Legislature(2011 - 2012)CAPITOL 17
02/22/2011 02:00 PM House TRANSPORTATION
| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearing: Commissioner, Department of Transportation & Public Facilities, Marc Luiken | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
HOUSE TRANSPORTATION STANDING COMMITTEE
February 22, 2011
2:05 p.m.
MEMBERS PRESENT
Representative Peggy Wilson, Chair
Representative Lance Pruitt, Vice Chair
Representative Eric Feige
Representative Craig Johnson
Representative Cathy Engstrom Munoz
Representative Max Gruenberg
Representative Pete Petersen
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
CONFIRMATION HEARING: COMMISSIONER, DEPARTMENT OF TRANSPORTATION
& PUBLIC FACILITIES, MARC LUIKEN
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
MARC LUIKEN, Commissioner, Department of Transportation & Public
Facilities (DOT&PF), Anchorage, Alaska
POSITION STATEMENT: Testified and answered questions during the
confirmation hearing.
ACTION NARRATIVE
2:05:52 PM
CHAIR PEGGY WILSON called the House Transportation Standing
Committee meeting to order at 2:05 p.m. Representatives P.
Wilson, Feige, Pruitt, Petersen were present at the call to
order. Representatives Gruenberg, Johnson, and Munoz arrived as
the meeting was in progress.
^Confirmation Hearing: Commissioner, Department of
Transportation & Public Facilities, Marc Luiken
Confirmation Hearing: Commissioner, Department of Transportation
& Public Facilities, Marc Luiken
2:06:42 PM
CHAIR P. WILSON announced that the only order of business would
be the confirmation hearing for the Commissioner, Department of
Transportation & Public Facilities, Marc Luiken.
2:07:18 PM
MARC LUIKEN, Commissioner, Department of Transportation & Public
Facilities (DOT&PF), Anchorage, Alaska, welcomed Representative
Gruenberg back from his surgery.
2:08:29 PM
COMMISSIONER LUIKEN read from prepared remarks, as follows:
Thank you for the opportunity to speak to you today
about the Department of Transportation & Public
Facilities (DOT&PF) - and to provide you a bit more
information about me. Let me first say, I believe
I've been preparing for this job for the last 30 or
more years. Beginning with my time at the U.S. Air
Force Academy through my 29 year career as an air
force officer, I've spent my professional life as a
public servant, offering my life in the defense of our
great nation. I've also benefited from some of the
best leadership and technical training available
anywhere.
I spent the first 18 years of my career as a pilot,
primarily flying fighter aircraft in Europe and
Southwest Asia. The last 12 years of my career have
also included opportunities to lead large organization
and implement and practice leadership lessons I've
learned throughout my career. I was given
opportunities to lead support organization that
complemented the flying operations I was used to. At
two of these assignments I functioned very similar to
a city mayor in charge of civil engineering that
involved both horizontal and vertical construction
projects, communications involving base information
technology, telephone and radio infrastructure,
personnel, contracting and procurement, police and
fire, supply and logistic services, and base service
organizations. As a result, I oversaw large military
construction and infrastructure projects at these
bases and oversaw the contracting of these projects
and the procurements of commodities needed to run the
base.
2:10:42 PM
COMMISSIONER LUIKEN continued:
I moved my family to Alaska in the fall of 2008 from
Hickam AFB in Hawaii to take over the job of the 11th
Air Force Vice Commander. In this position I oversaw
the day to day operations of two fighter wings, 15
long range radar sites and two forward operating
locations. I was also tasked with helping the 11th
Air Force Commander get several military construction
projects that had stalled or were struggling get back
on track. Moving to Alaska from back to back
assignments in near tropical climates - Florida and
Hawaii - was a bit of a shock for our family, but we
quickly came to love the beauty, grandeur and majesty
of this incredible state. We also were simply amazed
at how well Alaskans treat the military. It was far
beyond anything we'd experienced anywhere in the
world. Finally, we recognized the awesome
opportunities available here in Alaska and quickly
decided this is where we wanted to stay. Two months
after our arrival my wife, Suzanne, told me we need to
start looking for land. We were fortunate to purchase
a beautiful home in South Anchorage just about a year
ago.
