Legislature(2013 - 2014)SENATE FINANCE 532
01/24/2013 01:00 PM House TRANSPORTATION
| Audio | Topic |
|---|---|
| Start | |
| Department of Transportation & Public Facilities (dot&pf) Aviation Overview | |
| Changes to the Alaska Class Ferry - Public Testimony | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
JOINT MEETING
HOUSE TRANSPORTATION STANDING COMMITTEE
SENATE TRANSPORTATION STANDING COMMITTEE
January 24, 2013
1:02 p.m.
MEMBERS PRESENT
HOUSE TRANSPORTATION
Representative Peggy Wilson, Chair
Representative Doug Isaacson, Vice Chair
Representative Eric Feige
Representative Lynn Gattis
Representative Craig Johnson
Representative Bob Lynn
Representative Jonathan Kreiss-Tomkins
SENATE TRANSPORTATION
Senator Dennis Egan, Chair
Senator Fred Dyson, Vice Chair
Senator Anna Fairclough
Senator Click Bishop
Senator Hollis French
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
DEPARTMENT OF TRANSPORTATION & PUBLIC FACILITIES (DOT&PF)
AVIATION OVERVIEW
- HEARD
CHANGES TO THE ALASKA CLASS FERRY - PUBLIC TESTIMONY
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
STEVEN HATTER, Deputy Commissioner; Executive Director,
Alaska International Airport (AIAS)
Department of Transportation & Public Facilities (DOT&PF)
Juneau, Alaska
POSITION STATEMENT: Presented an overview of the Department of
Transportation & Public Facilities' (DOT&PF) overview on
Aviation.
JESSE VANDERZANDEN, Manager
Fairbanks International Airport (FIA)
Department of Transportation & Public Facilities (DOT&PF)
Fairbanks, Alaska
POSITION STATEMENT: Testified during the Department of
Transportation & Public Facilities' (DOT&PF) overview on
Aviation - Fairbanks International Airport (FIA).
JOHN PARROTT, Manager
Ted Stevens Anchorage International Airport (TSAIA)
Anchorage, Alaska
POSITION STATEMENT: Testified during the overview on the
Department of Transportation & Public Facilities' (DOT&PF)
Aviation - Anchorage International airport.
WIN GRUENING
Juneau, Alaska
POSITION STATEMENT: Testified on changes to the Alaska Class
Ferry (ACF).
CATHIE ROEMMICH, Chief Executive Officer (CEO)
Juneau Chamber of Commerce
Juneau, Alaska
POSITION STATEMENT: Testified on changes to the Alaska Class
Ferry (ACF).
SANDY WILLIAMS
Douglas, Alaska
POSITION STATEMENT: Testified on changes to the Alaska Class
Ferry (ACF).
MIKE KORSMO, Retired Marine Captain/Engineer
Skagway, Alaska
POSITION STATEMENT: Testified on changes to the Alaska Class
Ferry (ACF).
RANDY WANAMAKER
Juneau, Alaska
POSITION STATEMENT: Testified on changes to the Alaska Class
Ferry (ACF).
GINGER JOHNSON
Juneau, Alaska
POSITION STATEMENT: Testified on changes to the Alaska Class
Ferry (ACF).
PAULETTE SIMPSON
Juneau, Alaska
POSITION STATEMENT: Testified in support of changes to the
Alaska Class Ferry (ACF).
JIM BECKER
Juneau, Alaska
POSITION STATEMENT: Testified on changes to the Alaska Class
Ferry (ACF).
DIXIE HOOD, Business Owner
Juneau, Alaska
POSITION STATEMENT: Testified in opposition to the changes to
the Alaska Class Ferry (ACF).
STEPHANIE SCOTT, Mayor
Haines Borough
Haines, Alaska
POSITION STATEMENT: Testified on changes to the Alaska Class
Ferry (ACF).
ROB GOLDBERG, Chair
Planning Commission
Haines Borough
Haines, Alaska
POSITION STATEMENT: Testified on changes to the Alaska Class
Ferry (ACF).
MIKE DENKER
Haines, Alaska
POSITION STATEMENT: Testified on changes to the Alaska Class
Ferry (ACF).
DEBORAH VOGT
Haines, Alaska
POSITION STATEMENT: Testified on changes to the Alaska Class
Ferry (ACF).
ED PHILLIPS
Hoonah, Alaska
POSITION STATEMENT: Testified on changes to the Alaska Class
Ferry (ACF).
PAUL DAVIS, Business Owner
Sitka, Alaska
POSITION STATEMENT: Testified on changes to the Alaska Class
Ferry (ACF).
STAN SELMER, Mayor
City of Skagway
Skagway, Alaska
POSITION STATEMENT: Testified on changes to the Alaska Class
Ferry (ACF).
GARY HANSON
Skagway, Alaska
POSITION STATEMENT: Testified on changes to the Alaska Class
Ferry (ACF).
JAN WRENTMORE
Skagway, Alaska
POSITION STATEMENT: Testified on changes to the Alaska Class
Ferry (ACF).
KEN RUSSO
Skagway, Alaska
POSITION STATEMENT: Testified on changes to the Alaska Class
Ferry (ACF).
HEINRICH KADAKE, Mayor
City of Kake
Kake, Alaska
POSITION STATEMENT: Testified in opposition changes to the
Alaska Class Ferry (ACF).
KEVIN SHIPLEY, Superintendent of Schools
Kake City School District
Kake, Alaska
POSITION STATEMENT: Testified on changes to the Alaska Class
Ferry (ACF).
VICKY WOLF, President; Chief Executive Officer
Kake Tribal Corporation
Kake, Alaska
POSITION STATEMENT: Testified on changes to the Alaska Class
Ferry (ACF).
BERN SAVIKKO
Douglas, Alaska
POSITION STATEMENT: Testified on changes to the Alaska Class
Ferry (ACF).
DONALD WESTLUND
Ketchikan, Alaska
POSITION STATEMENT: Testified on changes to the Alaska Class
Ferry (ACF).
