Legislature(1997 - 1998)

02/09/1998 01:10 PM House TRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
      HOUSE TRANSPORTATION STANDING COMMITTEE                                  
                  February 9, 1998                                             
                     1:10 p.m.                                                 
                                                                               
                                                                               
MEMBERS PRESENT                                                                
                                                                               
Representative William K. (Bill) Williams, Chairman                            
Representative Beverly Masek, Vice Chair                                       
Representative John Cowdery                                                    
Representative Bill Hudson                                                     
Representative Jerry Sanders                                                   
Representative Kim Elton                                                       
Representative Albert Kookesh                                                  
                                                                               
MEMBERS ABSENT                                                                 
                                                                               
All members present                                                            
                                                                               
COMMITTEE CALENDAR                                                             
                                                                               
HOUSE BILL NO. 227                                                             
"An Act relating to the Alaska Capital Improvement Project                     
Authority; relating to the powers and duties of the Department of              
Transportation and Public Facilities; and providing for an                     
effective date."                                                               
                                                                               
     - HEARD AND HELD                                                          
                                                                               
(* First public hearing)                                                       
                                                                               
PREVIOUS ACTION                                                                
                                                                               
BILL: HB 227                                                                   
SHORT TITLE: CAPITAL IMPROVEMENT PROJECT AUTHORITY                             
SPONSOR(S): REPRESENTATIVES(S) PHILLIPS, Cowdery                               
                                                                               
Jrn-Date    Jrn-Page           Action                                          
04/03/97       923     (H)  READ THE FIRST TIME - REFERRAL(S)                  
04/03/97       923     (H)  TRANSPORTATION                                     
04/21/97               (H)  TRA AT  1:45 PM CAPITOL 17                         
04/21/97               (H)  MINUTE(TRA)                                        
02/09/98               (H)  TRA AT  1:00 PM CAPITOL 17                         
                                                                               
WITNESS REGISTER                                                               
                                                                               
MARCO PIGNALBERI, Legislative Assistant                                        
  to Representative John Cowdery                                               
Alaska State Legislature                                                       
Capitol Building, Room 416                                                     
Juneau, Alaska 99801                                                           
Telephone:  (907) 455-3879                                                     
POSITION STATEMENT:  Answered questions regarding HB 227.                      
                                                                               
FRANK DILLON, Executive Vice President                                         
Alaska Trucking Association                                                    
3443 Minnesota Drive                                                           
Anchorage, Alaska 99503                                                        
Telephone:  (907) 276-1149                                                     
POSITION STATEMENT:  Testified in support of HB 227.                           
                                                                               
TOM BRIGHAM, Director                                                          
Division of Statewide Planning                                                 
Department of Transportation                                                   
  and Public Facilities                                                        
3132 Channel Drive                                                             
Juneau, Alaska 99801-7898                                                      
Telephone:  (907) 465-4070                                                     
POSITION STATEMENT:  Testified in opposition of HB 227.                        
                                                                               
PAUL BOWERS, Director                                                          
Statewide Aviation, Leasing                                                    
Department of Transportation                                                   
  and Public Facilities                                                        
P.O. Box 196900                                                                
Anchorage, Alaska 99519-6900                                                   
Telephone:  (907) 269-0734                                                     
POSITION STATEMENT:  Testified on HB 227 and answered questions                
                     regarding the DOT/PF's budget process.                    
                                                                               
STEVE MORENO, Administrator                                                    
Alaska Division                                                                
Federal Highway Administration                                                 
P.O. Box 21468                                                                 
Juneau, Alaska 99802                                                           
Telephone:  (907) 586-7180                                                     
POSITION STATEMENT:  Testified on HB 227.                                      
                                                                               
RON SIMPSON, Manager                                                           
Airports Division                                                              
Alaska Region                                                                  
Federal Aviation Administration                                                
222 West Seventh Avenue                                                        
Anchorage, Alaska 99519                                                        
Telephone:  (907) 271-5438                                                     
POSITION STATEMENT:  Testified on HB 227.                                      
                                                                               
HENRY SPRINGER                                                                 
Box 4041 "B" Street                                                            
Anchorage, Alaska 99503                                                        
Telephone:  (907) 561-5359                                                     
POSITION STATEMENT:  Testified on HB 227.                                      
                                                                               
ACTION NARRATIVE                                                               
                                                                               
TAPE 98-3, SIDE A                                                              
Number 0001                                                                    
                                                                               
CHAIRMAN WILLIAM K. (BILL) WILLIAMS called the House Transportation            
Standing Committee meeting to order at 8:10 a.m.  Members present              
at the call to order were Representatives Williams, Masek, Cowdery,            
Hudson, Sanders and Elton.  Representative Elton arrived at 1:17               
a.m.                                                                           
                                                                               
HB 227 - CAPITAL IMPROVEMENT PROJECT AUTHORITY                                 
                                                                               
Number 0090                                                                    
                                                                               
CHAIRMAN WILLIAMS announced the committee would address HB 227, "An            
Act relating to the Alaska Capital Improvement Project Authority;              
relating to the powers and duties of the Department of                         
Transportation and Public Facilities; and providing for an                     
effective date," sponsored by Representative Phillips.  He noted               
the committee heard this legislation late last session.  Chairman              
Williams indicated it was not his intention to move the legislation            
and noted it would be brought up again at a later hearing.                     
                                                                               
Number 0113                                                                    
                                                                               
CHAIRMAN WILLIAMS called for an at-ease at 1:12 a.m.  He called the            
meeting back to order at 1:13 a.m.                                             
                                                                               
Number 0141                                                                    
                                                                               
MARCO PIGNALBERI, Legislative Assistant to Representative John                 
Cowdery, Alaska State Legislature, came before the committee to                
explain the legislation.  He said if each member of the committee              
were to ask themselves a few questions about our capital                       
improvement project planning process, they would see the need for              
the legislation.  He asked what the Department of Transportation               
and Public Facilities' (DOT/PF) three priority projects are for                
highways, airports or other facilities.  Mr. Pignalberi said if the            
committee knows what those projects are, maybe there isn't a need              
for the legislation.  If the committee doesn't know what they are,             
maybe there is a need for a change.  He asked, "What projects are              
you personally interested in the capital improvement process?                  
Where are they on the priority list?  And which priority list are              
they on or should they be on?"  Mr. Pignalberi said if the                     
committee knows the answer to those questions, maybe there isn't a             
need for the bill.  If the committee doesn't know the answer to                
those questions, maybe a change needs to be made.                              
                                                                               
MR. PIGNALBERI asked when the window of opportunity is for a                   
legislator to get their project included onto a priority list.  He             
asked who drives the project selection process.  He said it                    
certainly isn't the public or the legislature.  Mr. Pignalberi                 
explained HB 227 will make the answers to the questions more                   
evident to members of the legislature and public.  For that reason,            
the bill has been put forward for the committee members'                       
consideration.                                                                 
                                                                               
Number 0304                                                                    
                                                                               
REPRESENTATIVE KIM ELTON referred to the question of who drives the            
project list and whether it is the Governor, the legislature or the            
public and said one (indisc.) that wasn't mentioned was the federal            
government.  He pointed out that the state uses an awful lot of                
federal dollars.  He asked how the structure integrates the                    
processes that we need to secure the federal dollars.                          
                                                                               
