Legislature(1999 - 2000)
01/28/1999 01:34 PM House TRA
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
JOINT MEETING
HOUSE TRANSPORTATION STANDING COMMITTEE
SENATE TRANSPORTATION STANDING COMMITTEE
January 28, 1999
1:34 p.m.
HOUSE MEMBERS PRESENT
Representative Andrew Halcro, Vice Chair
Representative Bill Hudson
Representative John Cowdery
Representative Jerry Sanders
Representative Allen Kemplen
Representative Albert Kookesh
HOUSE MEMBERS ABSENT
Representative Beverly Masek, Chair
SENATE MEMBERS PRESENT
Senator Jerry Ward, Chairman
Senator Drue Pearce
Senator Georgianna Lincoln
SENATE MEMBERS ABSENT
Senator Rick Halford
Senator Mike Miller
COMMITTEE CALENDAR
OVERVIEW BY THE DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES
WITNESS REGISTER
JOSEPH L. PERKINS, Commissioner
Department of Transportation & Public Facilities
3132 Channel Drive
Juneau, AK 99801-7898
Telephone: (907)465-3901
POSITION STATEMENT: Provided overview and answered questions.
KURT PARKAN, Deputy Commissioner
Department of Transportation & Public Facilities
3132 Channel Drive
Juneau, AK 99801-7898
Telephone: (907)465-6977
POSITION STATEMENT: Presented information during overview.
ACTION NARRATIVE
TAPE 99-3, SIDE A [HOUSE TRA TAPE NUMBER]
Number 0001
CHAIRMAN JERRY WARD called the joint meeting of the House and
Senate Transportation Standing Committees to order at 1:34 p.m.
House members present at the call to order were Representatives
Halcro, Sanders, and Kemplen. Senate members present at the call
to order were Senators Ward and Pearce. Representatives Hudson
and Kookesh arrived at 1:35 p.m. Senator Lincoln arrived at 1:56
p.m. Representative Cowdery arrived at 2:05 p.m.
OVERVIEW BY THE DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES
CHAIRMAN WARD announced the first order of business to be an
overview of the Department of Transportation and Public
Facilities (DOT/PF), and introduced JOSEPH L. PERKINS,
Commissioner, Department of Transportation and Public Facilities,
State of Alaska.
MR. PERKINS introduced the "Department of Transportation
management team," specifically:
Kurt Parkan, Deputy Commissioner
Boyd J. Brownfield, Deputy Commissioner
Nancy Slagle, Director, Division of Administrative Services
Michael L. Downing, Director, Division of Statewide Design
and Engineering Services
John D. Horn, Regional Director, Central Region
Anton (Tony) K. Johansen, Regional Director, Northern Region
Robert Martin, Jr., Regional Director, Southeast Region
Dennis Poshard, Legislative Liaison/Special Assistant,
Office of the Commissioner
Thomas B. Brigham, Director, Division of Statewide Planning
Robert J. Doll, General Manager, Ferry Operations
SUMMARY OF INFORMATION
MR. PERKINS described transportation as the lifeblood of the
economy. The average American household spends $6000 a year, or
one-fifth their annual income, on transportation, and it makes up
11% of the nation's gross national product. Additionally, 7% of
Americans work in transportation.
MR. PERKINS specified that Alaskans are particularly dependant on
transportation. It is his feeling that the transportation system
in Alaska has improved in the last four years. A recent survey
showed 52% of Alaskans were completely satisfied with the roads
and highways, 90% completely satisfied with the international
airports, and 67% completely satisfied with the Marine Highway
system. He related that 51% of people felt that their area was
funded fairly. With regard to roads, 59% surveyed felt the DOT
was correctly building roads, and 60% believed all gravel roads
in the state should be paved.
Number 0154
MR. PERKINS emphasized that the transportation system in Alaska
has a long way to go; however, it was his belief that the newly
increased federal funding will provide even more improvement.
Despite reductions in the operating budget of the DOT/PF,
progress is still being made in constructing and maintaining the
highway system.
Number 0176
MR. PERKINS referred to the chart on page 1 of the handout dated
1/28/99, titled "Legislative Briefing," which illustrates the
increased use of federal funds. He reported that federal funding
has recently "loosened up," including recently approved funding
for striping. Federal funding does not cover any winter
maintenance, brushing, culvert cleaning or shoulder work, and it
is mostly limited to surface repair work. The funding is
adequate for the time being, he explained; however, any decreased
funding or increased restrictions could cause problems.
Number 0212
MR. PERKINS further stated that DOT/PF crews doing maintenance
work in the summer months are paid with federal funds. This
allows the winter crew members to remain employed in the summer.