GINGER FORTIN
Homer, Alaska
POSITION STATEMENT: Testified on changes to the Alaska Class
Ferry (ACF).
ED MARKSHEFFEL
Ketchikan, Alaska
POSITION STATEMENT: Testified on changes to the Alaska Class
Ferry (ACF).
MIM MCCONNELL, Mayor
City and Borough of Sitka
Sitka, Alaska
POSITION STATEMENT: Testified on changes to the Alaska Class
Ferry (ACF).
FRANK MCQUEARY
Anchorage, Alaska
POSITION STATEMENT: Testified on changes to the Alaska Class
Ferry (ACF).
DAVE WHEELER
Ketchikan, Alaska
POSITION STATEMENT: Testified on changes to the Alaska Class
Ferry (ACF).
STAN JORDAN
Petersburg, Alaska
POSITION STATEMENT: Testified on changes to the Alaska Class
Ferry (ACF).
ACTION NARRATIVE
1:02:49 PM
CHAIR DENNIS EGAN called the joint meeting of the Senate and
Senate Transportation Standing Committees to order at 1:02 p.m.
Senators Dyson, Bishop, French, Fairclough, and Egan; and
Representatives Isaacson, Kreiss-Tomkins, and P. Wilson were
present at the call to order. Representatives Lynn, Feige, and
Johnson arrived as the meeting was in progress.
^Department of Transportation & Public Facilities (DOT&PF)
Aviation Overview
Department of Transportation & Public Facilities (DOT&PF)
Aviation Overview
1:04:12 PM
CHAIR EGAN announced that the first order of business would be
an overview on Aviation by the Department of Transportation &
Public Facilities (DOT&PF).
1:04:45 PM
STEVEN HATTER, Deputy Commissioner; Executive Director, Alaska
International Airport (AIAS), Department of Transportation &
Public Facilities (DOT&PF), said his primary oversight is for
the Aviation function in the department.
CHAIR EGAN recognized Pat Kemp, Commissioner, [appointed but not
yet confirmed], Department of Transportation & Public Facilities
(DOT&PF).
1:05:57 PM
MR. HATTER said besides serving as deputy commissioner of
DOT&PF, he also serves as executive director of the Alaska
International Airport System (AIAS) and oversees the rural
airport system. He read the mission statement of the DOT&PF,"
Get Alaska moving through service and infrastructure" [slide 3].
MR. HATTER explained the Alaska International Airport System
(AIAS) has a motto, "Keep Alaska flying and thriving." The
legislature recognized the importance of the two airports
working together as the AIAS Structure [slides 5-6]. He said
significant advantages occur with the international airports as
a system. He stated the AIAS are marketed globally, which is
important to cargo carriers coming over from Asia. He reported
the AIAS acts as a system and does not compete against one
another, but operate in synergy. He related the AIAS is
completely self-sustaining [slide 7]. The enterprise fund is
funded by user fees and not the state general fund. It is not
legal or possible to divert funds from the system, he said. The
fundamental reality of this is the airports must be responsive
and accountable to its partners. The airports must also be high
value, business focused, agile, and able to show carriers that
the AIAS runs a good operation and demonstrate global
competitiveness to its global partners.
1:09:28 PM
MR. HATTER reviewed the organization and leadership [slide 8].
As deputy commissioner, he sits as the executive director, as
well and the airport managers, the AIAS controller, and the AIAS
planning fall directly under his authority. The AIAS has nearly
500 staff, which is organized into five components:
administration, operations, facilities, field & equipment
maintenance, and police and fire. He characterized the AIAS as
a big operation that runs 24/7. He concluded that despite the
record snowfall last year, the airport has not been closed.
MR. HATTER next reviewed the state economic engine [slide 9].
He advised members the airport has a significant impact on
Alaska's economy in terms of jobs. He related the figures,
noting 15,577 jobs totaling nearly $724 million in direct annual
payroll for the Ted Stevens Anchorage International Airport
(TSAIA). Additionally, the Fairbanks International Airport
(FIA) has 1,900 jobs and $225 million in economic output, with
the FIA ranked 85th in the nation in terms of weight of total
mail and freight. These figures, derived from a 2011 study,
demonstrate the economic engine to the state. He reiterated
that the AIAS is very pleased to be important economic engine to
the state. In response to a question, Mr. Hatter said he would
provide more details on the TSAIA later on.
MR. HATTER also reviewed the division's annual revenues and
operations, maintenance, and debt costs [slide 10]. He
underscored the 2012 AIAS's operating revenues of $115 million,
which is derived solely from user fees. He said the operating
costs are broken out by components, noting the debt service as
part of bonding to build the terminals. He reported the
terminals are fully built at both airports, thus, the AIAS is in
good shape in terms of its infrastructure.
MR. HATTER explained the method of calculating rates and fees is
charged to customers via the AIAS's passenger terminal lease and
operating agreement, which is essentially a contract between the
AIAS and each air carrier [slide 11]. He said the industry term
is the residual cost operating agreement. He related the
department has a sophisticated rate model it negotiates with
carriers. He noted over the past five years have contracted
with 31 signatory carriers, which will expire next July. He
reported the department has been negotiating over the past nine
months on new lease agreements. He offered his belief the last
contract was strong, but the division has continued to
strengthen it and hoped a 10-year agreement would be possible.
The result would be significant since it shows carriers have
confidence in the management team and it demonstrates the
economic viability of the system.
1:13:13 PM
REPRESENTATIVE ISAACSON asked whether the 10-year contract would
impact the department's abilities to collect additional revenue
if the economy were to improve. He further asked for the
department's rationale in seeking a 10-year contract.
MR. HATTER explained that the longer agreement helps provide
stability. He explained when traffic is down the international
airports must raise air carrier's rates and fees. He related
the division works regularly with signatory air carriers on the
reality of air traffic. He concluded the 10-year contract works
well for the carriers and it works for the department, too,
since it provides stability over the long haul. In response to
a question, he agreed the department has certainty with 10-year
contracts, but the airport can adjust rates, if necessary.
