03/28/2006 01:30 PM House TRANSPORTATION
| Audio | Topic |
|---|---|
| Start | |
| SB304 | |
| HB397 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 397 | TELECONFERENCED | |
| + | SB 304 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE TRANSPORTATION STANDING COMMITTEE
March 28, 2006
1:36 p.m.
MEMBERS PRESENT
Representative Jim Elkins, Co-Chair
Representative Carl Gatto, Co-Chair
Representative Vic Kohring
Representative Mark Neuman
Representative Bill Thomas
Representative Mary Kapsner
MEMBERS ABSENT
Representative Woodie Salmon
COMMITTEE CALENDAR
SENATE BILL NO. 304
"An Act relating to the privileges of airport parking shuttles
and to fees or charges imposed on a person who is not a lessee
or holder of a privilege to use the property or a facility of an
airport."
- HEARD AND HELD
HOUSE BILL NO. 397
"An Act making an appropriation for an upgrade of signal system
emergency devices in Anchorage, contingent upon matching funds
from the Municipality of Anchorage; and providing for an
effective date."
- HEARD AND HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 304
SHORT TITLE: AIRPORT PARKING SHUTTLES/AIRPORT CHARGES
SPONSOR(s): TRANSPORTATION
02/21/06 (S) READ THE FIRST TIME - REFERRALS
02/21/06 (S) TRA, FIN
02/28/06 (S) TRA AT 1:30 PM BUTROVICH 205
02/28/06 (S) Heard & Held
02/28/06 (S) MINUTE(TRA)
03/09/06 (S) TRA AT 1:30 PM BUTROVICH 205
03/09/06 (S) Moved SB 304 Out of Committee
03/09/06 (S) MINUTE(TRA)
03/10/06 (S) TRA RPT 1DP 2NR
03/10/06 (S) DP: HUGGINS
03/10/06 (S) NR: KOOKESH, FRENCH
03/14/06 (S) FIN AT 9:00 AM SENATE FINANCE 532
03/14/06 (S) Heard & Held
03/14/06 (S) MINUTE(FIN)
03/17/06 (S) FIN RPT 6DP
03/17/06 (S) DP: WILKEN, GREEN, BUNDE, OLSON, DYSON,
STEDMAN
03/17/06 (S) FIN AT 9:00 AM SENATE FINANCE 532
03/17/06 (S) Moved SB 304 Out of Committee
03/17/06 (S) MINUTE(FIN)
03/20/06 (S) TRANSMITTED TO (H)
03/20/06 (S) VERSION: SB 304
03/22/06 (H) READ THE FIRST TIME - REFERRALS
03/22/06 (H) TRA, FIN
03/28/06 (H) TRA AT 1:30 PM CAPITOL 17
BILL: HB 397
SHORT TITLE: APPROP: ANCHORAGE SIGNAL UPGRADE
SPONSOR(s): REPRESENTATIVE(s) ANDERSON
01/25/06 (H) READ THE FIRST TIME - REFERRALS
01/25/06 (H) TRA, CRA, FIN
02/21/06 (H) TRA AT 1:30 PM CAPITOL 17
02/21/06 (H) -- Meeting Canceled --
03/28/06 (H) TRA AT 1:30 PM CAPITOL 17
WITNESS REGISTER
RYAN MAKINSTER, Staff
to Senator John Cowdery
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented SB 304 on behalf of Senator
Cowdery, sponsor.
SENATOR CHARLIE HUGGINS
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified in support of SB 304.
SENATOR JOHN COWDERY
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified as sponsor of SB 304.
MIKE NEELY, Regional Vice President
Diamond Parking
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 304.
JOHN BARSALOU, Property Director
Anchorage International Airport
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to SB 304.
MARK PFEFFER
Venture Development Group
Anchorage, Alaska
POSITION STATEMENT: Testified against the off-site rental car
provision in SB 304.
JOHN STEINER, Assistant Attorney General
Transportation Section
Department of Law
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to SB 304.
