Legislature(1999 - 2000)

01/28/1999 01:34 PM House TRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                          JOINT MEETING                                                                                         
             HOUSE TRANSPORTATION STANDING COMMITTEE                                                                            
            SENATE TRANSPORTATION STANDING COMMITTEE                                                                            
                        January 28, 1999                                                                                        
                            1:34 p.m.                                                                                           
                                                                                                                                
                                                                                                                                
HOUSE MEMBERS PRESENT                                                                                                           
                                                                                                                                
Representative Andrew Halcro, Vice Chair                                                                                        
Representative Bill Hudson                                                                                                      
Representative John Cowdery                                                                                                     
Representative Jerry Sanders                                                                                                    
Representative Allen Kemplen                                                                                                    
Representative Albert Kookesh                                                                                                   
                                                                                                                                
HOUSE MEMBERS ABSENT                                                                                                            
                                                                                                                                
Representative Beverly Masek, Chair                                                                                             
                                                                                                                                
SENATE MEMBERS PRESENT                                                                                                          
                                                                                                                                
Senator Jerry Ward, Chairman                                                                                                    
Senator Drue Pearce                                                                                                             
Senator Georgianna Lincoln                                                                                                      
                                                                                                                                
SENATE MEMBERS ABSENT                                                                                                           
                                                                                                                                
Senator Rick Halford                                                                                                            
Senator Mike Miller                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
OVERVIEW BY THE DEPARTMENT OF TRANSPORTATION AND PUBLIC                                                                         
FACILITIES                                                                                                                      
                                                                                                                                
WITNESS REGISTER                                                                                                                
                                                                                                                                
JOSEPH L. PERKINS, Commissioner                                                                                                 
Department of Transportation & Public Facilities                                                                                
3132 Channel Drive                                                                                                              
Juneau, AK  99801-7898                                                                                                          
Telephone:  (907)465-3901                                                                                                       
POSITION STATEMENT:  Provided overview and answered questions.                                                                  
                                                                                                                                
KURT PARKAN, Deputy Commissioner                                                                                                
Department of Transportation & Public Facilities                                                                                
3132 Channel Drive                                                                                                              
Juneau, AK  99801-7898                                                                                                          
Telephone:  (907)465-6977                                                                                                       
POSITION STATEMENT:  Presented information during overview.                                                                     
                                                                                                                                
ACTION NARRATIVE                                                                                                                
                                                                                                                                
TAPE 99-3, SIDE A [HOUSE TRA TAPE NUMBER]                                                                                       
Number 0001                                                                                                                     
                                                                                                                                
CHAIRMAN  JERRY WARD  called the  joint meeting  of the House  and                                                              
Senate Transportation  Standing Committees  to order at  1:34 p.m.                                                              
House members  present at the  call to order were  Representatives                                                              
Halcro, Sanders, and Kemplen.  Senate  members present at the call                                                              
to order  were Senators Ward  and Pearce.  Representatives  Hudson                                                              
and Kookesh arrived at 1:35 p.m.   Senator Lincoln arrived at 1:56                                                              
p.m.  Representative Cowdery arrived at 2:05 p.m.                                                                               
                                                                                                                                
OVERVIEW   BY  THE   DEPARTMENT  OF   TRANSPORTATION  AND   PUBLIC                                                          
FACILITIES                                                                                                                  
                                                                                                                                
CHAIRMAN  WARD announced  the first  order  of business  to be  an                                                              
overview   of  the   Department  of   Transportation  and   Public                                                              
Facilities   (DOT/PF),   and   introduced   JOSEPH   L.   PERKINS,                                                              
Commissioner, Department of Transportation  and Public Facilities,                                                              
State of Alaska.                                                                                                                
                                                                                                                                
MR.   PERKINS  introduced   the   "Department  of   Transportation                                                              
management team," specifically:                                                                                                 
                                                                                                                                