I've begun my tenure as the commissioner by making some
changes to our organizational leadership team.
2:11:35 PM
COMMISSIONER LUIKEN continued:
I did this for a couple of reasons. First, I saw a
need for leaders to fill these top positions in the
organization. I feel I have a great team who will
help me move this organization forward in Pat Kemp,
our Deputy [Commissioner] for Roads. Pat brings 30
years of experience with the department. Steve
Hatter, our Deputy [Commissioner] for Aviation is an
incredibly talented leader with a very similar
aviation background to mine. He's already doing
outstanding work for the department in the aviation
arena. Mike Neussl rounds out the top spots in the
leadership team as the new Deputy Commissioner for the
Alaska Marine Highway System (AMHS). Mike also brings
30 years of marine and leadership experience to the
mix as a former U.S. Coast Guard Captain with 12 of
those years stationed right here in Alaska.
COMMISSIONER LUIKEN continued:
Finally, we have three very strong and experienced
regional directors in Steve Titus, in the Northern
Region, Rob Campbell, in the Central Region, and Gary
Davis, in the Southeast Region, and finally a very
strong AMHS General Manager in Captain John Falvey.
Secondly, I felt an injection of new blood would also
benefit the department. I think this team has the
right mix of leadership, state experience, and fresh
perspective to provide a strong and positive outlook
on the future of our department. Many of you have
already heard where I would like to take this
department. I believe my first priority is to the
organization. I believe we need to not only provide
for safe movement of people and good but to provide
the safe and efficient movement of people and goods
and the delivery of state services.
2:13:21 PM
COMMISSIONER LUIKEN continued:
We as an organization must become more efficient to
provide the best use of resources the state and the
nation provide us to deliver the safest transportation
system possible. We must also become efficient with
our most important resource, our people. We stand to
lose up to 30 percent of our workforce in the next
five years due primarily to the age of our workforce.
Many are reaching retirement in the next five years.
Therefore, I desire to create an organization that
people want to be a part of, one that encourages
growth and recognizes and rewards collaboration and
innovation. I will also strive to build an
organization that is accountable to you, and to our
people, and one that promotes integrity, transparency
and outstanding service. One of my greatest
encouragements I've had since joining the department
as I've learned more about this department is the
quality of people who make up DOT&PF. We already have
an incredibly dedicated and professional workforce and
I'm privileged to serve them in this capacity. My
goal is to give them the resources, the training, and
the focus to be even better. One area I've already
begun to work is to increase our outreach to the
public, the legislature, and our communities. My
first day with the department was spent in Bethel.
There I learned of the need for 24 hour service at the
Bethel Airport, the third busiest airport in the
state. I made that one of my top priorities for the
FY 12 budget and I believe the governor supported my
desire to expand our service at this airport to 24
hours through a budget amendment. I spend my second
week in Ketchikan. There I learned a great deal about
the AMHS, Alaska Ship & Drydock, Inc. and was able to
discuss the struggles the [Ketchikan Gateway] Borough
(KGB) had operating their airport. Since that visit
we've been able to work on the airport issues and are
moving forward toward a more positive relationship
between our department and the borough of Ketchikan.
2:15:32 PM
COMMISSIONER LUIKEN continued:
I recently visited Nome and was given a great tour of
the facilities there including the state office
building and I have a better understanding of the
issues there. I plan to continue this personal
outreach to our communities and to hear and see first-
hand their issues as they relate to our department.
I'm also encouraging our regional directors to follow
this example and you will see this department engaging
you and the public more often. As an example, both
Pat Kemp and Rob Campbell joined Representative Neuman
and Senator Huggins at a town hall meeting in the Mat-
Su Borough to discuss Knik-Goose Bay Road Safety
concerns. I'm also planning to take my entire
leadership team to Skagway after session.