1:14:39 PM
MR. HATTER related the signatory carriers organize themselves
through the Airline Airport Affairs Committee (AAAC) [slide 11].
He emphasized this as an important body since the division meets
regularly with the carriers and uses a highly-transparent
process to develop the operating and capital budgets. He
concluded the stakeholders underwrite the system's health
through the lease agreements. Thus, the department feels
committed to provide transparency with respect to its financial
information, he said.
MR. HATTER turned to its new operating agreement [slide 12]. He
said, "The division has been "hard at work for about nine months
negotiating this agreement. We're through the hard part of it."
He related the lawyers are reviewing the lease and should meet
the July 1, 2013 target completion date. He characterized the
relationship between the airports and the carriers as being at a
high mark, which is a good thing [slide 13]. He reported
landing fees have gone up; however, the air carriers understand
the drivers and work in a collaborative way with the airports.
1:16:46 PM
JESSE VANDERZANDEN, Manager, Fairbanks International Airport
(FIA), Department of Transportation & Public Facilities
(DOT&PF), referred to the location and the two airports [slide
15]. He related the AIAS is 9.5 hours from 90 percent of the
industrialized world, which is an enviable position. He said
Fairbanks and Anchorage have two separate weather patterns, with
one an inland desert and the other a coastal climate. This can
be advantageous if one airport experiences poor weather since
the other airport can provide certainty to carriers that fly
across the Pacific Ocean. He said, "We're fond of saying in
marketing that we've never had a same day closure due to weather
in our 50-year history and that's a good marketing tool. The
only time that wasn't true, of course, was 9/11.
1:18:05 PM
JOHN PARROTT, Manager, Ted Stevens Anchorage International
Airport (TSAIA), referred to the location and certainty of the
two airports previously mentioned. He said those two factors
combined allow the AIAS to provide business opportunities for
the carriers and the reason they keep landing at the airports.
He pointed out aircraft can fly from the U.S. to Asia without
stopping in Alaska; however, if these air carriers want to fly
"full of cargo" they must stop in Alaska. He turned to payload
versus range and explained the advantages. He stated that one
plane can fly an additional $125,000 worth of cargo by stopping
in Alaska for fuel and not flying direct. He calculated that
$125,000 per airplane per day can amount to tens or hundreds of
millions of dollars to an air carrier's revenue bottom line
[slide 11]. He reported Anchorage ranks second in North
America, behind Memphis - which is the home of FedEx - for total
cargo [slide 12]. He further reported Anchorage is fourth
globally, behind Hong Kong, Memphis, and Shanghai. He concluded
that Alaska is a small state by population but is a global
presence in the air cargo market.
1:20:01 PM
MR. PARROTT related that approximately 30 passenger and 40 cargo
airlines operate through AIAS [slide 18]. He said several years
ago the AIAS asked Boeing how many dedicated 747 freighters were
on the planet and they responded 256. In one week, 217 of the
256 airplanes landed in Alaska. He reported both FedEx
Corporation (FedEx) and United Parcel Service, Inc. (UPS) have
invested in infrastructure at the Anchorage Airport. He related
these carriers have training facilities, pilot bases, and
simulators that help anchor them as primary cargo tenants, along
with the Alaska Airlines - the airport's primary air carrier.
Additionally, these carriers continue to promote and infuse the
local and state economies, he stated.
1:21:08 PM
MR. VANDERZANDEN turned to the Asia centric cargo market [slide
20]. He noted 99 percent of cargo is Asia-based and all of the
Asian to North America cargo carriers have flights through the
AIAS. He emphasized the importance of this since approximately
80 percent of AIAS carrier-generated revenue is cargo.
1:22:02 PM
MR. PARROTT discussed competition [slide 21]. He said Portland,
Seattle, Vancouver, and Prince George have all visited Asia in
an effort to recruit cargo. He related a few years ago Portland
enticed Asiana Air to land in Portland and offered $800,000 in
incentives to obtain three flights per week. He compared this
to the current approximate 500 flights per week landing in
Alaska. He emphasized the importance of the AIAS to constantly
market its airports to maintain and grow the market.
1:23:24 PM
MR. VANDERZANDEN discussed passenger activity [slide 22]. He
reported each line of n the graph represents the number of
enplanements or the number of people who step onto an airplane.
This graph clearly shows that despite the economic recession in
2009 and even to 9/11 most airports experienced precipitous
drops in enplanements, Alaska remained steady. He emphasized
that air travel in Alaska is essential, which is demonstrated by
this graph.
1:24:04 PM
MR. PARROTT discussed cargo activity, which is more susceptible
to market trends [slide 23]. He noted the airport is more
susceptible to the airport overflying if the aircraft only plan
to make a technical stop in Alaska. He suggested it is possible
to encourage cargo transfer or sort operations, such as FedEx or
UPS, which decreases the risk an air cargo flight will over fly
Alaska during the "down" economic times since they would have
additional reasons to stop in Alaska.
1:25:13 PM
MR. VANDERZANDEN reiterated reasons that cause decreased
activity [slide 24]. He stated speculation exists that advanced
design and longer range aircraft, such as the 777 passenger
airline pose a threat to cargo in Alaska. However, the AIAS has
found is that the cargo 777s, which generally comprises less
than ten percent of any cargo line - most notably FedEX -
routinely land in Alaska based on sorting and routing decisions,
as well as payload advantages Mr. Parrott just mentioned. He
reported the AIAS tracks the large aircraft's activities and has
found the aircraft are landing in Alaska. He said the AIAS
proactively markets the international airports and must educate
its potential customers and counter beliefs with respect to the
cold, dark, snowy weather. He said both airports have 95
percent visual, metrological, conditions or VMC, which means
pilots are able to visually land and not need instruments.
