Legislature(2011 - 2012)BARNES 124
02/07/2012 01:00 PM House TRANSPORTATION
| Audio | Topic |
|---|---|
| Start | |
| Update by Marc Luiken, Commissioner, Department of Transportation & Public Facilities (dot&pf) | |
| Surface Transportation Update by Pat Kemp, Deputy Commissioner (dot&pf) | |
| Amhs Status Update by Mike Neussl, Deputy Commissioner (dot&pf) | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 248 | TELECONFERENCED | |
| *+ | HB 249 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
JOINT MEETING
HOUSE TRANSPORTATION STANDING COMMITTEE
SENATE TRANSPORTATION STANDING COMMITTEE
February 7, 2012
1:30 p.m.
MEMBERS PRESENT
HOUSE TRANSPORTATION
Representative Peggy Wilson, Chair
Representative Lance Pruitt, Vice Chair
Representative Eric Feige
Representative Cathy Engstrom Munoz
Representative Max Gruenberg
Representative Pete Petersen
SENATE TRANSPORTATION
Senator Albert Kookesh, Chair
Senator Joe Thomas, Vice Chair
Senator Charlie Huggins
MEMBERS ABSENT
HOUSE TRANSPORTATION
Representative Craig Johnson
SENATE TRANSPORTATION
Senator Dennis Egan
Senator Linda Menard
COMMITTEE CALENDAR
UPDATE BY MARC LUIKEN, COMMISSIONER, DEPARTMENT OF
TRANSPORTATION & PUBLIC FACILITIES (DOT&PF)
- HEARD
SURFACE TRANSPORTATION UPDATE BY PAT KEMP, DEPUTY COMMISSIONER
(DOT&PF)
- HEARD
ALASKA MARINE HIGHWAY SYSTEM (AMHS) STATUS UPDATE BY MIKE
NEUSSL, DEPUTY COMMISSIONER (DOT&PF)
- HEARD
ALASKA MOBILITY COALITION, DAVID LEVY, EXECUTIVE DIRECTOR.
- SCHEDULED BUT NOT HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
MARC A. LUIKEN, Commissioner
Department of Transportation & Public Facilities (DOT&PF)
Juneau, Alaska
POSITION STATEMENT: Presented an overview on the Department of
Transportation & Public Facilities (DOT&PF).
PATRICK KEMP
Deputy Commissioner for Highways & Public Facilities
Office of the Commissioner
Department of Transportation & Public Facilities (DOT/PF)
Juneau, Alaska
POSITION STATEMENT: Presented a PowerPoint update on surface
transportation.
MICHAEL NEUSSL, Captain
Deputy Commissioner for Marine Operations
Marine Highway System (AMHS)
Department of Transportation & Public Facilities (DOT&PF)
Juneau, Alaska
POSITION STATEMENT: Presented a PowerPoint update on the AMHS.
ACTION NARRATIVE
1:30:03 PM
CHAIR ALBERT KOOKESH called the joint meeting of the Senate and
Senate Transportation Standing Committees to order at 1:30 p.m.
Senators Huggins, Thomas, and Kookesh and Representatives
Petersen and P. Wilson were present at the call to order.
Representatives Pruitt, Gruenberg, and Munoz arrived as the
meeting was in progress.
^UPDATE BY MARC LUIKEN, COMMISSIONER, DEPARTMENT OF
TRANSPORTATION & PUBLIC FACILITIES (DOT&PF)
UPDATE BY MARC LUIKEN, COMMISSIONER, DEPARTMENT OF
TRANSPORTATION & PUBLIC FACILITIES (DOT&PF)
1:30:36 PM
SENATOR KOOKESH announced that the first only order of business
would be an Update by Marc Luiken, Commissioner, Department of
Transportation & Public Facilities (DOT&PF).
1:31:05 PM
MARC A. LUIKEN, Commissioner, Department of Transportation &
Public Facilities (DOT&PF), thanked the Chair for combining both
House and Senate Transportation Committees so he could provide
an update on the Department of Transportation and Public
Facilities (DOT&PF). He commended the Governor for his vision
and the legislative leadership for providing a healthy capital
funding for infrastructure growth, which he said is ultimately
the underpinning of our economy. He reported one of the
statistics the American Association of Highway Transportation
Officers cites is that 84 percent of the economy is dependent
upon transportation infrastructure. He offered that Alaska is
not any different from other states with respect to this
statistic. He offered his belief that it is one of the smartest
investments for the state's future economic health.
COMMISSIONER LUIKEN offered to present highlights and then to
allow the DOT&PF's deputy commissioners to provide details on
roads and the highway system. He reported that $1 billion has
been awarded statewide to projects this year that are in some
stage of planning or construction. He identified the amount of
projects by region. The Central Region has $524 million in 62
projects in various phases; the Alaska Marine Highway System
(AMHS) has about $29 million in projects along its route; the
Northern Region has almost $361 million on 70 projects in
various phases; and Southeast Region has 48 projects valued at
$141 million in progress. He reported that these projects are
either underway or will begin construction this spring.
COMMISSIONER LUIKEN characterized these jobs as real jobs and
not just high-paying construction jobs, but also includes
suppliers and support services. Additionally, a multiplier
spins off from the spending and most important from
infrastructure that is in place to facilitate commerce.
