Legislature(2015 - 2016)CAPITOL 17
01/26/2016 01:00 PM House TRANSPORTATION
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| Presentation: Department of Transportation & Public Facilities | |
| Adjourn |
* first hearing in first committee of referral
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ALASKA STATE LEGISLATURE
HOUSE TRANSPORTATION STANDING COMMITTEE
January 26, 2016
1:07 p.m.
MEMBERS PRESENT
Representative Shelley Hughes, Co-Chair
Representative Charisse Millett
Representative Benjamin Nageak
Representative Louise Stutes
Representative Matt Claman
Representative Dan Ortiz
MEMBERS ABSENT
Representative Neal Foster, Co-Chair
COMMITTEE CALENDAR
PRESENTATION: DEPARTMENT OF TRANSPORTATION & PUBLIC FACILITIES
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
MARC LUIKEN, Commissioner
Department of Transportation & Public Facilities (DOTPF)
Juneau, Alaska
POSITION STATEMENT: Answered a question raised after the House
Transportation Standing Committee meeting of 1/21/16, and
provided a Power Point presentation entitled, "Navigating,
Preparing, Delivering, Improving."
MARY SIROKY, Director
Division of Administrative Services
Department of Transportation & Public Facilities (DOTPF)
Juneau, Alaska
POSITION STATEMENT: Participated in a Power Point presentation
entitled, "Navigating, Preparing, Delivering, Improving."
ACTION NARRATIVE
1:07:37 PM
CO-CHAIR SHELLEY HUGHES called the House Transportation Standing
Committee meeting to order at 1:07 p.m. Representatives Hughes,
Claman, Ortiz, Millett, and Nageak were present at the call to
order. Representative Stutes arrived as the meeting was in
progress.
^PRESENTATION: DEPARTMENT OF TRANSPORTATION & PUBLIC FACILITIES
1:07:50 PM
CO-CHAIR HUGHES announced that the only order of business would
be a presentation by Commissioner Marc Luiken, Department of
Transportation & Public Facilities (DOTPF). She referred to a
document entitled, "Guidelines for Transportation Management
Systems Maintenance Concept and Plans," and noted that a
question regarding federal transportation funding was raised at
the meeting on 1/21/16, and asked Commissioner Luiken to respond
prior to his presentation today.
1:10:11 PM
MARC LUIKEN, Commissioner, Department of Transportation & Public
Facilities (DOTPF), explained that the key phrase in the
aforementioned guidelines is "Transportation Management
Systems," which are systems used to control and monitor traffic
such as, road cameras, transportation operations centers, and
its related hardware and software. In the event maintenance is
needed on those systems, federal funding is available.
Commissioner Luiken confirmed the department's understanding
that for routine maintenance such as guardrail repair, road
patching, and snow and ice removal, federal funds are not
eligible.
CO-CHAIR HUGHES asked whether federal funds are being used for
management systems in Alaska, and whether management systems
include sensors that measure temperature and moisture.
COMMISSIONER LUIKEN answered yes. He advised that federal funds
are used in three areas, which are: (1) Whittier Tunnel, where
DOTPF uses $1.5 million for management; (2) Road Weather
Information System (RWIS) that includes cameras and road sensors
for road conditions; and, (3) 511 Traveler Information system,
which is the system used in Alaska to communicate road
conditions to the public around the state.
COMMISSIONER LUIKEN, in response to a follow-up question from
Co-Chair Hughes, replied that RWIS is used statewide.
1:13:07 PM
REPRESENTATIVE ORTIZ expressed his understanding that the
aforementioned management systems only relate to highways and
roads.
COMMISSIONER LUIKEN clarified that the management system is a
federal highway program and there are two modes of
transportation that qualify for federal highway funds. He began
his presentation addressing the following: changes from fiscal
year 2015 (FY15) to FY17; how DOTPF navigated through a $34.5
million budget cut in a single year; how DOTPF is preparing to
absorb additional cuts; the delivery of transportation services;
and what is being done to improve the transportation system
[slide 3]. Commissioner Luiken acknowledged that his department
is often thought of as a "big, government entity," however,
DOTPF is really made up of people working hard every day, and he
highlighted the exemplary work of two employees [slides 4 and
5].