Additionally, the international airports have excellent
infrastructure, including state of the art instrument landing
systems, runways, and 24/7, 365 days a year, international
facilities. He emphasized this gives pilots an image of
certainty that the airport they will be arriving at will be a
good airport.
1:27:31 PM
MR. HATTER suggested he had a couple slides about the future.
He concluded by highlighting: two airports, one system, self-
sustaining, business centric, with a good management team that
can complete globally. He said the AIAS is a critical enabler
for the state and the division works cooperatively with the
airlines. He suggested that members reach out to the airlines
and ask Alaska Airlines, FedEx, and UPS how the state is doing
since it is a fair question to ask. He offered his belief that
the division is doing good things for Alaskans. He concluded by
saying that the division is pleased to "keep Alaska flying and
thriving."
1:28:47 PM
SENATOR FAIRCLOUGH asked for a definition of a "core airport"
the next time the DOT&PF speaks to the committee, which she
understood is based on passenger landings. She said she would
like to know if the state has any exposure due to reductions in
federal expenditures in sequestration.
1:29:15 PM
CHAIR EGAN urged members to tour the AIA.
^Changes to the Alaska Class Ferry - Public testimony
Changes to the Alaska Class Ferry - Public testimony
1:29:58 PM
CHAIR EGAN announced that the final order of business would be
public testimony on changes to the Alaska Class Ferry (ACF).
1:30:33 PM
WIN GRUENING said he grew up in Alaska and the ferries are as
important today as they were then to the transportation
infrastructure. He stated if the state is to maintain a
sustainable Alaska Marine Highway System (AMHS) in declining
budgets that the state must look at models to lower subsidies
and maintain increased services. He offered his belief that is
what the current change in direction is about. He suggested the
state ended up with something entirely different during the
public process than the original concept for the Alaska Class
Ferry (ACF) project. He noted the concept was much larger and
did not meet the original mission statement. He commended the
Department of Transportation & Public Facilities (DOT&PF) for
recognizing this and changing direction. He observed that most
of the written comments in opposition seem to be on the
seaworthiness of the new vessel. He related his understanding
that the new vessel or vessels would be larger than the Aurora
class vessels and still have the seaworthiness of the large
mainline ferries. He encouraged people to allow the DOT&PF time
to formulate an action plan. He noted some of the criticisms
have not been well-founded since not everything is known at this
point and everyone's goal is to obtain low-cost, efficient
transportation in Southeast Alaska and this change in direction
will meet this goal.
1:33:37 PM
CATHIE ROEMMICH, Chief Executive Officer (CEO), Juneau Chamber
of Commerce, stated she has served on Marine Transportation
Advisory Board (MTAB) for six years and also chaired the MTAB
for two years. She offered her belief the governor is taking
the right direction by changing the design of the ACF. She
recalled in 2006, the plan called for several changes: a new
shuttle ferry, lengthening roads, and shortening the overall
ferry system since the state cannot continue to keep subsidizing
the entire ferry system. None of the routes make money, but the
Lynn Canal route is the largest revenue maker, she reported.
She has held discussions with Commissioner Kemp, made
observations during her service on the MTAB, and believes that
the two proposed vessels would be smaller vessels, but would
better serve the residents of Lynn Canal. She stated that
residents don't always need mainline vessel service. The
shuttle ferries would allow the M/V Malaspina, a mainline
vessel, to actually service other areas that need the service.
She said, "I think it's a great idea and the idea that our
Department of Transportation wouldn't oversee the construction
of safe vessels is ridiculous. Those vessels will be built safe
- the technology today - and engineering today, there's no
reason that they wouldn't be made safe. We are proponents of
smaller boats...." She continued by stating that smaller boats
would reduce crew labor costs. She further said, "We support it
and hope you will support DOT&PF and the concept of a smaller
boat with less amenities. We don't need it. We're trying to
cut the budget down a little bit." In response to
Representative Johnson, Ms. Roemmich answered she is
representing the Juneau Chamber of Commerce today. She added
the Chamber of Commerce's Transportation Committee has supported
this [project] for the past six years; however, she clarified
has served on the MTAB during the same timeframe.
1:36:40 PM
SANDY WILLIAMS stated he worked for 30 years at the DOT&PF,
including as chief design engineer, state maintenance engineer,
and regional engineer - for eight years - in Southeast Alaska.
He said he is quite pleased with the recent appointments at the
DOT&PF since it brings a wealth of experience into the DOT&PF,
which has been needed. The current Southeast Transportation
Plan published in August 2004. He read:
The objective is to shift from the limitations of long
distance ferry service to a robust network of surface
transportation connections, which would consist of
road links and connecting ferries, supplemented by
long-distance ferries. Highways are more efficient
and provide much greater mobility to the user,
reducing the reliance of ferries and it will reduce
state transportation operating costs and increase user
capacity to travel more frequently at less cost.
MR. WILLIAMS continued by saying the original design criteria
fit that purpose and need, i.e., roll-on roll-off, overall
length 255 feet to 305 feet, and operated as a day boat. What
happened is anyone's guess and those who would know are no
longer at the department, he said. The proposed boats would
meet the needs at a much less operating cost. He offered his
belief that the DOT&PF was right in stopping the direction it
was headed. He suggested that members must consider budgets so
it is imperative members consider the future of the system,
particularly given the message the legislature has recently
received on Alaska's financial future. He reported from 2007 to
2012, the AMHS increased its operating revenues by 5.3 million;
however, at the same time the AMHS also increased its operating
costs by $30 million. In FY 2012, the AMHS spent $117.3 million
over its revenue. He cautioned that decisions have to be made
to reverse this trend. He concluded his testimony by stating,
"The day boat as now envisioned will do that."
