Legislature(2009 - 2010)
02/18/2010 01:03 AM House TRA
| Audio | Topic |
|---|---|
| Start | |
| Marine Transportation Advisory Board | |
| Amhs Update | |
| HB329 | |
| 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
February 18, 2010
1:03 p.m.
MEMBERS PRESENT
HOUSE TRANSPORTATION
Representative Peggy Wilson, Chair
Representative Kyle Johansen
Representative Cathy Engstrom Munoz
Representative Max Gruenberg
Representative Pete Petersen
SENATE TRANSPORTATION
Senator Albert Kookesh, Chair
Senator Linda Menard, Vice Chair
Senator Bettye Davis
Senator Kevin Meyer
Senator Joe Paskvan
MEMBERS ABSENT
HOUSE TRANSPORTATION
Representative Craig Johnson, Vice Chair
Representative Tammie Wilson
SENATE TRANSPORTATION
COMMITTEE CALENDAR
MARINE TRANSPORTATION ADVISORY BOARD
- HEARD
AMHS UPDATE
- HEARD
HOUSE BILL NO. 329
"An Act relating to the transportation infrastructure fund, to
local public transportation, to motor fuel taxes, and to the
motor vehicle registration fee; and providing for an effective
date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 329
SHORT TITLE: DEDICATED TRANSPORT FUND/PUB TRANSPORT
SPONSOR(s): TRANSPORTATION
02/05/10 (H) READ THE FIRST TIME - REFERRALS
02/05/10 (H) TRA, FIN
02/09/10 (H) TRA AT 1:00 PM CAPITOL 17
02/09/10 (H) Heard & Held
02/09/10 (H) MINUTE(TRA)
02/11/10 (H) TRA AT 1:00 PM CAPITOL 17
02/11/10 (H) Heard & Held
02/11/10 (H) MINUTE(TRA)
02/18/10 (H) TRA AT 1:00 PM BUTROVICH 205
WITNESS REGISTER
ROBERT VENABLES, Member
Marine Transportation Advisory Board (MTAB)
Haines, Alaska
POSITION STATEMENT: Presented an overview of the Marine
Transportation Advisory Board (MTAB).
JIM BEEDLE, Deputy Commissioner of Marine Operations
Marine Highway System (AMHS)
Department of Transportation & Public Facilities (DOT/PF)
Juneau, Alaska
POSITION STATEMENT: Provided an update on the Alaska Marine
Highway System (AMHS).
JAMES CANTOR, Chief Assistant Attorney General - Statewide
Section Supervisor
Transportation Section
Department of Law (DOL)
Anchorage, Alaska
POSITION STATEMENT: Answered questions during the discussion of
the AMHS Update.
REBECCA ROONEY, Staff
Representative P. Wilson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented the changes contained in the
proposed committee substitute, on behalf of the prime sponsor,
the House Transportation Committee, chaired by Representative P.
Wilson.
BRIAN KANE, Attorney
Legislative Legal Counsel
Legislative Legal and Research Services
Legislative Affairs Agency
Juneau, Alaska
POSITION STATEMENT: Answered questions during the discussion of
HB 329.
FRANK RICHARDS, Deputy Commissioner
Office of the Commissioner
Department of Transportation & Public Facilities (DOT/PF)
Juneau, Alaska
POSITION STATEMENT: Answered questions during the discussion of
HB 329.
CAPTAIN JOHN FALVEY, General Manager
Ketchikan Office
Marine Highway System (AMHS)
Ketchikan, Alaska
POSITION STATEMENT: Presented a PowerPoint overview during the
AMHS Update.
ACTION NARRATIVE
1:03:10 PM
CHAIR PEGGY WILSON called the joint meeting of the House and
Senate Transportation Standing Committees to order at 1:03 p.m.
1:03:41 PM
Senators Menard, Meyer, and Kookesh and Representatives Petersen
and P. Wilson were present at the call to order. Senators
Paskvan and Davis and Representatives Johansen, Munoz, and
Gruenberg arrived as the meeting was in progress.
1:03:51 PM
^Marine Transportation Advisory Board
Marine Transportation Advisory Board
1:04:29 PM
CHAIR P. WILSON announced that the first order of business would
be a presentation by the Marine Transportation Advisory Board.
1:05:37 PM
ROBERT VENABLES, Member, Marine Transportation Advisory Board
(MTAB), related that the MTAB is a voluntary board. He remarked
that he came to Juneau to attend this hearing by traveling on
the Alaska Marine Highway System (AMHS). He introduced two
other MTAB members: Maxine Thompson, Angoon; and Patrick Owen,
Juneau. He commented that the MTAB members are saddened at the
loss of J.C. Conley, who was a strong advocate for the AMHS and
recently died. He characterized the MTAB as a committed group
focused on marine transportation issues.
1:07:48 PM
MR. VENABLES paraphrased from a prepared statement, as follows
[original punctuation provided]:
Our board appreciates the opportunity to stand
before you today and give an overview of its efforts.
MTAB was established in 2003 by Administrative Order
and put into Alaska State Statute in 2008 under AS
01.10.070(c). Our board has been focused on meeting
the many challenges of our unique marine
transportation system. With AMHS staff we have worked
to identify tools in order to improve scheduling,
system efficiency and mobility in Southeast, Prince
William Sound, and Southwest Alaska.
It is proven that dependable and sustainable
transportation systems are vital to economic growth
and stability in rural Alaska. We strongly support
the mission of the Alaska Marine Highway System to
provide safe, reliable, and cost effective marine
transportation throughout the coastal regions of our
state. The economic, cultural, educational and health
benefits to our communities served by AMHS are
extremely important to our quality of life. MTAB
worked closely with AMHS staff to establish long range
scheduling and the past two years have proven that
this approach is working as the anticipated increase
in ridership by Alaska users became a reality.