COMMISSIONER LUIKEN turned to the FY16 budget cut of $34.6
million, and pointed out that DOTPF functions on two budgets: a
capital budget and an operating budget. The capital budget is
specifically for design and construction of the transportation
infrastructure: the road, airport, and marine highway systems.
These systems, which are highly regulated and reported, benefit
from federal capital dollars used to build, replace, and
construct. He noted that most of the staff working from the
capital budget are also federally funded. He explained that the
majority of the operating budget comes from unrestricted general
funds (UGF), from which $15.3 million was cut in FY16 from
highways and aviation, resulting in a reduction of 29 position
control numbers (PCNs). The Alaska Marine Highway System (AMHS)
absorbed an $11 million cut, resulting in a reduction of 32 PCNs
[slide 6]. As an aside, Commissioner Luiken advised that DOTPF
was told that AMHS "shore side staff" were oversubscribed, thus
all 32 positions were cut from shore side staff.
1:19:26 PM
CO-CHAIR HUGHES asked how many employees work under each budget,
what portion of their salaries are paid from state funds, and
"how many actual people lost ... jobs?"
COMMISSIONER LUIKEN offered to provide the exact numbers. He
explained that a large majority of his department's employees
receive some support from federal funds, and few positions are
100 percent paid from UGF. Returning to slide 6, he said
support services had an $8.2 million reduction that resulted in
a loss of 34 PCNs. In fact, he remarked, highways and aviation
and AMHS account for 96 percent of the UGF budget, and support
services account for 4 percent. He said, "... of the 95
positions that we cut, 35 percent of that came from that 4
percent service support side." In order to minimize the impact
of the cuts on service delivery, DOTPF sought to find positions
that were not filled, and out of 95 positions, 28 employees were
laid off.
REPRESENTATIVE ORTIZ asked the commissioner to describe what
activities will not happen on the highways and at the airports
due to the cuts.
COMMISSIONER LUIKEN answered that DOTPF has not responded as
quickly as in the past to snow and ice events. One of the
impacts of the cuts is a reduction of overtime, and this summer,
guardrails may not be repaired or potholes may not be patched
rapidly. At the airports, there will also be a slower response
to normal maintenance such as, striping and repairs.
1:23:31 PM
REPRESENTATIVE CLAMAN questioned whether the reductions are
solely in personnel.
COMMISSIONER LUIKEN said reductions in personnel led to
reductions in the amount of equipment and commodities needed.
REPRESENTATIVE CLAMAN observed that dividing the number of PCNs
lost by the amount of the cuts equals savings in the amount of
$500,000, $350,000, or $240,000 per PCN. He surmised there are
other factors included in the savings.
COMMISSIONER LUIKEN explained that the reduction in PCNs is a
reflection of the number of personnel affected by the budget
cuts. In addition, he explained, there were other impacts to
overtime, commodities, and equipment, and there was a reduction
by AMHS from 378 weeks of service in FY15 to 350 weeks of
service in FY16.
1:25:20 PM
REPRESENTATIVE MILLETT expressed her desire to see budget
priorities established so that overtime is delegated only for
life, health, and safety events, rather than for routine
services such as paving. She remarked that there are
opportunities for better use of the budget, for example, in the
winter there will be snow and ice events and planning will lead
to a more efficient use of overtime with less impact to the
public. Delays in service have been politicized and attributed
to budget cuts because the first thing the department does is
"go after services that impact people," and she urged that
overtime be prioritized. Representative Millett requested a
breakdown of DOTPF's overtime costs for road maintenance. She
said she was frustrated because other options are available, as
evidenced by the transfer of $7 million to the AMHS operations
budget from funds designated for the fuel trigger.
REPRESENTATIVE MILLET restated her request for an overtime
prioritization list, and also requested a breakdown on the
department's fleet that will show the rules and regulations for
replacements to the fleet, and upgrades - versus maintenance
costs. She said replacements are a big cost driver, and
observed, "If we have very well-maintained equipment it should
last forever." She commented that the aforementioned measures
will lessen the impact on the public, and the rhetoric, during
the state's fiscal challenge. Representative Millett noted she
is requesting this information from each department.