2:16:27 PM
COMMISSIONER LUIKEN continued:
There are also several opportunities around the state
this summer where I plan to visit specific communities
in Eastern Alaska, on the Kenai Peninsula, and on
Bristol Bay to name a few. We've also begun to
provide more information on our website about the
projects we're currently working on. As I've
mentioned before, we're still at about the 80 percent
point in this project reporting tool but my desire was
to get the information out. We'll continue to refine
this product to make it more "user friendly" and
interactive and we welcome your suggestions.
2:16:59 PM
COMMISSIONER LUIKEN continued:
Many have already asked me, "What are your
priorities?" I mentioned my desire to begin an
organization transformation of our department. I'm
also following my boss's lead as he's set some great
broad policy objectives that are easy for us to
follow. Safe families: I've already stated our
mission is to provide the safest transportation system
possible. I see this as our department's role in this
objective. Jobs and economic opportunity: We put out
about a half billion in projects last year and hope to
do the same again this year; $500 million in projects
equals many job opportunities for Alaskans in my
estimation. Roads to Resources: The department is
already working diligently with the Department of
Natural Resources (DNR), the Department of
Environmental Conservation (DEC), the Department of
Commerce, Community, and Economic Development (DCCED),
and the Department of Law (DOL) and others to bring
these roads from concept to reality. We are working
on the Environmental Impact Statement (EIS) for the
Umiat Road and we're in the public scoping process for
both the Ambler Mining District and the Western Access
Project. We've also had discussions with DNR on rare
earth element development opportunities right here in
Southeast Alaska.
COMMISSIONER LUIKEN concluded:
Finally, let me comment on the question of the brevity
of my time here in Alaska. Let me first reiterate
I've served Alaska for the last 29 years. The exiting
part for me is I now have the opportunity to serve
this great state, fulltime, with all of my strength
and ability. Our Governor has said that Alaska is
still a land of great opportunity and strategic
importance. I am excited to be part of a team that
will open up many of these opportunities for Alaskans
for the next 50 years.
2:18:54 PM
REPRESENTATIVE GRUENBERG remarked on Commissioner Luiken's
qualifications and extended support for his confirmation. He
asked whether the prediction of 30 percent retirees of our
workforce. He expressed concern over the pension situation. He
offered his belief that it is difficult to keep good people
because of the defined contributions. He asked for his thoughts
on retaining staff.
COMMISSIONER LUIKEN answered that he recognizes other intangible
reasons that people stay with an organization. He offered his
belief that the department can offer that to folks in the
department and for future recruits. He acknowledged that it is
challenging work. When he was in Nome he spoke to a 2008
graduate of Texas A&M, his son's alma mater. He said the Nome
engineer asserted that Alaska offers engineering opportunities
not available anywhere else. Those are the types of things he
wants to promote to attract and keep existing personnel.
2:20:47 PM
REPRESENTATIVE GRUENBERG expressed concern over an intersection
at Caribou, Boundary Boniface Parkway streets. He highlighted
fatalities at that location and related the difficulty in
getting a stop light installed at that location since it does
not meet the normal requirements. He asked to further discuss
this issue as people are literally "up in arms about that and we
need your help."
COMMISSIONER LUIKEN offered to meet and discuss the street
signal concerns.
2:22:04 PM
REPRESENTATIVE FEIGE commended Commissioner Luiken for his
service in providing close air support for Desert Storm. He
asked for his views on the funding for a mapping program for the
state and how it would affect the department.