CONNIE GURICH, Director of Properties
Hertz Corporation
POSITION STATEMENT: Testified against the off-site rental car
provision in SB 304.
JAMES BOLYEFKO, General Manager
National and Alamo Car Rental
POSITION STATEMENT: Testified against the off-site rental car
provision in SB 304.
RAY MUNDY, Executive Director
Airport Ground Transportation Association
University of Missouri
St. Louis, Missouri
POSITION STATEMENT: Provided information on SB 304.
JOHN KIEWIK
Municipality of Anchorage
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 397.
BOB KNIEFEL, Traffic Engineer
Municipality of Anchorage
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 397.
ACTION NARRATIVE
CO-CHAIR JIM ELKINS called the House Transportation Standing
Committee meeting to order at 1:36:32 PM. Representatives
Elkins, Kohring, Gatto, and Neuman were present at the call to
order. Representatives Thomas and Kapsner arrived as the
meeting was in progress.
SB 304-AIRPORT PARKING SHUTTLES/AIRPORT CHARGES
CO-CHAIR ELKINS announced that the first order of business would
be SENATE BILL NO. 304, "An Act relating to the privileges of
airport parking shuttles and to fees or charges imposed on a
person who is not a lessee or holder of a privilege to use the
property or a facility of an airport."
RYAN MAKINSTER, Staff to Senator John Cowdery, Alaska State
Legislature, said he is presenting the bill on behalf of the
Senate Transportation Standing Committee. He said there are
several types of transportation services at the airport,
including limousines, taxis, shuttle busses, and off-airport
parking shuttles. He said AS 02.15.090 requires fees to be
charged by the airport that are reasonable and uniform. The
fees must be established with due regard to property and
improvements used and the expense of operation. He said these
rates are charged depending on the amount of use and the size of
the vehicles. The fees range from $50 per year for a courtesy
vehicle or taxi and up to $1000 per year for a scheduled bus.
He said off-airport parking services use a shuttle system with
about five vehicles at $500 per vehicle.
1:38:34 PM
MR. MAKINSTER said in 2005 the Department of Transportation &
Public Facilities (DOT) proposed regulations that would
drastically change this fee for off-airport valet parking
services from $500 per vehicle to 8 percent of gross revenues.
He noted that it is the same service as the shuttles for hotels,
but this new charge will not apply to them. The new fee for the
parking lot will be over $100,000 annually. He said the 8
percent of gross revenue is a problem because it is an off-site
facility with no tie to the airport. [Diamond Parking] is not a
concierge in the airport facility, he noted, but the airport is
still requiring [Diamond Parking] to "give up their books."
This bill specifically says that if there is a charge off-
airport, it should be in line with fees charged to other
services. It should be a fee based on use or a set fee, instead
of a percentage of gross because that requires a private
business to open up its books to a public entity.
1:40:35 PM
CO-CHAIR GATTO asked about Diamond Parking using a bus, which
would be $1000 per year, not $500 per vehicle per year.
MR. MAKINSTER said Diamond Parking uses a shuttle bus, not a
full-sized tour bus.
CO-CHAIR GATTO asked if taxis are charged per vehicle per year.
MR. MAKINSTER said that is true.
1:41:30 PM
CO-CHAIR GATTO noted that everything else is a flat fee per
vehicle, but this charge will be 8 percent of gross revenue.
MR. MAKINSTER said it was a regulatory change make by DOT. The
airport would be asking for that fee through the regulations.
REPRESENTATIVE THOMAS asked if the fees have been implemented.
SENATOR CHARLIE HUGGINS, Alaska State Legislature, said suddenly
[Diamond Parking's] fee will jump to over $100,000. He
expressed concern that the fee is based on a percent of the
company's gross, which means that it will have to open up its
books to the government. "That's a bridge too far."
MR. MAKINSTER said the fees haven't been implemented yet.