1:29:36 PM
COMMISSIONER LUIKEN said he will provide the requested
prioritization list. He added that in the future, the
department will also provide information on specific events,
such as the Glenn Highway icing, answer questions on how DOTPF
responds to events, how the department deals with major snow and
ice events, its priorities, and the guidance given to its
superintendents regarding decisions on overtime. He restated
that when DOTPF must choose the impacts of cuts on the UGF
budget, given that 96 percent of the budget is for services,
there is no other choice but to reduce services. Statewide
equipment fleet issues will be discussed later in the
presentation, he advised.
CO-CHAIR HUGHES stated that some constituents have reported to
their legislators that they have not noticed "any big impact" in
services due to the budget cuts at DOTPF, except on winter road
maintenance. Regarding the reduction of overtime, she
questioned whether DOTPF has considered flexible scheduling
approaches. For example, she suggested furloughing equipment
operators during good weather and thereby save worker hours to
later respond to bad weather events for life and safety
purposes. Co-Chair Hughes acknowledged that there are fewer
employees on duty. However, she said she was told by the Alaska
Trucking Association that historically, there are always
complaints at the beginning of bad weather. Although this year,
she said, the Alaska Trucking Association has received ongoing
calls about trucks going off the road and fish tailing.
REPRESENTATIVE CLAMAN agreed that delays in winter road
maintenance are a concern to all constituents because potholes
can damage private vehicles, and lead to more vehicular
accidents. He asked whether - after continuing budget cuts - it
is realistic to expect the same level of service as was provided
two years ago, or whether legislators should tell constituents
to expect a slower response.
1:36:59 PM
COMMISSIONER LUIKEN agreed that Representative Claman's
assessment is correct, and advised that DOTPF is working to find
every possible efficiency to minimize the impact of budget cuts.
Recently, AMHS identified $5 million in efficiencies to lower
costs, but he cautioned that FY17 cuts will limit the ability of
DOTPF to deliver the services that Alaskans expect.
COMMISSIONER LUIKEN returned to the presentation, and explained
that DOTPF is preparing for the FY17 budget with a structure
called Results Based Budgeting/Alignment (RBB/RBA), which is a
shift in focus from looking at activities to looking at outcomes
and results. The DOTPF mission, "Keep Alaska Moving through
service and infrastructure" remains unchanged; however, the new
process helps DOTPF focus on tasks identified through four core
services, which are: operate the transportation system;
maintain the transportation system; expand, reconstruct,
rehabilitate, and update the system; and deliver and operate
marine transportation services. Subsequently, in an exercise
involving about 200 employees, direct services and budget cuts
were identified within each core service by data measurement and
objective information [slide 7].
1:41:26 PM
REPRESENTATIVE NAGEAK observed that there are many resources in
the regions of Alaska without road access and related that road
access is also important for village residents who are dependent
upon expensive and limited air transportation. The road system
needs to be expanded, he said, not only to the North Slope but
to the north, west, and southwest, which would create many
opportunities. Representative Nageak encouraged DOTPF to accept
all available federal transportation funds and commented that
all regions of the state should be able to enjoy the cost
savings available to those living on the road system.
COMMISSIONER LUIKEN restated the department's organizational
shift from activities and budget to outcomes and results, which
is outlined in DOTPF's strategic plan as follows: to provide
for safe movement of people and goods; to connect people; and to
open opportunities for resource extraction.
CO-CHAIR HUGHES requested examples of savings that are garnered
from more efficient operations that will not reduce services.
COMMISSIONER LUIKEN responded that one result from using the
Results Based Budgeting process (RBB) is centralized planning in
organizational structure. He explained that across the state,
personnel planning will be under the program development
director in Juneau, and that DOTPF has found efficiencies in its
organization of statewide aviation. He said he anticipates
personnel efficiencies as well.
CO-CHAIR HUGHES requested a review of DOTPF's organization chart
related to aviation.
1:47:21 PM
REPRESENTATIVE STUTES asked whether all DOTPF divisions have a
strategic plan.
COMMISSIONER LUIKEN explained that DOTPF has a department-wide
strategic plan on its web site encompassing all modes of
transportation, and that updates will be posted in the next few
months for the department's strategic goals for each division.