Number 0341                                                                    
                                                                               
MR. PIGNALBERI said he believes the committee will hear testimony              
from federal representatives who are concerned about the capital               
project planning authority.  He said, "As a matter of fact, if you             
will just ask any objection that comes up to refer to a section of             
the bill, I think you'll find the bill is not going to really                  
change that process."  He pointed out that he believes that DOT/PF             
currently has a project selection board, or something similar, that            
makes the final selection.  It is all an in-house activity.  There             
is not outside accountability.  The authority would simply replace             
that board.  The replacement board would be comprised of public                
members.  It is not going to short-circuit the planning process or             
make any federal funds ineligible.  He said it wouldn't change the             
relationship that the state currently has with the federal                     
government.                                                                    
                                                                               
Number 0472                                                                    
                                                                               
REPRESENTATIVE BILL HUDSON pointed out that when he first came to              
Juneau, there was a three member transportation commission and                 
noted there were three commissioners, one of which was former                  
Governor Keith Miller.  He asked, "How does this jive with that?"              
                                                                               
MR. PIGNALBERI responded, "Not at all because that was a regulatory            
body which basically had rate setting and entry to market...."                 
                                                                               
REPRESENTATIVE HUDSON said it was like a limited entry type of a               
commission.                                                                    
                                                                               
Number 0449                                                                    
                                                                               
MR. PIGNALBERI stated the new organization would to make the                   
planning more evident and more accessible to the public.                       
                                                                               
REPRESENTATIVE HUDSON asked if it would be more consistent.                    
                                                                               
MR. PIGNALBERI said there would be a master list of projects and if            
there is a change, there would have to be some accountability for              
making that change.                                                            
                                                                               
Number 0542                                                                    
                                                                               
FRANK DILLON, Executive Vice President, Alaska Trucking Association            
testified via teleconference from Anchorage.  He explained his                 
organization is a 38-year-old trade association that represents the            
interest of truck users throughout the state of Alaska.  Mr. Dillon            
said he supports HB 227.  He said he feels the bill lays out a very            
positive direction that his organization would like to see the                 
state take.                                                                    
                                                                               
Number 0578                                                                    
                                                                               
MR. DILLON said he believes that DOT/PF has struggled for a long               
time to come up with ways to translate dollars into project                    
improvements and maintenance on the infrastructure.  He said the               
existing process doesn't allow for the long-term stability needed              
to carry through professional judgements of those people who truly             
are in a position to assess what this state needs or to satisfy the            
motoring public, the elements of commerce that the trucking                    
industry provides, general safety and to ensure the longevity of               
our infrastructure.  Mr. Dillon referred to concerns that may be               
raised by the federal government and said his association believes             
they can be addressed.  The legislation may need to be modified.               
Mr. Dillon said, "In one instance, we're not sure exactly what's               
going to happen with the federal highway bill under the National               
Economic Crossroads Transportation Efficiency Act (NECTEA), and                
what the real planning requirements under the NECTEA are going to              
be.  He said it is the trucking industry's point of view that the              
process that was used in the Intermodal Surface Transportation                 
Efficiency Act (ISTEA) will be considerably modified.                          
                                                                               
MR. DILLON said the bill incorporates some extremely good ideas.               
A number of other states are using a similar process.  Mr. Dillon              
said, "What we're interested in is having our fair share of the                
taxes that we put (indisc.) the infrastructure, maintenance and                
improvements and we think that this might give a good shot towards             
improving that (indisc.)."                                                     
                                                                               
Number 0697                                                                    
                                                                               
REPRESENTATIVE JOHN COWDERY said, "What is your feeling about the              
stability of this commission, say from one administration to the               
other.  It seems, in my opinion, that some administrations are                 
going in one direction.  A new administration may come and go in a             
different direction?  What is your comments of this bill that have             
-- in relation to that scenario?"                                              
                                                                               
Number 0727                                                                    
                                                                               
MR. DILLON said he believes that HB 227 will really make an                    
approvement in the stability from one Administration to another or             
one commissioner to another.  He stated he believes Commissioner               
Perkins has the greatest longevity of any DOT/PF commissioner in               
the history of this state.  Mr. Dillon said that because it takes              
a long time to implement a transportation infrastructure project,              
he believes the state suffers as a result of that.  He said                    
hopefully we realize that the bill does not completely remove the              
planning process from the political arena, but he does feel that it            
would dampen the short-term effects of politics on long-term                   
projects.                                                                      
                                                                               
REPRESENTATIVE COWDERY said he believes that the legislation would             
put a lot of stability in long-range planning.                                 
                                                                               
MR. DILLON said he agrees with Representative Cowdery's statement.             
                                                                               
Number 0825                                                                    
                                                                               
REPRESENTATIVE BILL HUDSON asked if the authority would have better            
access to the legislature's appropriation process than the                     
Administration.  He asked Mr. Dillon if he believes that it might              
professionally elevate the need for funding of programs that are               
designed and planned for versus what we currently have.  He said               
there are often new Administrations that come and political                    
discourse takes place.  He asked Mr. Dillon if he would see the                
authority as providing stability from a political and funding                  
sense.                                                                         
                                                                               
MR. DILLON said the legislation provides exactly for that sort of              
circumstance and he hopes that is precisely what develops.  He                 
said, "We don't believe that people's intentions in this process               
are necessarily suspect.  It's just that the outcome eventually,               
because it does take so long and because there is political element            
in the appropriation process that we are not going to get away                 
from, we believe that the establishment of the planning authority              
would help mitigate those circumstances and provide for a                      
circumstance like we have now where we have a difference between               
philosophical difference and a party difference between the                    
Governor and the Administration.  It might help mitigate some of               
those rough spots."                                                            
                                                                               
MR. DILLON said there is no feature in Alaska that is more                     
important to the quality of life than an efficient and safe                    
transportation system.  Currently, just because of the way the                 
planning process takes place, his organization doesn't believe                 
Alaskans are being particularly well-served.                                   
                                                                               
Number 0977                                                                    
                                                                               
TOM BRIGHAM, Director, Division of Statewide Planning, Department              
of Transportation and Public Facilities, came before the committee             
to testify on HB 227.  Mr. Brigham said he has spoke to Chairman               
Williams' staff and it was requested that the department outline or            
summarize a presentation that was made last year.  He asked                    
Chairman Williams if he would still like him to do that.                       
                                                                               
CHAIR WILLIAMS asked him to please make it brief.                              
                                                                               
MR. BRIGHAM said the department does not support HB 227, relating              
to the establishment of a capital improvement project authority.               
He said DOT/PF believes the current process for prioritizing and               
selecting projects is stable and provides well for statewide needs.            
There are a number of areas and issues that the bill has the                   
authority delving into that goes way beyond what the department                
currently does with the Project Evaluation Board (PEB).  Mr.                   
Brigham said a concern the department has is that the proposed                 
authority is really not a true authority, as seen in many other                
states, that would be responsible for both the capital and                     
operating budgets of the department.  He said the department's                 
concern is that it would probably more greatly confuse a lot of                
issues than it would clarify them.  Mr. Brigham pointed out that               
there are also concerns about the extent to which its activities               
would be federally eligible for funding.  He said if changes were              
to be made to the program late in the process, there would be a                
question as to whether those projects would remain federally                   
eligible.  He indicated that the Federal Highway Administration                
(FHWA) and the Federal Aviation Administration (FAA) might be able             
to shed some light on.                                                         
                                                                               