MIKE KORSMO, Retired Marine Captain/Engineer, stated he was a
tugboat captain for 30 years in Alaska and currently serves on
the Marine Transportation Advisory Board (MTAB). Mr. Korsmo
said he has traveled up and down Lynn Canal, operated the M/V
Fairweather for Holland America's Westours between Juneau and
Skagway. He said he also serves on the MTAB, former Chair or
MTAB, former president, Southeast Conference, as well as serving
on their transportation committee. He described his service as
being heavily involved in the ferry system for a number of
years. He characterized the AMHS, seven years ago, as being in
disarray, but a number of groups helped change that and it seems
in the past four to five years the system has worked well. He
complimented the management team. He commended Captain Falvey's
work. He described Captain Falvey's job performance as
phenomenal.
1:41:01 PM
MR. KORSMO noted under the former AMHS's director, Jim Beedle,
the AMHS stabilized. He said the current schedule is great and
people can depend on the system. He also said he was as
surprised as anyone else about the changes to the ACF. He
initially was pleased about the proposed change to the two
ferries since the system needs ferries, but the changes have
prompted numerous concerns. He wondered what had happened. He
questioned how two ferries can be built for the price of one.
He raised the issue that modification of the ferry terminals
would also need to be included in the cost. He wondered how the
need for multiple crews and numerous trips on Lynn Canal would
result in cost savings. He said he currently serves on the
Skagway assembly and many people in Skagway have concerns about
the bow ramps and open car decks. He also said residents will
continue to have concerns until the detailed design is reviewed.
He reported he serves as an "at-large member" on the MTAB. He
related although he is only speaking for himself, he has
concerns about building specific vessels for a route since the
original plan called for building a ship that could be used in
different parts of the system. He pointed out the M/V Tustemena
and mainliner ferries will need replacing due to aging. He was
unsure what the proposed change of plans would do the future of
the "build program" of replacement vessels for the AMHS. He
concluded by stating he is looking forward to the new design of
the proposed shuttle ferries.
1:43:50 PM
RANDY WANAMAKER, speaking on behalf of himself, [not as assembly
member for the City and Borough of Juneau] read prepared
testimony, as follows [original punctuation provided]:
Good Afternoon. My name is Randy Wanamaker. I live at
3814 Killewich Drive, Juneau, Alaska. Thank you for
this opportunity to provide comment on the roll on
roll off Alaska Class Ferry Option.
I appreciate the efforts of the Alaska Marine Highway
System staff to stay within the allotted budget for
this ferry class. I also appreciate the fact that
this option can provide significant employment
benefits for Alaska by allowing the ships to be built
in Alaska as well as providing for efficient service
and lower operating costs.
I encourage the Department to continue with the
development of this option.
My encouragement is based on several things. First, I
was employed as a young man by a company in Seattle
that provided support services to the Washington State
Ferry System as well as ferry systems in the Atlantic,
Gulf and Pacific Coast regions. In those years I saw
many examples of shuttle ferry services. This type of
service is decades old, cost effective and very
efficient.
Second, I was born here and grew up in the days before
the Ferry System existed and I have watched its growth
and evolution. I am familiar with the needs of the
communities and the costs and challenges the state
faces in trying to meet those needs.
Finally, I have served as transportation planning
consultant to a number of Southeast Alaska
organizations, private developers and the Alaska
Department of Transportation and Public Facilities.
All of my experience and training points to the wisdom
of developing the Alaska Class Ferry as per the
original 2006 shuttle ferry concept.
It can operate successfully for the communities at a
lower cost for both the passengers and the state.
Thank you again for this opportunity to share my
thoughts on this matter.
1:46:01 PM
GINGER JOHNSON commended Commissioner Kemp for putting the
project back on course. She said she thinks it's really
important. She indicated she would like to ditto Wyn Gruening
and Sandy William's comments.
1:46:39 PM
PAULETTE SIMPSON stated she has been riding on the ferries in
Southeast Alaska every summer since 1976. She said she fully
supports Governor Parnell's decision to change direction from
the ACF to two shuttle ferries. She noted the DOT&PF's homepage
lists the department's mission and the words "efficient and
efficiency" is used several times. She supported everyone
else's comments in support of the proposed changes. She thinks
it comes down to three things: cost, frequency, and flexibility
of service, and employment. She pointed out the two smaller
shuttle ferries would cost less to construct and operate since
the vessels could likely be built in Ketchikan. She related one
of the ferries will be based in Haines or Skagway, which will
also be good for employment in these communities. She said no
one questions the AMHS needs new vessels in the system, but the
smaller-purpose built vessels better fill that need. She
concluded by commending the governor and the department and
hoped members would support these DOT&PF's changes to the ACF
project.
1:48:02 PM
JIM BECKER stated he is a lifelong resident, having worked as a
commercial fisherman for over 40 years. He noted he worked on
the ferries in the early 1960s. He recalled the AMHS initially
had three mainline ferries but it now has a variety of ferries.
He related his understanding that a day boat or shuttle ferry
was initially planned, but the plan expanded as it went through
the process. He applauded the governor's decision and the
DOT&PF for putting this project on track to save money and get
back to what it was intended to be. He cautioned the [ACF]
might not have been built in Ketchikan due to overrun costs. He
concluded his testimony with his hope that the new ferries will
be built in Ketchikan.
1:49:35 PM
DIXIE HOOD, Business Owner, said she has been a resident since
1975. She detailed her community involvement, noting she is a
small business owner, a public member of the Mendenhall State
Game Refuge Citizen's Advisory Group, a member of the City and
Borough of Juneau's Parks and Recreation Advisory Committee, the
CBJ's Commission on Aging, and the League of Women Voters. She
stated she is representing herself today. She expressed concern
about the DOT&PF's actions and procedures. She identified three
problems with the DOT&PF. First, the DOT&PF often does not seek
information in advance on projects or has been dismissive.