REPRESENTATIVE STUTES advised that according to the Southeast
Conference, a strategic plan is statutorily required for AMHS,
but one is not currently in place, she noted, and asked whether
there is an update planned.
COMMISSIONER LUIKEN answered yes. He noted that when looking at
the manner in which AMHS is comprised, he is unaware of anyone
that had a strategic plan. For example, he said, AMHS has four
to five different ship types, and up to 20 different dock types.
He agreed that it does need an update, and reiterated that the
department needs a strategic plan together with strategic goals
to help focus on how it is going to get there.
CO-CHAIR HUGHES inquired about the long-range transportation
plan for Southeast.
1:50:12 PM
COMMISSIONER LUIKEN advised that the Southeast Alaska
Transportation Plan was issued in the early to mid-90s, prior to
the launch of the fast ferries. In fact, he commented, there is
a draft from 2004 that has never been ratified. He agreed the
plan should be updated and should include AMHS, in addition to a
separate AMHS strategic plan.
1:51:10 PM
MARY SIROKY, Director, Division of Administrative Services,
DOTPF, directed attention to slide 8, entitled, "Northern
Region," and explained the department's plan to illustrate its
budget once it has finished its Results Based
Budgeting/Alignment process (RBB/RBA). Illustrated on slide 8,
she noted, was the funding aligned on each one of the core
services for the Northern Region. Included in parts of the
organization are the support services - illustrated on slide 8
by teardrops of various colors - that feed into those core
services. For example, under Core Service 1, design engineers
[percentage illustrated in red] support "maintain Alaska's
infrastructure," support "operate Alaska's infrastructure,"
support "expand infrastructure," and support 100 percent of the
Northern Region's proportion of "operate marine transportation
services," because design engineers assist AMHS with the design
of vessels, harbors, and docking facilities. She pointed to
facilities [percentage illustrated in green] under Core Service
1, and said, "And you can see that we don't have any green under
'maintain' because we don't have any buildings associated with
the fundamental infrastructure of the road, but we have
buildings associated with 'operating' the transportation system,
because that's where our maintenance stations are."
1:53:50 PM
CO-CHAIR HUGHES asked for clarification.
MS. SIROKY explained Core Service 1 is 14.3 percent [of the
budget], and design is [3.3] percent of that. However, highways
and aviation [percentage shown in yellow] contributes to
"maintain Alaska's infrastructure" and "operate Alaska's
infrastructure," but not to "operate the marine transportation
system."
MS. SIROKY, in response to a follow-up question from Co-Chair
Hughes, advised the committee to disregard the color coding in
the gray boxes on slide 8.
MS. SIROKY stated that the department will complete the plan for
all of the regions and, eventually, it will be possible to see
all of the [department's budget] aligned under the four core
services. Ms. Siroky pointed out that 2.4 percent of the budget
does not fit under the four core services, and that is for the
work DOTPF does for public facilities that are not owned or
operated by DOTPF, such as maintenance services for the
Fairbanks Regional Office Building and court buildings.
1:56:29 PM
REPRESENTATIVE MILLETT asked Ms. Siroky to elaborate on all of
the buildings for which DOTPF is responsible.
MS. SIROKY said DOTPF owns some office buildings, over 80
maintenance stations, equipment buildings at airports, sand
storage buildings, chemical storage buildings, and generator
buildings. The Department of Administration (DOA) owns the
State Office Building, the Health and Social Services Building
in Juneau, and others. The Department of Health and Social
Services owns the Pioneers Homes, and the Department of
Corrections owns prisons. She explained that under a shared
services initiative, DOTPF has been tasked to review facilities
maintenance and to explore ways to improve efficiencies.
Currently, DOTPF is looking at a pilot project for Juneau
involving maintenance managers from several agencies. She
opined that sharing maintenance employees between agencies is
more efficient than hiring outside services.
REPRESENTATIVE MILLETT expressed her support for the pilot
program.
REPRESENTATIVE NAGEAK asked for a description of DOTPF's
Northern Region.