MR. VENABLES added that more importantly, the reliability of the
schedules and predictability of the system has improved, with
the exception of the old vessels that still break down and cause
unforeseen problems. Customer satisfaction is up significantly
and ridership has followed.
MR. VENABLES continued, paraphrasing from a written statement
[original punctuation provided]:
The first section of the MTAB statute establishes
that DOT&PF, shall in consultation with MTAB, prepare
a long range plan for the development and improvement
of the Alaska Marine Highway System. Each region
encompassing AMHS routes has its own long range plan
for transportation and so we have been attempting to
work with DOT&PF planners on these regional plans.
Currently the Southeast [Alaska] Transportation Plan
(SATP) is up for its 5-year review. Correspondence
with the commissioner and DOT&PF planners have been
ongoing; however, to this date an established day to
sit down and work with DOT&PF on a draft SATP has not
been determined. As per statute (and our
understanding of legislative intent), [MTAB] expects
to be part of DOT's work effort concerning the goals
of marine transportation regional plans, prior to the
final drafts being sent out to the public.
1:10:04 PM
CHAIR P. WILSON explained that she participated in the enabling
legislation for the MTAB. She recalled the one important aspect
was for the AMHS to be in consultation with MTAB.
MR. VENABLES, in response to Chair P. Wilson, stated that has
not yet happened, but the SATP planners are represented here
today.
1:10:41 PM
MR. VENABLES continued, paraphrasing from a written statement
[original punctuation provided]:
Under statute the board may issue reports and
recommendations in consultation with DOT&PF and submit
to the department and the governor a strategic plan
which includes the mission, core values, objectives,
initiatives, and performance goals of the Alaska
Marine Highway System. Strong and consistent public
input from multiple teleconferences from organizations
such as Southeast Conference, the Southwest Municipal
Conference, the Alaska Municipal League as well as
several Native organizations have helped give our
board a clear direction to follow. From this input
and MTAB meetings the past three years we have
established short term and long term goals. These
recommendations have been presented to Commissioner
von Scheben and Governor Parnell.
1:10:58 PM
MR. VENABLES continued, paraphrasing from a written statement
[original punctuation provided]:
SHORT TERM GOALS
1) Operating the M/V Kennicott on full schedule May
through September. The current schedule has the M/V
Kennicott operating Cross Gulf 2-weeks-on-2-weeks-off
in the summer. This only allows for one trip a month
out the Aleutian Chain by the M/V Tustumena. There
has been a public outcry from the seven Aleutian
Island communities that the current schedule does not
come close to serving their needs (see attached
letters). Additional service to the Chain has been a
top priority for MTAB for the past 3 years. Following
are the costs associated with this recommendation both
for FY 2011 and what would be a FY2010 Supplemental.
The administration has committed to an additional
spring run for the Kennicott and the following costs
do not take that run into account.
FY 10 MTAB Requested Supplemental for Kennicott
Service
$1,385,000-Total Supplemental Authority
$800,000-General Fund
$585,000-Alaska Marine Highway Fund
FY 11 MTAB Requested Service Enhancements to Governor
Budget
$2,122,500-TOTAL Additional Authority
$1,600,000-Alaska Marine Highway Fund
$522,500-General Fund
1:13:11 PM
MR. VENABLES reported the anticipated return from the $500,000
in General Funds (GF) is a good return for vital services for
the transportation needs of communities in the Aleutian Chain.
He continued, paraphrasing from a written statement, relating
the MTAB's second recommendation [original punctuation
provided]:
2) Additional funding allowing the fast vehicle ferry
(M/V) Fairweather to operate on a full seven day a
week schedule during the spring (May/June) of 2010.
Unforeseen mechanical issues with the Fairweather have
caused funding shortfalls to allow for this much-
needed service. This service was established with a
commitment to long-range scheduling 3 years ago and is
very important to the Northern Panhandle (including
Sitka and outlying villages). There is a major
concern about the engines problems on both the
Fairweather and the M/V Chenega. At its December
meeting the [MTAB] Board voted to request that the
legislature and commissioner of the Department of
Transportation consider a vehicle for the state to
order replacement engines for the Fairweather and the
Chenega. The engine problems are being worked on by
AMHS, the Administration and the Department of Law.
The fast ferries are an integral part of the current
and future operations of AMHS. The public, especially
in Prince William Sound and the Northern Panhandle,
has a unique and strong appreciation for these vessels
and their ability to transport cars and people over a
long distance in a short period of time. It looks like
costs associated with operating the Fairweather in
2010 for May/June are being resolved by AMHS and the
Administration.
1:15:11 PM
MR. VENABLES continued, paraphrasing from a written statement,
relating the third short-term recommendation [original
punctuation provided]:
3) MTAB has requested that an additional $60M
[million] be added to the AMHS Vessel Replacement
Fund. AMHS has embarked on a much-needed vessel
replacement project (Alaska Class Ferry Project) that
has very strong public support. The project is
critical to insure long rang[e] operations of AMHS and
to fulfill the mission of AMHS itself. This process
can be easily followed by looking it up on the Alaska
Class Ferry information on the AMHS website. The
vessel replacement fund currently has $60 million in
it - thanks to your efforts, and it is extremely
important that we continue to put additional money
into this fund as we replace our aging marine highway
fleet. The administration has taken steps through the
STIP process to insure that adequate funding will be
available to begin the process of building new
vessels.
1:16:10 PM
MR. VENABLES continued, paraphrasing from a written statement,
relating the long-term goals [original punctuation provided]:
LONG TERM GOALS
1) Forward funding of AMHS operations to allow for
continued schedule consistency and successful
marketing strategy.
MR. VENABLES remarked that this has been an effective effort for
the system over the past two years.
