represent the
majority of the employees. He added he is trying to get as much
balance to the board so that it will work effectively.
Number 565
SENATOR TAYLOR , addressing the second amendment, explained the
governor would be appointing the members to the board, with the
exception of the commissioner of DOT, and it was felt that those
six members should stand for confirmation before the Legislature.
However, before confirmation can be required, the directors must
have a quasi-judicial function about them. The amendment
accomplishes that purpose by providing that the authority may adopt
regulations.
SENATOR MACKIE asked why these board members would have to be
confirmed if he is trying to come up with something comparable to
AIDEA and AHFC. SENATOR TAYLOR responded this is to address a
concern that the makeup of the board could easily be stacked.
TAPE 97-12, SIDE B
Number 555
SENATOR WARD moved adoption of the following Amendment No. 1.
Hearing no objection, CHAIRMAN GREEN stated the amendment was
adopted.
Amendment No. 1
Page 1, line 13: Delete "a maritime union"
Insert "the maritime union representing the
largest number of onboard employees of the authority"
Page 3, lines 3 - 4: Delete "their number"
Insert "the appointed directors"
SENATOR WARD moved adoption of the following Amendment No. 2.
Hearing no objection, CHAIRMAN GREEN stated the amendment was
adopted.
Amendment No. 2
Page 2, line 8: Delete "members" and insert "directors"
Page 2, line 9: Following "affairs." insert "The appointed
directors are subject to confirmation by a majority of the members
of the legislature in joint session"
Page 2, line 10: Delete "members" and insert "directors"
Page 4, following line 13 insert new paragraph (10) to read:
"(10)" adopt regulations under AS 44.62 (Administrative
Procedure Act) governing
(A) access to and use of services and facilities of the
authority;
(B) the authority of the officers and crew of vessels of
the authority to maintain peace and order as necessary to protect
the health, safety, and public welfare of the patrons and employees
of the authority;
(C) rates, tariffs, and other charges for transportation
and other services provided by the authority;"
Renumber the following paragraphs accordingly.
Page 4, line 16: Delete all material.
Renumber the following paragraph accordingly.
Number 560
SENATOR DUNCAN asked how this authority, since it going to be
autonomous, is going to work with the budget process. SENATOR
TAYLOR said he believes it will work just as the current one works.
The board, itself, or its executive director, will appear before
committees of the Legislature, they will submit a proposed budget
and that budget will be adjusted up or down as the Legislature sees
fit. He said he doesn't see a dramatic change in the process, but
he thinks its good to be concerned about whether or not that
authority would continue to have the level of support from the
executive branch.
SENATOR DUNCAN said that was his concern, that the more autonomous
we make it, what type of support does it lose from the executive
branch for the operational side of the budget, as well as the
commissioner of DOT is going to have pressure from the highway side
to provide a majority of the federal highway funds to highways and
not the Marine Highway System because it is no longer his
responsibility. He asked Senator Taylor if he had any fear that
all of a sudden the Marine Highway System will take a real back
seat as far as funding necessary improvements, renovations,
maintenance, etc. SENATOR TAYLOR answered he didn't think it could
do much worse. He noted the state of Washington intentionally
makes certain that they don't have any of the federal highway funds
mixed in, and, as a consequence, they then can dictate that their
boats will be repaired only in Puget Sound yards. He said he
thinks it helps the commissioner to the extent that he now has a
more autonomous group arguing with probably better credibility than
what current staff is able to argue.
Number 445
SENATOR MACKIE said he supports the concept of the board membership
having representation of people that work on the ferries, because
he thinks a lot of the information that's readily available from
people that actually work on the ships is not being currently
utilized to make it a better system. However, he questioned if
conflict of interest problems could arise by a couple of members
sitting on the board making decisions over working conditions,
contracts, or other kinds of things that actually affect them.
SENATOR TAYLOR replied that with seven members on this board, he
doesn't believe it is going to be a problem. He added that he is
trying to place members out of this fleet into direct control of
this operation because he believes they want to keep the system
going.
SENATOR MACKIE noted there is less service now than there was six
years ago, the public is paying more than they were years ago, the
Legislature is appropriating less general funds, etc., and he
asked what kind of money does he think is going to be saved in
switching to this kind of management, and how are we going to be
able to improve service. SENATOR TAYLOR replied he believes that
though there will be an initial transition cost and start up cost,
if a higher level of maritime experience were involved in
management and if management would reduce itself in size to where
it was comparable to other maritime operations, that there would be
significant savings. Those savings could then be put into further
service out in the fleet.
Number 350
CHAIRMAN GREEN stated testimony would be taken from individuals
waiting to testify over the teleconference network.
ANDREA BARKLEY , an employee of the Alaska Marine Highway System
testifying from Ketchikan, said she has just come from a meeting
with Commissioner Perkins and Gary Haden, and the crews on the
Marine Highway System were able to submit three more alternatives
for possible fleet deployment. She said she believes Commissioner
Perkins is interested in solving some of the problems, but she is
not sure if, even through this administrative process, he would be
able to do it himself.
Ms. Barkley said the Executive Committee of the Inland Boatmen's
Union has passed a resolution in support of SB 21. She also voiced
her support for the two amendments adopted by the committee.
Concluding, Ms. Barkley said she hopes the perception in the
Legislature is not that the system is so broken that it must be
thrown in the garbage can, because that is not the case. The crews
on the Marine Highway System really love their jobs, and that's why
they care so much and wish to see it survive and to prosper. She
said they have an administrative problem and they need to be able
to change the way that they are administrated.
Number 298
DOUG WARD , Project Manager of Alaska Ship & Drydock, the current
operators of the state-owned Ketchikan Shipyard, spoke in support
of an amendment adopted in the Senate Transportation Committee,
which added the interport differential, and which is designed to
level the playing field for Alaska shipyards in competitive bids
situations with out-of-state shipyards. The amendment only asks
that the state consider all of the costs that go into transporting
a vessel, and it brings fairness to the evaluation process in how
the interport differential is used in evaluating a bid. It does
not change how the state currently conducts its bidding practices.
All it does is request a full accounting of the interport costs to
make a more fair evaluation process.
Number 250
SAM KITO , Special Assistant to Commissioner Perkins, Department of
Transportation & Public Facilities, read a summary of a prepared
statement that was read into the record by Commissioner Perkins in
the Senate Transportation Committee. (See Senate Transportation
minutes dated March 6, 1997)
Mr. Kito, speaking to interport differential provision that was
added in the Transportation Committee, said the department is
concerned that the interport differential costs potentially could
cost the Marine Highway System. A recent AIDEA report estimates
that the cost to perform work on the vessels in Ketchikan was on
the average 20 percent higher than outside the state. Using that
20 percent number the system believes it could face an additional
$500,000 annually in costs for work at the Ketchikan shipyard.
Also, this change will increase the cost that the Marine Highway
System will not be able to receive reimbursement for under a
federal project.
Number 148
There being no further testimony on SB 21, CHAIRMAN GREEN stated it
was her intention to hold the bill and schedule it for another
hearing on Thursday, March 20. She then adjourned the meeting at
5:07 p.m.
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