1:33:45 PM
COMMISSIONER LUIKEN referred to written comments, and read.
Transportation is what allows us freedom of movement -
that is how we get back and forth to work. It is how
products get to market. It is how we access health
care and visit with our families. Transportation
allows us to get out to a park or bike along a smooth
path; it provides transit and delivers our fuel.
Whether we travel by air or sea or ground, we can't do
much without airports, docks and harbors, or roads.
COMMISSIONER LUIKEN turned to the map, pointed out that the blue
is indicative of the projects awarded in 2011. He said that the
red identifies projects the DOT&PF hopes to award in 2012. He
explained that these statewide projects span the spectrum from
urban to rural and in each region. He stated that these
projects include airport improvements; resurfacing of highways,
retrofitting buildings for energy efficiency, shoring up docks,
adding safety features like pullouts and new lighting along some
of the safety corridors. The diverse DOT&PF projects consist of
trails, airport relocations, rehabilitation of ferries, and the
building of chemical storage buildings. He also said the DOT&PF
has some of the finest engineers and planners in the state
working to create an Alaska everyone can use and appreciate. He
concluded that the department is working to build efficiently
and make Alaska safer.
1:35:02 PM
COMMISSIONER LUIKEN detailed the work in safety corridors. He
said that Alaska's safety corridors have seen a marked
improvement in saving lives. He explained that the safety
corridors are largely centered near Anchorage due to its large
population center and the significant safety issues. He
provided statistics. He related that according to the latest
figures, the percentage of passengers in Alaska who died because
they were not wearing their seatbelts dropped from 53 percent in
2008 to 32 percent in 2010. Alcohol-related fatalities
decreased from 44 percent in 2008 to 34 percent in 2010, and the
number of people killed in speeding crashes declined from 29 in
2009 to 23 in 2010. The increase in the number of traffic
officers focused on catching drunk drivers more than doubled
from eleven in 2008 to twenty-six in 2010. He credited the
increase in traffic officers with the decline in Alaska's
alcohol-related deaths, along with the willingness by drivers to
follow safe practices. Additionally, Alaskans have been willing
to wear their seatbelts and refrain from drinking and driving,
which is what makes it all work. He said, "We wouldn't have seen
results like this without the help of the compliance of Alaska's
drivers."
1:36:46 PM
COMMISSIONER LUIKEN pointed out that the Alaska Highway Safety
Office has spent almost $27 million from 2008-2010 to enhance
highway safety programs to address the 4Es of safety: education,
enforcement, engineering and emergency services. He referred to
the unsung heroes in the DOT&PF as the measurements and
standards' staff. He explained this small staff is responsible
for any scale used to weigh anything in commerce, ranging from
fuel pumps to scales used to weigh vegetables or fish in
markets. He explained that this division first traveled to
rural Alaska, to the communities of King Salmon, Naknek and
Dillingham. He outlined the division's goal is to protect
consumers, and in doing so, the DOT&PF discovered that in one
instance consumers had been shorted about 11.7 gallons of gas
for every 100 gallons of gas delivered. He emphasized the
significance of this, noting this shortage resulted in an
average cost of $210 per every 300 gallons of gas delivered. He
contrasted this savings to another instance in which a company
had been delivering 104.7 gallons of fuel, but had been paid for
100 gallons. He summarized that this program extends to rural
Alaska and is one which benefits all Alaskans.
1:39:12 PM
COMMISSIONER LUIKEN turned to what he referred to as policy
synchronization in the department. He reported that the DOT&PF
has worked to create efficiencies and to achieve a statewide
approach, rather than having what felt like a four-department
approach. He explained that he and his team have worked towards
creating a cohesive single entity. He offered that the DOT&PF
has been working to become more efficient and effective with our
customers developing a statewide implementation of policies. He
provided several examples, including instituting an anti-idling
policy for one type of vehicle. He described the anti-idling
process, which places a regulator on the truck that limits
idling to 10 minutes with an automatic shut off. He estimated
the DOT&PF will save up to $1 million in fuel costs by
installing the anti-idling regulators on its trucks. He
predicted this will allow the department to leave a smaller
carbon footprint and use those funds to update the vehicle
fleet.
COMMISSIONER LUIKEN highlighted the changes in the maintenance
and operations' policies. He provided an example of the
DOT&PF's strategies to move its assets around to help out during
winter storms, such as a month ago in Cordova and again during
the recent snow storm in Anchorage. Since snowstorms rarely hit
all areas of the state simultaneously, the DOT&PF was able to
move staff from Ketchikan, the Kenai Peninsula, and the Interior
to help with the Cordova and Anchorage storms. This allowed the
department to run equipment 24/7 to keep roads open the entire
time.
COMMISSIONER LUIKEN said he wanted members to know that the
DOT&PF is transparent, accountable, and becoming more innovative
in order to provide superior service statewide. He introduced
two of his deputy commissioners, Pat Kemp, Deputy Commissioner
for Highways and Facilities and Mike Neussl, Deputy Commissioner
for Marine Operations.