Number 1123                                                                    
                                                                               
MR. BRIGHAM referred to a question asked by Mr. Pignalberi, "What              
are the DOT/PF's three highest priorities?"  He said the department            
doesn't have just three high priority projects.  Mr. Brigham                   
pointed out they have a 1998 program that represents the                       
department's highest priorities.  He informed the committee that is            
laid out in the Statewide Transportation Improvement Program (STIP)            
and the Aviation Improvement Program (AIP), which are available.               
He noted all legislators have been furnished with the STIP document            
as it is submitted to the Federal Highway Administration and the               
Federal Transit Administration.  Mr. Brigham said the department               
welcomes comments from legislators.                                            
                                                                               
Number 1182                                                                    
                                                                               
MR. BRIGHAM referred to the question, "When and what is the window             
of opportunity?"  He said the department has gone to great lengths             
to create what is called a public involvement process.  There was              
public involvement to develop the public involvement process.  He              
noted there is a book that describes it.  Mr. Brigham pointed out              
that part of the business of working with federal funding is that              
you need to follow the process that you establish.  He said the                
department has two 45-day periods for public comment on the "needs             
list."  The "needs list" is the first big list of projects that                
come in.  The department sorts those projects and develops a draft             
STIP.  There is then another 45-day comment period.  Mr. Brigham               
said they received comments from members of the legislature and                
constituents.                                                                  
                                                                               
Number 1229                                                                    
                                                                               
MR. BRIGHAM referred to the question of who drives the process and             
said he would argue that particularly for the Community                        
Transportation Program (CTP) and for the Trails and Recreation                 
Access for Alaska (TRAAK) Program - the enhancement program, it is             
the public that drives that process through elected representatives            
within the communities.  The projects come out of the communities              
and the DOT/PF does very few of those projects.  Mr. Brigham                   
pointed out that  it is a little different for the national highway            
system.  He said, "Those are the state's highways and we are the               
driver there."                                                                 
                                                                               
Number 1259                                                                    
                                                                               
MR. BRIGHAM indicated he would like to add a couple of comments                
regarding the testimony that was provided by the department last               
year.  He said it is good to bear in mind that in Anchorage the                
Anchorage Metropolitan Area Transportation Study TIP really can't              
be changed by the DOT/PF or any authority that might be put in                 
place and that is simply how the federal regulations work.  He said            
they take the TIP and fold it into the statewide program - the                 
STIP.  He noted that is the way the federal regulations work and               
that would need to be carried forward.  The notion that the                    
Anchorage projects might be affected by the authority is not a                 
notion the committee should entertain.                                         
                                                                               
MR. BRIGHAM said the DOT/PF believes that they have been proactive             
in addressing a lot of the issues that gave rise to the                        
legislation.  He informed the committee that they have formed the              
Evaluation Board and the Aviation Evaluation Board and the results             
of those evaluations are public information.  They have matrices of            
scores by evaluator, by criteria, for each project.  People ask for            
those and they are handed out.  There is nothing that is really                
hidden.  Mr. Brigham pointed out that those processes have been                
supported by the FHWA on the part of the PEB and the FAA in terms              
of the Aviation PEB.  He noted the aviation version is being used              
as a model by the FAA to redo their national prioritization                    
process.  Mr. Brigham stated the department believes that is a good            
process and they try hard to fairly administer that process and to             
create a level playing field for projects from all over the state.             
It would be difficult to change that process without years of work.            
                                                                               
Number 1398                                                                    
                                                                               
REPRESENTATIVE COWDERY asked Mr. Brigham how long he has worked for            
the department.                                                                
                                                                               
MR. BRIGHAM responded that he has worked for the department for                
about two and a half years.                                                    
                                                                               
Number 1409                                                                    
                                                                               
REPRESENTATIVE COWDERY asked Mr. Brigham if he thinks the current              
priorities are the same as they were during the last                           
Administration.  He also asked Mr. Brigham if he thinks                        
Administrations change priorities.                                             
                                                                               
MR. BRIGHAM pointed out that there is no question that each                    
Administration brings a set of priorities.                                     
                                                                               
Number 1445                                                                    
                                                                               
REPRESENTATIVE COWDERY asked Mr. Brigham why he thinks HB 227 was              
introduced.  He referred to earlier statements by Mr. Brigham that             
what the department is doing is supported by the public.  He again             
asked Mr. Brigham what he thinks the motive is behind the                      
introduction of the legislation.                                               
                                                                               
MR. BRIGHAM responded by saying, "Representative Cowdery, I would              
really hesitate to speculate as to what the motives were, although             
looking at the sort of preamble to the bill, I can understand                  
perhaps that some of those were concerns.  I would hope, I guess --            
in my testimony what I wanted to point out was I would hope we have            
addressed a lot of those concerns in the way the current process is            
put together and the relative stability that the process has                   
enjoyed."                                                                      
                                                                               
REPRESENTATIVE COWDERY stated he believes the changes provided in              
the bill would benefit both DOT/PF and the state.                              
                                                                               
Number 1515                                                                    
                                                                               
REPRESENTATIVE ELTON referred to Mr. Brigham speaking about the                
public involvement process that the department now uses for the                
creation of the project list and said he is assuming that if HB 227            
is signed into law, the processes the department uses in developing            
the project list will be essentially the same as they currently                
are.  What changes is that process continues up the line of                    
command, through the public hearing process, until it gets to the              
level at which the department then turns that list over to the                 
authority.  He said the authority would have the ability to review             
the work that has been done, review the public testimony that has              
been gathered and then submit that list to the Office of the                   
Governor.  Representative Elton said it seems that another layer of            
bureaucracy is being added through the creation of the authority.              
Representative Elton said the legislation doesn't preclude the                 
commissioner from submitting an independent list to the Governor.              
He said the bill doesn't say that the only list that goes to the               
Governor comes through the authority.  The commissioner will still             
have the ability to submit a list right to the Governor.                       
                                                                               
Number 1591                                                                    
                                                                               
MR. BRIGHAM said the way the bill is written, it is a bit foggy as             
to whether the program by the authority would be the only program              
or whether the department could advance a separate program.  He                
said he doesn't believe it is clear at all because the bill gives              
the authority the ability to create a staff.  So you could have an             
authority staff and department staff.  Exactly how the process                 
would work at that point is unclear.  Mr. Brigham provided the                 
committee members with an exhibit.  He said the exhibit is the                 
department's sense of how this would or wouldn't work.  The exhibit            
describes how the department sees how the bill would establish and             
authority and an authority director, and then allows the authority             
to create a staff.  How the authority relates to the commissioner              
is spelled out to some degree in the bill, but how the director and            
the staff relate to the current DOT/PF staff and the commissioner              
is not at all clear.                                                           
                                                                               
Number 1679                                                                    
                                                                               
REPRESENTATIVE ELTON said the committee previously heard that there            
are other states that have this kind of a system.  He said he would            
think that this template could be superimposed over how other                  
states do it.  He asked Mr. Brigham if he is saying that other                 
states may have a commission that does all the work, or may have a             
commissioner that does all the work, but there aren't other                    
jurisdictions that have kind of this bifurcated responsibility.                
                                                                               
Number 1706                                                                    
                                                                               
MR. BRIGHAM said his understanding and experience is that there are            
a number of states that have commissions and he believes there are             
about 12 where the commission is the chief policy and decision                 
making body for the Department of Transportation.  They then have              
an executive director, or someone who is the chief administrator,              
who reports directly to the commission for all matters.  He said               
that is very clear and there is no question as to what is going on.            
Mr. Brigham said HB 227 doesn't provide for that.  The other main              
model is a commission that is more of a policy advisory body, but              
is not in the direct chain of command.  Those are very clear in                
that they operate to advise the governor or commissioner as to                 
transportation policy and needs, but they do not have line                     
authority.  Mr. Brigham said there is typically one or the other               
kind of an approach.  House Bill 227 kind of confuses the two which            
concerns the department.                                                       
                                                                               