He warned, however, that further operating reductions will affect
winter maintenance in Alaska, as this is where the vast majority
of the DOT/PF budget is currently going.
MR. PERKINS cited examples of cost effective DOT/PF division
reorganization within the last two years. He examined specific
changes the department has made in materials and equipment:
using chipseal instead of asphalt in permafrost areas, use of
liquid treatments versus sanding, decreased usage of sand by
means of computerized sand spreaders, and specialized trucks.
Number 0282
MR. PERKINS noted that one of the biggest cost items for the
DOT/PF is electricity. The department is aware of the need to
"attack the electric bill" by means of increased insulation and
weather-stripping. They are looking into "LED" signals in
Anchorage which use about one-tenth the power of regular
signals. He added that requests for lights have been resisted,
not because money is not available to install the lights, but due
to the fact that money is not available to pay the additional
electric bills. Another increased cost for the DOT/PF, he
continued, is the use of cellular phones. Employees plowing in
wild country, in cold conditions, and in the middle of the night,
he explained, are better served with cellular phones than radios.
Number 0313
MR. PERKINS referred the committee to the second chart in the
above-mentioned handout. This chart compared all western states
by lane miles per DOT/PF employee, and Alaska had the highest
number at 34.9 miles per employee. It is his belief that,
considering the vast size of our state, the DOT/PF in Alaska is
extremely efficient.
Number 0344
MR. PERKINS considered the third chart in the handout to
illustrate the 9.9% decrease in budgeted departmental positions
since 1985. They have, however, requested 82 new positions in
the 2000 budget, including 56 positions to run the Malaspina as a
day ferry. He stressed that DOT/PF employees in rural areas take
care of both the airport and the roads in their area.
Number 0378
MR. PERKINS addressed transportation bill TEA-21. He noted that,
although the bill funded fiscal year 1998, it did not get passed
until the end of FY 1998. Therefore, the department operated on
"a bunch of emergency measures," he continued. Despite the fact
that information changed daily and they had little idea what
TEA-21 would cover, Mr. Perkins proudly reported that the
department was successful in obligating every cent of their 1998
funds. In addition to that, he continued, the DOT/PF was able to
pick up an additional $3 million plus from the federal government
in funds returned by states who could not obligate them. He
summarized the benefits of TEA-21, including:
* National funding levels tied to gas tax receipts
* 94% of authorized highway funding "guaranteed"
* Nearly states receive more funding
* More discretionary program funding
* More Congressionally designated projects
Number 0410
MR. PERKINS reported that the DOT/PF recently submitted a request
for funding to the United States Department of Transportation in
the amount of $10 million. If approved, this would be used for
improvements to the Dalton Highway. He reminded the committee
that Alaska is competing against 49 other states for federal
funding; therefore, it behooves the department to be
well-organized. He referred to section 118F of TEA-21 which
allows the state of Alaska to use federal money on any public
highway in the state. With the exception of Alaska and Puerto
Rico, the rest of the states must spend their money on
federally-designated roads.
Number 0466
MR. PERKINS referred the committee to the fourth chart in the
handout which breaks down the available funding and illustrates
the formula used. Despite the projected $315 million figure for
2000, it is his opinion that there will be an additional $1
billion in the trust fund, possibly resulting in increased
funding for the state of Alaska. He cautioned, however, that
beginning in 1999 every state is required to get back at least
90% of the money they paid in for gas taxes. If other states do
not reach this percentage, he explained, the difference is taken
from the states that collect more than 90%. The state of Alaska,
he observed, collects $5 for every $1 paid. Therefore, if
redistribution is needed, it may lower the program funding in
2000. He went on to offer a detailed explanation of each
category in the chart.
Number 0543
REPRESENTATIVE COWDERY questioned whether it was actually
possible to build a bridge in Ketchikan that would be high enough
for ships to go under.
MR. PERKINS agreed that it was a difficult challenge, but he did
not feel it would be impossible. Passing cruise ships would need
to have at least 180 feet to clear it, he added. Currently,
there is $20 million appropriated for the Ketchikan bridge, and
an estimated $12 million of that will probably go to designing it
with an option to do construction management. After that point,
he continued, decisions would need to be made, such as where it
would go, if a tunnel would be better than a bridge, or if a
lower bridge with a draw on it be an option.
SENATOR PEARCE asked, "Above and beyond the engineering
difficulties, at what cost might we be able to land that bridge?
Would $20 million cover it?"