1:44:17 PM
SENATOR JOHN COWDERY, Alaska State Legislature, said [Diamond
Parking] is willing to install an automatic counting mechanism.
SENATOR HUGGINS said he is hopeful that it will be resolved.
"When we did the parking facility bonding, it was about there
would be some off-airport rental cars to assure people that
wanted to do that, and of course the others would pay a higher
fee for what they were doing on the airport."
CO-CHAIR ELKINS said the bill will not move today.
SENATOR COWDERY said he asked Alaska Airlines about this, and
"the head guy told me it was insignificant; it was like, to
them, one Kleenex out of a box of Kleenexes...it didn't have an
effect on their landing fees."
1:46:34 PM
REPRESENTATIVE NEUMAN said the bill seems to come down to one
statement: DOT will treat everyone the same and keep the state
out of peoples' books.
MR. MAKINSTER said yes; statute requires that fees be reasonable
and uniform, and this increase is not reasonable or uniform.
1:47:33 PM
REPRESENTATIVE NEUMAN asked what ground transportation fees will
be affected by the bill.
MR. MAKINSTER said they could all be affected because the bill
limits the airport from charging a percentage of gross in the
future. He said it currently only affects off-airport parking
and off-airport car rental companies.
CO-CHAIR GATTO postulated that renters of space and retail shops
in the terminal pay a monthly fee, not based on gross revenues.
MR. MAKINSTER said he assumes there is a lease agreement based
on gross revenue or triple net. He said the airport's general
operating funds come from all the airlines and the individuals
leasing space inside the terminal. The bill will not affect the
individual much, if at all. Some of the renters are inside the
security perimeter, which gives them a larger market.
1:50:05 PM
CO-CHAIR GATTO spoke of a massage business in the security area,
which pays $1000 per month, and perhaps not on gross sales.
MR. MAKINSTER said that business exists and is profitable. He
said it probably has a class of agreements within the building,
starting with a rental fee to some sort of net revenue.
SENATOR COWDERY said the railroad has a shuttle and is not
charged on a percentage.
REPRESENTATIVE NEUMAN said it seems reasonable that a business
doing a long range plan should know what its costs are going to
be. "How do you know what 8 percent of your sales are going to
be until you get there?" A flat rate seems more reasonable.
1:52:14 PM
REPRESENTATIVE KOHRING said this amounts to a tax.
MR. MAKINSTER said it is a proposal, and there will be a public
comment period.
SENATOR HUGGINS said that Diamond Parking may have impacted on-
site airport parking. "The way to level the playing field is
not to up the ante on how much money you're going to take from
them." He said government is not to compete with private
business. He said he has difficulty finding parking at the
airport until he gets to the higher floors.
1:53:38 PM
MIKE NEELY, Regional Vice President, Diamond Parking, said he
supports the bill. He said Diamond Parking took over a piece of
land that was the Spenard community dump. It is only fit for
parking and now holds 1200 vehicles after a $12 million
investment. It is open 24 hours a day, employs between 25 to 30
people, and has a payroll of about $500,000. The company pays a
$500 per vehicle ramp pass for five vehicles. He said the
proposed fee will be about $120,000. It could make the
difference between a profit and loss, he stated. He said it
isn't fair, and he has tried to come to an agreement with the
airport. He said his company also operates in Salt Lake City
and Spokane. He described operations at those two areas. He
said he proposed to install equipment to do [vehicle-use]
tabulation that would allow the airport to expand fees,
especially for taxis.
1:57:18 PM
MR. NEELY said using the gross percentage is horrendous because
his company only uses the airport when a client leaves or
returns, and the car is on the lot for any number of days.
There was a comment period, and it is now in an appeals process.
There is a hearing officer that will hear the case, but there is
no date for that. "Because of the airport's attitude in dealing
with this, we thought we would seek the remedy here, and that's
why we are in favor of this bill."
1:58:20 PM
CO-CHAIR GATTO asked what the airport charges now.