Second, the DOT&PF often moves forward with a project that
significantly impacts Juneau without sufficient notice for the
CBJ to be involved in the process. For example, she pointed to
the Auke Bay Roundabout project. Third, the DOT&PF prioritizes
by supporting corporate interests or cuts costs despite the
public interest. She stated that the sudden change and lack of
transparency regarding the governor's decision to "scrap the
Alaska Class Ferry" and replace it with two less satisfactory
substitute ferries is an example of all three problems she
outlined. She related the DOT&PF also eliminated the hugely
successful and popular twice a week ferry service to Bellingham.
She detailed several other AMHS decisions she disagreed with
that she did not think serves the public's interest. According
to news reports the ACF was due to go out for bid in July and
this change would result in considerable delay, she said. She
remarked that 300-foot vessels don't seem to be much smaller
than the 350-foot ACF. She indicated the amenities on the ACF
were due to public input and space provided for seniors with
special needs was a plus. She noted cost overruns are common
for practically all construction projects and she anticipates it
will happen with the proposed [shuttle ferry] project if the
governor moves forward with the project. She expressed concern
about holding funds aside for the so called "Juneau Access Road"
which she characterized as a controversial project. She
concluded that she opposes the change [to the ACF].
1:52:58 PM
STEPHANIE SCOTT, Mayor, Haines Borough, said a dozen people are
gathered around a phone in the library.
SENATOR EGAN responded that the delegation is working on a
solution to the lack of a legislative information office (LIO)
in Haines.
MS. SCOTT stated she is disappointed the DOT&PF did not consult
given the statutory requirement to consult with MTAB. She said
she would focus her testimony on the outcome: safe, reliable,
cost-effective marine transportation in Southeast Alaska, in
particular, for Haines, Skagway, and Juneau. She expressed
concern that Commissioner Kemp declined to confirm whether or
not the design includes an open car deck. She asked members to
please put an end to this speculation [about an open car deck].
These concerns erode the community's confidence on the operation
of the AMHS, which was bolstered by the public process used on
the ACF. Prior to the scuttling of the ACF, the communities
understood the AMHS to positively respond to their concerns.
She said, "Ridership is up. Revenue is up. It is just bad
business to erode this confidence." She returned to the open
deck ferry and pointed out this design could pose safety
problems due to wave actions and heavy seas encountered in Lynn
Canal or Clarence Strait - outside of Ketchikan. She further
expressed concern the proposed shuttle ferries would be like the
fast ferries that could not be relied on in inclement weather.
"This is Alaska. This is Lynn Canal," she said. The state's
own consultant, Elliott Bay [Design Group], concluded it based
its data on inferred data since buoys do not exist in Lynn Canal
to provide primary data. She emphasized the importance of
obtaining local weather knowledge and suggested captains might
testify on provide their experiences with Lynn Canal seas.
Otherwise, perhaps the AMHS could test Lynn Canal using the M/V
Lituya designed by Coastwise Alaska. This vessel also has open
decks and currently sails between Metlakatla and Ketchikan. She
urged members to track expenditures for this project. She
recalled Commissioner Kemp testified last week that the ACF
project was spending $20,000 to $30,000 per day. She also
questioned these figures.
MS. SCOTT further questioned why tank testing was being planned
in Norway for the ACT project when the Inter-island Ferry
Authority (IFA), a private ferry, conducted its tank testing in
the U.S. She requested all Southeast Alaska terminal
modification costs should be included as part of the shuttle
ferry project costs. She pointed out the project should
encompass redundancy and bring service to routes that need extra
capacity or to replace a disabled vessel. She worried that
vessel operations would be canceled in winter during critical
times of travel due to weather and the AMHS could also accrue
downtime costs due to the lack of seaworthiness of the proposed
shuttle ferries. She asked to see Elliott Bay (Design Group's]
cost estimates on the ACF project. She suggested the DOT&PF
modify the ACF project and not scrap it since estimates on a
project only 35 percent designed are quite speculative. She
concluded by stating that suggestions for modifications would be
quite welcome, but scrapping the ACF is not acceptable.
1:59:42 PM
ROB GOLDBERG, Chair, Planning Commission, Haines Borough, stated
he is also a business owner in Haines. He offered he was glad
to hear Captain Falvey testify at last week's hearing that the
open-deck concept is not being considered. The proposed vessels
could work provided these ferries are designed with ocean ship
hulls and are powerful enough to withstand winter wind and sea
conditions in Lynn Canal, but it remains to be seen whether two
shuttle ferries can be built for the $120 million allocated for
the project, he said. He supported the "two day boat concept"
for Lynn Canal since operating two vessels in the summer on a
loop between Juneau, Haines, and Skagway would double the
current vehicle capacity. In winter, when the traffic volume
slows down the AMHS could reduce it to one day boat. He said it
would eliminate the need to build a road to Haines if the newly
designed ferries are capable of providing daily, year-round
service on the aforementioned route. He pointed out economic
uncertainty does not justify spending $520 million or more on a
road when service would now be provided by two new ferries with
low maintenance and operating costs. He acknowledged he has
enjoyed mountaineering on the east side of Lynn Canal. Thus, he
has personally observed that attempting to build a road through
some of the vertical cliffs, avalanche shoots, and steep slopes
would be foolish. He recalled several years ago two seasoned
mountaineers attempted to walk the route of the proposed road
and produced a film of their trip called Steep not Cheap.
Additionally, he noted an engineering report by Golder
Engineering details more than 100 geological hazards on the
proposed route. He objected to the direction DOT&PF's staff has
taken on the road and concluded his testimony by asking members
to support a safe, reliable ferry.
2:03:06 PM
MIKE DENKER said he'd like to ditto Mr. Goldberg's and Ms.
Scott's testimony. He expressed concern over the public process
with respect to the changes to the ACF. He wondered how the
decision was made to abandon a public process, which was
designed to empower citizens in the decisions made in
government. He concluded that this gives the public little
confidence in government. He understood additional public
process is planned for the new concept design, but questioned
the confidence the public will have when the MTAB was not
consulted on the project changes recently made. Additionally,
he expressed concern that the statutory requirement was not
followed in making a change in deputy commissioner [overseeing
the AMHS]. He concluded that he and others are concerned
because of what it says about the public's voice in government.
