Legislature(1993 - 1994)
04/14/1994 05:00 PM House TRA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE TRANSPORTATION STANDING COMMITTEE
April 14, 1994
5:00 p.m.
MEMBERS PRESENT
Representative Richard Foster, Chairman
Representative Gary Davis, Vice-Chair
Representative Bill Hudson
Representative Eldon Mulder
Representative Al Vezey
Representative Curt Menard
MEMBERS ABSENT
Representative Jerry Mackie
COMMITTEE CALENDAR
Seward Ships Drydock Presentation
Issues Relative to Whittier Access Project Presentation
*HB 544: "An Act relating to the tax on transfers and
consumption of aviation fuel; and providing for an
effective date."
MOVED FROM COMMITTEE
(* First public hearing)
WITNESS REGISTER
JIM PRUIT
P.O. Box 944
Seward, Alaska 99664
224-5640
POSITION STATEMENT: Gave presentation on Seward Ships
Drydock (via teleconference)
GARY WILLIAMS, Manager
City of Whittier
P.O. Box 608
Whittier, Alaska 99693
472-2327
POSITION STATEMENT: Gave presentation on City of Whittier
BRUCE CAMPBELL, Commissioner
Department of Transportation/Public Facilities
3132 Channel Drive
Juneau, Alaska 99801
465-6973
POSITION STATEMENT: DOT/PF position of support for HB 544
PREVIOUS ACTION
BILL: HB 544
SHORT TITLE: INCREASE AVIATION FUEL TAX
SPONSOR(S): TRANSPORTATION
JRN-DATE JRN-PG ACTION
04/05/94 3126 (H) READ THE FIRST TIME/REFERRAL(S)
04/05/94 3126 (H) TRA, STATE AFFAIRS, FINANCE
04/12/94 (H) TRA AT 05:00 PM CAPITOL 17
ACTION NARRATIVE
TAPE 94-15, SIDE A
Number 000
CHAIR FOSTER called the meeting to order at 5:10 p.m., and
introduced Jim Pruit, via teleconference, narrated a
presentation on the Seward Ships Drydock.
Number 012
MR. PRUIT thanked the committee for the opportunity to
speak, and clarified that Seward Ships Drydock, Inc., is
located in Seward, Alaska, on Resurrection Bay, at the
Seward Marine Industrial Park. He added that the facility
is a ship-lift, full-service shipyard, currently employing
about 53 people, with a year-round average of about 48 to 50
employees. He expressed the hope that an 80-90 employee,
(100-120 in summer), year-round work force will be achieved
when the facility is operating as a repair facility.
Number 044
CHAIR FOSTER thanked Commissioner Bruce Campbell for also
sitting in on the presentation, and stated to Mr. Pruit that
he hadn't realized the operation was as extensive as
described by Mr. Pruit.
Number 068
MR. PRUIT stated the facility is a 5,700 ton drydock, with
the capability of lifting vessels up to ground level on a
prearranged boat-carriage, and transfer them to the uplift.
He then indicated that he would narrate the silent video
about to be viewed by the committee members and audience
(copies of the video may be obtained from Mr. Pruit.)
Number 120
MR. PRUIT stated that the Seward Ships Drydock (SSD) is the
only yard in Alaska which is approved by the American Bureau
of Ships to do shaft repair. He added that the facility is
a "classed" drydock, classed by Lloyd's of London, with an
annual inspection performed in accordance thereto.
Number 140
MR. PRUIT announced that the SSD is in the process of
constructing a 300' x 132', 10-story high boat building to
go over the 300' rail.
Number 163
MR. PRUIT stated the lifting capacity of the facility can be
expanded, and the lifting platform itself can be extended,
in terms of lifting capacity. He added there is currently
enough capacity in the facility to haul the Tustumena,
transfer it up to the other rail, have the Bartlett over on
one of the side rails, and possibly another ferry on the
approach rail. In emergencies, drydocking on the platform
itself is possible.
Number 210
MR. PRUIT stated that in 1989, Seward Ships' gross payroll
was $864,433, and $409,000 went to local vendors. In 1991,
$1,133,454 was payroll, and $519,545 went to local vendors;
and 1993-94 will see the gross payroll exceed $4 million,
and the vendor figure will be close to $730,000.