Number 1763                                                                    
                                                                               
CHAIRMAN WILLIAMS said Mr. Brigham mentioned that the department               
has a lot of problems with the legislation.  He asked if there were            
written comments to that effect.                                               
                                                                               
MR. BRIGHAM said in reading the minutes of the previous hearing on             
HB 227, Deputy Commissioner Parkin had submitted written comments.             
He said in checking with Chairman Williams' staff, it turns out                
that the written comments weren't submitted.  He informed the                  
committee the comments will be prepared and submitted within one or            
two days.                                                                      
                                                                               
Number 1788                                                                    
                                                                               
REPRESENTATIVE COWDERY noted the committee members have a chart                
from the department.  He asked Mr. Brigham if he can point out in              
the legislation where it speaks about staff.  Representative                   
Cowdery referred to meetings he has had with Mr. Brigham and said              
it was his understanding that the commission would use DOT/PF                  
staff.                                                                         
                                                                               
Number 1818                                                                    
                                                                               
MR. BRIGHAM directed the committee to page 3, line 22, "(e) The                
authority may hire the minimum of staff, including a director,                 
necessary to efficiently perform the functions of the authority."              
He stated it isn't mandatory, but it certainly leaves the door                 
open.  It doesn't say that the authority shall use DOT/PF staff.               
                                                                               
REPRESENTATIVE COWDERY said, "Am I correct in thinking that the                
commission has got to go through the -- before it goes to the                  
Governor the ACIPA - you know staff has got to go through this                 
staff -- between that and the Governor.  Am I correct to thinking              
-- my interpretation?"                                                         
                                                                               
Number 1866                                                                    
                                                                               
MR. BRIGHAM said he believes the way the bill is currently written,            
Representative Cowdery's interpretation is certainly good as any.              
He pointed out it is open to more than one interpretation which is             
one of the department's main concerns.                                         
                                                                               
Number 1888                                                                    
                                                                               
REPRESENTATIVE ALBERT KOOKESH asked if there is anything in HB 227             
that is not already being done by DOT/PF.  He said it is a broad               
question, but he wants to be able to support or not support the                
legislation based on some rational findings and facts.                         
                                                                               
MR. BRIGHAM responded that there is one thing.  He said the                    
authority, as outlined in the legislation, would transcend                     
administrations.                                                               
                                                                               
Number 1947                                                                    
                                                                               
REPRESENTATIVE KOOKESH asked, "Does this bill give any independent             
authority to the new department?"                                              
                                                                               
MR. BRIGHAM responded that he doesn't believe so.                              
                                                                               
Number 1969                                                                    
                                                                               
PAUL BOWERS, Director, Statewide Aviation, Leasing, Department of              
Transportation and Public Facilities, testified via teleconference             
from Anchorage.  He said, "In follow-up to statewide planning                  
director, Tom Brigham's comments that the genesis for this bill may            
have been trying to address a problem that we have historically had            
that we in DOT think we have fixed it with the APEB process - the              
Airport Project Evaluation Board and the Project Evaluation Board."            
Mr. Bowers explained that the reason the department believes they              
have fixed the problem is that APEB process has been in place for              
almost three years.  It has gone through two legislative sessions              
without change and has resulted in significant improvements with               
federal dollars.  He stated, "In recent years, we are at                       
approximately $81 million in FAA administered AIP funds this year.             
That's up nearly 20 percent from about two years ago.  That's a                
rather dramatic increase and it is tied directly to this process               
that the FAA has bought into and the national headquarter's folks              
has bought into.  It simply is working."                                       
                                                                               
Number 2039                                                                    
                                                                               
REPRESENTATIVE COWDERY asked, "Do you attribute any credit for the             
extra funding to our recently appropriation member back in -- the              
heads of the Appropriation Committee back in Washington, D.C.?"                
                                                                               
MR. BOWERS responded that is obviously doesn't hurt.  He noted the             
process that the department goes through is one that is competed               
for on a national basis.  He said he believes the process is                   
significantly better than the rest of the country and our projects             
compare favorably in that regard.                                              
                                                                               
Number 2092                                                                    
                                                                               
STEVE MORENO, Administrator, Alaska Division, Federal Highway                  
Administration, came before the committee to testify.  He noted he             
is replacing Bob Ruby who testified last year on HB 227.  Mr.                  
Moreno indicated concern regarding language in the legislation.  He            
said the bill specifically states that the authority may submit                
proposals for capital improvement projects.  There is also other               
language that says the authority shall review and revise, as                   
appropriate, the various programs that the DOT/PF puts together.               
Mr. Moreno said there are several things that are tied together in             
making a state transportation improvement program.  The projects               
don't exist in a vacuum, they exist because they're tied to one                
another.  In the case of the AMATS process, the federal requirement            
is that the AMATS process come together and generate a list of                 
projects - the TIP.  The Governor, or the Governor's                           
representative, and the AMATS' policy group together agree on what             
the content of that list is.  Mr. Moreno explained the federal                 
requirement is that the list must be put into the statewide TIP                
without any adjustments.  In other words, it must be included                  
verbatim either by reference or directly by physically putting it              
in the document.  Mr. Moreno informed the committee that his                   
concern is perhaps the authority would reach a decision at which               
point they say, "Okay, we're going to remove this project from the             
AMATS list."  He said at the point, the project is removed from the            
AMATS list and a new one is inserted, the FHWA could not support               
that new project because it's not being developed in the                       
cooperative process that is required by federal regulation.                    
                                                                               
MR. MORENO said a second issue is that AMATS is a air quality                  
nonattainment area.  What that means for the federal government is             
when that AMATS list is put together for their TIP, it has to be               
tested against criteria to show whether or not it helps achieve the            
national ambiant air quality standards.  In other words, are we                
going to make the air better or worse as a result of these                     
projects.  Mr. Moreno explained that the testing is an actual                  
numerical test of cranking numbers and looking at what the                     
omissions are.  That is something that the FHWA does together with             
the Federal Transit Administration.  He noted they also receive                
advice from the U.S. Environmental Protection Agency (EPA) on                  
whether or not the program, as a whole, will go towards furthering             
achieving of the air quality standards.  Mr. Moreno said the                   
problem would be that if you start changing the mix of projects,               
and they're significant projects, you run the risk of being out of             
conformity.  If the TIP is no longer in conformity with the state              
implementation plan for air quality, then the federal government               
cannot support it financially.  He noted that is a provision of                
both the Clean Air Act and the ISTEA legislation.  Mr. Moreno                  
informed the committee that there is a problem with the Fairbanks              
area because it is also a nonattainment area.  He said there is                
also a requirement that all STIPs be financially constrained.  What            
the intake is, in terms of revenue, has to be similar to what the              
outlay is going to be.  Mr. Moreno said, "Here again, if at the                
last minute somebody starts pulling projects or inserting projects,            
it may disturb the financial aspect of it.  Once again, the feds               
are required to make that test.  Is this financially constrained?"             
                                                                               
Number 2258                                                                    
                                                                               
MR. MORENO explain a final issue has to do with the public                     
involvement process.  Here again, the feds set out a process that              
states are to follow.  He said they don't perscribe the exact                  
details of it, but there must be a process with some key steps in              
it.  That process involves various documents, putting them out for             
public review and then acting on whatever the public comments are.             
He stated the issues they are concerned with are the financial                 
constraints, the public involvement, the air quality conformity in             
the nonattainment areas, and the idea that the TIP for the AMATS               
area must be included as a verbatim unit from what was passed by               
the appropriate group.                                                         
                                                                               
