Legislature(2005 - 2006)CAPITOL 106
01/18/2005 08:00 AM House STATE AFFAIRS
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| Start | |
| Public Facilities Alaska Marine Highway System | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
HOUSE STATE AFFAIRS STANDING COMMITTEE
January 18, 2005
8:04 a.m.
MEMBERS PRESENT
Representative Paul Seaton, Chair
Representative Jim Elkins
Representative Carl Gatto
Representative Bob Lynn
Representative Jay Ramras
Representative Berta Gardner
Representative Max Gruenberg
MEMBERS ABSENT
All members present
OTHER LEGISLATORS PRESENT
Representative Mike Kelly
COMMITTEE CALENDAR
OVERVIEW(S): PUBLIC FACILITIES ALASKA MARINE HIGHWAY SYSTEM
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
MIKE BARTON, Commissioner
Office of the Commissioner
Department of Transportation & Public Facilities (DOT&PF)
Juneau, Alaska
POSITION STATEMENT: Presented the portion of the overview of
DOT&PF relating to public facilities.
JOHN MACKINNON, Deputy Commissioner of Highways and Public
Facilities
Office of the Commissioner
Department of Transportation & Public Facilities (DOT&PF)
Juneau, Alaska
POSITION STATEMENT: Answered questions during the overview of
DOT&PF.
NANCY SLAGLE, Director
Division of Administrative Services
Department of Transportation & Public Facilities (DOT&PF)
Juneau, Alaska
POSITION STATEMENT: Answered questions during the overview of
DOT&PF.
JOHN TORGERSON, Special Assistant to the Commissioner
Office of the Commissioner
Department of Transportation & Public Facilities (DOT&PF)
Juneau, Alaska
POSITION STATEMENT: Presented the portion of the DOT&PF
overview relating to the Alaska Marine Highway System (AMHS).
ACTION NARRATIVE
CHAIR PAUL SEATON called the House State Affairs Standing
Committee meeting to order at 8:04:06 AM. Present at the call
to order were Representatives Gatto, Ramras, Gardner, and
Seaton. Representatives Elkins, Lynn, and Gruenberg arrived as
the meeting was in progress.
^OVERVIEW(S)
^PUBLIC FACILITIES ALASKA MARINE HIGHWAY SYSTEM
8:05:24 AM
REPRESENTATIVE SEATON announced that the only order of business
was the overview presented by the Department of Transportation &
Public Facilities (DOT&PF), regarding public facilities and the
Alaska Marine Highway System (AMHS).
8:05:43 AM
MIKE BARTON, Commissioner, Office of the Commissioner,
Department of Transportation & Public Facilities (DOT&PF),
introduced his staff.
8:07:14 AM
COMMISSIONER BARTON directed attention to the following pages of
a hard copy of a Power Point presentation [included in the
committee packet]. He highlighted the following: Page 3, which
shows the regions in the state; page 4, which shows the
locations of the 84 maintenance stations around the state; page
5, which shows Alaska's National Highway System; page 6, which
shows the Alaska Highway System; page 7, which shows the
location of the 258 state-owned airports; and page 8, which
shows the 73 state-owned harbors and 51 harbors operated by
agreements with local governments. He noted that there is a
program in which the state brings harbors up to a certain
standard and then transfers them to local governments wherever
that's possible. He said at the end of that program, it is
estimated that there will still be 22 state-owned harbors,
because there is no local entity capable of maintaining and
operating them.
8:10:27 AM
JOHN MACKINNON, Deputy Commissioner of Highways and Public
Facilities, Office of the Commissioner, Department of
Transportation & Public Facilities (DOT&PF), in response to a
question from Chair Seaton regarding the transfer of the
harbors, noted that there have been 9 to 10 successful
transfers, so far. He mentioned an issue of right-of-way in
Yakutat that is being addressed. He said the projection is to
make all of the transfers within the next six to eight months.
In response to a follow-up question from Chair Seaton, he
confirmed that the 73 harbors [shown on page 8 of the Power
Point handout] are in addition to those that have been
transferred to local entities.
8:11:53 AM
COMMISSIONER BARTON returned to the Power Point handout and
highlighted the following: Page 9, which shows the AMHS route
map; page 10, which shows the State of Alaska facilities of
1,500 buildings, 10 million square feet of buildings, and with a
$2.4 billion replacement value; page 11, which states that
DOT&PF uses 700 buildings; and page 12, which shows the types of
buildings maintained by DOT&PF, including airport terminals,
ferry terminals, office buildings, maintenance shops, equipment
storage buildings, weigh stations, and employee housing.