COMMISSIONER LUIKEN reported that the current map the department
uses for Alaska is 50 years old. Thus, the maps contain
significant errors both horizontally and vertically. The DOT&PF
is the lead agency for remapping and has had significant results
last summer in beginning its work. The imagery is nearly
complete since it is available commercially. The more difficult
part is the vertical or digital elevation map. He said it is
expensive to obtain. The dot has been able to identify the
fidelity it desires. Last summer, the DOT&PF spent $12 million
in state and federal matching funds to map a portion of the
state but a great deal remains to be completed. He stressed the
importance of having an accurate digital elevation model
overlaid on the digital model is for aviation safety. The state
needs to have accurate data for aircraft in marginal weather
given the significant terrain in Alaska. He also pointed out
there are many other applications for an accurate base map that
meets the national mapping standards, including how roads are
aligned and the vertical distance necessary to construct roads,
as well as providing cross agency benefits.
2:25:38 PM
COMMISSIONER LUIKEN offered his belief that the project would
benefit the DCCED, the Department of Military and Veterans
Affairs, the University of Alaska. It can aid emergency
response services in terms of identifying emergency routes, and
potential flood and water movement and would help the University
of Alaska conduct its research. Additionally, it can help
identify the effects of climate change on the Arctic. He
reported that the DOT&PF has requested funding for key pieces
that the federal government will not provide, as indicated by
the Congressional delegation, unless the state provides some
form of matching funds.
2:27:17 PM
REPRESENTATIVE JOHNSON asked for clarification on whether 30
percent of the workforce issue to retire or is eligible to
retire.
COMMISSIONER LUIKEN acknowledged the distinction. He said the
employees are eligible to retire in the next five years and the
department should be prepared for the worst but try to revamp
the organization to better retain its staff.
REPRESENTATIVE JOHNSON thanked him for the clarification since
losing 30 percent of the workforce is different than the
potential to lose 30 percent of trained staff. He encouraged
him to develop that type of organization that people are excited
to want to live and work in Alaska.
2:28:35 PM
REPRESENTATIVE PRUITT commented that the state owns the
international airports in Anchorage and Fairbanks. He remarked
that the Kulis Air Force Base (Kulis AFB) was just relocated to
Elmendorf Air Force Base. He offered his belief that the
department would potentially lease the former Kulis AFB property
and facilities at market value. He thought that could be
significant given the quality of the buildings. He asked what
the state would do to fill the void, and how would any
additional carriers, if any moved in, would impact, recreational
activity at Lake Hood. He acknowledged the continued growth of
the international airport as well as the increase in
recreational aircraft in the area.
2:30:08 PM
COMMISSIONER LUIKEN answered that the DOT&PF is negotiating with
entities who have expressed interested in Kulis AFB. He
commented as a pilot on the growth at Lake Hood. He said he
does not think there is anything like it in the world. The
Anchorage International Airport has created unique procedures to
move visual flight rule (VFR) traffic through instrument flight
rule (IFR) air space very efficiently. It is a testament to the
professionalism of the pilots who use the airspace. He offered
his belief that the addition of IFR will not have a huge impact
since the airport is already working well.
2:31:37 PM
REPRESENTATIVE PRUITT, in response to Chair Wilson explained the
recent move of the Alaska National Guard air base from Kulis AFB
to Elmendorf AFB.
COMMISSIONER LUIKEN elaborated that the 2005 Base Realignment
and Closure act mandated the Alaska National Guard to move from
Kulis AFB and relocate to Elmendorf AFB. He reported that it
recently completed the military construction projects and flew
the remaining assets to Elmendorf AFB. He also reported the
Kulis AFB will be completely turned over to the state by October
1, the end of the federal fiscal year.
CHAIR P. WILSON commented that several years ago, Representative
Saddler flew her around the Anchorage International Airport.
She remarked on the volume of airplanes in the airspace.