Number 2301                                                                    
                                                                               
REPRESENTATIVE COWDERY asked where in the bill it talks about                  
public comments not being allowed.                                             
                                                                               
MR. MORENO informed Representative Cowdery that the bill doesn't               
say that public comments won't be allowed.  He pointed out what he             
is saying is that the public is presented, in the state's process,             
with some listings of projects, priorities, scheduling, et cetera.             
If that changes from what the public is seeing, he isn't sure that             
the public is given an ample opportunity to see the final product.             
                                                                               
Number 2322                                                                    
                                                                               
REPRESENTATIVE COWDERY asked, "Do you intreprete the bill then to              
bypass AMATS?"                                                                 
                                                                               
MR. MORENO referred the committee to page 2, line 25, "(a) The                 
authority shall review, revise as appropriate, and approve the                 
following plans and programs...."  It then lists a bounch of plans             
and programs.  He said he believes there is the opportunity for                
this authority to change the list.  He also referred the committee             
to page 3, line 19, "(d) The authority may submit proposals for                
capital improvement projects for construction...."  Mr. Moreno said            
he intreprets that to mean if you submit a proposal, you could                 
include, but you could also delete.  He referred to page 6, line               
30, "Long-range program for highway construction and maintenance."             
He said he read that to be the STIP and then on page 7, line 2, it             
says, "Subject to review, revision, and approval by the Alaska                 
Capital Improvement Project Authority,..."  He said the word                   
"revision" suggests the authority would be acting somewhat                     
autonomously from the rest of the process.                                     
                                                                               
Number 2393                                                                    
                                                                               
REPRESENTATIVE COWDERY asked Mr. Moreno if he thinks that currently            
there is never any revisions.                                                  
                                                                               
MR. MORENO responded that there are revisions and the process is               
designed to allow revisions.  He said when those revisions take                
place, such as when a new project comes from somewhere and it is               
attempted to be put on the STIP, it must go through the process                
that the original STIP went through.  Some would argue that it is              
buracratic and others would say it is protecting that interest of              
not allowing for individual munipulation of the project list.                  
                                                                               
Number 2416                                                                    
                                                                               
REPRESENTATIVE COWDERY asked Mr. Moreno if he belives that if the              
authority wouldn't be astute enough to recognize the funds that                
might be in jeopardy and would conform to the....                              
                                                                               
TAPE 98-3, SIDE B                                                              
Number 0001                                                                    
                                                                               
MR. MORENO responded, "...and sometimes they fall outside the                  
rules, and when they do that part of my job is to say, 'I'm sorry,             
we can't participate in that.'  And so we obviously are bound by               
the laws and regulations of Title 23 where our program lives.  So              
I'm not saying it would be an intential thing.  I'm saying it can              
happen and there is not a lot of flexibility when it does happen."             
                                                                               
REPRESENTATIVE COWDERY said, "It is my understanding the intent of             
the sponsors and everything and the bill is to use that from DOT               
for these problems that we just talked about.  I mean it has some              
language in here to allow for some executive, maybe, staff or                  
something (indisc.) in here.  But the main source of information               
and guidance is going to come from DOT.  Would you belive that's a             
fair statement?"                                                               
                                                                               
MR. MORENO responded that he would certainly hope so.                          
                                                                               
Number 0042                                                                    
                                                                               
REPRESENTATIVE ELTON said his understaning of what Mr. Moreno said             
is that the authority is okay as long as they don't exercise any of            
the prerogatives given to them in HB 227.  If they exercise their              
prerogatives by taking out or inserting projects, then it is not               
okay.  If they do take out or insert any projects, the state of                
Alaska jeopardizes federal funds.                                              
                                                                               
MR. MORENO said that is fairly accurate.  If they insert their                 
judgement for the process which is in place, then those projects               
that they have inserted don't have any status as far as federal                
funding goes.                                                                  
                                                                               
Number 0089                                                                    
                                                                               
REPRESENTATIVE ELTON asked if the concerns would be alleviated if              
the authority was to be put at the beginning of the process instead            
of the end of the process.                                                     
                                                                               
MR. MORENO referred to his interpretation of HB 227 and said it                
looks as if the authority would have line item substitution                    
authority for projects, whether they add or delete them.  He said              
it is not whether or not you have an authority or commission or                
whether you function under the existing set up.  He noted there are            
lots of states that have commissions and authorities and they                  
function.  The question is whether or not this authority would be              
using its position to remove or delete projects that would external            
to the accepted process.                                                       
                                                                               
Number 0135                                                                    
                                                                               
REPRESENTATIVE JERRY SANDERS asked Mr. Moreno if he believes the               
current process works well.                                                    
                                                                               
MR. MORENO answered in the affirmative.                                        
                                                                               
REPRESENTATIVE SANDERS asked Mr. Moreno how he can feel that way               
about a system that hasn't built a road in 25 years.  He also asked            
Mr. Moreno how he can feel that it is working well.  Representative            
Sanders said it seems like anything would be better than the way               
we've done it.                                                                 
                                                                               
MR. MORENO responded, "I guess I have the opportunity to share with            
you a perspective when you say, 'We haven't built a road in so many            
years,' because much of what is being done by the federal funds                
that are made available, nationally, is basically to rehabilitate              
what is out there.  When you say we haven't built a road, I guess              
I, you know, I don't know the specifics locally.  But there is a               
great need out there to rehabilitate what we have on the ground and            
it's being done everywhere in the nation - that we're spending more            
and more of our money doing projects that are on existing                      
alignment.  We're attacking safety problems, we're widening,                   
putting up new signals, we're straightening out alignments.  And so            
on the one hand you'd say, 'You know we're spending a lot of money,            
but we're not getting any new roads.'  And that's true, but that's             
not unique to here.  And in my past position, I came back from a               
situation where we were sitting around a table debating the                    
environmental status of a project that's been on the board for 30              
years.  We still hadn't built it.  And I mean we're building other             
things around them.  We're rehabilitating.  We're changing out the             
guardrail to make it safer for people.  We're repaving so we're                
putting down new surface.  We're converting, in some places, gravel            
over to pavement.  So those are all parts of the legitimate                    
expenditure of funds, but they don't represent a new road to a new             
location.  That's not unique to Alaska and it's not unique to the              
DOT."                                                                          
                                                                               
Number 0220                                                                    
                                                                               
REPRESENTATIVE SANDERS said, "I could appreciate that if we were in            
a state like most others where it was criss-crossed with roads, but            
90 percent of our state doesn't have a road in it."                            
                                                                               
MR. MORENO said that is true.                                                  
                                                                               
REPRESENTATIVE SANDERS said that we need to build some roads so we             
can fix them.                                                                  
                                                                               
MR. MORENO responded, "Well I think you have been fixing them and              
I think you have been building them."  He pointed out that to build            
new roads on new alignment is a very difficult process.  He said he            
was in Juneau from 1983 to 1993 and said during that period there              
were several improvements to Egan Drive, Old Glacier was redone,               
Riverside Drive was redone.  He said they weren't new roads in that            
sense, but they offered new features such as things like bike                  
paths, sidewalks, shoulders that never existed before, et cetera.              
He pointed out they also moved into some environmental areas that              
they hadn't traditionally been into.                                           
                                                                               