MR. NEELY said there is no charge now. The company just pays
the $500 per vehicle fee, and the company has five vehicles.
The costs would change from $2,500 to $120,000 annually.
1:59:23 PM
JOHN BARSALOU, Property Director, Anchorage International
Airport, said the airport is required to be financially self-
sustaining. An operating agreement establishes various fees for
uses and privileges, which pays for the costs of operation. The
airport is thus revenue-neutral and entirely funded by user
fees. This bill seeks to block the airport from assessing a
user fee for one group of users. He said this is an issue for
the businesses groups-the airlines who pay most of the operating
costs under the operating agreement and other businesses that
get the benefit of the airport's infrastructure and market, and
who are generally required to pay their fair share. This bill
limits the airport's ability to charge those fair shares. On
behalf of the tenant, the airport opposes the bill. The
proposed fee is a privilege fee for the benefit received. He
said Section 1 of the bill doesn't preclude the airport from
charging a fee, it just limits the ability to use the most
efficient fee, which would be based on gross revenue. It is
appropriate to have different classes of use for different types
of ground transportation, he noted. Other concessionaires in
the terminal do pay a percentage of gross revenues or a minimal
annual guarantee. Diamond Parking was aware of this before it
constructed the lot. He said the off-airport rental car
companies have been paying this 8 percentage gross for many
years. It is done around the country, he stated.
2:02:53 PM
REPRESENTATIVE NEUMAN said he would think that figuring out
gross revenues for a company would be more difficult than
requiring a set fee.
MR. BARSALOU said a trip-fee system requires an accounting
procedure, tracking busses, maintaining transponders, and staff
to accomplish all that. He added that charging a percentage of
gross only requires a company to submit certified activity
reports every month, as is done with other concessionaires. He
noted that it is on the honor system, and then an auditor does
an audit every few years. "It is a much cheaper way of actually
collecting the fee."
REPRESENTATIVE NEUMAN said he is not sure he agrees.
2:04:09 PM
MARK PFEFFER, Venture Development Group, said his company is
developing the consolidated rental car facility at the airport.
He said he has no financial interest in the bill, but he is
informed about the business and is neutral except the provision
on the rental cars. He said it is not appropriate to remove the
8 percent charge for the off-airport rental car companies. He
said the shuttles for off-airport rental car customers differ
from other shuttles. There are no hotels operating on the
airport so users are free to choose. For passengers using
shuttles to hotels, the cost of that convenience is factored
into the hotel cost structure. Hotels without a shuttle, he
said, offer less cost for less convenience. All places of
lodging have equal access to their customer base, he noted, and
they can purchase advertising at the airport.
2:06:35 PM
MR. PFEFFER said there are no public-sector rental car
businesses at the airport, only private sector. Each rental car
business is free to make its own competitive choices regarding
access to customers, and that access should require a fee, he
stated. The fee imposed by the airport to off-airport rental
car customers using a shuttle was set at 8 percent to reflect
the less convenient access but high enough to reflect the access
to the market base. He said, "The fee should not be waived to
the mere fraction reflected by a nominal annual fee or a per-
trip rate structure, since the point of the fee is not a charge
for operations on airport, but a charge for access granted to
the customer base." Fees for operating on the airport are in
addition to the 8 percent charge for off-airport companies or
the 10 percent fee charged for the on-airport companies. He
said the 8 percent fee is purely to access the customer base,
and the difference of 2 percent is appropriate. Currently
passengers may seek out off-airport companies without paying the
8 percent fee, but only by making their own arrangements, for
example by taxi. He said the right to operate a shuttle at the
airport is what the off-airport rental car company chooses to
purchase to gain access to a customer base. If the percentage
structure is removed from the off-airport companies, they will
have a competitive advantage. He requests that "and off-airport
rental car offices" be stricken from line 31 of the bill.
2:10:12 PM
REPRESENTATIVE KOHRING asked if fees are going to be charged to
the airlines and railroad who access the same customer base.