     Kurt Parkan, Deputy Commissioner                                                                                           
     Boyd J. Brownfield, Deputy Commissioner                                                                                    
     Nancy Slagle, Director, Division of Administrative Services                                                                
     Michael L. Downing, Director, Division of Statewide Design                                                                 
     and    Engineering Services                                                                                                
     John D. Horn, Regional Director, Central Region                                                                            
     Anton (Tony) K. Johansen, Regional Director, Northern Region                                                               
     Robert Martin, Jr., Regional Director, Southeast Region                                                                    
     Dennis Poshard, Legislative Liaison/Special Assistant,                                                                     
     Office    of the Commissioner                                                                                              
     Thomas B. Brigham, Director, Division of Statewide Planning                                                                
     Robert J. Doll, General Manager, Ferry Operations                                                                          
                                                                                                                                
SUMMARY OF INFORMATION                                                                                                          
                                                                                                                                
MR.  PERKINS described  transportation  as  the  lifeblood of  the                                                              
economy.  The  average American household spends $6000  a year, or                                                              
one-fifth their annual income, on  transportation, and it makes up                                                              
11% of  the nation's gross  national product. Additionally,  7% of                                                              
Americans work in transportation.                                                                                               
                                                                                                                                
MR. PERKINS specified that Alaskans  are particularly dependant on                                                              
transportation.  It is his feeling  that the transportation system                                                              
in Alaska has  improved in the last  four years.  A  recent survey                                                              
showed 52%  of Alaskans were  completely satisfied with  the roads                                                              
and  highways, 90%  completely  satisfied  with the  international                                                              
airports,  and 67% completely  satisfied  with the Marine  Highway                                                              
system. He  related that  51% of people  felt that their  area was                                                              
funded fairly.  With regard  to roads, 59%  surveyed felt  the DOT                                                              
was correctly  building roads, and  60% believed all  gravel roads                                                              
in the state should be paved.                                                                                                   
                                                                                                                                
Number 0154                                                                                                                     
                                                                                                                                
MR. PERKINS  emphasized that the  transportation system  in Alaska                                                              
has a long  way to go; however,  it was his belief that  the newly                                                              
increased  federal funding  will  provide  even more  improvement.                                                              
Despite  reductions  in  the  operating   budget  of  the  DOT/PF,                                                              
progress is still  being made in constructing  and maintaining the                                                              
highway system.                                                                                                                 
                                                                                                                                
Number 0176                                                                                                                     
                                                                                                                                
MR. PERKINS referred  to the chart on page 1 of  the handout dated                                                              
1/28/99,  titled  "Legislative Briefing,"  which  illustrates  the                                                              
increased use of federal funds.   He reported that federal funding                                                              
has recently  "loosened up,"  including recently approved  funding                                                              
for  striping.    Federal  funding   does  not  cover  any  winter                                                              
maintenance, brushing,  culvert cleaning or shoulder  work, and it                                                              
is  mostly  limited  to  surface  repair work.    The  funding  is                                                              
adequate for the time being, he explained;  however, any decreased                                                              
funding or increased restrictions could cause problems.                                                                         
                                                                                                                                
Number 0212                                                                                                                     
                                                                                                                                
MR. PERKINS  further stated  that DOT/PF  crews doing  maintenance                                                              
work  in the  summer months  are paid  with federal  funds.   This                                                              
allows the winter  crew members to remain employed  in the summer.                                                              
He warned, however, that further  operating reductions will affect                                                              
winter maintenance in  Alaska, as this is where  the vast majority                                                              
of the DOT/PF budget is currently going.                                                                                        
                                                                                                                                
MR.  PERKINS cited  examples  of  cost effective  DOT/PF  division                                                              
reorganization within  the last two  years.  He  examined specific                                                              
changes  the  department  has made  in  materials  and  equipment:                                                              
using  chipseal instead  of asphalt  in permafrost  areas, use  of                                                              
liquid  treatments  versus sanding,  decreased  usage  of sand  by                                                              
means of computerized sand spreaders, and specialized trucks.                                                                   
                                                                                                                                