2) A long term strategy to mitigate high fuel prices
that negatively affect the system's ability to provide
reliable service.
3) Maintenance and operational costs continue to
increase system wide, and need addressed in order to
meet the mission of AMHS, now and in the future.
4) The vessel replacement fund should be funded at a
level that allows for DOT&PF to move forward with the
design and construction of new, fuel efficient
vessels. As an added value these vessels should be
designed to require less crew to operate which could
bring future labor costs down.
In closing, Marine Transportation Advisory Board
members acknowledge the complexities of providing a
safe, reliable and efficient marine transportation
system and we cannot expect to be able to satisfy each
coastal community's wants and needs. We thank you for
your leadership and guidance, and believe that with
your continued direction and the expertise of the AMHS
management, MTAB can continue to help guide
improvements that will benefit Alaskans.
1:17:57 PM
MR. VENABLES referred to handouts in members' packets that
identify the AMHS's staff who participated in rescue activities,
well beyond their duties to provide transportation services.
Often the AMHS's staff efforts represent the last line of public
safety support, he stated. He applauded their work. He
commented that the next MTAB meeting will be in Juneau on March
9, 2010. He concluded by thanking members for the opportunity
to present.
1:18:49 PM
REPRESENTATIVE GRUENBERG recalled engine problems with two
ferries, the M/V Chenega and M/V Fairweather. He understood the
engine problems are being addressed by the AMHS and the DOT&PF.
He asked whether the engines have ever worked.
MR. VENABLES deferred to the DOT&PF commissioner to discuss the
issue.
REPRESENTATIVE GRUENBERG stated that he wants to be certain this
matter is addressed.
1:20:12 PM
REPRESENTATIVE MUNOZ asked whether the MTAB has given any
consideration to the efficiencies and impact the Lynn Canal
Highway would give to the rural operation of the transportation
system.
MR. VENABLES responded that the Southeast Alaska Transportation
Plan (SATP) is the appropriate vehicle for the discussion to
occur. He clarified that the MTAB focuses on the operational
aspects of the Alaska Marine Highway System (AMHS) and what the
system needs as a whole. He expressed that there may be road
lengths interspersed within the system, but the primary
attention must be given to the aging fleet. He acknowledged
that the MTAB has not yet held extensive discussions on issues,
but he believed those would occur during the SATP process. In
response to Chair P. Wilson, he reported that the SATP is one of
three regional plans in the state.
1:21:38 PM
SENATOR KOOKESH asked for him to identify members of the MTAB
and the relationship between the MTAB board and DOT&PF's staff.
MR. VENABLES named other members of the MTAB: Mike Korsmo,
Skagway, Board Chair; Shirley Marquardt, Unalaska, Vice-Chair;
Cathie Roemmich, Juneau, at-large member; Clay Koplin, Cordova,
representing Prince William Sound and Kenai Peninsula; vacant
seat in Ketchikan, formerly held by Mr. Conley; Maxine Thompson,
Angoon, representing Southeast Alaska; Gerry Hope, representing
Sitka, Petersburg, and Wrangell; Patrick Owen, representing
labor unions of the AMHS; himself - Robert Venables,
representing the Northern Southeast communities of Haines,
Juneau, and Skagway; Seth Church, Fairbanks, member-at-large;
and Mark Eliason, Anchorage, who is a travel and tourism
specialist. The MTAB's chief interaction is with the DOT&PF's
deputy commissioner, who also provides a staff person to the
MTAB.
1:23:37 PM
MR. VENABLES characterized the information flow as very good
between Captain Falvey and the MTAB. He thought that the MTAB
forces the opportunity for disclosure, with respect to the AMHS
happenings, and the MTAB acts as a conduit for information
to/from the public. The MTAB can also make recommendations and
pass them on to the legislature or the administration, as
appropriate, he stated.
^AMHS Update
AMHS Update
1:24:22 PM
CHAIR P. WILSON announced that the final order of business would
be to have an update by the AMHS.
1:24:57 PM
JIM BEEDLE, Deputy Commissioner of Marine Operations, Marine
Highway System (AMHS), Department of Transportation & Public
Facilities (DOT/PF), introduced Captain Falvey. He applauded
Captain Falvey's management of the system.
MR. BEEDLE discussed the AMHS's three C's: Commitment,
Consistency, and Customer Service within the AMHS [slide 2]. He
pointed out that the summer schedule was published last October,
although this is risky since the AMHS will not know the amount
budgeted for the AMHS until July 1, 2010. The early publishing
significantly helps the public plan their travel to Alaska and
within Alaska.
1:26:55 PM
MR. BEEDLE explained that FY 2011 will be the third year that
the AMHS has provided a consistent schedule. He elaborated that
developing the schedule is a complicated process since some
vessels are upgraded by capital improvement projects (CIBs) so
it is difficult to plan and varies year to year. This year the
AMHS will have additional rules for FY 2010, Safety of life at
sea (SOLAS) regulations to implement, which are required for
international travel. The M/V Kennicott will be on layup for a
Capital Improvement project to meet the SOLAS regulations. He
indicated that customer service is very important to the AMHS,
which has maintained a 96 percent customer satisfaction rate
since 2006.
1:28:52 PM
MR. BEEDLE discussed the vessel operation costs by fiscal year
and detailed the changes in vessels [slide 3]. In 2004, the
AMHS added the M/V Lituya and M/V Fairweather. In 2005, the M/V
Chenega was added. Factors that affected costs include contract
negotiations and fuel costs, which went up drastically between
2004 and 2006. From 2006 to 2007, three new vessels were added
but the AMHS's budget also was out of control so measures were
taken to remedy the issue. In 2008, the AMHS decreased its
service and the M/V Columbia did not run to Bellingham all year.