2:01:04 PM
MS. SIROKY said DOTPF is divided into three geographic regions,
as follows: Northern Region includes Koyukuk and the North
Slope; Central Region includes the Bethel area; and Southcoast
Region includes Yakutat, Southeast, and the Aleutian Islands
area. She explained that the regions were reorganized last year
in order to better focus marine expertise on regions with marine
issues.
MS. SIROKY, in response to a follow-up question from
Representative Nageak, confirmed that the Northern Region budget
totaled $105,958,800.
MS. SIROKY, in response to Chair Hughes, agreed to provide a map
of the regions to the committee.
2:02:27 PM
MS. SIROKY turned to slide 9, and related that DOTPF has been
asked, over the last several years, to reduce its unrestricted
general fund (UGF) budget. She said the graph illustrates where
the UGF is located in the department. The amount of UGF
attributed to personal services is in yellow, and the amount of
UGF attributed to support lines - which are travel, services,
and contractual - are in green. She continued that design,
engineering, and construction had $700,000 of UGF;
administration and support, which includes the commissioner's
office, administrative services, regional directors' offices,
services, planning, program development, and information
technology, has about $5 million; and facilities has a slightly
larger amount. She stressed that DOTPF has strived to identify
any and all possible sources of funding to pay for support
services and to help out on highways, aviation, and the marine
highway system. She pointed out that the department has been
very successful "to take what is a $40 million admin and support
operating budget and have only $5.7 million of it be in UGF."
2:04:50 PM
REPRESENTATIVE NAGEAK asked for clarification between "personal"
and "personnel" on slide 9.
MS. SIROKY explained DOTPF labels the personnel budget "personal
services," thus on slide 9 yellow represents personal services,
which funds personnel, and green represents support lines that
fund travel and contractual services. She clarified that both
the yellow and green are UGF, and pointed out that when the
department looks at its budget in FY16 or FY17, this is where it
starts when looking at the UGF. There are not many places to
cut UGF in administration and support, or design and engineering
services as they tend to be positions that have small amount of
UGF associated to them because DOTPF finds ways to pay for them
from other fund sources. However, some UGF is made available
for positions in order to not go against the funding
restrictions tied to the fund sources paying for the activities.
CO-CHAIR HUGHES surmised that there are still various levels of
administration and support within the budgets of highways,
aviation maintenance and operations, and AMHS.
MS. SIROKY agreed that admin support is included within highways
and aviation and AMHS. She explained that employees in these
positions put together their budgets, complete timesheets, order
supplies, and file. She opined this is a good use of GF so that
maintenance operators are working on the roads and not filling
out timesheets and forms, which are tasks that can be completed
by less expensive staff positions.
2:08:50 PM
CO-CHAIR HUGHES said she has heard from retired DOTPF employees
that more streamlining is possible, and pointed out that having
aviation management positions with support staff in each region
does not seem efficient. Furthermore, in Southeast, the present
structure allows for "assistant" positions that add another
layer to management. She requested that DOTPF look at the need
for administrative positions in the budgets for highways and
aviation, and AMHS.
2:11:00 PM
MS. SIROKY assured the committee DOTPF is looking for
efficiencies throughout its organization, and unlike other
departments, all Alaskans are affected by DOTPF operations. She
directed attention to slide 10, which illustrated how UGF has
changed from FY10 to FY17. She reiterated that the budget
funded by UGF is divided into administration and support;
design, engineering, and construction; highways, aviation and
facilities; and AMHS. Since FY10, the components of
administration and support, and design, engineering, and
construction have been reduced. As always, she commented,
highways, aviation and facilities and AMHS remain the largest
users of UGF, although reductions to those components in FY16
were over $35 million, and reductions in FY17 will be over $12
million. Furthermore, she pointed out, in FY17, highways,
aviation and facilities will be reduced by $6.5 million, which
will result in a reduction of twenty-one full-time and nine
part-time positions [slide 11]. She said, "From the two
previous slides you can see there's just really not a whole lot
of places we can go to get $6 million worth of [UGF], without
going to highways and aviation and the marine highway system."
She cautioned that there will be changes affecting winter and
summer maintenance. However, DOTPF always prioritizes the
highest average daily traffic (ADT) roads to preserve safety.