MR. BARSALOU said fees are charged to the airline, and the
railroad could be charged too. The railroad built a tunnel, so
some of its fees were delayed.
REPRESENTATIVE THOMAS said the fiscal note says the bill will
undermine changes the legislature enacted last year for a
financing mechanism--the customer facility charge. He asked if
that was under construction and who was doing it.
MR. PFEFFER said it was his project. It would not impact him
personally, his fee is set, and no matter what happens, his
costs don't go up. The fiscal note is correct, because if the
off-site rental car companies can use a shuttle without paying
the 8 percent fee, they will have an advantage. He said some of
the customers could take advantage of using a shuttle and going
off airport, which would reduce the number of transaction days
at the airport, thereby increasing the customer facility charge.
2:13:30 PM
MR. MAKINSTER said it is the intent of the sponsor "not to take
that out." He said when he is at an airport he always uses the
on-site rental car companies, "even if it's 10 bucks more." He
said that is the advantage, "so by taking the off-airport
rentals out, we don't feel that we're giving a competitive
disadvantage to the people in the airport."
REPRESENTATIVE THOMAS said airport rental car fees are high
enough that he has stopped using them in Seattle. He said it is
now cheaper to fly between Medford, Oregon and Seattle. He said
the taxes are ridiculous--almost 50 percent. He noted that the
fiscal note also points out that a $150,000 to $200,000 burden
would be transferred to the airlines, and thus their customers,
instead of Diamond Parking.
2:15:39 PM
MR. MAKINSTER said that amount would have to be absorbed, so it
is a revenue-neutral system. He said the signatory airlines and
the other commercial entities in the building would pay for
that, and "obviously that would get passed on to passengers."
He said Senator Cowdery talked to Alaska Airlines and was told
that amount is virtually nonexistent. "And you have to
consider, yes, it may be carried over to the concessionaire-that
was mentioned-that it would be doing massages, but his amount
compared to how much the signatory airlines pay to land there,
his amount would probably be almost nothing. So that amount
would not pass on."
CO-CHAIR GATTO said the bill simply maintains the current
system; there is not cost-shifting.
2:16:41 PM
MR. MAKINSTER said that is correct, but the proposed regulation
would change, and the assumed money would have to shift.
CO-CHAIR GATTO said the fiscal note refers to the airport
facilities charge to construct a new area. He recalls
establishing a $4 per day charge to construct the facility, and
he asked the relationship to off-airport parking.
2:17:37 PM
MR. MAKINSTER questioned why that would be used as a
justification for the off-airport parking fee, and he said it
goes in the face of last year's testimony.
CO-CHAIR GATTO said he frequently rents cars at the airport, and
after a 10 percent increase, he parks "in the next zip code
trying to get back to the airport, which meant hustle over to
some little shed" to wait for a bus. He noted that he is paying
10 percent more for a facility charge, and there is no facility,
and he might be dead before he can enjoy the facility. The
"burden was going to a group of people to pay for some other
group of people." Now, with this bill, he has distrust over any
proposal. He noted that an attorney general asked the committee
to hold the bill and told him Diamond Parking makes money
because the airport exists, "so you owe the airport something in
exchange for being able to access this huge amount of people who
want to park a car-who would never be parking a car there if it
wasn't for an airport." He said the access to the customer base
should be charged a uniform rate.
2:20:50 PM
MR. MAKINSTER said that argument could be made for a hotel near
the airport.
2:21:52 PM
JOHN STEINER, Assistant Attorney General, Transportation
Section, Department of Law, spoke to the issue of costs
shifting. He said that prior to the imposition of the parking
charge, there had been parking charges at the airport itself as
part of the cost structure of the airport. He said those
charges are to help recover part of the costs of the airport as
a whole. He said there was a time when parking was privately
operated, and the operator paid a percentage of gross revenues;
it was a higher percentage. The lot then became a management
contract. He noted that when Diamond Parking opened its
facility, the other lot lost customers. The user fee has become
less uniform in terms of support by parking customers. There
was a cost shifting that now had to be borne by the airlines,
and this would shift some of it back, he stated.