Currently, the M/V Columbia is laid up four months a year in the
winter due to decreased traffic. The AMHS runs one fast ferry
four days a week in the winter. The M/V LeConte was turned into
a day ferry to serve Juneau. The AMHS made additional cuts to
expenses and took the second summer vessel off the Bellingham
run, which is working well, he stated.
1:31:21 PM
REPRESENTATIVE GRUENBERG recalled engine problems on the M/V
Fairweather and the M/V Chenega. He understood the engines have
never worked right. He asked for a status report.
MR. BEEDLE responded that that the legal issues are ongoing, but
the lawsuit will not progress until appropriations for legal
fees are made.
REPRESENTATIVE GRUENBERG recalled that the House Finance
Subcommittee for the Department of Law is currently holding
briefings, but has not yet had a request for funding the legal
issues mentioned.
MR. BEEDLE, in response to Representative Gruenberg, understood
the issue and assured him requests are forthcoming. He related
that the warranties on M/V Fairweather expire at the end of May
so any action will happen prior to then.
REPRESENTATIVE GRUENBERG asked to be briefed on the issue
outside the committee meeting and welcomed legislators to
participate.
1:34:16 PM
JAMES CANTOR, Chief Assistant Attorney General - Statewide
Section Supervisor, Transportation Section, Department of Law
(DOL), reported that the Department of Law has been in
negotiations with the manufacturers of the engines in the
shipyards and they have attempted some repairs. He related that
there is a high likelihood the state will file litigation prior
to the statute of limitations deadline.
MR. CANTOR, in response to Representative Gruenberg, answered
that he was not prepared to provide the potential the amount of
damages. He stated that the state is continuing to try to
negotiate the matter and he remains hopeful for resolution of
the matter. However, he reported that the state may end up in
litigation on the issue.
1:35:24 PM
REPRESENTATIVE GRUENBERG expressed interest in holding
additional discussions with Mr. Cantor and Mr. Beedle outside
the meeting so as to not take up committee time on this issue.
1:35:43 PM
MR. BEEDLE continued his update. Only one vessel on the
Bellingham route has worked well so the second vessel, the M/V
Malaspina, was moved to serve Lynn Canal. He remarked that even
though Juneau residents loved the fast ferry to Haines and
Skagway, the fast ferry could not make the connection to
Skagway, which indicated to the AMHS that freight required a
larger vessel for that run. Thus, the M/V Malaspina serves Lynn
Canal and the fast ferry now serves Sitka. He remarked that
local people have come rely on the fast ferries. He applauded
Captain Falvey's efforts to keep the ships running despite
persistent engine problems. He reported that the AMHS has
provided consistent service levels and more Alaskans are
traveling on the ferries.
1:38:27 PM
CAPTAIN JOHN FALVEY, General Manager, Ketchikan Office, Marine
Highway System (AMHS), began his update by pointing out the
improvements to AMHS [slide 4]. He applauded his dedicated
reservation staff and related that customer satisfaction is at a
ten year high per a recent survey. He summarized the
improvements to the AMHS, including installing fuel efficiency
systems to the ferries, efficiency improvements, customer
service improvements, and new vessel construction.
1:40:17 PM
CAPTAIN FALVEY elaborated on the fuel efficiency systems
currently installed on the M/V Aurora, the M/V Tustumena, and
the M/V Matanuska [slide 5]. He explained the system provides
10 - 14 percent fuel savings. Fuel is costly and he likened the
power-management system fuel-savings system as similar to the
airline technology. The sophisticated system is satellite
based, and synchronizes the engines to manage the power of the
ship, which saves 10 - 14 percent in fuel costs. The AMHS
receives live data and readouts from the system, which is very
accurate.
1:41:59 PM
CAPTAIN FALVEY anticipated adding the efficiency systems to the
M/V Kennicott, the M/V Columbia, the M/V Taku, and the M/V
LeConte by next winter. The project is federally funded, he
added.
1:42:35 PM
CAPTAIN FALVEY related that Phase I of the project provides
satellite communications to vessels and internet connections for
shipboard passengers using laptops and smart phones in Phase II
[slide 6]. However, marine broadband is complex, he stated.
Thus far, the initial provider did not work well enough as it
did not provide a high enough quality. In response to
Representative Gruenberg, he answered that the initial system
was in place for about two to three years and the services were
rented. He said the AMHS let the contract run out, then let
another request for proposal (RFP) and selected a new provider.
He anticipated the AMHS will be happy with the new provider
since the contract is with a well-known broadband provider.
1:44:57 PM
CAPTAIN FALVEY detailed the satellite hardware [slide 6]. He
stated that currently the hardware is installed on seven ships:
the M/V Malaspina, M/V Matanuska, M/V Columbia, M/V Kennicott,
M/V Aurora, M/V Tustumena, and M/V Lituya. He anticipated that
the satellite hardware will be installed in the coming year on
the M/V LeConte and the M/V Taku. The project will establish
communications in two phases, initially for the officers and
crew for ship to shore communications. One initial mistake was
attempting to provide broadband service for both the ship
business and customers. Next year customers will be added, but
the AMHS will not charge for the service and will provide the
service as a marketing tool.
1:46:52 PM
CAPTAIN FALVEY outlined the new AMHS reservation system [slide
7]. He reported that the AMHS is in the process of building a
new reservation system. The old system was an in-house home-
built system. Currently, about 30 percent of the reservations
are conducted on-line. He anticipated that the new system will
be more "user friendly." The AMHS hired a subcontractor to
examine the system in order to identify technology gaps that
need to be addressed before moving forward. He indicated that
the AMHS needs service 24 hours a day, and in doing so, can
enhance operations, such as to coordinate which cabins can be
presold or sold on the ships.
1:49:22 PM
CAPTAIN FALVERY detailed the Phase II: Review of AMHS Customer
Service [slide 7]. Phase II will be completed in April 2010.