Number 0282                                                                                                                     
                                                                                                                                
MR.  PERKINS noted  that one  of the  biggest cost  items for  the                                                              
DOT/PF is  electricity.   The department is  aware of the  need to                                                              
"attack the  electric bill" by  means of increased  insulation and                                                              
weather-stripping.    They  are  looking  into  "LED"  signals  in                                                              
Anchorage  which    use  about  one-tenth  the  power  of  regular                                                              
signals.   He added that requests  for lights have  been resisted,                                                              
not because money is not available  to install the lights, but due                                                              
to the  fact that  money is  not available  to pay the  additional                                                              
electric  bills.    Another  increased  cost for  the  DOT/PF,  he                                                              
continued, is  the use of cellular  phones.  Employees  plowing in                                                              
wild country, in cold conditions,  and in the middle of the night,                                                              
he explained, are better served with  cellular phones than radios.                                                              
                                                                                                                                
Number 0313                                                                                                                     
                                                                                                                                
MR. PERKINS  referred  the committee  to the second  chart  in the                                                              
above-mentioned handout.   This chart compared all  western states                                                              
by lane  miles per  DOT/PF employee,  and Alaska  had the  highest                                                              
number  at 34.9  miles  per  employee.   It  is his  belief  that,                                                              
considering the  vast size of our  state, the DOT/PF in  Alaska is                                                              
extremely efficient.                                                                                                            
                                                                                                                                
Number 0344                                                                                                                     
                                                                                                                                
MR.  PERKINS  considered  the  third   chart  in  the  handout  to                                                              
illustrate the  9.9% decrease  in budgeted departmental  positions                                                              
since 1985.   They have,  however, requested  82 new  positions in                                                              
the 2000 budget, including 56 positions  to run the Malaspina as a                                                              
day ferry.  He stressed that DOT/PF  employees in rural areas take                                                              
care of both the airport and the roads in their area.                                                                           
                                                                                                                                
Number 0378                                                                                                                     
                                                                                                                                
MR. PERKINS addressed transportation  bill TEA-21.  He noted that,                                                              
although the bill  funded fiscal year 1998, it did  not get passed                                                              
until the end  of FY 1998.  Therefore, the department  operated on                                                              
"a bunch of emergency  measures," he continued.   Despite the fact                                                              
that  information changed  daily  and they  had  little idea  what                                                              
TEA-21  would  cover,  Mr.  Perkins   proudly  reported  that  the                                                              
department was successful  in obligating every cent  of their 1998                                                              
funds.  In addition to that, he continued,  the DOT/PF was able to                                                              
pick up an additional $3 million  plus from the federal government                                                              
in  funds returned  by  states who  could  not  obligate them.  He                                                              
summarized the benefits of TEA-21, including:                                                                                   
                                                                                                                                
     *    National funding levels tied to gas tax receipts                                                                      
                                                                                                                                
     *    94% of authorized highway funding "guaranteed"                                                                        
                                                                                                                                
     *    Nearly states receive more funding                                                                                    
                                                                                                                                
     *    More discretionary program funding                                                                                    
                                                                                                                                
     *    More Congressionally designated projects                                                                              
                                                                                                                                
Number 0410                                                                                                                     
                                                                                                                                
MR. PERKINS reported that the DOT/PF  recently submitted a request                                                              
for funding to  the United States Department of  Transportation in                                                              
the amount  of $10 million.  If  approved, this would be  used for                                                              
improvements  to the Dalton  Highway.   He reminded the  committee                                                              
that  Alaska is  competing  against 49  other  states for  federal                                                              
funding;   therefore,   it   behooves   the   department   to   be                                                              
well-organized.  He  referred  to  section 118F  of  TEA-21  which                                                              
allows the  state of  Alaska to  use federal  money on any  public                                                              
highway in  the state.   With the exception  of Alaska  and Puerto                                                              
Rico,  the  rest   of  the  states  must  spend   their  money  on                                                              
federally-designated roads.                                                                                                     
                                                                                                                                