Number 0270                                                                    
                                                                               
REPRESENTATIVE KOOKESH said it has been 25 years since a state-                
funded road has been built.  That information came from a letter               
the committee had from Bruce Campbell, dated February 9, 1998,                 
where Mr. Campbell says the last road built with state funds was               
from Anchorage to Fairbanks.  He said he would bet that road wasn't            
built all with state funds.                                                    
                                                                               
REPRESENTATIVE KOOKESH said he appreciates the amount of money that            
we have spent in Alaska just to fix up the roads because Angoon                
would not have benefited.  He stated the last place another road is            
needed is in Anchorage.  He noted he has been on the Anchorage                 
roads and a lot of them go nowhere.  We don't need to build roads              
that go nowhere.                                                               
                                                                               
Number 0333                                                                    
                                                                               
RON SIMPSON, Manager, Airports Division, Federal Aviation                      
Administration, testified via teleconference from Anchorage.  He               
informed the committee that his division administers Airport                   
Improvement Program (AIP), the federal funded program for airport              
development in the state.  He read the following statement into the            
record:                                                                        
                                                                               
"I'd like to express our concerns regarding this proposed House                
Bill Number 227, relating to the establishment of an Alaska Capital            
Improvement Project Authority.  This authority, as we understand               
it, would be used to rank, prioritize and improve capital                      
development projects as well as provide stability and continuity in            
the Capital Development Program when administration changes occur.             
However, from an FAA perspective, this House Bill 227 has major                
consequences and would jeopardize the ability of the state of                  
Alaska to optimize federal airport capital development funds.                  
                                                                               
"These AIP funds are distributed on a competitive basis based on               
the selection of high priority projects.  The state of Alaska                  
competes with every other state on a national basis for a                      
commensurate share of AIP funds.  We are working very closely with             
DOT/PF to ensure that the maximum amount of AIP funds are secured              
and meet the airport development needs in Alaska.                              
                                                                               
"We understand that his authority, as proposed, will be approving              
a list of development projects by February 2 of each year, for                 
construction over the next succeeding two fiscal years.  This                  
proposed process will not match with the complexities or timing of             
the AIP application process.  In the AIP Program, we submit ACIPs              
(Airport Capital Improvement Plan) comprised of the proposed                   
airport development projects for Alaska.  We submit them from the              
regions of FAA Headquarters in the October time frame to compete               
for AIP funds for the succeeding construction season.                          
                                                                               
"Furthermore, to compete effectively on a national basis requires              
at least two to three years advanced planning to accomplish AIP                
programming requirements such as obtaining environmental permits               
and land acquisitions before a project can be approved for funding.            
Legislative authority is also needed for DOT/PF to perform the                 
required preliminary engineering, design and bidding that must                 
occur before an AIP grant can be issued.  Any inability to timely              
submit ACIPs, or meet AIP programming requirements, will be                    
perceived by FAA Headquarters in Washington is an indication that              
the state of Alaska may not really need this necessary AIP funding,            
thus jeopardizing our future funding levels.                                   
                                                                               
"We believe that this authority is being proposed to fix a problem             
that has already been recognized and corrected by DOT/PF; a backlog            
on capital development projects that were designed, but never                  
constructed.  The DOT/PF formed the Airport Project Evaluation                 
Board (APEB) two years ago to address this apparent problem with               
their project selection process.  We've worked very closely with               
DOT/PF to ensure that this new AIP project selection process                   
results in the highest priority projects being selected.  The APEB,            
in our opinion, has corrected this problem and has improved the                
state of Alaska's ability to compete for AIP funds.                            
                                                                               
"The APEB is a panel that is comprised of a fairly high level of               
state representation including the statewide planning director, the            
statewide aviation director, three regional directors and the                  
deputy commissioner of Aviation, which we believe provides a good              
statewide perspective incorporating the entire state's development             
needs and concerns into the process.  The APEB selection process               
uses a ranking criteria that considers such factors as safety,                 
health and quality of life, economic benefits, community support,              
community maintenance and operation contribution, airport security             
and airport certification requirements, aviation and transportation            
alternatives, runway length and condition, aviation hazards,                   
erosion and flooding problems, among others.  This  project                    
selection ranking criteria closely resembles the FAA's national                
priority system for AIP project selection.                                     
                                                                               
"The establishment of the APEB has really been a benefit for the               
state of Alaska because it incorporates the federal priorities with            
overall statewide needs to compile ACIPs that are credible.  These             
ACIPs are three to five-year plans that provide a measure of                   
stability and continuity to the state's Airport Capital Development            
Program.                                                                       
                                                                               
"We are beginning to see the benefits of the APEB process in the               
state of Alaska's ability to compete for AIP funding.  Prior to the            
APEB selection process being put into place, the state's AIP                   
funding level averaged about $60 million annually.  Since the APEB             
process has been established and utilized for the last two fiscal              
year programs, and we've been through a complete cycle, it has                 
enabled the state to acquire $75 million in AIP funds in FY 97, and            
we anticipate an all time high of over $81 million in AIP funding              
for fiscal year 98.  This increased funding would not have occurred            
without a selection process that resulted in many projects that are            
high priority and competitive on a national basis consistent with              
FAA national priority system.                                                  
                                                                               
"Another point, this new authority, as proposed in House Bill 227,             
will be made up of public citizens that will serve with staggered              
terms.  This causes us great concern as we have invested countless             
hours in educating the APEB on the FAA national priority system to             
ensure that they have the expertise to select the highest priority             
projects to give the state of Alaska a best competitive edge for               
AIP funds.  Re-educating this new authority and building the                   
necessary expertise is no small undertaking; and with staggered                
terms and a rotating membership, this educational process will                 
undoubtedly be ongoing, and significantly impact our resources as              
well as the state's ability to optimize AIP funding.                           
                                                                               
"With all due respect, we would encourage the Alaska State                     
Legislature to enable the DOT/PF and FAA to continue to work                   
cooperatively together incorporating the APEB process to pursue,               
capture and retain all of the airport infrastructure development               
funds we can possibly get to meet the aviation needs in Alaska.  We            
in the FAA strongly endorse the APEB project selection process and             
we feel that the establishment of an authority will only add an                
additional layer of review that will jeopardize and impact the                 
state of Alaska's ability to optimize federal airport capital                  
development funding."                                                          
                                                                               
Number 0655                                                                    
                                                                               
CHAIRMAN WILLIAMS referred to Mr. Simpson speaking about the                   
authority and changing board members every three or five years.  He            
referred to the possibility of a change in the Administration and              
asked what would then happen to the FAA.                                       
                                                                               
MR. SIMPSON responded that the ACIP which is submitted to                      
Headquarters is a five-year plan.                                              
                                                                               
Number 0687                                                                    
                                                                               
CHAIRMAN WILLIAMS asked if direction would be changed.                         
                                                                               
MR. SIMPSON said to change the next five-year plan in midstream                
would impact the credibility of the program and impact the ability             
to secure federal funds for development in Alaska.  He said,                   
"That's why we like to look at the ACIP as being a very important              
document and incorporate a statewide perspective when we put them              
together and make sure that they do have within them the highest               
priority needs that's identified for the state.  So should we be               
moving from one administration to another, we would look to see                
that there is continuity as far as which projects are rated the                
highest priority projects based on the specific specified criteria.            
In a change of administration, the selection criteria should not be            
changed in that predicament.                                                   
                                                                               
Number 0728                                                                    
                                                                               
CHAIRMAN WILLIAMS said the committee wants to make sure there is               
continuity and make sure that nothing changes within that.  He                 
said, "I know that having one administrator that is appointed                  
because he is an administrator in that field, whether it's FAA or              
whatever, that it is better for the state for having someone                   
appointed because he is a political -- helped the Administration               
get into office."                                                              
                                                                               