2:33:31 PM
REPRESENTATIVE JOHNSON recalled considerable discussion about
loss of marketing department. He said the commissioner promised
the marketing department would exist. He stressed the
importance of marketing to assist the growth of the Anchorage
International Airport (AIA). He stated that the AIA is a huge
economic engine for Anchorage with estimates at 30 percent. He
said, "It's huge, huge. I'm very keen that we stay out in front
of the flying public." He related options now with the new
777s, and the need to make it very attractive to come to
Anchorage and Fairbanks. He commented that he is not keen on
Fairbanks marketing the AIA. He asked for the commissioner's
philosophy on that issue.
COMMISSIONER LUIKEN responded that his first meeting with
Representative Johnson was to discuss this topic. He said the
DOT&PF has continued to foster marketing, but has not replaced
the marketing person. The DOT&PF held a very successful cargo
summit last August to discuss unique cargo transfer rights that
Alaska enjoys. The DOT&PF followed up by sending the two
airport managers on a seven nation tour to reiterate and explain
transfer rights. He said there has been positive feedback from
those carriers to potentially expand their business in Alaska.
The DOT&PF will hold another summit this August. He asked to
address the marketing position, specifically. He recognized
that the DOT&PF needs a broader look at the entire system to
create an organizational structure that is business oriented.
Thus, the DOT&PF is working with the DOA to take a holistic look
at the international airport organization structure. This
should allow the DOT&PF to identify long term positions. He
related he has spoken with his Deputy Commissioner for Aviation,
who agreed the department may need to "pull the trigger" on
several positions and the marketing position is likely one of
them. He stated that he cannot give a specific timeline but he
is working to address the marketing position.
REPRESENTATIVE JOHNSON stressed the importance in Alaska, noting
that the airport deals with many cultures and people need a
single point of contact, a "point person" to call. He
reiterated the need to have a singular point of contact.
2:38:33 PM
CHAIR P. WILSON referred to some e-mail questions. The DOT&PF
manages many modes of transportation. She asked whether
Commissioner Luiken can address highway, harbor, or ferry
management plans.
COMMISSIONER LUIKEN answered that he has hired strong deputy
commissioners and will let them do the job to address issues in
the specific modes.
CHAIR P. WILSON asked whether he plans to change course.
COMMISSIONER LUIKEN offered his goal to provide safe and
efficient movement. The theme for his leadership's focus is to
bring projects to bid quickly and efficiently. He acknowledged
challenges with the federal process, but the way forward is to
look at most innovative ways and to create a system that is as
efficient as possible.
2:40:57 PM
CHAIR P. WILSON recalled the state's range of infrastructure
improvements range from $8 to $12 billion. She said the state
relies on federal government for 90 percent of its
transportation funding. She pointed out the billions of dollars
in projects already underway lacking sufficient funding. She
mentioned projects including projects in Gravina Access Project,
the Juneau Access Project, Cooper Landing Bypass, the Wasilla
Bypass to name a few. She added the Alaska Class Ferry. She
asked how decisions be made on which projects will move forward.
COMMISSIONER LUIKEN answered that is the big question. The
DOT&PF will look at what makes sense from a financial
perspective based on federal funds. He said with respect to the
very large projects, the state must provide the justification in
more detail for the federal government to agree the project
makes sense. One of the biggest challenges the department has
is to prioritize our mega projects. He pointed out that the
governor and legislature will provide funding and direction, as
well.
2:42:56 PM
CHAIR P. WILSON asked whether the DOT&PF can proceed with the
Juneau Access Road given that the project is under litigation.
COMMISSIONER LUIKEN related that the DOT&PF has used some
material has been used on other projects to mitigate. The
DOT&PF must wait for the final decision from the court. In the
meantime, a separate project will lengthen the current road
almost three miles and some material can be used for that
project. He reiterated that once the court issues its decision,
the department will know if it can proceed.
2:44:38 PM
REPRESENTATIVE MUNOZ asked for the value of the material and the
storage location.
COMMISSIONER LUIKEN answered that the culvert material is stored
in Juneau and the steel for bridges is being stored in Seattle.