^SURFACE TRANSPORTATION UPDATE BY PAT KEMP, DEPUTY COMMISSIONER
(DOT&PF)
SURFACE TRANSPORTATION UPDATE BY PAT KEMP, DEPUTY COMMISSIONER
(DOT&PF)
1:42:17 PM
SENATOR KOOKESH announced next order of business would be the
Surface Transportation Update by Pat Kemp, Deputy Commissioner
(DOT&PF).
1:43:24 PM
REPRESENTATIVE GRUENBERG recognized Close-Up students in the
room.
SENATOR KOOKESH welcomed students to the joint hearing of the
House and Senate Transportation Committees. He said he
appreciated having them here.
1:44:31 PM
PATRICK KEMP, Deputy Commissioner for Highways & Public
Facilities, Office of the Commissioner, Department of
Transportation & Public Facilities (DOT/PF), asked to begin with
the DOT&PF facilities. He pointed out the department maintains
726 buildings that are insured, but also have other out
buildings. The DOT&PF also has over 125 projects in design and
construction, such as the Nome State Office Building and
hatcheries and other buildings statewide.
1:45:47 PM
MR. KEMP turned to Roads to Resources [slide 2]. He provided
the status on the projects beginning with the Road to Umiat. This
$10 million funding request would provide for continued EIS work
and evaluation of routes from Umiat to existing industry roads
on the North Slope. The project is currently in the EIS process
and the department is writing a scoping report, which will
develop a range of alternatives for the department to study in
depth. The department is proceeding slowly, but has been
meeting with the communities to address issues.
1:46:27 PM
SENATOR KOOKESH pointed out that he has received about five
letters in opposition to the road to Umiat. He asked the deputy
commissioner to explain the department's process in handling
opposition. He inquired as to whether the department holds
public meetings or if it meets with organizations.
MR. KEMP answered that the department typically has extensive
involvement with communities to hear the concerns. He outlined
since little information is available on this specific project,
that a reasonable range of options is not yet available. He
described one tactic that some groups use to immediately oppose
a project in order to shut down the project. He explained that
until the draft Environmental Impact Statement (EIS) is released
that the science is not known. He described the typical process
used, including the scoping process, in which the department
compiles information by meeting with the communities and the
agencies as part of the EIS. The department then develops a
range of reasonable alternatives, including issuing a draft EIS
for agencies, followed by publishing a draft EIS, a final EIS,
and a record of decision. He reiterated that in this instance,
the department is still in the preliminary stages of the
process; however, early opposition is one tactic used by some to
oppose a project prior to the EIS process being completed. He
anticipated the draft EIS will be available to the public late
this year or early next year.
1:48:47 PM
SENATOR KOOKESH said while he appreciated the deputy
commissioner's point of view, it has been his experience some
villages express opposition early to avoid a situation in which
the DOT&PF's project has moved so far forward that it is
impossible to stop the process. He characterized voicing
opposition as a means of raising valid concerns of people living
in these areas.
MR. KEMP assured him that may places exist in the process in
which a project could be halted. He said, "There's the no-build
alternatives carried all the way through." He suggested that
this is part of the process, and the reason for such a defined
process. He pointed out that frequently the department finds
opposition early in the process, but will work to address the
issues and move forward.
1:49:40 PM
REPRESENTATIVE FEIGE asked whether opposition is being expressed
from the communities or if it is coming from outside the
communities.
1:50:00 PM
MR. KEMP answered both inside and outside the communities. He
described the process as a fair process that should yield
rational decisions. He understood the issues about caribou and
road access. He offered his belief that once the science is
brought forth the decisions will be made.
SENATOR KOOKESH stressed the importance of the public sentiment.
1:50:54 PM
REPRESENTATIVE P. WILSON recalled instances in which roads have
been built and caribou populations have increased.
MR. KEMP answered that he is an engineer and not a biologist.
He suggested the ADF&G staff running the studies are top-notch
staff and will take that type of information into account. In
response to a further question, Mr. Kemp noted he would cover
the Klondike IUH later in the presentation.
1:52:12 PM
SENATOR THOMAS suggested some confusion exists in terms of the
mineral resources in the Umiat area. He expressed concern about
the evaluation of the mineral resources and hoped the DOT&PF was
working with the DNR, based on realistic information. He
understood gas and oil have seeped out of the ground; however,
when the state pioneers roads into places, it's important not to
have missteps. He emphasized the importance of generating
response from industry, even if the revenue is not derived from
the resource itself, but from exploration and development of the
resource area.
MR. KEMP shared his concerns. He pointed out that his first
questions on this project surrounded the purpose and need to get
to Umiat. Initially, his discussions with DNR and oil industry
discussions, including Anadarko Petroleum Corporation and
Renaissance Oil and Gas had mixed reviews. The DOT&PF believes
the resources are present. He related that the DOT&PF has
worked in conjunction with the U.S. Army Corps of Engineers
(USACE), who has had enough justification to move forward with
the purpose and need to access the resource rich area and not
definitively quantify the oil or gas. He reiterated this area
is known as a resource-rich area. He pointed out other parts of
the purpose and need. He pointed out the 85,000 barrels of old
oil left behind, which is a huge Superfund cleanup
[Comprehensive Environmental Response, Compensation, and
Liability Act (CERCLA)] site. He reiterated that the DOT&PF has
a strong purpose and need, and once it has a good range of
alternatives, the department should be able to make good,
rational decisions.