2:25:25 PM
CONNIE GURICH, Director of Properties, Hertz Corporation, said
the airport is a unique landlord offering infrastructure and
access to customers. She said every five years, Hertz bids for
the privilege of being on the airport, but the airport receives
large sums of money in the form of a minimum annual guarantee, a
percentage of gross revenue, and rental-space fees. She doesn't
want to change the competitive advantage of Hertz, who provides
the same kind of service. Whether operating on the airport or
off, all should pay the same percentage level on the gross
revenue component. To change the formula for the rental car
industry market would disadvantage those, like Hertz, who put a
great deal of time and effort to create a business plan and bid
for the use of the airport. She said she agrees with paying 2
percent more because of being right at the airport, but the
company still needs the infrastructure, counter, and office
space. She said the off-airport operators get the same facility
from a local landlord, and they are at a cost-advantage. She
said it is patently unfair if change the formula for one group
in the same industry. "You can't charge the off-airport rental
cars a trip shuttle fee while you charge the on-airport rental
cars 10 percent of their gross revenues. They will absolutely
drive the market off the airport." She said then all the others
will leave the airport. She requested striking the provision
that deals with off-airport rental car companies.
2:29:52 PM
REPRESENTATIVE NEUMAN asked Ms. Gurich if Hertz will leave the
airport if this bill passes.
MS. GURICH said absolutely not.
REPRESENTATIVE THOMAS said he thought the committee was talking
about Diamond Parking.
2:32:02 PM
JAMES BOLYEFKO, General Manager, National/Alamo Car Rental, said
his companies have 25 percent of the market at the Anchorage
airport, and he is also acting president of the airport car
rental operators for the car rental consolidated parking
facility. He said SB 304 includes an exemption of the existing
percentage of gross fee for car rental companies operating off
site. It jeopardizes the revenue stream that is in place to
maintain the long term commitment for the consolidated rental
car facility. He said there is a financial plan in place. If
the revenues are positive, the concession fees can be stable or
reduced, which is good for all travelers. Without the 8 percent
fee charged to off-site rentals there may be an on-airport
company to open an off-airport office. So that would be a loss
to the concession fees collected, which could cause that fee to
increase dramatically. With the absence of the 8 percent gross
revenue fee, it would be passed on to the airlines and the
travelers. He said there has been a large commitment to the
rental car facility, and construction has begun. He said that
attracting business away from the airport is not in the business
plan, and he is opposed to the car rental provision in SB 304.
2:35:39 PM
CO-CHAIR GATTO asked about removing that provision.
MR. BOLYEFKO said that is his only objection; he is not in the
parking business.
RAY MUNDY, Executive Director, Airport Ground Transportation
Association, University of Missouri, said the association has
membership on both sides of the issue. He said, nationwide,
about 81 percent of airports charge some sort of fee for off-
airport parking, and the average is 8.25 percent of gross. He
said that Detroit charges 25 percent of gross. He said smaller
airports sometimes charge a fee based on the annual vehicles or
on an annual per-company basis. The general trend is to move
beyond landing fees to pay for airports and more into terminal
and ground transportation fees. Typically car rental companies
are paying 8 percent off-site and 10 percent on-site. For off-
airport parking, most large airports charge a percentage of
gross. He noted that it is common to start at 4 percent and
then move to 8 or 10 percent over a period of years. He said
there have been many court cases and the airports have been able
to charge a access fee based on a percentage of gross in order
to cover overall costs. He said Diamond Parking also operates
in Salt Lake City and so it knows it pays $1.10 for every trip
through the airport, and they should know that typically they
would be paying more than they are at the Anchorage airport.