He explained that the AMHS reservation system and the terminals
have been reorganized since they are related. The AMHS is in
the process of finishing writing the traffic manual, which
needed to be updated. The new policy and procedure manual is
updated and is ready to enter Phase III, which entails the
actual purchase of new reservation system. The AMHS will likely
hire a professional to assist in selecting the equipment
designed to assist the AMHS, which will include a scheduling
module.
1:52:00 PM
CAPTAIN FALVEY briefed members on AMHS Terminal Improvements in
Angoon, Annette Bay, and Hoonah [slide 8]. He offered that the
AMHS will have new dock facilities in Angoon by December 2010 to
accommodate fast ferries. In Annette Bay, the new docking
facility will be completed in the fall of 2010, to accommodate
the M/V Lituya and the Prince of Wales class vessels. In
Hoonah, the uplands and new terminal will be completed in
September 2010, and stimulus funds will provide for new docking
structures to be completed in February 2011. Minor projects
include a new warehouse in Homer, as well as the AMHS's
consideration of purchasing the facility at Prince Rupert, and
conducting right-of-way work in Haines. He anticipated
additional upgrades will follow.
1:54:04 PM
CAPTAIN FALVEY reported the progress to the Alaska Class Ferry
[slide 9]. He related that the preliminary design phase is
complete as of 12/31/09. The ferries will hold 500 passengers
and up to 60 vehicles, equipped with a standard engine and
reduced crew quarters, which were added to avoid the 12-hour day
schedule restriction required by U.S. Coast Guard regulations.
It is possible the AMHS may be able to complete one run to
Prince Rupert, overnight there and return the next day. The
vessels will be able to use many of the existing ferry
terminals. He offered his belief that this class of vessels was
a product of the strong steering committee and public input.
The final design should be completed by late summer.
1:56:24 PM
CAPTAIN FALVEY discussed an innovative procurement method to
develop a request for proposal (RFP) to bring in a shipyard now
during the design phase to accommodate the specifics of the
shipyard. This will help reduce risk and he characterized the
process as "a good way to go."
CAPTAIN FALVEY discussed the AMHS Southwest traffic [slide 10].
He stated that the Southwest route "did not bump as badly with
ridership" and even had increases in Southwest Alaska. The
route ridership was up 4 percent in passenger traffic and up 11
percent for vehicle traffic. Prior to this year, the AMHS had
increasing ridership over three years, but due to the economy
was reduced to 1981 levels this year. He related that targeted
marketing, accommodating locals with more convenient schedules,
and round trip discounts in winter months has increased the
ridership.
2:00:04 PM
CAPTAIN FALVEY emphasized the AMHS's focus for 2011 [slide 11].
He related that the AMHS has been installing new evacuation
systems, including a slide system, and providing training. The
AMHS's marketing staff promotes the AMHS to enhance the
awareness of the ferry as a unique Alaskan travel experience for
residents and visitors [slide 12]. Staff attends major travel
shows and also rebuilt the AMHS's website last year. He related
that 460,000 people have since visited the website.
2:01:50 PM
SENATOR KOOKESH would like to know how passenger fares are
determined. For example, to stop in Chenega Bay costs
significantly more, 75 percent more, than travel between
Whittier and Cordova.
MR. BEEDLE reported that a rate study has been posted to the
AMHS website. He related that the study is comprehensive and he
hopes to implement the recommendations in the study. The rate
study indicates which fares are too high and which ones are too
low.
2:03:46 PM
SENATOR MEYER related that as a resident from Southcentral
Alaska he does not know as much about the AMHS as he would like
to know. He said he traveled to Ketchikan to see the ferry
being built that will serve Anchorage and the Mat-Su Valley. He
asked if the shipyard has the ability to build the Alaska Class
Ferries and whether the state is utilizing its assets.
MR. BEEDLE responded that the Alaska Ship and Drydock (ASD)
facility believes that its bid can be competitive and the
shipyard is aware of the RFP.
SENATOR MEYER asked about the 5 percent preference for in state
bidders.
MR. BEEDLE answered that there is an in state preference, but in
this case the project is set up as half federal and half state
funding, so the federal rules will apply. He related that the
in state preference does not apply to this project.
2:06:04 PM
SENATOR MENARD commented that in May 2010 the World Expo will be
held in Shanghai, China, and Alaska would like to have a
presence beginning in May 2010 and spanning a three-month
period. She related that the U.S. is building a $61 million
pavilion and this year, exported $733 million. She hoped that
DOT&PF would participate and 192 countries will be represented.
MR. BEEDLE offered to pass the information on to the AMHS
marketing person.
CAPTAIN FALVEY related that the marketing staff has a very
aggressive travel schedule, especially this time of year.
SENATOR MENARD remarked that billions of people will attend this
expo.
2:08:31 PM
CHAIR P. WILSON asked for a report on the coordination between
MTAB and DOT&PF.
MR. BEEDLE responded that the two groups work well together, and
the input from MTAB is important to the AMHS. He remarked that
state agencies sometimes need to change and the MTAB knows "how
to push."
CHAIR P. WILSON commented that she is excited about the efforts.
2:09:18 PM
REPRESENTATIVE JOHANSEN assured members that he is working hard
to find a way to construct the new AMHS vessel at the shipyard
in Alaska, not only because it is in Ketchikan, but since it is
a state-owned asset operated by a local company.
MR. BEEDLE related that he has asked the same question and has
found that as long as federal money is involved federal rules
apply. He stated that in the event the project is 100 percent
state funded, that the legislature can direct the DOT&PF to
build the project. Currently this project is in the design
process, but noted the construction process is separate so the
rules could change.
CAPTAIN FALVEY offered that the ASD in Ketchikan is excited
about the process. He reported that Washington State uses all
state funds to build their ferries.