Number 0763                                                                    
                                                                               
REPRESENTATIVE COWDERY asked Mr. Simpson if he feels that if the               
authority is created, they would not maximize the funds available              
from any of the sources.                                                       
                                                                               
Number 0789                                                                    
                                                                               
MR. SIMPSON responded, "I'm not being critical of the authority and            
its intentions, but what I would like to add is that what we have              
in place now with the APEB process is an accepted proven process               
that has already shown benefits in the state of Alaska as far as               
the ability to secure their maximum amount of federal funding.  And            
the project selection criteria that they use to determine which                
projects we forward to Washington, D.C., for funding has been very             
successful and consistent with our FAA national priority system and            
really serves as a model for selecting and documenting and                     
justifying which projects are forwarded to Headquarters for                    
funding."                                                                      
                                                                               
Number 0829                                                                    
                                                                               
REPRESENTATIVE COWDERY asked if it is possible that another system             
could be more successful than the current system.                              
                                                                               
MR. SIMPSON responded that they work with the DOT/PF on a continual            
basis.  The membership of the APEB consists of the regional                    
directors, statewide aviation directors, statewide planning                    
directors and the deputy commissioner of Aviation.  He said they               
work with them on a continual basis and have developed a close                 
relationship with those individuals as far as coming to some                   
agreement as to what the aviation needs are in the state of Alaska,            
which ones of those needs are high priority needs, and where should            
the federal investment be focused so that the constituency of the              
state of Alaska gets the most benefits out of the aviation program.            
Mr. Simpson indicated he believes the relationship between the                 
DOT/PF and his agency would be impacted if there is another level              
of review inserted into the process.                                           
                                                                               
Number 0892                                                                    
                                                                               
REPRESENTATIVE COWDERY asked Mr. Simpson if he believes that there             
is ever any political influence in any decisions that are made.                
                                                                               
MR. SIMPSON informed the committee he has been in his position                 
since 1991.  He said, "Back in those days, yes, I did see political            
pressure and political maneuvering impacting our program.  But in              
the last few with APEB process, as Mr. Bowers, Statewide Aviation              
Director has indicated, the ACIP that's been formulated by the APEB            
has withstood the scrutiny of the Alaska State Legislature, has not            
been influenced or impacted by political assertion and gone forward            
from our offices to Headquarters intact.                                       
                                                                               
Number 0899                                                                    
                                                                               
HENRY SPRINGER came before the committee to testify on behalf of               
himself.  He said he has been in Alaska since 1960 and spent three             
years in the Army.  From 1963 to 1986 he was with the old Highway              
Department and was with DOT/PF as a director.  Mr. Springer                    
referred to HB 227 and said his interest is in the transportation              
of Alaska.  He said, "I feel great as a taxpayer that I was                    
(indisc.) there is really no need to fix anything.  If it ain't                
broke, don't fix it and I believe in that.  But I also have a keen             
interest in the historic perspective in transportation in the state            
and I don't think we're doing all that great."                                 
                                                                               
MR. SPRINGER said he believes there was a more responsive system in            
the state 50 or even 100 years ago that fulfilled the needs.  The              
simple reason for HB 227 or some kind of a different approach is               
the instability.  He said what a lot of people don't understand is             
what the shock effect is in a department, especially as big and                
complex as DOT/PF is when a commissioner changes.  It is not just              
philosophical or policy changes, it's bureaucratic changes that                
come with the personnel system.  There is the insecurity of people             
in different jobs.  Mr. Springer said, "A simple thing is that we              
have produced, through the years, partly because it was mandated by            
the federal aid and Federal Aid Administration, that we had three-             
year, five-year, six-year and ten-year plans.  And I have been                 
heavily involved with all those."                                              
                                                                               
Number 1115                                                                    
                                                                               
MR. SPRINGER informed the committee that in his personal library,              
he has about 1,200 pounds of studies and planning documents, since             
statehood, of which hardly any of them were ever used longer than              
the administrations they were produced in.  That is somewhat                   
understandable because if you produce something and that reflects              
your policy and your philosophic direction, that is what you're                
trying to work with.  Mr. Springer said the next person comes in               
and she/he may or may not have completely different ideas.  A prime            
example is what Governor Hickel produced and what the present                  
Administration is doing.  He stated he is not saying one is better             
than the other, he is just using it as an example of instability.              
He said he believes the department is making very creditable                   
efforts in coming up with a good and placable and logical planning             
process with whatever criteria they use.  The underlying problem is            
stability and there hasn't been any stability in any way, shape or             
form since statehood.  Mr. Springer asked "What should a                       
transportation system do for the state?"  The conventional wisdom              
says a transportation system is necessary for the economic                     
stability and well-being of the state.                                         
                                                                               
Number 1207                                                                    
                                                                               
MR. SPRINGER said we have to have intermodal considerations.  In               
some areas marine transportation is paramount, in others land                  
transportation and also air transportation.  He said he would                  
submit that none of it, in this state, has come about because of               
careful planning or some government entity having a lot foresight              
and skill.  It  has all come about because commerce, industry and              
individuals found necessities to have whatever mode of                         
transportation was necessary for the well-being for those people.              
                                                                               
MR. SPRINGER referred to the villages years ago and said the old               
timers had a better trail system in place to accommodate winter                
travel than what we currently have.  Maybe we don't need it to that            
extent anymore because aviation is taking over.                                
                                                                               
MR. SPRINGER said he has looked at some congressional records from             
years ago and there was a well-planned system with minimal money               
they had shelter cabins, firewood, staked trails which connected               
the villages.  There are trails in Anchorage.  That's great for                
some people, but that is a luxury and not a necessity and we're not            
meeting the basic necessities because of policy shifts.                        
                                                                               
Number 1282                                                                    
                                                                               
MR. SPRINGER pointed out that 31 states have used some kind of a               
commission approach and it is not a rigid thing.  There could be a             
system where there is a full system that would take the place of               
the commissioner and he believes that would be the desirable thing             
to do.  He said he honestly thinks a full commission that takes                
over the policy for DOT/PF would be the thing to do.  He asked,                
"Why not do that?"  He said our constitution has given the Governor            
very broad and probably more authority than any other Governor in              
the nation.  The same thing holds true for the legislature.  Mr.               
Springer said if we wanted to establish a broad commission, it                 
would probably cut, even deeper than HB 227, into the authority of             
the Governor.  It also will be perceived to infringe on some of the            
authority of legislators.  Mr. Springer stated he believes it is               
politically not doable.  He said since the planning and programming            
is the key to at least capital programs, such an authority would               
provide a vehicle to establish that stability.                                 
                                                                               
MR. SPRINGER said, "I want to get into some specific things that               
come up and I think either people don't see it directly in the bill            
or can't envision it - why that authority is a good and workable               
thing.  Number one, it would not raise another level of                        
bureaucracy.  The way I think the bill envisions it, it would keep             
the planning process in the regions completely intact.  The                    
regional planners in the three regions within DOT would continue to            
do whatever they are  -- basically (Indisc.) acquisition and so on.            
That is for all modes of transportation.  What it would basically              
do is replace a large portion of the Headquarter's planning and                
programming group, and I said 'replace.'  It is not parallel group             
coming up.  And there are some functions that need to be maintained            
because of federal requirements like keeping statistics, and so on,            
so the commissioner's office would be able to continue that."                  
                                                                               