MR. PERKINS said no, and explained that total costs could be
between $60 million and $100 million. The majority of the
construction funds, he noted, would have to come out of another
funding source, as the DOT/PF has elected to not even consider
taking those funds from the regular program.
Number 0579
MR. PERKINS referred the committee two pages ahead in their
brochure to a chart titled "High Priority Projects - Cash Flow
Plan With Adjustment for Reduced Spending Authority." He
stressed that these projects were not submitted by the DOT/PF,
but were suggested by "others." Each one of these projects
listed, he added, require a 20% match. The darker shaded
projects will be done by DOT/PF and match requests will be made.
The lightly shaded projects will be done by the people who
requested them, and responsibility for matches will belong those
people.
TAPE 99-3, SIDE B
Number 0000
MR. PERKINS continued to explain that, historically, the DOT/PF
can expect appropriations to be approximately 88% of the amount
authorized. This requires them to go into projects and reduce
each one individually. However, the funding does not expire, he
observed, and will remain available for that particular project
"forever."
Number 0017
SENATOR LINCOLN asked where Gravina Island is located.
MR. PERKINS explained that was the Ketchikan bridge previously
referred to.
SENATOR LINCOLN asked exactly who the "others" were that
suggested these projects be "high priority."
MR. PERKINS declared that in some cases he did not know; however,
it can sometimes be assumed from title of the project where the
proposals came from.
SENATOR LINCOLN asked if this list represented the total amount
of applications for funds.
MR. PERKINS said that it had been the preference of the DOT/PF to
use all of the TEA-21 funding on the Dalton Highway rather than
these projects. By moving the Dalton Highway funding out of
their regular program, he added, the community list could then be
prioritized by the DOT/PF.
SENATOR LINCOLN asked how is was decided who would be placed in
the list where DOT/PF provides matching funds.
MR. PERKINS cited the example of the Dalton Highway project. He
pointed out that the DOT/PF initially requested $80 million for
this project; however, only $3 million was approved. This
project will actually displace a project from the regular program
and will save that program $3 million, so it was decided funds
should be matched. With regard to the Gravina Island bridge, the
match was appropriated last year and authorized by the
legislature.
SENATOR LINCOLN wondered if money not used in a certain project
could be moved into another or if the allocated funding always
had to follow that project.
MR. PERKINS reported that only the United States Congress could
reprogram money to another project.
CHAIR WARD asked Mr. Perkins to address the issue of the
railroad.
Number 0046
MR. PERKINS explained that transportation plans have been drawn
up regionally. The DOT/PF is requesting funding for a Northwest
Regional Transportation Plan. Such a study would include
assessment of resources available and details regarding how the
railroad would be put in. He announced that this plan has the
support of individuals he has spoken with in Nome, Kotzebue and
Fairbanks.
Number 0070
REPRESENTATIVE SANDERS questioned whether the Cook Inlet shoal
project would be a candidate for this program.
MR. PERKINS indicated that nothing more could be added to this
program for five years; however, changes would be possible after
that time if the congressional delegation authorized it.
REPRESENTATIVE HUDSON stressed that this was the first time many
members of the committees had seen this list of high priority
projects. It was his hope that both the House and Senate
Transportation Committees would be able to take "a hard look" at
each item on this list, and be able to make recommendations to
the congressional delegation through the Administration. He
questioned whether these projects were, in fact, the highest
priorities for the state of Alaska.
MR. PERKINS announced that he would support further review by the
both the legislature and the Administration, and would be open to
hearing suggestions for possible reprogramming.
Number 0092
MR. PERKINS referred back to the TEA-21 chart: specifically, the
program called "Alaska Shakwak." He again clarified the
difference between authorization and appropriation of funds.
Appropriation, he explained, is always done at a lower level than
authorized. This discrepancy creates accounts of money left
over. Due to legislation passed in the 1980s, he advised, the
state of Alaska could give the balance of this money to Canada
for the Shakwak project. This project is for the road from the
Haines border to the Alaska border through Canada; however,
specific wording states the money could be used for the "highway
all the way to Haines and the Marine Ferry System that connects
to the lower 48." That description has freed up $57 million that
does not require a match. It is his recommendation that this
money be spent as quickly as possible, because it is not in
TEA-21 and could be changed in a yearly appropriations bill. The
DOT/PF advised this be divided as follows: $11 million to a
Haines highway project already under construction, $11 million to
a Haines highway project scheduled for next year, and "$30 plus
million" to the purchase of a new ferry.
Number 0143
SENATOR LINCOLN sought clarification as to how the Southeast
ferry system was chosen over other parts of Alaska.