She explained that the first reductions are to commodities,
vegetation, and that six maintenance stations will be closed,
although the roads affected will still be maintained. Ms.
Siroky further explained that in order to guide reductions to
the budget, DOTPF used a tool developed by its regional
maintenance staff. This program helps reveal how maintenance
and operations are managed throughout the state in order to
evaluate and "standardize a level of difficulty for each section
of road" based on geography and ADT, and cuts to staffing are
not to the areas with the highest transportation needs.
2:15:47 PM
REPRESENTATIVE MILLETT asked for a list of open PCN numbers, a
list of filled PCN numbers, and a graph of open and filled PCN
numbers so she could compare the fluctuation of actual jobs and
bodies to open PCN numbers over the last ten years.
MS. SIROKY said she will request the information from DOTPF's
data systems. She advised that DOTPF actively manages vacant
PCNs for placement of trained and skilled employees who are
facing lay off. For example, when employees retire or quit,
their positions are kept open, she explained.
REPRESENTATIVE MILLETT remarked:
What I think that I'm looking to do is -- when we talk
about budgeting the public has a mis -- when they hear
that you have less positions, what the public hears is
that you have less people, and that's not always true.
Less positions doesn't always mean a body and a job,
less positions means vacant PCN numbers.
REPRESENTATIVE MILLETT opined that legislators need to be more
specific about "vacant PCN numbers and bodies in a PCN number."
She then requested DOTPF's desired percentage of open, vacant,
non-filled PCNs to "have on hand" when it needs to increase
staff for major projects.
2:18:05 PM
MS. SIROKY answered that DOTPF's total PCN count is
approximately 3,400.
REPRESENTATIVE MILETT asked of the 3,400, what is a good
percentage of open PCN numbers the department would like to have
at all times. For example, currently there are about 6,000
vacant PCN numbers out of approximately 38,000 state employees.
MS. SIROKY responded that the department runs a vacancy rate of
approximately 5 percent. It is important to remember, she said,
that that is vacant over a period of time, for example, a
position is filled, someone gets promoted, that position is now
vacant for a while, it gets filled, and so on. The department
also has, through time, not been funded for salary increases,
and yearly merit increases. Therefore, she pointed out, it has
been in the position of keeping positions vacant for periods of
time in order to meet its personal service obligations. She
advised there is a whole machination involved in keeping the
department operating to the maximum of its ability and funding.
REPRESENTATIVE MILLETT observed that salary costs for the past
ten years are known, and she restated her request for a solid
PCN count, and a comparison of filled and vacant positions for
the past ten years. She noted that she will request this of
every department.
CO-CHAIR HUGHES requested that DOTPF provide the number of
positions and the number of people affected. She directed
attention to slide 11, which indicates that, in FY17, "Service
reduction will be felt on lower priority roads." She pointed
out that service reductions are being experienced on high
priority roads, and questioned whether that practice is expected
to continue.
MS. SIROKY responded that current cut backs represent $6 million
on top of a $15 million reduction, which totals $[21] million
less for the department to maintain roads. In that regard,
service reductions will be seen "probably across all levels,"
although, the department always tries to start [reductions] with
the low priority roads. She noted that the department is
getting to the point where low priority roads may not be
passable for days. In addition, she explained, recent changes
in winter weather have resulted in more ice events - such as on
the Glenn Highway - and climate changes are unpredictable.
2:22:58 PM
REPRESENTATIVE ORTIZ asked whether high priority roads are well
known.
MS. SIROKY said DOTPF can provide a map indicating the priority
levels of roads.
REPRESENTATIVE ORTIZ expressed his understanding that
Revillagigedo Island has no level one priority roads, and it
automatically goes down to level two priority on all of the
roads on the island.
MS. SIROKY directed attention to slide 12 entitled, "PCN
Deletions," which illustrated that efficiencies in FY15 reduced
positions in administration and support, and design and
engineering services. She said this demonstrates that the
department looked elsewhere than its direct service providers
when it started down the path of reductions. In FY16, she
reiterated, DOTPF first looked any place it could before it
looked at its direct service providers in highways, aviation and
AMHS. By the FY17 projections it was difficult to identify
deletions "out of those other parts of the agency."