Number 0466                                                                                                                     
                                                                                                                                
MR. PERKINS  referred  the committee  to the fourth  chart  in the                                                              
handout which  breaks down the  available funding  and illustrates                                                              
the formula  used. Despite the  projected $315 million  figure for                                                              
2000,  it is  his opinion  that  there will  be  an additional  $1                                                              
billion  in  the  trust  fund,  possibly  resulting  in  increased                                                              
funding  for the state  of Alaska.   He  cautioned, however,  that                                                              
beginning in  1999 every  state is required  to get back  at least                                                              
90% of the money  they paid in for gas taxes.   If other states do                                                              
not reach this  percentage, he explained, the  difference is taken                                                              
from the states  that collect more than 90%. The  state of Alaska,                                                              
he  observed,  collects $5  for  every  $1  paid.   Therefore,  if                                                              
redistribution  is needed,  it may  lower the  program funding  in                                                              
2000.    He went  on  to  offer  a detailed  explanation  of  each                                                              
category in the chart.                                                                                                          
                                                                                                                                
Number 0543                                                                                                                     
                                                                                                                                
REPRESENTATIVE   COWDERY  questioned   whether  it  was   actually                                                              
possible to build a bridge in Ketchikan  that would be high enough                                                              
for ships to go under.                                                                                                          
                                                                                                                                
MR. PERKINS agreed  that it was a difficult challenge,  but he did                                                              
not feel it would be impossible.   Passing cruise ships would need                                                              
to have  at least  180 feet  to clear  it, he  added.   Currently,                                                              
there is  $20 million appropriated  for the Ketchikan  bridge, and                                                              
an estimated $12 million of that  will probably go to designing it                                                              
with an option  to do construction management.   After that point,                                                              
he continued,  decisions would need to  be made, such as  where it                                                              
would go,  if a  tunnel would  be better  than a  bridge, or  if a                                                              
lower bridge with a draw on it be an option.                                                                                    
                                                                                                                                
SENATOR   PEARCE  asked,   "Above  and   beyond  the   engineering                                                              
difficulties, at what  cost might we be able to  land that bridge?                                                              
Would $20 million cover it?"                                                                                                    
                                                                                                                                
MR.  PERKINS said  no, and  explained  that total  costs could  be                                                              
between  $60  million and  $100  million.    The majority  of  the                                                              
construction funds,  he noted, would  have to come out  of another                                                              
funding source,  as the  DOT/PF has elected  to not even  consider                                                              
taking those funds from the regular program.                                                                                    
                                                                                                                                
Number 0579                                                                                                                     
                                                                                                                                
MR.  PERKINS  referred the  committee  two  pages ahead  in  their                                                              
brochure to  a chart  titled "High Priority  Projects -  Cash Flow                                                              
Plan  With  Adjustment  for  Reduced   Spending  Authority."    He                                                              
stressed that  these projects  were not  submitted by the  DOT/PF,                                                              
but  were suggested  by  "others."   Each  one  of these  projects                                                              
listed,  he  added,  require  a 20%  match.    The  darker  shaded                                                              
projects will be  done by DOT/PF and match requests  will be made.                                                              
The  lightly  shaded projects  will  be  done  by the  people  who                                                              
requested them,  and responsibility for matches  will belong those                                                              
people.                                                                                                                         
                                                                                                                                
TAPE 99-3, SIDE B                                                                                                               
Number 0000                                                                                                                     
                                                                                                                                
MR. PERKINS  continued to explain  that, historically,  the DOT/PF                                                              
can expect  appropriations to be  approximately 88% of  the amount                                                              
authorized.   This requires  them to go  into projects  and reduce                                                              
each one individually.   However, the funding does  not expire, he                                                              
observed, and  will remain available  for that particular  project                                                              
"forever."                                                                                                                      
                                                                                                                                
Number 0017                                                                                                                     
                                                                                                                                
SENATOR LINCOLN asked where Gravina Island is located.                                                                          
                                                                                                                                
MR. PERKINS  explained  that was the  Ketchikan bridge  previously                                                              
referred to.                                                                                                                    
                                                                                                                                
SENATOR  LINCOLN   asked  exactly  who  the  "others"   were  that                                                              
suggested these projects be "high priority."                                                                                    
                                                                                                                                
MR. PERKINS declared that in some  cases he did not know; however,                                                              
it can sometimes  be assumed from  title of the project  where the                                                              
proposals came from.                                                                                                            
                                                                                                                                