He urged members to ensure that these concerns are addressed.
2:04:48 PM
DEBORAH VOGT stated she is a ten-year resident of Haines and a
forty-year resident of Alaska. She spent twenty years in
government, mostly in the attorney general's office, working
with leaders, including former Governor Jay Hammond, former
commissioners Will Condon, Av Gross, and Hugh Malone. She
related that she strongly believes in the public process. She
said, "I guess I think that the public process in this case has
been appalling." Even if there were no specific statutes, the
process should have been much better; however, the DOT&PF has
specific statutes requiring input to MTAB on the person who
"heads up" the marine highway system for the department. She
asked members for questions the department asked the engineers,
especially given these policy concerns. She understood a draft
report currently exists. She acknowledged the necessity for the
administration to not make draft reports public until an
internal review has been conducted, but certainly it seems
reasonable to ask the department what questions it asked of its
engineers.
2:06:58 PM
ED PHILLIPS acknowledged numerous excellent comments have
already been made. While he was initially alarmed to hear the
DOT&PF was considering an open deck, he is now relieved to learn
there isn't necessarily going to be an open deck on the proposed
shuttle ferries. He cautioned that any design must consider
winter conditions. He frequently travels from Haines to Hoonah
since he owns the Icy Strait Lodge and depends on the ferries.
He has experienced inclement weather conditions and noted the
problems the fast ferries encountered with weather. The fast
ferries were initially going to run 12 months a year, but were
reduced to five-month operations. He emphasized the importance
of vessel and passenger safety. He acknowledged that people are
apprehensive since they really don't know the details and scope
of the new proposed ferries. He characterized the ferry system
as being a "lifeline" and connecting highway. He urged members
to make sure the [AMHS's] highway is reliable because people
depend on it.
2:09:10 PM
PAUL DAVIS, Business Owner, stated he runs an eco-tourism
business in Sitka but he lives in Kake in the winter since his
wife teaches in Kake. He stated his family relies on the ferry
system. He expressed disappointed in the proposed change to the
ACF since the two shuttle ferries will not properly serve
Southeast Alaska. The public process maintained and the
decision was not warranted, he said. He offered his preference
for a ferry similar to the M/V Taku. He pointed out Alaska is a
wonderful place and one reason Alaska is unique is because of
its world-class ferry system. He often travels to Sitka via
Peril Straits and Chatham Straits to Auke Bay and commended the
DOT&PF for the amenities on its current ferries, including
atmosphere conducive to socializing with Alaskans, good food,
helpful staff, and comfortable staterooms. He characterized the
ferries as special, safe, and unique. He related some
additional personal experiences he has had on the ferries. He
expressed concern that the proposed ferries will not have the
same amenities or adequate safety. He concluded by stating tax
dollars should be spent on ferries that meet the existing
standards.
2:12:29 PM
STAN SELMER, Mayor, City of Skagway, referred to his letter of
January 18, 2013 in members' packets. He said as he listened to
testimony today he admitted he was unsure of how the project got
changed. He pointed out as mayor he must listen to the public
he serves. He remarked the M/V Chilkat had a nickname related
to seasickness, but was replaced by the M/V Malaspina.
2:14:09 PM
GARY HANSON related his background, including 23 years spent
working for the AMHS, ending with eight years as manager of the
Skagway terminal. Last October, he was elected to the assembly
and was subsequently appointed as commissioner of an ad hoc
marine highway committee formed by Mayor Selmer to address ferry
service reductions. The committee was created to address
service reductions, specifically that ferries did not serve
Haines or Skagway on Sunday, which greatly reduced travelers to
those communities. His committee worked with Captain Neussel
and his staff which resulted in an excellent "day boat" schedule
for the summer 2013, noting the vessel would depart Juneau at 7
a.m. and return to Auke Bay at 9:30 p.m. He characterized the
schedule as the best he has ever seen. He had anticipated the
ACF would follow a similar service, but he now believes the
proposed shuttle ferries cannot possibly provide this service,
he said.
2:16:05 PM
JAN WRENTMORE, Business Owner, stated she serves as a
commissioner on an ad hoc marine highway committee in Skagway.
She asked to echo testimony on the recent decision to change the
ACF to two shuttle ferries and how that decision was made. She
acknowledged she is unsure of whether the decision is a bad
decision, but the way the decision was made was a failure of the
process. She said it is something of an embarrassment since
this is the 50th anniversary of the ferry system and
celebrations are being planned. She characterized the timing as
"terrible." She has heard the department testify on three
separate occasions outlining "the story" including that the
governor hit the "reset button" or touting the build "two for
one" concept. She related she has been in business for nearly
40 years. She questioned the total cost of the proposed shuttle
ferries since the design is not complete. She expressed concern
that ferries without crew quarters will not suffice using the
proposed 12-hour vessel operation rule since one shuttle will
only get passengers as far as Haines. She would like better
information and in-depth analysis on operating costs for two
ferries versus one ACF ferry. She also requested the cost per
mile and ticket price per mile for the proposed shuttle ferries
as compared to the ACF. She noted passengers in her community
often pay two to three times as much as other places.
SENATOR EGAN related that all testifiers can submit written
testimony. The committee has reviewed the comments thus far.
2:19:32 PM
KEN RUSSO stated he is a 34-year Skagway resident and retired as
harbormaster. He said he was dismayed about the governor's
decision to "scrap" the ACF after so much work purportedly to
save money. He wondered how much money has been wasted. He
also said he is skeptical that two ferries can be built for the
cost of one and questioned the seaworthiness of two smaller
ferries. He reported that the weather in Lynn Canal presents
difficult conditions, noting the M/V LeConte has had numerous
cancellations this season, and reliability is important to
communities. He said seemingly overnight the project went from
a good schedule with favorable public comment to appointment of
Mr. Kemp as commissioner and Mr. Yost supervising the AMHS. He
questioned the direction and motives of the administration in
terms of serving Lynn Canal or Southeast Alaska. He
characterized the process as meeting a political agenda to
promote the road by making the ferry as user unfriendly as
possible.