1:55:30 PM
SENATOR THOMAS cautioned and expressed further concern about the
purpose and to quantify the resources. He said it concerns him
without having a preponderance of evidence on resources. He
urged him to conduct these evaluations. He agreed that holding
discussions with Anadarko Petroleum Corporation and Renaissance
Oil and Gas is great. He said he thought their data should be
turned over to the state to further evaluate and assess
viability of the project. He also said he was surprised at the
lack of information on the resource.
1:56:30 PM
MR. KEMP added that part of the purpose and need of the Umiat
project is to look at the entire area as a road is constructed.
He pointed out that the area is a resource rich area, with
resources along the proposed roadway. According to the DNR, a
preferred alternative for the Galbraith route would make a
diagonal cut across the area and would access the greatest
number of resources. He said he believed if the USACE is happy
with the DOT&PF's purpose and need, and if the DOT&PF gets a
reasonable range of alternatives, that the process will "play
itself out." He offered the department would have had more
information, but LINC Energy's plan to drill this winter fell
through due to an absence of available drill rigs.
1:57:36 PM
REPRESENTATIVE P. WILSON asked whether any funding has been set
aside for permitting.
MR. KEMP answered no, that the permitting comes later on in the
process.
1:58:08 PM
REPRESENTATIVE P. WILSON asked whether other alternatives have
been decided.
MR. KEMP answered no. He said the DOT&PF is current working to
develop a reasonable range of alternatives. He envisioned the
outcome would result in a list of criteria and impacts. He gave
an example, such as listing the number of wetlands affected, or
the road mileage for each proposed route. He stated the goal is
to winnow down the alternatives studied. He related a scoping
scenario in which someone might propose a road from Western
Alaska to follow the entire coastline to Anchorage. He
concluded that through the winnowing process the project would
fall out. Thus a reasonable range of alternatives need to be
considered, he stated.
1:59:27 PM
REPRESENTATIVE P. WILSON asked whether approximate costs have
been determined.
MR. KEMP answered yes. He highlighted that the DOT&PF is
considering an 18-foot-wide single lane road with inner-visible
turnouts. He explained that means one truck with its headlights
on will be able to see an oncoming truck and have plenty of
opportunity to pull out. He suggested that the footprint might
develop beyond this depending on need, but generally the project
would be estimated as a $300-$400 million project.
2:00:39 PM
REPRESENTATIVE P. WILSON referred to Roads to Resource projects,
and asked whether these projects would result in a public road
or a private road only for resource development.
MR. KEMP answered that the DOT&PF's Commissioner has the
authority to make the determination on whether a road will
result in a public road or private road.
2:01:29 PM
MR. KEMP referred to the next Roads to Resources project, the
Ambler Road. He stated that the $4 million request in this
year's budget for the Ambler Mining District Road is a kickoff
of the EIS. The DOT&PF has performed preliminary engineering
and recon work and has worked with the developer, NovaGold
Resources, Inc. He anticipated the department would go through
the procurement process to perform field work this summer. He
explained that the Tanana Route is again, a mineral rich area,
and other resources such as rare earth resources are on site.
Additionally, this project would connect a community. He offered
that the community seems pretty excited about the project. He
offered his belief that the community sees the value of road
access and will directly affect their revenue. He explained the
intent of the $10 million for this project would be to get a
road to Tanana. He described the potential road as a rustic
road without any bridge crossing. Thus, the DOT&PF would plan a
rustic winter access project and use of a ferry during summer
months. The DOT&PF suggested the community review AS 29.35 to
consider developing a port authority. He characterized the
project as a very exciting one. He anticipated that the DOT&PF
would encounter some anti-development opposition at some point
during the project.
2:03:40 PM
SENATOR KOOKESH asked whether this project also had benefits for
the military.
MR. KEMP said he had not heard of benefits for the military, but
those types of comments may come in with the project scoping.
SENATOR HUGGINS said he thought that was a different bridge.
2:04:07 PM
REPRESENTATIVE GRUENBERG inquired as to whether someone would
control access to the river crossing and if this project would
involve a toll.
MR. KEMP answered no. He said he was referring to an access
onto the roadway. He offered there are many ways to control
access.
REPRESENTATIVE GRUENBERG asked whether this road would be a
private road.
MR. KEMP answered that would be one option. He offered that the
department cannot predict how this would play out. He
acknowledged that the developer would need access to get the
product out. He suggested the villages could take control of
the road and control access, or the state or developer could do
so. He characterized those items as the types of items as ones
typically worked out during the EIS process. He did not recall
how the comments were leaning at this point.
2:05:33 PM
REPRESENTATIVE GRUENBERG inquired as to whether other roads are
state paid but closed to public.
MR. KEMP answered yes, including the road to Red Dog Mine and
the Pogo Mine located in the Goodpaster River Valley. He said
about 20 miles will become open to public when the mine closes,
but he remaining 30 miles will always remain closed.
2:06:20 PM
REPRESENTATIVE GRUENBERG inquired as to whether this road will
go to Tanana.
MR. KEMP said he was initially discussing Umiat. He did not
think restrictions on Tanana since the community is interested
in access.