He offered to provide the value. In response to Chair Wilson,
he answered that the total cost to deliver and stack 1,176
lengths of culvert was $625,000. He offered that 200 culvert
lengths will be used on the current road extension. The DOT&PF
has spent $8.8 on material stored in Seattle. He said the
DOT&PF is currently paying $42,000 per year to store the steel.
The DOT&PF has spent approximately $200,000 in storage fees to
date, he also said. In further response to Chair Wilson, he
responded that he recognizes that his new team is a new
relationship, but he strives to build and maintain communication
level with the legislature.
2:48:57 PM
REPRESENTATIVE PETERSEN mentioned several committee members
traveling along the Dalton Highway. He asked for any
improvements are planned for the haul road.
COMMISSIONER LUIKEN answered yes. He stressed the Dalton
Highway is a strategic road that needs maintenance. He was
uncertain of the specific projects but offered to provide a
list.
REPRESENTATIVE PETERSEN reiterated the importance of maintaining
the Dalton Highway, especially with respect to the proposed
natural gas pipeline.
COMMISSIONER LUIKEN, in response to Chair Wilson, related the
next scheduled trip would be on June 21, 2011.
CHAIR P. WILSON urged members who have not taken the trip to
take the trip and view the terrain and to understand the
necessity for maintenance of the road.
2:51:19 PM
CHAIR P. WILSON asked for plans for the Arctic. She recalled
that Canada would like to be the gateway, which she agreed made
sense for one portion. She stressed that Alaska should be the
gateway to the Arctic passage. She asked whether DOT&PF would
plan ahead.
COMMISSIONER LUIKEN answered that the DOT&PF is working with the
U.S. Corps of Engineers and the U.S. Coast Guard to conduct an
Arctic Ports Study, noting the department has a budget amendment
for this project. He commented that he discussed this with
Representative Pruitt yesterday. He said, "Alaska needs to lead
our nation because as an arctic nation, I don't believe that
we're necessarily working as proactively as we could. He
offered to work with the administration to make certain the
state develops an arctic policy.
CHAIR P. WILSON remarked that Alaska is the only state with
arctic coastline. She stressed the importance of this issue.
REPRESENTATIVE PRUITT recalled his conversation and he was
encouraged by the commissioner's comments. He said he felt the
commissioner has a good grasp of the issue and what steps need
to be taken.
2:54:05 PM
CHAIR P. WILSON referred to Roads for Resources projects. She
emphasized the importance of Alaska diversifying its economy,
including resource development. She asked which other roads are
under consideration.
COMMISSIONER LUIKEN answered that Umiat is one of three roads in
the Northern District and the Ambler mining district offers
potential resources. He said the DOT&PF is working with DNR to
specifically identify resources and find the right alignment for
roads to help extract the resources. One company has expressed
strong interest thus far. He previously mentioned the Western
Access Road, sometimes called the road to Nome, which has
mineral deposits along the stretch. Another is the rare earth
elements on Prince of Wales Island. He highlighted positive
opportunities exist. He said he is personally working to
determine whether the state has a federal partner to "stand up
and say yes," that it is good idea to extract minerals and
process them here. In further response to Chair Wilson, he said
the mine location on Prince of Wales Island is close to
tidewater and may not require much of a road, possibly a harbor.
2:57:04 PM
REPRESENTATIVE JOHNSON asked for his view on the proposed
transportation endowment fund.
COMMISSIONER LUIKEN said he understands the legislature is
looking at different options for address potential reductions in
federal funds and to provide a stable source of funding. He
said he is very interested in the discussion and the outcomes.
2:57:56 PM
REPRESENTATIVE PRUITT made a motion that Marc Luiken's name be
forwarded to a joint session for consideration. There being no
objection, the motion passed.
2:59:11 PM
ADJOURNMENT
There being no further business before the committee, the House
Transportation Standing Committee meeting was adjourned at 2:59
p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Confirmation M Luiken.pdf |
HTRA 2/22/2011 2:00:00 PM |