SENATOR LINCOLN  asked if this  list represented the  total amount                                                              
of applications for funds.                                                                                                      
                                                                                                                                
MR. PERKINS said that it had been  the preference of the DOT/PF to                                                              
use all of  the TEA-21 funding  on the Dalton Highway  rather than                                                              
these  projects.   By moving  the  Dalton Highway  funding out  of                                                              
their regular program, he added,  the community list could then be                                                              
prioritized by the DOT/PF.                                                                                                      
                                                                                                                                
SENATOR LINCOLN  asked how is was  decided who would be  placed in                                                              
the list where DOT/PF provides matching funds.                                                                                  
                                                                                                                                
MR. PERKINS cited  the example of the Dalton Highway  project.  He                                                              
pointed out  that the DOT/PF  initially requested $80  million for                                                              
this  project;  however,  only  $3 million  was  approved.    This                                                              
project will actually displace a  project from the regular program                                                              
and will  save that program  $3 million,  so it was  decided funds                                                              
should be matched.  With regard to  the Gravina Island bridge, the                                                              
match  was   appropriated   last  year   and  authorized   by  the                                                              
legislature.                                                                                                                    
                                                                                                                                
SENATOR LINCOLN  wondered if money  not used in a  certain project                                                              
could be  moved into  another or if  the allocated funding  always                                                              
had to follow that project.                                                                                                     
                                                                                                                                
MR. PERKINS  reported that only  the United States  Congress could                                                              
reprogram money to another project.                                                                                             
                                                                                                                                
CHAIR  WARD  asked  Mr.  Perkins  to  address  the  issue  of  the                                                              
railroad.                                                                                                                       
                                                                                                                                
Number 0046                                                                                                                     
                                                                                                                                
MR. PERKINS  explained that transportation  plans have  been drawn                                                              
up regionally.   The DOT/PF is requesting funding  for a Northwest                                                              
Regional  Transportation  Plan.     Such  a  study  would  include                                                              
assessment of  resources available  and details regarding  how the                                                              
railroad would  be put in.   He announced  that this plan  has the                                                              
support of  individuals he has spoken  with in Nome,  Kotzebue and                                                              
Fairbanks.                                                                                                                      
                                                                                                                                
Number 0070                                                                                                                     
                                                                                                                                
REPRESENTATIVE  SANDERS questioned  whether the  Cook Inlet  shoal                                                              
project would be a candidate for this program.                                                                                  
                                                                                                                                
MR. PERKINS  indicated that  nothing more could  be added  to this                                                              
program for five  years; however, changes would  be possible after                                                              
that time if the congressional delegation authorized it.                                                                        
                                                                                                                                
REPRESENTATIVE HUDSON  stressed that this was the  first time many                                                              
members  of the committees  had seen  this list  of high  priority                                                              
projects.    It was  his  hope  that  both  the House  and  Senate                                                              
Transportation Committees  would be able to take "a  hard look" at                                                              
each item  on this list,  and be able  to make recommendations  to                                                              
the  congressional  delegation  through the  Administration.    He                                                              
questioned  whether  these projects  were,  in fact,  the  highest                                                              
priorities for the state of Alaska.                                                                                             
                                                                                                                                
MR. PERKINS announced that he would  support further review by the                                                              
both the legislature and the Administration,  and would be open to                                                              
hearing suggestions for possible reprogramming.                                                                                 
                                                                                                                                