REPRESENTATIVE GRUENBERG thought it would be important for
people to have access to Ambler.
MR. KEMP responded that the road would go into the general area.
2:07:17 PM
REPRESENTATIVE PETERSEN inquired as to whether Alaska Railroad
Corporation serves the community of Tanana.
MR. KEMP answered no.
2:07:46 PM
REPRESENTATIVE FEIGE related when the governor announced Tanana
Road as a project that it caught him by surprise. He inquired
as to whether this road would be a stand-alone road as a
transportation highway, or if it would be a stepping stone to
the mining district.
MR. KEMP answered that this road is a road to Tanana to access a
resource-rich area and it happens to connect the community. He
acknowledged that it is a derivative of the western access
study. This project brings instant results and commerce. He
was unsure of the river portion, noting the barge landings
currently are at Nenana. He said this is the type of
information that would be looked at in the EIS.
2:09:04 PM
REPRESENTATIVE FEIGE asked whether the water depth would be
suitable for barges.
MR. KEMP responded he has heard that it could be, but he did not
think any engineering has yet been done to confirm the water
depth is suitable for barges. He elaborated that he heard the
little island on the south side of the river would be a good
port facility, but he was unsure if the engineering has been
done to confirm it.
2:09:36 PM
MR. KEMP turned to the Industrial Use Highways (IUH). He
provided a brief description of the purpose of the IUH. He
explained that the Klondike road did not have the equipment to
haul heavy loads [[slide 3]. He explained that in 1985 the
department developed IUH regulations. The IUH roadways are
taken to a higher standard than normal highways, including
thicker pavement and stronger bridges. He characterized this as
a very good use for a toll facility, which has been in place for
25 years. He also informed members that the rates are out of
date. He related that Skagway is the port of egress for the ore
and ingress for supplies.
2:11:43 PM
MR. KEMP advised members that the DOT&PF will replace the bridge
by filling in the gully and make the road more accommodating to
200,000 vehicles. These vehicles will drive 700 miles from the
Selwyn Mine to Skagway, where the ore will be shipped to China.
He anticipated a big increase in traffic. The DOT&PF can
revisit the regulations on the 15 mile stretch. He highlighted
that the Yukon anticipates spending $500 million to bring their
highways up to standards with little return. He characterized
this as a great opportunity. He related his understanding that
the Federal Highway Administration would not participate in the
funding to raise the standard so the DOT&PF has requested $2.5
million to do so. He identified the IUH process as a tool for
some roads, such as the road to Ambler, which may be a good
candidate for IUH. He further identified NovaGold Resources,
Inc. as a good partner to participate in the cost of the road.
He concluded that an IUH scheme may be the way to go.
2:14:11 PM
REPRESENTATIVE FEIGE observed that if a road is built, such as
the one through partnership with NovaGold Resources, it would
also make other more projects economically feasible. He
inquired as to whether some provisions in the IUH allow for buy
in of new operators or new industrial users.
MR. KEMP said he has identified the types of problems the DOT&PF
must sort through. He related a scenario in which a developer
puts up cash up front. He pointed out one advantage of using an
IUH is the use of a sliding scale for the first developer. He
recalled that Lynden Transport actually participated up front to
upgrade Skagway and enjoyed free passage on the Klondike
Highway. He further recalled the agreement is in place for the
useful life, which is where the DOT&PF currently is with the
road. He understood the concern and opportunities. He agreed
everyone must pay their fair share, but it may be a diminishing
amount for the first person investing in the project.
2:16:15 PM
MR. KEMP turned to the highway program [slide 4]. He outlined
some of the things that have enhanced project development. He
explained that Alaska has received $450 million in federal aid
from the Highway Trust Fund, which is funded from federal
gasoline taxes. He noted the tax is $.18 for gas, $.24 for
diesel. He advised members that Alaska is a donee state since
it receives $5-6 of federal aid versus what the state deposits
into the trust fund and about $220 million is directed to the
commerce roads. He referred to the commerce corridor as the
Seward Highway, the Glenn Highway, the Parks Highway, and Dalton
Highway as good examples of the national highway system (NHS).
Thus the state has focused on these roads to raise the safety
and commerce standards.
2:17:52 PM
MR. KEMP provided a brief overview of the next slide, titled,
"Federal Requirements Affecting Transportation" [slide 5]. He
explained that the federal funding imposes restrictions, laws,
and regulations which the state must adhere to on the federal
highway funding. He explained that since Alaska became a state,
it has endured regulatory oversight most other states have not
had to comply with. He described Alaska as a resource-rich,
access-poor state. He pointed out natural disasters, including
the 1964 earthquake, and Fairbanks flooding has used resources.
2:19:23 PM
MR. KEMP pointed out that in 1968 the emphasis switched to an
urban one over rural. Finally, in 1969, the NEPA processes were
adopted by agencies for EIS development and permitting. He
concluded that it has been tough for Alaska to follow. He
highlighted that the new highway bill is before the Congress.
The Senate version of funding has remained the same nationwide,
but the allocation for states is not yet known. He explained
that in the House version Alaska will be reduced by
approximately $150 million. He related that this represents
about one-third of Alaska's program. He predicted that Alaska
has $20 billion in transportation needs, with 25 percent of the
national highway roads in Alaska resting on permafrost. He
estimated repairs would cost $2 billion. He also pointed out
that about 27 percent of the NHS road widths are inadequate, and
the bridge programs cost $60 million per year. He estimated
that these issues combined with potential megaprojects will be
affected by the reduction in federal funds.