8:13:05 AM
COMMISSIONER BARTON turned to page 13, which shows the
department's operating budget request by fund sources or
facilities. In response to a question from Representative
Gardner regarding the abbreviated headings on page 13, he
explained that "I/A" stands for interstate agencies, "CIP"
stands for capital improvement program receipts - which is
generally federal money, and "SDPR" is the same as I/A, except
that it's non-state agencies. He offered an example.
8:15:02 AM
COMMISSIONER BARTON, in response to a question from
Representative Gatto regarding where employee housing would be
found, said some of the 84 remote maintenance stations shown on
page 4 [would have employee housing]. In response to a follow-
up question from Representative Gatto, he said, "It's taxable
income for the employees, but there is no actual out-of-pocket
costs."
8:16:22 AM
COMMISSIONER BARTON returned to the Power Point handout and
highlighted the following: Page 14, which shows the regional
maintenance funding, excluding the ferry system, roads, and
airports; page 15, which shows the department's fixed costs;
page 16, which shows the capital budget regarding the deferred
maintenance cost of facilities; and page 17, which shows the
energy savings performance contracts.
8:18:59 AM
NANCY SLAGLE, Director, Division of Administrative Services,
Department of Transportation & Public Facilities (DOT&PF),
talked about energy audits done to find out how to save energy
costs by rehabilitating or renovating facilities. She gave
further details. She says the department hopes to do
construction this coming season.
The committee took a brief at-ease at 8:21:16 AM.
8:21:23 AM
COMMISSIONER BARTON directed attention to page 18 of the Power
Point handout, which shows design and construction. He pointed
to "API replacement" on the page and said a process was used
there that he would like to see used more often.
8:22:54 AM
MR. MACKINNON, in response to a question from Chair Seaton
regarding page 17, confirmed that all the leases have the lessor
paying the heat or energy costs.
8:23:11 AM
CHAIR SEATON asked about total deferred maintenance.
8:23:27 AM
MR. MACKINNON said the department did identify about $15 million
in immediate needs and was able to get $8 million through the
Office of Management & Budget. He clarified that that money is
in the governor's budget for this year.
8:23:48 AM
COMMISSIONER BARTON, in response to a request from Chair Seaton,
said he would provide the committee with a listing of deferred
maintenance in state facilities.
8:24:00 AM
REPRESENTATIVE GATTO asked if there are a lot of buildings that
could be consolidated into a single building, or if location is
so important that that would be inefficient.
8:24:35 AM
COMMISSIONER BARTON said he suspects that there are. In
response to a follow-up question from Representative Gatto, he
discussed why there may be problems in attempting to reuse the
capitol building for other purposes.
8:28:45 AM
COMMISSIONER BARTON, in response to a question from
Representative Gruenberg, said the department has given thought
to the possibility of building "smart structures." He gave
examples of smart structures, including bridges that
automatically de-ice, and high performance concrete. He noted
that Egan Highway [in Juneau] has successfully resisted rutting.
8:30:04 AM
CHAIR SEATON mentioned fixed costs and insurance. He asked if
the state is self-insuring or if it purchases commercial
insurance.
8:30:34 AM
MS. SLAGLE answered that it's a self-insured program with the
state, with the Division of Risk Management.
8:30:46 AM
CHAIR SEATON thanked DOT&PF
8:31:35 AM
JOHN TORGERSON, Special Assistant to the Commissioner,
Department of Transportation & Public Facilities, said he is
charged with creating the business plan for AMHS and is the
commissioner's agent for the collective bargaining unit. He
brought the committee up to date on the collective bargaining
for the M/V Fairweather, which, as a day boat, was put on a
separate contract.
8:32:50 AM
MR. TORGERSON said a series of salaries was created, including
holiday, sick, vacation, and non-watch pay, and made into an
hourly rate for those on the vessel. The unions wanted the
agreement for the M/V Fairweather as part of the master
agreement, but the state decided to keep it separate. However,
shortly after meeting with a federal mediator, the state decided
to go back to the master agreement. Mr. Torgerson said the
state thought it was getting closer to reaching an agreement,
but on September 27, the state declared an impasse with the
unions and is again seeking mediation. He offered further
details. He mentioned the Inlandboatmen's Union of the Pacific
(IBU) and said that contracts will be coming from IBU for the
legislation's consideration.