MR. PERKINS stressed that this was determined by minimum change
to the current language describing how this money could be spent.
Any attempt to apply that money to another region in Alaska, he
added, would have required a new paragraph in the legislation,
and it is his opinion that it never would have passed by the
other states. He concluded by returning to the TEA-21 chart and
examining the remaining projects.
Number 0170
CHAIR WARD asked for a brief update on the status of the
Anchorage International Airport project.
MR. PERKINS proudly informed the committee that ratings have
improved, and he is expecting that the bonds should already be
signed off. It is his belief that the interest rate on these
bonds will come in at under 5%. $25 million was authorized by
the Federal Aviation Administration for this project; however, is
was given as a Letter of Instruction (LOI). This mean that the
distribution of this money will be throughout a ten-year period,
he explained, and that will not be sufficient for construction.
Consequently, the DOT/PF will be asking the state of Alaska to
bond an additional $25 million, to be paid back with the federal
money at the end of the ten-year period.
Number 0209
REPRESENTATIVE COWDERY asked whether or not the $25 million
estimation had, in fact, grown to $40 million.
MR. PERKINS observed that there had been a lot of rumors about
cost increases; however, that has not been the case. Some of the
things requested, he explained, were not necessary and were
removed. This did not affect the size, function or aesthetics of
the airport, he added.
REPRESENTATIVE COWDERY asked if $40 million was still coming from
the FAA.
MR. PERKINS clarified that, out of $40 million received as LOI,
$25 million was committed to the terminal project and $15 million
will go to other projects on the airport.
REPRESENTATIVE COWDERY questioned whether passenger facility
charges will be implemented.
MR. PERKINS reported that a final decision on passenger facility
charges has not yet been made; however, all of the major airlines
will support them 100%. So far, he added, Juneau is implementing
them and Ketchikan is on the verge of doing so.
Number 0255
VICE CHAIRMAN HALCRO disclosed his lengthy experience working at
the airport and added that his company has been there for 30
years. He expressed concern that there be adequate indoor
parking so that customers do not have to walk so far in the ice
and snow to get to their car. He further addressed the amount of
money spent by companies on concessionaire fees. He requested
that everyone of the concessionaires involved, regardless of
their industry, have a "seat at the table" regarding
decision-making. He acknowledged that the airport industry is
seasonal, and stressed that the concessionaires are very
important to the stability and livelihood of the airport.
Number 0272
MR. PERKINS expanded on the issue of passenger facility charges,
and stated that it has been requested in the national bill that
small carriers be exempt from such fees.
REPRESENTATIVE COWDERY agreed that small carriers service rural
Alaska; however, he pointed out that some larger carriers, such
as Alaska Airlines, also do so. He wondered if such exemptions
from passenger facility charges would be done by specific airline
or by rural location.
MR. PERKINS explained that the exemption would be by community
and not airline.
Number 0305
REPRESENTATIVE COWDERY asked how much these fees might raise with
or without exemptions factored in.
MR. PERKINS stated he was unaware of the exact figure.
KURT PARKAN, Deputy Commissioner, Department of Transportation
and Public Facilities, informed the committee that it was
estimated "a couple of years ago" to bring in approximately $5
million without exemptions.
VICE CHAIRMAN HALCRO inquired if the estimated 1000 new jobs
would be private-sector jobs through contractors or public state
jobs.
MR. PERKINS stated they would be private-sector jobs.
VICE CHAIRMAN HALCRO wondered if the chart referring to lane
miles per employee could be affected by the fact that some
communities have state-maintained roads and other municipalities
maintain their own roads.
MR. PERKINS understood this chart to be a direct comparison of
work, rather than where the work took place or what it was.
Number 0325
VICE CHAIRMAN HALCRO asked how profitable it is for the Alaska
Marine Highway to operate the current day ferries.
MR. PERKINS clarified that there is currently only one day ferry,
the Malaspina, and that has only operated for 71 days. The cost
was $457,000 to operate between Juneau, Skagway and Haines,
including overhead, risk management charges, and all other
charges. The projected cost approved by the legislature last
year was $577,000. The ferry carried an average of 515
passengers and 140 vehicles, and rented out an average of 15
cabins daily. It should be noted, he added, that there was a
tremendous amount of public acceptance for this day ferry
operation.
CHAIR WARD asked for additional questions. Hearing none, Chair
Ward and Vice Chairman Halcro thanked Mr. Perkins for his
presentation and for bringing his staff with him.
ADJOURNMENT
Number 0352
CHAIR WARD adjourned the joint meeting of the House and Senate
Transportation Standing Committees at 2:53 p.m.
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