2:21:18 PM
MR. KEMP estimated that the FHWA distributes $42 billion to the
nationwide highway program, with approximately $28 billion in
revenue derived from gas tax receipts. The DOT&PF anticipated
the cuts and considered using state funds intermingled with
federal funds to address the issue. The DOT&PF found that about
70 percent of the overall funding is derived from federal funds,
whereas other states use 20 percent federal funds. Many of
these states have dedicated funds from gas taxes and other
funding sources. He related that Alaska uses the general fund.
He offered his belief that no one is taking the reductions in
the House version of the highway funding bill except Alaska. He
said, "We stand out like a sore thumb on this...."
2:22:48 PM
MR. KEMP pointed to the history of using general funds instead
of federal funds. He provided an example, such as Elmore Road
in Anchorage, which would have been difficult to perform with
federal funds. He estimated that the DOT&PF saved about $15
million on the project and delivered it more timely with general
funds. He pointed out that Sunny Point in Juneau was built with
federal funds [slide 6]. He described the tall walls, which
added a large cost, necessary to avoid the Mendenhall Refuge.
He outlined that the state process does not have a 4F process,
noting the department estimates it could have saved $3.4 million
if the DOT&PF had used state general funds, which could have
been used for a four to five mile paving project in some other
part of the state. He described the federal process, which uses
an authority-to-proceed (ATP) process [slide 9] such that the
department cannot design a bridge prior to the EIS. The DOT&PF
may know the bridge is necessary, and may know the scope of the
bridge, but the DOT&PF is prevented from beginning the work.
The DOT&PF has proposed a project acceleration account in the
amount of $2.5 million to allow the DOT&PF to work outside the
federal process to design a bridge or perform right-of-way
during the design phase. He estimated that the department will
save $5 to $10 million per year using the state funding process
alone. He characterized this estimate as a conservative
estimate [slide 10].
2:25:52 PM
MR. KEMP reviewed the non-federal appropriations [slide 11]. He
pointed out that the DOT&PF funds $250 million per year for its
highways. He said about $180 million goes through the DOT&PF
and another $70 million goes through the Department of Commerce.
He described the problems the DOT&PF has with fluctuating
funding. The legislature has not coordinated leveraging of
state funds for federal aid. He suggested the department work
more closely with the legislature to assess the best way to
construct and fund projects.
2:27:41 PM
MR. KEMP suggested that generally, Alaska allocates its hardest
to use funds on the projects which are the hardest to develop
[slide 12]. Then, Alaska takes the easiest to develop money,
state funds, to the easiest projects. He also suggested that
the department could reverse this allocation of funding as a
common sense measure, which he predicted would save a
significant amount of money. He took this process one step
forward and asked the regions to identify the most difficult
projects and estimate the project based solely on funding
source. He estimated the DOT&PF would save about 15 percent if
it were to use state funding. He said this would avoid studies
and capital costs such as the walls at Sunny Point. He offered
his belief that the DOT&PF could stretch its dollars by
leveraging federal aid. He said he did not put in times or
societal costs by making safety improvements. He emphasized
that this could help mitigate the loss of federal aid [slide
13].
2:30:18 PM
REPRESENTATIVE P. WILSON related her understanding that it could
result in savings in communities.
MR. KEMP agreed. He noted that the DOT&PF did not look at the
community transportation program but he was certain projects
could go further by leveraging federal funds.
2:30:55 PM
SENATOR THOMAS expressed concern Fairbanks has about the length
of time that projects take. He understood the federal
requirements. He pointed out that some projects have been in
the planning phase for so long the costs have tripled or
quadrupled since the projects must then be redesigned. He has
generally heard that the costs are due to the high cost of
right-of-way acquisition, but this excuse has worn thin with
him. He pointed out Fairbanks has a brand new engineering
building and still the projects languish. He said it seemed
that projects the department has prioritized are the ones which
move forward. He referred to a bike path with the same design
cost for one mile as a 12-mile road. He related it is beyond
him. He has taken engineers from construction companies who
find the length of time and design costs are ridiculous. He
understood federal constraints. He noted the potential loss of
federal funds and encouraged the DOT&PF to support a
Transportation Fund and to encourage the governor to also do so.
He predicted that this could spin off money annually to offset
federal funding. He would like to see something in place to
help develop roads.
2:34:31 PM
SENATOR KOOKESH said he appreciated Senator Thomas's comments.
^AMHS STATUS UPDATE BY MIKE NEUSSL, DEPUTY COMMISSIONER (DOT&PF)
AMHS STATUS UPDATE BY MIKE NEUSSL, DEPUTY COMMISSIONER (DOT&PF)
2:34:44 PM
SENATOR KOOKESH announced that the next order of business would
be the Alaska Marine Highway System (AMHS) Status Update by Mike
Neussl, Deputy Commissioner (DOT&PF)
2:35:03 PM
MICHAEL NEUSSL, Captain, Deputy Commissioner for Marine
Operations, Marine Highway System, Department of Transportation
& Public Facilities (DOT&PF), introduced himself.