COMMISSIONER LUIKEN turned to slide 13 entitled, "Delivering-A
year of Successes," and said it is an example of how DOTPF
responds to - and recovers from - events such as the Dalton
Highway flood. In March, the Sag River encroached on the
highway and DOTPF led a Unified Command Center of industry,
federal, and state partners that ensured the flood had a minimal
impact on the operations of the North Slope oil industry.
Following the flooding, the road was elevated nine feet from
milepost (MP) 414 to MP 397 to prepare for and prevent future
road closures in that area.
2:27:05 PM
REPRESENTATIVE MILLETT asked the commissioner whether he could
provide the cost of each event.
COMMISSIONER LUIKEN said yes. He added that some of the costs
were defrayed by federal funds.
CO-CHAIR HUGHES commended the department for its response to the
Dalton Highway flooding event.
2:28:09 PM
COMMISSIONER LUIKEN turned to slide 14, which illustrated that
in FY15, $780 million in federal funding was obligated for
highways and aviation. It goes without saying, he noted, that
DOTPF is a major part of Alaska's construction economy every
year. Further, he said, the statewide transportation
improvement program (STIP) was updated via an extensive public
process. It was fully approved by the Federal Highway
Administration, U.S. Department of Transportation, for FY16
through FY19, which will bring approximately $500 million to the
state over the next five years for highways. From those funds,
he explained, metropolitan planning organizations in Anchorage
and Fairbanks will receive project receipts of $24 million and
$8 million, respectively.
COMMISSIONER LUIKEN turned to aviation, to relate that there has
been growth in cargo and passenger traffic at Ted Stevens
Anchorage International Airport and at the Fairbanks
International Airport. Anchorage remains the second largest
cargo throughput airport in the U.S., and the fifth in the
world, he said, and advised that then nine percent cargo growth
at the Anchorage airport was achieved over one year; a rate that
is expected to continue.
2:31:26 PM
REPRESENTATIVE MILLETT asked: does the aforementioned nine
percent growth represents a trend; and what has growth been over
the last five years.
COMMISSIONER LUIKEN informed the committee that after 2008,
cargo traffic dropped off for three to four years, as the
economy slowed in the Lower-48. However, during the last two
years cargo traffic has rebounded, although, he opined, it may
never return to the 2008 level.
REPRESENTATIVE MILLETT asked whether the passenger trend has
followed the cargo trend in reflecting the economy of the Lower-
48.
COMMISSIONER LUIKEN replied that a huge reduction in passenger
traffic was not experienced. He related that it has been fairly
steady because Alaskans travel approximately eight times more
than the residents in the contiguous United States.
CO-CHAIR HUGHES surmised that lower fuel prices will reduce air
fares.
2:23:16 PM
REPRESENTATIVE CLAMAN clarified the prediction that, even with
growth, Alaska's air traffic will not again attain the pre-2008
levels.
COMMISSIONER LUIKEN said a return to traffic levels of pre-2008
is not expected.
REPRESENTATIVE CLAMAN observed that the Anchorage airport can
facilitate expanded passenger traffic, and unless there is a
dramatic increase in cargo traffic, airport expansion will not
be needed for a long time.
2:34:45 PM
COMMISSIONER LUIKEN agreed. He said expansion will depend upon
the stakeholder engagement [with the cargo carriers], especially
the Asian cargo carriers, and their increases in market share.
In response to a follow-up question from Representative Claman,
he confirmed that the state dollar match, required to bring in
federal dollars, comes from the capital budget. The department
encourages the administration to continue to fund a 10 percent
match in the capital budget so the state can leverage every
federal dollar available.
2:35:52 PM
COMMISSIONER LUIKEN continued to slide 15, and noted that AMHS
generated a record amount of revenue, approximately $54 million,
despite a reduced number of vessels and fewer weeks of service.
The costs to run AMHS were reduced by $5 million, bringing its
cost recovery rate up to 33.5 percent, which is 2.5 more than it
has typically experienced over the last several years. The
marine highway system safely transported over 300,000 passengers
and over 100,000 vehicles, which is consistent with the pattern
of traffic over the past 30 years. In 2015, over $500 million
worth of contracts were awarded to Alaska based contractors, he
reported.