The $2500 is one of the lowest fees in the country. He said to
move directly to the 8 percent fee is a big jump. He said he is
neutral, but the fee would not be considered arbitrary or
capricious, and he suggested giving consideration to a more
graduated fee. He added that not all fees have to be uniform,
as parking and rental car companies receive much more benefit
from an airport than a hotel, and uniformity is not typical.
2:42:18 PM
REPRESENTATIVE THOMAS asked why a limo pays more than a cab.
MR. MUNDY said taxis often have lower fees because limousines
charge more to their customers.
2:43:56 PM
CO-CHAIR GATTO asked about charging private cars for dropping
off friends or family.
MR. MUNDY said there are several airports who charge such access
fees. He said there are probably no more than three airports in
the country that charge every single vehicle. He said typically
mom's car pays nothing. A shuttle is conducting a business and
expected to pay.
CO-CHAIR GATTO asked about a typical fee.
MR. MUNDY said there are fees for each class of operations, and
for off-airport parking, he said it is from 2 percent to 25
percent of gross revenues. Larger airports typically charge
more. A toll booth is often $1.75 to $2 per trip. There is
also dwell-time if the vehicle stays more than 3-5 minutes. He
also spoke of a permit fee for each driver, vehicle, and
business license. As he mentioned, there is a shift more to
terminals and ground transportation to pay for the airport.
Most usable revenue for U.S. airports comes from car rental and
parking revenue.
2:48:55 PM
MR. MUNDY said landing fees are spent on maintaining the airport
and runways, and the parking and car rentals are where the
airports really make their money. Liquor sales and shoe shining
make the most money on a square-foot basis.
2:49:49 PM
MR. MUNDY said he hopes that the parking facility can
participate like a partner with the Anchorage airport.
[SB 304 was held over]
HB 397-APPROP: ANCHORAGE SIGNAL UPGRADE
CO-CHAIR GATTO announced that the final order of business would
be HOUSE BILL NO. 397, "An Act making an appropriation for an
upgrade of signal system emergency devices in Anchorage,
contingent upon matching funds from the Municipality of
Anchorage; and providing for an effective date."
JOHN KIEWIK, Anchorage Municipality, said Anchorage may have
80,000 more people by the year 2020. There are now more
vehicles in Anchorage than people--a problem for emergency
responders at intersections. The bill will help, he stated.
2:53:11 PM
CO-CHAIR GATTO asked about the "opticoms," which were bulkier
and more expensive. He asked the cost of installation of "one
of these."
MR. KIEWIK said the intersection cost is about $15,000, and the
placement of the light on the apparatus is about $1,100 per
vehicle, but that part is completed. He said Anchorage only
needs the intersection installs.
2:54:15 PM
MR. KIEWIK said, in response to Representative Neuman, one fifth
of the intersections in Anchorage have the system in place.
BOB KNIEFEL, Traffic Engineer, Municipality of Anchorage, said
that 45 intersections have the pre-emption system installed and
there are approximately 200 intersections left, and many are on
the state roads. He is asking for two thirds of the money from
the state, and the municipality will pay for the rest.
CO-CHAIR GATTO asked for proof of the value of the system.
MR. KIEWIK said it can't be measured until the system is
installed. He said the system is good for public safety.
"Under state law, at a red light, it's pretty much an at-will
type thing as far as an emergency vehicle going through.
Someone may or may not yield the right of way," he said.
2:57:04 PM
CO-CHAIR GATTO said he wants to quantify the safety factor.
MR. KIEWIK said there is a timing mechanism which allows for a
pedestrian to walk across the intersection; it doesn't change
instantly and allows time for a driver to react.
CO-CHAIR GATTO asked if the green light stays on until the
vehicle goes through.
MR. KNIEFEL said it will hold the green light as long as the
truck is emitting a signal, and that amount of time is not
really measured beyond several seconds. He said he is not
trying to provide a much shorter response time, but just a safer
response.
3:00:37 PM
[HB 397 was held over.]
ADJOURNMENT
There being no further business, the House Transportation
Standing Committee meeting was adjourned at 3:01:18 PM.
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