CAPTAIN NEUSSL turned to the Alaska Class Ferry (ACF)
Procurement. He explained two $60 million general fund
appropriations were placed in the Vessel Replacement Fund. He
explained the department has requested the second $60 million
from the fund to DOT&PF for a total of $120 million, less the
ten percent design thus far. He pointed out that the
anticipated cost of $120 million is based on an estimate that is
several years old. He did not believe $120 million would be the
total amount, noting the process will define the ultimate cost.
He said the legislature intent was very clear, that the vessel
should be built in Alaska unless the DOT&PF's commissioner
determined it was not in state's best interest to do so. He
said the commissioner determined it was in the state's best
interest. He reported that the best interest's finding memo was
written after the attorney general reviewed the procurement
proposal put forth by the department.
2:37:39 PM
SENATOR HUGGINS congratulated the DOT&PF for that finding. He
stated that investing Alaska's money in Alaska is an important
concept.
CAPTAIN NEUSSL provided brief remarks on the construction
manager/general contractor overview [slide 3]. He explained he
has been with DOT&PF for one year. He said the focus has been
on how to procure the vessel. He briefly explained three types
of methods for bidding: low bid, design bid, and design build or
construction manager/general contractor (CMGC). He explained
that once the award is made with the lowest bidder, the
contractor needs to make a profit and an adversarial
relationship ensues. He explained that the design-build process
used for the Kennecott. He described one inherent weakness in
the design bud process surfaced at the commissioning of the
Kennecott when someone stepped off the gangway into a puddle of
water. The builder did not camber the decks, which is necessary
for a ship that must operate in a rainy environment. However,
it is difficult to anticipate every requirement. He outlined
the construction design build method of construction management
that will be used with the ACF. He said the DOT&PF will
identify a general contractor, in this instance Alaska Ship &
Drydock (ASD), to work with the state and the designer, the
Elliott Bay Design Group (EBDG) to jointly design and construct
the ferry in a cooperative manner. He emphasized the model has
advantages and has been used at least 14 times in the state. He
highlighted that the state crime lab was built using the
process, which came in on time under budget. Although the
process has been used for building roads, building the ACF is
the first time that the CMGC process will be used for a ship
construction type of project.
2:41:25 PM
CAPTAIN NEUSSL reported that Phase 1 will form the partnership
through a professional services agreement contract between the
DOT&PF, EBDG, and ASD. He explained that the process should
lead to a guaranteed price proposal, and if the parties agree on
the price, Phase 2 happens and the state will award the
construction to ASD to build the ship. In the event that an
agreement cannot be reached, several escape clauses exist for
ASD and the state. One option would be to go to design bid
process. He stated the professional services agreement has just
been reviewed by the Department of Law (DOL) and will be
presented to the ASD soon.
2:43:25 PM
CAPTAIN NEUSSL turned to the website vessel tracking system
[slide 4]. He reported that this website will provide the
public with 24/7 access. It has previously been difficult to
determine when the ferry would arrive since the terminal is
generally closed and the ferries often arrive after hours. He
highlighted that the website won third place from the Public
Relations Society of America for its website design. He noted
that the design was done in-house by AMHS's Ketchikan staff. He
briefly described how it works.
2:45:00 PM
CAPTAIN NEUSSL explained two other methods travelers can use to
obtain information, including the 511 system typically used for
road travel. He characterized the last method as a "push"
system, in which the public can subscribe to GovDelivery, and
sign up. The subscriber would receive an e-mail in the event of
any delay.
2:46:12 PM
CAPTAIN NEUSSL turned to the next slide, titled, "Request for
New Service" and explained the department has received two
requests for new service [slides 7-8]. The first is from a
community near Kodiak, Ouzinkie on Spruce Island. The M/V
Tustemena frequently sails by the island. The community
completed a new dock capable of handling the M/V Tustemena and
has requested service. He anticipated service would begin once
the final touches, such as fender installation is completed. He
related details, such that service would begin this spring with
service every other Friday, with 6.5 hours in Kodiak and
returning to Ouzinkie in the afternoon. He reported
overwhelming support in the community, with little cost to the
system. The AMHS was concerned the service may be in
competition with air carriers, but both air carriers that serve
the community were overwhelmingly supportive. He offered their
responses as recognition that what is good for the community
would also be good for them.
2:48:10 PM
REPRESENTATIVE P. WILSON asked whether the ferry goes through
the strait.
CAPTAIN NEUSSL answered yes.
2:48:42 PM
REPRESENTATIVE GRUENBERG asked whether there are any other
communities similar to Ouzinkie on other AMHS routes.
CAPTAIN NEUSSL answered no, that other communities do not
currently have a dock sufficient to accommodate the AMHS.
2:49:09 PM
CAPTAIN NEUSSL turned to the second request for new service is
Old Harbor south of Kodiak [slide 8]. He explained that the
AMHS does not currently use any route near Old Harbor. He
detailed that the community has just completed a dock which will
be able to accommodate the M/V Kennecott and M/V Tustemena
[slide 9]. The AMHS has been exploring options but thinks it
can provide this service. The community believes it will be
economically viable for the community to have ferry service.