Number 234
MR. PRUIT stated that in its market research, the trade SSD
looks at could be broken down into several categories: The
Alaska Marine Highway System, with 2 vessels currently
available to SSD; forest product industry vessels, with 6
currently available to SSD; fishing vessels, with
approximately 190 vessels available to SSD; passenger
vessels, with approximately 11 vessels available to SSD,
though this figure is probably higher now; miscellaneous
government vessels, with seven currently available to SSD;
and the military, with eight vessels currently available to
SSD. Mr. Pruit added that these numbers will have changed
over the last four years, with SSD's market share increasing
considerably, especially with the proposed construction.
Number 255
MR. PRUIT commented on having the drydock roofed. He stated
this was a necessity because of the need to do the
sandblasting and painting under cover. He added that
another advantage to being roofed is that deckside work can
be done more easily.
Number 268
CHAIR FOSTER commented to Mr. Pruit that although he had
been with the House Transportation Committee for six years,
this was the first he had heard of SSD, and thanked Mr.
Pruit for bringing it to the committee's attention. He
added that he would like to perhaps visit SSD with the
committee.
Number 288
REPRESENTATIVE HUDSON thanked Mr. Pruit for his
presentation, and asked if there is a proposal, or if SSD
was looking for money, or what.
MR. PRUIT responded that SSD probably was the best kept
secret in Alaska, and he felt the Transportation Committee
and legislators should know about a facility such as this
one, that was built with state money. SSD put over $2
million of private money in it and is getting ready to build
a $2.2 million building, with Key Bank as the financing
partner. Construction is slated to begin as soon as the
frost is out and the first components will arrive sometime
at the end of June.
Number 320
MR. PRUIT stated that SSD had been concerned that there
might be a policy of state vessels going to the state
facility, but he had met with the different departments and
had been told that the Bartlett and Tustumena would
certainly be viable candidates for SSD haul and repair. He
concluded that all SSD wants is to be treated equally in
having the opportunity to haul and repair state-owned
vessels.
Number 333
CHAIR FOSTER thanked Mr. Pruit.
Number 335
GARY WILLIAMS identified himself as City Manager of the city
of Whittier and thanked the committee for providing seed
money last session, which will be protected until Intermodal
Surface Transportation Efficiency Act (ISTEA) money comes in
FY 96.
Number 365
MR. WILLIAMS stated it is projected that with road access,
Whittier could get as many as 900,000 visitors; currently,
there are about 200,000 visitors yearly. He noted that
currently, the town of Whittier is cut off from the
waterfront, which is its economic lifeline.
Number 383
MR. WILLIAMS stated that the city of Whittier and others had
gotten together and hired International Resort Advisors
(IRA), which has created resorts around the world. IRA was
asked to answer two questions for city of Whittier, etc.:
How to respond to the level of impact projected, and who
benefits (how does Whittier benefit), and by how much? He
suggested that he would show that the investment of an
initial $15 million by the state of Alaska, to seek the
construction of the road and attract more money from the
Federal Highway Administration to construct the road, will
accrue to the state of Alaska many times more than that in
local economy.
Number 400
MR. WILLIAMS stated there are 211 acres available for
development in the core area of Whittier. Over half of this
acreage is held by the Alaska railroad, 70 percent of which
is in the waterfront area. He suggested a joint development
by the Alaska railroad and the city of Whittier, for mutual
economic benefit.
Number 434
MR. WILLIAMS stated that it would be fundamental for the
Alaska Marine Highway to move their ferry boat from where it
currently is located, out of the core area, to allow
development to occur. This would provide double the staging
area and provide additional ferry terminal waiting space,
thus allowing large numbers of people to move in a small
area without undue conflict.
Number 460
MR. WILLIAMS mentioned, as one of the most fundamental
developments portended by the increased access, the build
out of the railroad dock and the marginal wharf. He called
this a "premier multi-modal transportation center."