Number 0092                                                                                                                     
                                                                                                                                
MR. PERKINS referred back to the  TEA-21 chart:  specifically, the                                                              
program  called   "Alaska  Shakwak."    He  again   clarified  the                                                              
difference  between  authorization  and  appropriation  of  funds.                                                              
Appropriation, he explained, is always  done at a lower level than                                                              
authorized.   This  discrepancy  creates  accounts  of money  left                                                              
over.   Due to legislation  passed in  the 1980s, he  advised, the                                                              
state of  Alaska could give  the balance  of this money  to Canada                                                              
for the Shakwak  project.  This project  is for the road  from the                                                              
Haines  border  to  the Alaska  border  through  Canada;  however,                                                              
specific wording states  the money could be used  for the "highway                                                              
all the way  to Haines and  the Marine Ferry System  that connects                                                              
to the lower 48."  That description  has freed up $57 million that                                                              
does not  require a  match.   It is his  recommendation  that this                                                              
money  be spent  as  quickly as  possible,  because it  is not  in                                                              
TEA-21 and could be changed in a  yearly appropriations bill.  The                                                              
DOT/PF  advised this  be divided  as follows:   $11  million to  a                                                              
Haines highway project already under  construction, $11 million to                                                              
a Haines  highway project scheduled  for next year, and  "$30 plus                                                              
million" to the purchase of a new ferry.                                                                                        
                                                                                                                                
Number 0143                                                                                                                     
                                                                                                                                
SENATOR  LINCOLN  sought clarification  as  to how  the  Southeast                                                              
ferry system was chosen over other parts of Alaska.                                                                             
                                                                                                                                
MR. PERKINS  stressed that this  was determined by  minimum change                                                              
to the current language describing  how this money could be spent.                                                              
Any attempt  to apply that money  to another region in  Alaska, he                                                              
added, would  have required  a new  paragraph in the  legislation,                                                              
and it  is his  opinion that  it never  would have  passed by  the                                                              
other states.   He concluded by returning to the  TEA-21 chart and                                                              
examining the remaining projects.                                                                                               
                                                                                                                                
Number  0170                                                                                                                    
                                                                                                                                
CHAIR  WARD  asked  for  a  brief update  on  the  status  of  the                                                              
Anchorage International Airport project.                                                                                        
                                                                                                                                
MR.  PERKINS proudly  informed  the  committee that  ratings  have                                                              
improved, and  he is  expecting that the  bonds should  already be                                                              
signed off.   It  is his belief  that the  interest rate  on these                                                              
bonds will  come in at under 5%.    $25 million was  authorized by                                                              
the Federal Aviation Administration  for this project; however, is                                                              
was given as  a Letter of Instruction  (LOI).  This mean  that the                                                              
distribution of this  money will be throughout  a ten-year period,                                                              
he explained,  and that will  not be sufficient  for construction.                                                              
Consequently,  the DOT/PF will  be asking the  state of  Alaska to                                                              
bond an additional  $25 million, to be paid back  with the federal                                                              
money at the end of the ten-year period.                                                                                        
                                                                                                                                
Number 0209                                                                                                                     
                                                                                                                                
REPRESENTATIVE  COWDERY  asked  whether  or not  the  $25  million                                                              
estimation had, in fact, grown to $40 million.                                                                                  
                                                                                                                                
MR. PERKINS  observed that  there had been  a lot of  rumors about                                                              
cost increases; however, that has  not been the case.  Some of the                                                              
things  requested,  he  explained,  were not  necessary  and  were                                                              
removed.  This did not affect the  size, function or aesthetics of                                                              
the airport, he added.                                                                                                          
                                                                                                                                
REPRESENTATIVE COWDERY asked if $40  million was still coming from                                                              
the FAA.                                                                                                                        
                                                                                                                                
MR. PERKINS  clarified that, out  of $40 million received  as LOI,                                                              
$25 million was committed to the  terminal project and $15 million                                                              
will go to other projects on the airport.                                                                                       
                                                                                                                                
REPRESENTATIVE  COWDERY  questioned   whether  passenger  facility                                                              
charges will be implemented.                                                                                                    
                                                                                                                                
MR. PERKINS reported  that a final decision on  passenger facility                                                              
charges has not yet been made; however,  all of the major airlines                                                              
will support them 100%.  So far,  he added, Juneau is implementing                                                              
them and Ketchikan is on the verge of doing so.                                                                                 
                                                                                                                                