2:22:18 PM
HEINRICH KADAKE, Mayor, City of Kake, agreed with testimony by
Mr. Paul Davis and other testifiers from Haines. He expressed
concern about the smaller ferries. He said Kake's citizens and
elders are accustomed to traveling on larger ferries and
expressed concern that the effect of changes to the shuttle
ferries would limit travel. He asked to speak against the
governor's decision.
2:24:06 PM
KEVIN SHIPLEY, Superintendent of Schools, Kake City School
District, in response to Chair Egan, acknowledged he sent his
letter to the committee. He commended the AMHS service as being
consistent and reliably used by school children to participate
in events. He expressed concern about smaller ferries' ability
to provide safe, reliable service and the additional travel time
it may take.
2:25:31 PM
VICKY WOLF, President; Chief Executive Officer, Kake Tribal
Corporation, related she grew up with the M/V LeConte. She
expressed concern about safety of smaller vessels, in
particular, for school children traveling to events.
MR. KADAKE interjected that Kake opposes the decision.
2:26:27 PM
BERN SAVIKKO stated he is a lifelong Douglas resident who has
served approximately 30 years at DOT&PF, during which he spent
the majority of his time spent designing ferry terminals
throughout the system. He acknowledged he frequently rides the
ferries. He said he has observed decision-making at DOT&PF,
noting it sometimes was influenced by politics. He offered his
belief the recent decision on ACF design changes was a political
decision, disrupting an ongoing planning process. He looked
forward to seeing how the proposed vessel would work with the
existing terminal and the viability of using the smaller vessels
for the longer runs. He acknowledged the tension between roads
and ferries, but would like to strive for a balance of roads and
ferries to sustainably and economically serve Southeast Alaska.
He suggested part of the solution lies with the vessel design
for the upper Lynn Canal service between Juneau and Haines. He
urged members to look at the details and provide the best
vessel.
2:28:25 PM
DONALD WESTLUND said he has lived in Ketchikan since 1976 and
first traveled on the M/V Malaspina. He recognized the ACF
ferry project changed based on public comment; however, he
expressed concern that this has happened. He referred to costs
for the proposed Juneau Access road, which has currently risen
to twice the estimated cost. He acknowledged that projects
typically go over budget. He concluded the proposed changes to
the ACF project will not serve the southern routes and will not
improve the service. Further, he does not approve of the
governor's changes to the ACF without public input. He asked
members to bring the ACF project back since the service will
serve all of Southeast Alaska.
2:32:19 PM
GINGER FORTIN emphasized and echoed comments made by a Juneau
resident about having accommodations for disabled on the
ferries. She lives in Homer and people often need to access the
inside passage.
2:33:35 PM
ED MARKSHEFFEL stated he worked for AMHS for 36 years, including
working as chief purser for the AMHS. He agreed with comments
made by Mayor Scott from Haines. He expressed concern about
vessel safety of using smaller vessels.
CHAIR EGAN thanked him for his service.
2:34:52 PM
MIM MCCONNELL, Mayor, City and Borough of Sitka, related that
Sitka's economy is highly reliant on the AMHS. Sitka has
strongly supported the MTAB and many residents have supported
the ACF. She expressed concern that the proposed shuttle
ferries will not be able to serve Sitka. They do not achieve
the intent of the ACF project and were committed to without any
MTAB or public input. An unidentified assembly member (female)
interjected she supported the comments made by the Haines and
Sitka mayors.
2:36:49 PM
FRANK MCQUEARY said he totally agrees with the governor. He
expressed concern about the AMHS subsidy. He further expressed
concern about the unsustainable costs for per mile travel. He
offered his belief the magnitude of the proposed ACF ferry
project is enormous and the cost is unsustainable. He described
and compared this subsidy to his road use per mile. He offered
his belief the unfairness of this has been ignored. He opposed
having AMHS as a separate entity within DOT&PF and it should not
compete with other forms of transportation. He referred to the
AIAS as self-sustaining and noted the low cost per road mile as
compared to the AMHS, which is a never ending drain to the
budget. He congratulated the DOT&PF and the governor in making
the decision to change the ACF project. He concluded that it is
necessary to look at the AMHS as part of a transportation
system, which needs to be maximize the efficiency as oil
revenues decline.
2:40:38 PM
DAVE WHEELER stated the mainline ferries are necessary and the
day boats are great for Haines and Skagway. He said, "The
"little boats" aren't going to work for us."
2:41:44 PM
STAN JORDAN said hello to Chair Peggy Wilson and to Ed
Marsheffel, his former shipmate. He related he is a retired
engineer with over 25 years of total experience with the AMHS.
He stated the new vessel size should be at least the 235-foot
M/V LeConte size or larger; however, he offered his belief the
Prince of Wales class at 160 feet is not large enough to meet
some sea conditions in Southeast Alaska. He asked what happened
to the ACF. He wondered if the two ferries would be similar to
the M/V Fairweather and the M/V Chenega, which he characterized
as a "fiasco." He also said the state cannot afford another
fiasco like those vessels. He reiterated the new vessels must
be all weather capable to serve in Lynn Canal, Dixon Entrance,
or Clarence Straits. He described some of his personal
experiences on the M/V LeConte in winter conditions that took
more than twice the time, noting the vessel experienced
tremendous icing conditions. He recalled the M/V Taku was one
of the cheapest ships to operate.
2:47:39 PM
ADJOURNMENT
There being no further business before the committees, the joint
meeting for the House and Senate Transportation Standing
Committees was adjourned at 2:47 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Aviation Overview Joint Trans 24 Jan 13.pdf |
HTRA 1/24/2013 1:00:00 PM |
|
| AMHS Design Public Comments.pdf |
HTRA 1/24/2013 1:00:00 PM |