Number 506
MR. WILLIAMS discussed the overall vision for Whittier: To
hold people on the ground as long as possible, and allow
them to spend money and create economy. He commented on how
quickly the cruise ship industry moves people in and through
its Alaskan ports, and that strategies to hold these
passengers a little longer and create economy must be
developed.
Number 530
MR. WILLIAMS stated the build out cost would be about $1.2
million. He added that the cruise ship industry has said
"when" there is a road to Whittier, they will be back. In
addition, Princess Tours is apparently preparing two world-
class size cruise ships for Whittier.
Number 537
MR. WILLIAMS discussed the various possible financing
schemes, and described the project as an amenity which also
provides an opportunity for the community to recreate. The
city of Whittier would no longer be a split town with no
sociological center or economic base. He cited the road as
a key element. Mr. Williams stated that the vision also
includes the Buckner Building eventually being something.
He concluded that in the end, a $30 million annual economy
would be created.
Number 555
REPRESENTATIVE MENARD asked Mr. Williams if the railroad and
road traffic would be at the same level.
MR. WILLIAMS responded they would be on the same level, and
there would be crossings.
Number 561
REPRESENTATIVE MENARD asked if there has been any thought
toward making one or the other elevated.
MR. WILLIAMS responded there is a lot to work out, and that
perhaps trains will run in the evenings, but at present,
they anticipate them being on the same level, with
crossings. He elaborated that it would cost too much to
elevate either one.
Number 574
REPRESENTATIVE MENARD asked what the current population of
Whittier is.
MR. WILLIAMS cited the population as 280.
Number 576
REPRESENTATIVE HUDSON stated that the key to the entire
issue turns around whether or not a road can be built into
Whittier, and what it will cost. He commented that even
though the project may only take $15 million of state
monies, the project would also take federal highway monies
which would also be in demand in other parts of the state.
He added that the initial report he received was not too
positive in terms of guiding vehicular traffic through the
tunnels, and that the practicality of the concept must be
considered.
Number 585
MR. WILLIAMS responded that the environmental impact
statement and other documents go into great detail on how
requirements would be met in the project. He stated the
cost for road option #3, the simplest of the options, would
be $49 million, with $38 million in ISTEA money.
TAPE 94-15, SIDE TWO
Number 000
CHAIR FOSTER thanked Mr. Williams for his presentation and
asked if there were further questions from the committee.
There were none, so Chair Foster noted the presence of
Commissioner Bruce Campbell here to testify on HB 544, and
thanked him for waiting through the two prior presentations.
Number 009
BRUCE CAMPBELL, COMMISSIONER, DEPARTMENT OF TRANSPORTATION
AND PUBLIC FACILITIES (DOT/PF), stated that HB 544 is the
result of a court challenge to the method which certain
landing fees were adopted. The plaintiffs prevailed, which
left DOT with the choice of either readopting landing fees
in a manner which met the Administrative Procedures Act, or
having an off-setting fuel tax which would provide the same
revenue the landing fees would. He added that the air
carriers preferred the latter option and the Finance
Committees approved, so DOT/PF decided to pursue it.
Number 065
CHAIR FOSTER commended Commissioner Campbell for his
accurate recitation of the facts and sequence of events
surrounding the issue, adding that he gets frequent calls
from members of the Air Carriers Association, of which he
was once a member.
Number 081
REPRESENTATIVE HUDSON asked Commissioner Campbell about the
wording "motorfuel consumed by user," and asked what that
meant.
Number 090
COMMISSIONER CAMPBELL explained that the section in question
is in the bill because the air carriers wanted an escape.
He added that if the commissioner reinstated landing fees,
the section in question would immediately trigger the
mechanisms for doing away with the tax.
Number 103
REPRESENTATIVE HUDSON asked if this bill impacts any other
fuels.
Number 105
COMMISSIONER CAMPBELL responded in the negative.
Number 110
REPRESENTATIVE HUDSON motioned to move HB 544, with
accompanying fiscal notes and individual recommendations,
out of the House Transportation Committee.
Number 119
CHAIR FOSTER asked if there were any objections. There were
none, and so HB 544 was declared to be moved out of
committee. The meeting was adjourned at 6:01 p.m. for floor
session.
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