2:12:13 PM
CHAIR P. WILSON adjourned the joint House and Senate
Transportation Standing Committee meeting at 2:12 p.m. She
related that the House Transportation Standing Committee will
meet after a short break.
2:18:09 PM
CHAIR WILSON called the House Transportation Standing Committee
to order at 2:18 p.m. Present at the call to order were
Representative Gruenberg, Petersen, Wilson and Johansen.
Representative Munoz arrived as the meeting was in progress.
HB 329-DEDICATED TRANSPORT FUND/PUB TRANSPORT
CHAIR P. WILSON announced that the final order of business would
be HOUSE BILL NO. 329, "An Act relating to the transportation
infrastructure fund, to local public transportation, to motor
fuel taxes, and to the motor vehicle registration fee; and
providing for an effective date."
2:18:20 PM
CHAIR P. WILSON explained that a new committee substitute has
been prepared.
REPRESENTATIVE JOHANSEN made a motion to adopt a proposed
committee substitute, labeled 26-LS1207\N, Kane, 2/18/10, as the
working document.
2:19:32 PM
REPRESENTATIVE GRUENBERG objected for the purpose of discussion.
2:19:38 PM
REBECCA ROONEY, Staff, Representative P. Wilson, Alaska State
Legislature, on behalf of Representative P. Wilson, stated that
explained changes contained in Version N. She explained that
the first change removed legislative intent. Another bill will
be vehicle for appropriation of the proposed $1 billion
endowment to the proposed Alaska Transportation Infrastructure
Fund (ATIF), she stated.
2:20:24 PM
MS. ROONEY referred to page 2, line 5 of Version N. She
reported that the committee previously discussed removing the
Watercraft Fuel Tax Account (WFTA) from the bill since it may
appear that the Fisheries Business Tax Account (FBTA) was the
only revenue source for the Municipal Harbor Facility Grant Fund
(MHFGF). Thus, the WFTA was replaced with the ATIF. On page 2,
lines 19-22, the committee previously discussed the beginning as
July 1, 2011 instead of April 1, 2011, to coincide with the
start of fiscal year. She referred to page 3, to the allocation
of funds between modes, noting the committee previously
discussed the desire for more flexibility between the
transportation modes. She referred to page 3, line 13, which
was changed to read..."not to exceed" to allow the legislature
the ability to increase and decrease appropriations between the
transportation mode, which would allow additional funding for a
runway erosion issue or other issue that may require additional
funding to be addressed.
2:22:36 PM
MS. ROONEY referred to page 4, line 10, to the composition of
the Transportation Infrastructure Fund Advisory Council (ATIFAC)
which was increased to 10 members. Some committee members
suggested that the legislature's Transportation Committee Chairs
might have too large a role. Thus, paragraphs 4 and 5 added two
additional legislators to be appointed by the leadership instead
of the Chairs of the House and Senate Transportation Standing
Committees. The bill adds two legislators from urban and rural
districts to ensure the representation of expertise in different
modes. The DOT&PF commissioner's position was deleted, but
his/her three deputy commissioners were added since they are
responsible for surface transportation, aviation, and the AMHS.
2:24:10 PM
MS. ROONEY referred to page 4, lines 24-31, which is the bill
drafter's first attempt to capture legislators from urban and
rural districts.
CHAIR P. WILSON expressed her intention to hold HB 329 over
today.
2:26:21 PM
MS. ROONEY referred to page 5, line 7 of Version N. The date
was changed to October 15 to allow the report from the ATIFAC to
mesh with the DOT&PF's budget timeframe. Additionally, the
ATIFAC's report will be submitted to governor as well as the
legislature to help alleviate the issue of the separation of
powers. This disparity comes into play since having legislators
on the council basically gives the legislature both the power to
affect the suggested list of projects as well as choose the
actual projects that receive funding.
2:27:04 PM
MS. ROONEY referred to page 9, lines 22 and 29, and indicated
the dates were changed to reflect the beginning of the fiscal
year.
CHAIR P. WILSON referred to page 9, line 25 of proposed Section
15 of Version N, which read, "If, under sec. 13 of this Act, AS
44.42.020(a)(17), enacted by sec. 9 of this Act, takes effect
immediately under AS 01.10.070(c)." This means that this bill
would take effect only if the results if the joint resolution
[HJR 42] passes and the voters pass the constitutional
amendment, she stated.
2:28:22 PM
REPRESENTATIVE GRUENBERG related a series of concerns and
suggestions. He referred to page 4, of Version N, to the
composition of the ATIFAC, which would consist of four
legislators. He expressed concern that members would be
majority members and no provision was made for minority members.
He related that two legislators should represent communities
with small populations and two legislative members were not
described. He asked for consideration for urban areas and the
population that uses the public transit systems. He referred to
page 5, line 3, which refers to AS 39.20.180. He asked whether
that was the correct statute or if the travel and per diem
should correspond to a statute in Title 24. He also referred to
page 5, line page 7, to capital projects and suggested
flexibility to cover items such as higher fuel costs or
operating expenses instead of restricting the recommendations to
capital projects.
2:32:06 PM
REPRESENTATIVE GRUENBERG suggested that the sponsor specifically
consider an alternate plan for a statute in case the
constitutional amendment for the dedicated transportation fund
does not pass. If that happened, the committee would need to
start a new process to develop an alternate plan which would
take time. If an alternate plan were incorporated into the
bill, it would ensure that transportation issues could be
funded.
2:33:28 PM
REPRESENTATIVE JOHANSEN referred to page 2, lines 1-9, of
Version N. He was unsure whether the Fisheries Business Tax
should be included.
CHAIR P. WILSON answered the Fisheries Business Tax is an
existing tax. She explained that she wanted the flexibility to
use the tax for the proposed ATIF.