The DOT&PF believes it can provide service at a cost. The cost
is in terms of service to other communities since the M/V
Tustemena is fully utilized. Thus it means another community
will lose some service and the decision is whether the loss of
service is untenable or the service will be reduced but not
eliminated. He pointed out that the AMHS's mandate is to
provide basic transportation services to as many communities as
it can. He offered his belief that this is not an exclusive
club. He summarized that the AMHS is considering options with
minor adjustments to the Aleutian chain runs and believes it
will be able to provide some service satisfactory and beneficial
to Old Harbor.
2:51:38 PM
REPRESENTATIVE P. WILSON asked for the round trip running time
from Kodiak to Old Harbor, since that would translate into
additional fuel costs.
CAPTAIN NEUSSL answered that the fuel cost will be slight since
it would amount to 15-20 nautical miles; however, the AMHS
vessels must go down and around from the south. He said it is
not impossible and if coming from Aleutian Islands, would mean
coming in from the same directions. In further response to
Representative Wilson, he agreed it was similar to the Sitka
access.
2:52:52 PM
REPRESENTATIVE GRUENBERG recalled that the weather is pretty
tough in Shelikof Straits and if it would be easier to take the
southern route.
CAPTAIN NEUSSL agreed. He acknowledged that some weather
disruptions are anticipated, which would be similar to the
disruption of service to the Aleutian Islands.
2:53:46 PM
CAPTAIN NEUSSL turned to the next slide, titled "Dock Issues"
[slide 10]. He acknowledged that docks are a big issue for the
AMHS. He wanted to make members aware of some of the
challenges. He reported that the dock structure in Angoon has
been completely rebuilt and due to non-standardized ships the
dock must be able to handle stern ramp as well as standard hull
docking. He characterized the facility as a highly functional
one. He thanked the legislature for its funding and support.
2:55:42 PM
CAPTAIN NEUSSL turned to the dock at Hoonah. He highlighted this
dock as a success. The dock in Hoonah, like Angoon, has the
ability to handle stern ramp as well as standard hulls. He
pointed out the absence of catwalks adjacent to the mooring
dolphins, since the facility is self-mooring. The crew would
pull in the cable from the dolphin, which results in labor
savings since line handlers are not needed. He added that the
crew demonstrates good ship handling to tie up properly, too.
2:56:24 PM
CAPTAIN NEUSSL moved to challenges. He explained that the M/V
Tustemena moors at Chignik across the end of two docks. A
private company owned by Trident Seafoods has cautioned against
unauthorized docking of vessels at Chignik. He advised members
that the AMHS is currently engaged with Trident Seafoods to
reach a use agreement, which previously has been unsuccessful.
He stated that the AMHS is working on a lease agreement for
ferry service to Chignik. No other dock is available for the
AMHS to use for ferry service to Chignik.
2:57:27 PM
REPRESENTATIVE P. WILSON asked him to outline costs.
CAPTAIN NEUSSL answered that the DOT&PF is proposing to lease a
dock which is in currently in fairly sad shape. He explained
that Trident Seafoods has offered to sell the facility, but the
state has thus far declined to purchase it. He characterized
this as a conundrum since the state needs a dock. He stated
some liability issues exist. The AMHS hopes to continue to
provide service to Chignik, but will report back to the
legislature if they are unsuccessful. In response to a request,
he agreed to keep the committees informed.
2:59:12 PM
CAPTAIN NEUSSL stated that the AMHS has a $1.2 million
supplemental request in the budget this year for repairs to the
Cordova dock. He described the flexible dock material that due
to exposure has experienced some cracking and sinking. The AMHS
instituted emergency repair, but a major storm hit and damaged
the superstructure. He pointed out the repairs. He said the
AMHS has resumed normal use of the dock, although the funding
for the repairs is needed.
3:00:59 PM
SENATOR HUGGINS thanked Mr. Neussl. He commented that Tim
Doggett was recognized as the Southeast employee of year. He
asked about the new ownership of the ASD.
CAPTAIN NEUSSL answered that Vigor Shipyards has a pending
proposal to acquire ASD. He explained that Vigor Shipyards owns
most of the shipyards in the Pacific Northwest. He said it is
the predominant shipyard in the Pacific Northwest, but he was
not sure of details or any implications.
3:02:21 PM
SENATOR KOOKESH advised members that Mr. Levy, Mobility
Coalition is not available and will be rescheduled at a later
date.
3:02:43 PM
ADJOURNMENT
There being no further business before the committee, the joint
House and Senate Transportation Standing Committee meeting was
adjourned at 3:02 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 248 Sponsor Statement.pdf |
HTRA 2/7/2012 1:00:00 PM |
HB 248 |
| HB 248.pdf |
HTRA 2/7/2012 1:00:00 PM |
HB 248 |
| HB 249 Sponbsor Statement.pdf |
HTRA 2/7/2012 1:00:00 PM |
HB 249 |
| HB0249A.pdf |
HTRA 2/7/2012 1:00:00 PM |
HB 249 |
| DOT Hiway TRA Comm 02072012.pdf |
HTRA 2/7/2012 1:00:00 PM |
|
| AMHS Update TRA COMM 2-7-2012.pptx |
HTRA 2/7/2012 1:00:00 PM |