Number 1446                                                                    
                                                                               
MR. SPRINGER said the key question is, "Who sets the policy?  Who              
makes the selections?"  He pointed out that there is nothing in the            
present stipulations, both in the FAA and the FHWA, to prevent such            
an approach.  It can be just as compatible meeting the requirements            
as the present set-up is.  You take one group and replace it with              
another.  Mr. Springer said the big difference it that this group              
has authority to basically decide what is going to be in the                   
Capital Program.  One thing that has been pointed out is AMATS                 
which is under the ISTEA provision.  He pointed out under ISTEA,               
they see a necessity for a municipal planning authority in those               
types of communities.  He said that doesn't mean AMATS is set                  
rigidly as to its composition.  It just has to comply with the                 
federal requirements pertaining to municipal planning authorities.             
Mr. Springer stated the commissioner can be replaced with the                  
chairman of that board.  The mayor of the municipality can still be            
in the process.                                                                
                                                                               
Number 1520                                                                    
                                                                               
MR. SPRINGER said, "The other (indisc.) that is of some political              
concern, while we are going to knock off jobs -- well I think one              
of the key points here in the legislature is dealing with fiscal               
gaps and so on."  He said he doesn't think it affects the job                  
security.  It will eliminate some planning positions, but most of              
those are funded by federal dollars.  That money could be used in              
design and construction which where it is more needed than in the              
planning process.  Mr. Springer referred to the current planning               
process and said it is very expensive.  He said the committee has              
heard about the necessity of public involvement.  He stated, "It               
has been my observation that the public involvement process has                
reached dimensions where the mechanisms are such that there isn't              
much sausage coming out of that hopper.  There are a lot of                    
ingredients going in, but they're just stirring the pot and making             
hamburger and there are no patties coming out."  Mr. Springer                  
stated that is a problem for two reasons.  He said we have planning            
processes that are continually on-going.  Mr. Springer said he sees            
the same faces, for example, in the Anchorage public hearings.                 
That is a concern.  He asked what the public involvement is.  He               
said he would submit to the committee that a body that is appointed            
by the governor, confirmed by the legislature, represents different            
modes and geographic areas is an ideal way to get the feedback and             
access of the public in the hearing processes.  It isn't a process             
that would be manipulated by bureaucrats.  It is a process that is             
composed of and done by citizens.                                              
                                                                               
MR. SPRINGER explained that bureaucrats don't need to teach people             
what is needed, it's the other way around.  Industry and commerce              
is the thriving force, not some bureaucracy.  He said on the flip              
side, you can't expect people from all sorts of life to make a                 
decision that should be done along professional guidelines.  To use            
a process where you take only people's input and try to formulate              
a policy is absurd and is a guarantee that nothing will happen.                
That is where the professionals with training and the elected                  
leaders should use a leadership role and decide what is the right              
thing to do.  It should be established as a policy and then that               
policy should be pursued over a long period and not be at the whim             
of one Administration or another.                                              
                                                                               
Number 1728                                                                    
                                                                               
MR. SPRINGER referred to what the authority would do and said he               
doesn't see anything where it is not compatible with federal                   
guidelines.  He said, "To address the concern that the authority               
will indeed have the power to add, subtract or change a program -              
they're well founded, but that authority also, in the end, can                 
decide if that has a priority and if the federal participation can             
not (indisc.) be guaranteed, maybe there is a situation where state            
funding should be used.  We have, right now, a couple of examples              
I can give you with a well thought out process in place right now              
that are exemptions.  I'm amazed at its political expediency.  One             
of them is a thirty some million dollars that has been announced to            
be used for the Anchorage International Airport.  It wasn't in the             
STIP or in the long-term planning process.  It came out like that              
just as predictable as the next election.  The same thing with the             
intersection at Tudor and Lake Otis.  That didn't show up in any               
planning document or anything.  All of a sudden Mayor Mystrom and              
the Governor fall all over each other saying that it has a high                
priority.  Where the hell were the planners at?  I'm not being                 
critical.  I'm just pointing a couple of examples which we have                
just seen within the last two weeks which points out to me that the            
planning process and the priority setting is problematic.  The                 
second thing is I think it guarantees sufficient citizen access and            
input.  I think it takes the operational needs that the industry               
and commerce and the people have into consideration.  It provides              
a geographic balance.  It is more results oriented because it's                
based on business decisions and not so much political (indisc.)  I             
think there are better decisions in regards to the cost benefit                
ratio of a project.  We are required to have a cost benefit                    
analysis.  I don't see that in hardly any of the planned projects -            
what is coming out of the hopper?  I think it is a cheaper process.            
I think we can cut the costs that is being used right now for                  
planning probably in half.  We don't lose that money, we just use              
it in another sector."                                                         
                                                                               
Number 1900                                                                    
                                                                               
CHAIRMAN WILLIAMS said he agrees with Mr. Springer as far as                   
continuity.  He said Mr. Moreno had concerns about some of the                 
wording in the bill and asked Mr. Springer if there is a big issue             
in that area.                                                                  
                                                                               
Number 1930                                                                    
                                                                               
MR. SPRINGER said, "I tried to address the AMATS and the MPO                   
question as far as air quality goes.  It is obvious that a                     
commission like that is not going to bite its nose off.  If there              
is a decision that is paramount to utilize all available federal               
funds, which I think anybody, I don't care if it's the Governors               
Office or a commission or whoever, that is paramount.  But at the              
same time, we shouldn't overlook the flexibilities, in some cases,             
for specific projects if they are too problematic that we should               
use only state funding or bond funding which we have done.  There              
is plenty of necessity to use the federal dollars up without                   
getting into any problems.  Air quality attainment in Fairbanks and            
Anchorage is well known, but there is nothing that the authority               
couldn't do that is presently being done."  Mr. Springer continued             
to discuss his experience while he worked for the Department of                
Fish and Game.                                                                 
                                                                               
MR. SPRINGER referred to Representative Sanders question of why                
haven't we built any roads.  Mr. Springer said in 1963, we used                
approximately 80 percent to 90 percent that went into a project.               
Currently, we have 52 percent of the money going into projects and             
the rest going to air quality, water quality, storm water runoff,              
ASHA, planning, trails, et cetera.  He stated that roads aren't                
being built because the money is being used for other things                   
besides construction.                                                          
                                                                               
Number 2086                                                                    
                                                                               
REPRESENTATIVE COWDERY asked Mr. Springer to comment on what he                
believes the composition of the board should be.                               
                                                                               
MR. SPRINGER informed the committee that in the early 1980s,                   
Governor Egan established a transportation advisory board made up              
of citizens.  Governor Egan appointed people who he felt had                   
expertise in different matters who would help the commissioner                 
establish a transportation policy.  The met twice a year.  Some of             
the people appointed ran barge companies, fuel docks, et cetera.               
Mr. Springer said maybe those people were a little short on                    
education or weren't politically correct, but they sure knew how to            
run barges, trucks and airlines.  He said a concern is how much                
time people can spend working on the board.  Mr. Springer stated he            
doesn't see an adverse situation between the commissioner and that             
body.  He sees it as a very compatible and cooperative effort.                 
                                                                               
Number 2368                                                                    
                                                                               
CHAIRMAN WILLIAMS indicted there needs to be some limited changes              
to the legislation.  He said HB 227 would be held for further                  
consideration.                                                                 
                                                                               
ADJOURNMENT                                                                    
                                                                               
Number 2442                                                                    
                                                                               
CHAIRMAN WILLIAMS adjourned the House Transportation Standing                  
Committee meeting at 2:45 p.m.                                                 

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