REPRESENTATIVE JOHANSEN referred again to proposed Section 2 and
to the appropriations to the Municipal Harbor Facility Grant
Fund. This proposed section allows the legislature to
appropriate to the proposed ATIF, deletes the reference to the
Watercraft Fuel Tax Account, and "out of the blue" states, "and
from Fisheries Business Tax collected under AS 43.75.015 after
payments to municipalities are made..." He suggested that any
of a hundred funds from the general fund could be deposited to
the Municipal Harbor Facility Grant Fund. He asked why the
Fisheries Business Tax is singled out since the legislature may
make other appropriations to the fund. He also remarked that
this tax is collected under AS 43.75.150, but payments are made
to municipalities under AS 43.75.130.
CHAIR P. WILSON explained that the state is in the process of
fixing harbors and allowing local municipalities to take over
ownership. She commented that municipalities will not take over
harbors until the repairs are made. She recalled that about 29
harbors have not yet been transferred or fixed and this
mechanism may provide a method to repair the state's harbors.
REPRESENTATIVE JOHANSEN agreed but maintained his concern.
CHAIR P. WILSON offered to flag areas of concern that members
have on the bill.
2:37:10 PM
REPRESENTATIVE JOHANSEN referred to page 3, lines 6-8 of Version
N, and read, "An appropriation from the fund may not be made to
a project for which federal money has been allocated..." He
referred to page 3, line 13, which read, "...shall be
distributed..." He asked for clarification since one is "may"
and the other is "shall."
CHAIR P. WILSON explained that she sought flexibility. State
funded projects can move more quickly through the process, yet
there might be times the legislature may wish to use federal
funds. She expressed her intent to limit the amount of the fund
that could be used for capital projects.
2:38:47 PM
BRIAN KANE, Attorney, Legislative Legal Counsel, Legislative
Legal and Research Services, Legislative Affairs Agency,
explained that "may not" and "shall not" basically mean the same
thing. He referred to page 3, line 6, and explained that the
state is limited to making an appropriation for matching funds
for a federally funding project. Additionally, federal matching
funds cannot exceed 10 percent of the appropriations for any
given year.
2:40:29 PM
CHAIR P. WILSON stated she did not know if federal projects
always require matching funds. She asked whether it would be
clearer if it read that an appropriation from the fund "cannot
or shall not" be made instead of "may not."
REPRESENTATIVE GRUENBERG agreed that "cannot" is a clearer term.
He suggested the sponsor consider discussing this further with
the bill drafter. He stated that "may not" is likely the normal
term in the drafting manual but in this instance is confusing.
2:41:39 PM
REPRESENTATIVE JOHANSEN referred to page 3, lines 12-13, which
read, "Appropriations made from the fund for capital projects
for transportation and related facilities shall be distributed
based on amounts not to exceed the following percentages..." He
asked whether the dedicated fund, which sets specific parameters
for allocation of funds between transportation modes, would
challenge the decision-making process of the legislature.
MR. KANE responded that he did not believe the program would
challenge the appropriation process. He stated the
determination was the resolution would place into the
constitution a provision for a dedicated fund for transportation
and related facilities. The proposed language in HB 329 sets
the allocation to ensure money is spread out for transportation
needs such as roads, ferries, and transit. However, in any
given year the entirety of the fund would not be appropriated
for only one project. The legislature could still appropriate
80 percent of the available funding for road and surface
transportation funding and not appropriate any funds to other
types of transportation projects.
2:43:40 PM
REPRESENTATIVE JOHANSEN referred to page 3, lines 12-15 of
Version N and asked what would happen if the legislature chose
to appropriate 85 percent instead of 80 percent for roads and
surface transportation.
MR. KANE answered that based on the language that the statute
would not allow the legislature to spend beyond these
percentages from the proposed Transportation Infrastructure Fund
(ATIF), but the legislature could appropriate additional funds
from another fund such as the general fund (GF).
2:44:19 PM
REPRESENTATIVE GRUENBERG pointed out that this is an
authorization bill and the legislature cannot appropriate beyond
the manner authorized. He referred to page 3, line 25, of
Version N. He expressed discomfort with the current percentages
of allocation from the dedicated transportation fund. However,
he suggested that the 20 percent referred to in this paragraph
is intended for "public" transportation. He further suggested
that it should read, "...projects related to local community
public transportation and transit..." to be certain the intent
is crystal clear. He referred to page 3, line 7, and offered
that it may be appropriate to refer to capital projects in this
instance.
2:45:49 PM
REPRESENTATIVE MUNOZ referred to page 3, lines 17-18, of Version
N and asked whether municipal airports are eligible for up to 25
percent for aviation projects.
MS. ROONEY responded that she believed that all airports could
apply for the funds.
2:46:20 PM
CHAIR P. WILSON recalled that the Juneau International Airport
is owned by the City and Borough of Juneau and that Juneau
receives a portion of the aviation fuel tax.
REPRESENTATIVE MUNOZ agreed that the Juneau International
Airport receives 60 percent of the aviation fuel tax. She
referred to page 3, to paragraph 5, which allows for the
inclusion of other community transportation projects, and asked
why municipal airports would be excluded under paragraph 2.
CHAIR P. WILSON offered her belief that public transportation
could include airports.
2:47:51 PM
REPRESENTATIVE MUNOZ asked whether the 25 percent allocation for
aviation could include municipal airports.
MR. KANE answered he was not aware of another provision in
statute that would prohibit municipal airports from receiving
any type of appropriations so he assumed airports would be
eligible for appropriations under this paragraph as well as
under the public transportation provision.
2:48:50 PM
REPRESENTATIVE MUNOZ referred to page 3, paragraph 4, and asked
whether the 20 percent allocation for harbor projects would be
deposited into Municipal Harbor Facility Fund.