Number 0255                                                                                                                     
                                                                                                                                
VICE CHAIRMAN HALCRO  disclosed his lengthy experience  working at                                                              
the  airport and  added that  his company  has been  there for  30                                                              
years.    He  expressed  concern that  there  be  adequate  indoor                                                              
parking so  that customers do not have  to walk so far  in the ice                                                              
and snow to get to their car.  He  further addressed the amount of                                                              
money spent  by companies  on concessionaire  fees.  He  requested                                                              
that  everyone  of the  concessionaires  involved,  regardless  of                                                              
their   industry,   have  a   "seat   at  the   table"   regarding                                                              
decision-making.   He acknowledged  that  the airport industry  is                                                              
seasonal,  and   stressed  that   the  concessionaires   are  very                                                              
important to the stability and livelihood of the airport.                                                                       
                                                                                                                                
Number 0272                                                                                                                     
                                                                                                                                
MR. PERKINS expanded  on the issue of passenger  facility charges,                                                              
and stated  that it has been  requested in the national  bill that                                                              
small carriers be exempt from such fees.                                                                                        
                                                                                                                                
REPRESENTATIVE  COWDERY agreed that  small carriers  service rural                                                              
Alaska; however,  he pointed out  that some larger  carriers, such                                                              
as Alaska  Airlines, also do so.   He wondered if  such exemptions                                                              
from passenger facility charges would  be done by specific airline                                                              
or by rural location.                                                                                                           
                                                                                                                                
MR. PERKINS  explained that  the exemption  would be by  community                                                              
and not airline.                                                                                                                
                                                                                                                                
Number 0305                                                                                                                     
                                                                                                                                
REPRESENTATIVE COWDERY asked how  much these fees might raise with                                                              
or without exemptions factored in.                                                                                              
                                                                                                                                
MR. PERKINS stated he was unaware of the exact figure.                                                                          
                                                                                                                                
KURT  PARKAN, Deputy  Commissioner,  Department of  Transportation                                                              
and  Public  Facilities,  informed   the  committee  that  it  was                                                              
estimated "a  couple of  years ago" to  bring in approximately  $5                                                              
million without exemptions.                                                                                                     
                                                                                                                                
VICE  CHAIRMAN HALCRO  inquired  if the  estimated  1000 new  jobs                                                              
would be private-sector  jobs through contractors  or public state                                                              
jobs.                                                                                                                           
                                                                                                                                
MR. PERKINS stated they would be private-sector jobs.                                                                           
                                                                                                                                
VICE  CHAIRMAN HALCRO  wondered  if the  chart  referring to  lane                                                              
miles  per  employee could  be  affected  by  the fact  that  some                                                              
communities have  state-maintained roads and  other municipalities                                                              
maintain their own roads.                                                                                                       
                                                                                                                                
MR. PERKINS  understood this  chart to be  a direct comparison  of                                                              
work, rather than where the work took place or what it was.                                                                     
                                                                                                                                
Number 0325                                                                                                                     
                                                                                                                                
VICE CHAIRMAN  HALCRO asked  how profitable it  is for  the Alaska                                                              
Marine Highway to operate the current day ferries.                                                                              
                                                                                                                                
MR. PERKINS clarified that there  is currently only one day ferry,                                                              
the Malaspina, and  that has only operated for 71  days.  The cost                                                              
was  $457,000  to  operate between  Juneau,  Skagway  and  Haines,                                                              
including  overhead,  risk  management   charges,  and  all  other                                                              
charges.   The  projected cost  approved by  the legislature  last                                                              
year  was  $577,000.    The  ferry   carried  an  average  of  515                                                              
passengers  and 140  vehicles, and  rented  out an  average of  15                                                              
cabins daily.   It  should be noted,  he added,  that there  was a                                                              
tremendous  amount  of  public  acceptance   for  this  day  ferry                                                              
operation.                                                                                                                      
                                                                                                                                
CHAIR WARD  asked for additional  questions.  Hearing  none, Chair                                                              
Ward  and  Vice  Chairman  Halcro  thanked  Mr.  Perkins  for  his                                                              
presentation and for bringing his staff with him.                                                                               
                                                                                                                                
ADJOURNMENT                                                                                                                     
                                                                                                                                
Number 0352                                                                                                                     
                                                                                                                                
CHAIR WARD  adjourned the  joint meeting of  the House  and Senate                                                              
Transportation Standing Committees at 2:53 p.m.                                                                                 
                                                                                                                                

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