COMMISSIONER LUIKEN assured the committee that DOTPF continues
to work as a team on improving at the executive level, and is
emphasizing that the department provides service at the
leadership level and throughout the organization. Furthermore,
he said, DOTPF will remain communicative and proactive regarding
budgetary changes and the effects. For example, the agency
issued notices regarding what people should expect regarding
winter maintenance, and issued a map showing prioritization of
the road system. He stated that the department is focused on
its core values: integrity, excellence, and respect. An
additional focus is on providing the best possible available
transportation system for all Alaskans, whatever the mode. He
said focus is being directed towards identifying solutions,
demonstrating respect for the public, and facilitating the best
use of the budget [slide 16].
2:39:05 PM
CO-CHAIR HUGHES asked whether DOTPF has an open door policy
encouraging its employees to suggest ideas to improve
efficiency.
COMMISSIONER LUIKEN noted that he would cover that topic later
in the presentation. He then explained that DOTPF is leveraging
what it has accomplished over the last five years, beginning
with its strategic plan, and that a results-based budget and
alignment are the logical next steps to creating a more
efficient organization.
COMMISSIONER LUIKEN turned to slide 18, and advised that the
department operates as one organization - not regionally - which
develops trust, teamwork, and results. Commissioner Luiken
reviewed the agencies four leadership principles, which are:
employees seek to do the best they possibly can every day;
results and measurement techniques are used to provide employees
with feedback on their performance; leadership influence is
recognized, which leads to better decisions; and frontline
employees are encouraged to share efficiency ideas from their
practical perspective. The department developed the Everyday
Lean, or Think Tank Time, whereby employees report their
suggestions for greater efficiencies directly to the
commissioner; slide 18 illustrated two examples.
2:42:52 PM
REPRESENTATIVE MILLETT opined that within this administration
there has been a limiting amount of direct communication between
legislators and DOTPF employees. She remarked:
I guess what I'd like -- like to hear from you
Commissioner, is that not only you have an open door
policy with your employees to you. Is there an
opportunity that we could hear from you that you're
fine with an open door policy for your employees
directly to talk to legislators without having ...
could we have frank conversations with your employees
without fear of retribution ...?
COMMISSIONER LUIKEN said:
We have -- we actually communicated before session,
this very thing with our -- with our employees, about
what it was that we expected of them. We see them as
ambassadors of our organization. I want my employees
to talk to people about what they're doing, you know,
whether it's good or bad. ... We made it very clear
that we expect and encourage them to be engaged with
our -- with our legislature.
REPRESENTATIVE STUTES commented that she supports the continuity
between the previous and present commissioners. She also
complimented the work done by the DOTPF employees in Kodiak and
described the team as "stellar," and said some have volunteered
their time to ensure necessary work is completed while avoiding
increased costs.
2:46:56 PM
REPRESENTATIVE ORTIZ questioned whether all levels of DOTPF
supervisors are aware that the commissioner encourages all types
of communication from employees because he was told by AMHS
employees that they are not very comfortable about making their
comments known to "higher levels." On the other hand, he
commended the AHMS staff for meeting with - and listening to -
constituents in coastal communities about the importance of the
ferry system.
COMMISSIONER LUIKEN responded that at the same time, whenever a
vessel was in port, "We would also visit those ships, and so we
have really ramped up our engagement with those employees so
they can look us in the face, ask us those questions, tell us
what they think, and that's something we will continue to do."
REPRESENTATIVE CLAMAN also noted the easy accessibility of DOTPF
employees at the Anchorage airport and of AMHS staff.
REPRESENTATIVE MILLETT asked for Commissioner Luiken's opinion
on the Port of Anchorage expansion project and its effect on
DOTPF road maintenance.
COMMISSIONER LUIKEN responded that DOTPF's only connection with
the expansion project is through the roads which provide for the
distribution of goods and services to Alaskans.
2:52:07 PM
ADJOURNMENT
There being no further business before the committee, the House
Transportation Standing Committee meeting was adjourned at 2:52
p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| H TRANS 1-26-16 presentation.pptx |
HTRA 1/26/2016 1:00:00 PM |
House Transportation 1 26 16 |