MR. KANE related that these are ceiling percentages for
allocation from the proposed fund, but no specific percent is
required to be deposited into the Municipal Harbor Facility
Grant Fund. There is also another option for projects related
to harbor facilities and state-owned marine facilities as well
as the Municipal Harbor Facility Grant Fund. As much as 20
percent can be deposited directly into the grant fund, but the
allocation cannot exceed the 20 percent, he stated.
2:49:46 PM
REPRESENTATIVE MUNOZ referred to the composition and make-up of
the ATIFAC. She asked how the creation of another DOT&PF review
team would impact the department and whether this council would
create a duplication of effort. She also expressed concern
about inclusion of legislators on that team since this is a
statewide project fund. She suggested that legislators would
naturally focus on own areas. She asked the committee to
consider an amendment to the composition of the ATIFAC. She
indicated she would also like the DOT&PF to comment.
CHAIR P. WILSON clarified that this would not represent a
duplication of efforts since the Statewide Transportation
Improvement Program (STIP) relates to federally funded projects.
REPRESENTATIVE MUNOZ maintained she would like to hear from the
DOT&PF on this matter of creating another panel.
CHAIR P. WILSON remarked that some constituents do not believe
the public's concerns are addressed in the current process.
This option would have someone directly representing the
constituency in the process.
2:52:21 PM
FRANK RICHARDS, Deputy Commissioner, Office of the Commissioner,
Department of Transportation & Public Facilities (DOT/PF),
stated that the DOT&PF provided a packet for members to identify
the project evaluation boards that the DOT&PF currently has in
place for surface transportation highway, aviation, and harbors
projects. The process for each of the boards is similar,
although the criterion differs slightly. He related that the
DOT&PF would welcome another board to address state projects.
The inclusion of public members or legislators would also be
welcome for their viewpoint and perspective. The DOT&PF
welcomes this participation to ensure that the process is an
open and transparent process.
2:53:42 PM
REPRESENTATIVE PETERSEN recalled prior committee discussion. He
further recalled that the committee thought having the Chair of
the House and Senate Transportation Committees might have too
much influence in the process. He was not certain if that issue
has been addressed.
CHAIR P. WILSON recalled that the Chairs of the Transportation
Standing Committees initially would appoint legislators to serve
on the advisory committee, but a provision has been expanded in
Version N to allow the leadership of each body to appoint
legislative members.
REPRESENTATIVE PETERSEN said he thought the DOT&PF process
worked well, but he expressed concern that having the
legislative members on the advisory committee might be creating
another "committee of committees." He said he also thought
another layer of bureaucracy might slow down the process.
2:55:37 PM
REPRESENTATIVE JOHANSEN referred to page 4, line 18, of Version
N, and asked whether the commissioner's designee is another
DOT&PF employee or if the commissioner can appoint anyone to
serve.
MR. RICHARDS responded that the commissioner's designee has
always has been a DOT&PF person.
MR. KANE offered his belief that in each instance a DOT&PF
designee has been filling in for the commissioner the designee
has been a DOT&PF employee. He offered to research this
further.
2:57:43 PM
REPRESENTATIVE JOHANSEN remarked that an appointed legislator
could be a minority member of the legislature.
CHAIR P. WILSON commented that it could be transportation chair.
REPRESENTATIVE GRUENBERG stated that it would be unlikely
legislature leadership would appoint a minority legislative
member to serve.
MR. KANE, in response to Chair P. Wilson, stated that the
appointment process to decide which legislators will serve on
boards and commissions has usually been left to the discretion
of the leadership of the legislature. He offered to check into
this further.
3:00:11 PM
REPRESENTATIVE GRUENBERG referred to page 3, to paragraphs 1
through 5, and asked whether surface transportation includes
public transportation. He thought that surface transportation
would relate to rolling stock, which would be public and real
property in the sense of roads. He also thought it might allow
for projects such as a bus barn. He wanted to be certain that
the language in paragraph 1 indicates that the dedicated
transportation fund could be used for bus barn or a roundhouse
for the railroad. He asked for clarification and to flag the
issue for the sponsor to contemplate.
CHAIR P. WILSON remarked that all of the state projects are for
the public.
MR. KANE suggested that the legislature could define that the
allocation for distribution from the proposed ATIF could be
defined as specific or in broad terms.
3:03:16 PM
MS. ROONEY related that the discussions for the allocations were
limited to roads and the means of conveying vehicles. The
reason for the inclusion of paragraphs specified for local
community public transportation and transit is because these
items were specifically separate from roads and surface
transportation category.
REPRESENTATIVE GRUENBERG commented that he could envision at
some point the need for a bus barn.
CHAIR P. WILSON offered her belief that a bus barn project would
be covered under the allocation in paragraph 5, which allows
funds to be used for projects related to local community public
transportation and transit. In further response to
Representative Gruenberg, she explained that the Alaska Railroad
Corporation is specifically not listed since it is a separate
entity. This fund is not for Alaska Railroad Corporation
projects, she stated.
REPRESENTATIVE GRUENBERG strongly suggested that this "be put in
black and white" as it is not clear in the specific language.
REPRESENTATIVE JOHANSEN suggested that the sponsor should also
consider how the Anchorage Metropolitan Area Transportation
Solutions (AMATS) and the Fairbanks Metropolitan Area
Transportation Solutions (FMATS) process fits together.
REPRESENTATIVE GRUENBERG agreed. He remarked that as
Southcentral grows a rail commuter system may be needed and he
would like the dedicated transportation fund to be used for that
purpose.
[HB 329 was held over.]
3:11:39 PM
ADJOURNMENT
There being no further business before the committee, the House
Transportation Standing Committee meeting was adjourned at 3:11
p.m.
| Document Name | Date/Time | Subjects |
|---|