8:36:26 AM
MR. TORGERSON noted that under the letter of agreement, AMHS is
operating 7 days a week, 12 hours a day, which would not be
feasible during the winter season. He said AMHS would like to
go to 4 days a week, 12 hours a day, which would save the state
between $1.8 and $2 million.
8:38:20 AM
MR. TORGERSON said a new vessel is on its way: the M/V Chenega.
Two other boats have been approved by the legislature, but the
governor is holding off on ordering them until he sees "the
whole package."
8:39:27 AM
MR. TORGERSON, in response to several questions, defined the
phrase "hot berth" as a ship that is kept ready to go. He
offered further details.
8:41:47 AM
COMMISSIONER BARTON, in response to a question from
Representative Gruenberg regarding incidents where foreign
objects have been caught in the intake, said intakes are
designed to chew up a log, but "short blocks" have been getting
caught crosswise. Consideration was made to put a screen on,
but it would cost in speed and fuel. He noted that the vessel
can operate on full speed with three out of four of its engines.
8:44:25 AM
REPRESENTATIVE RAMRAS asked how much the state is paying versus
how much the unions want, and how much will be needed from the
legislature in supplemental funding.
8:46:05 AM
MR. TORGERSON said the master in the fleet makes approximately
$105,000 to $115,000 a year, while those on hourly wage make
approximately $13 an hour. Terms have been reached regarding
the master, which would include a pay increase of 7 percent the
first year, and 6 percent the second and third years. He said
he thinks that's the upper limit of what the legislature may
approve. He noted that maritime unions do not receive merit
increases.
8:47:55 AM
MR. TORGERSON said the state has maximum flexibility to manage
the contracts; "the trigger" is the Coast Guard requirement
regarding how many people to have on a vessel.
8:48:46 AM
MR. TORGERSON, in response to a follow-up question from
Representative Ramras, explained that the need for supplemental
funding is driven mainly by fuel costs and is approximately $7.5
million; with labor contracts added, the amount that will be
requested from the legislature is approximately $11.5 million.
In response to another follow-up question from Representative
Ramras, he said, "We run about 50/50 between fair box and
general fund support."
8:49:32 AM
COMMISSIONER BARTON said things are not "falling down around
us," and he expressed pride in the system.
8:50:31 AM
MR. TORGERSON, in response to a question from Representative
Gardner, said the M/V Lituya and the M/V Fairweather, as day
boats, are fundamentally the same, but there are different
manning levels and different ratings for members on board. In
response to a follow-up question from Representative Gardner, he
explained that three maritime unions are involved.
8:51:44 AM
MR. TORGERSON, in response to a request from Chair Seaton,
described the differences between the high-speed fast ferries
and the K-class vessels. Additional training is required to
operate one of the fast ferries, which adds considerable cost to
the state.
8:55:19 AM
COMMISSIONER BARTON said the department is trying to get the
high-speed craft code waived and he is "cautiously optimistic"
that that will be achieved. He offered details concerning type
rating and route rating requirements.
8:59:00 AM
COMMISSIONER BARTON, in response to a question from
Representative Gruenberg, explained the difference between
training and Coast Guard certification.
9:02:08 AM
MR. TORGERSON, in response to a concern expressed by
Representative Ramras regarding the amount that is spent
exceeding the amount that is budgeted, explained that the cost
of fuel is a big part of that. For example, he said the budget
for fuel was set at 81 cents [a gallon], but the rise in fuel
cost brought that amount to $1.52 a gallon. The ferry system
uses 5,000-6,000 gallons of fuel a day. He offered more
examples.
9:05:59 AM
MR. TORGERSON spoke of the "blended average" in the year's
budget. He told the committee that in future presentations he
would show the department's plan to make revenue with the proper
marketing program. He admitted that this year has been
challenging, because the labor problems were not settled.
9:08:50 AM
COMMISSIONER BARTON, in response to questions from Chair Seaton
regarding the M/V Chenega, said the docks will have to be
modified to accommodate the fast ferry, and confirmed that that
is already funded through the capital project.
9:10:05 AM
COMMISSIONER BARTON said he would be pleased to return to the
committee to offer an overview of the ferry system.
ADJOURNMENT
There being no further business before the committee, the House
State Affairs Standing Committee meeting was adjourned at
9:10:37 AM.
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