Legislature(2019 - 2020)BARNES 124
01/21/2020 02:00 PM House TRANSPORTATION
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| Audio | Topic |
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| Start | |
| Presentation(s): the Importance of Amhs to Alaska & the Need for Increased Funding | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE TRANSPORTATION STANDING COMMITTEE
January 21, 2020
3:44 p.m.
MEMBERS PRESENT
Representative Louise Stutes, Chair
Representative Matt Claman
Representative Harriet Drummond
Representative Andi Story
Representative Dave Talerico
MEMBERS ABSENT
Representative Bryce Edgmon
Representative Mel Gillis
OTHER LEGISLATORS PRESENT
Representative Dan Ortiz
COMMITTEE CALENDAR
PRESENTATION(S): THE IMPORTANCE OF AMHS TO ALASKA & THE NEED FOR
INCREASED FUNDING
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
NILS ANDREASSEN, Executive Director
Alaska Municipal League (AML)
Anchorage, Alaska
POSITION STATEMENT: Provided a PowerPoint presentation
highlighting the importance of the Alaska Marine Highway System
to Alaska and the urgent need for more funding.
ETHAN BERKOWITZ, Mayor
Municipality of Anchorage
Anchorage, Alaska
POSITION STATEMENT: Had his testimony read into the record by
Chair Stutes during the presentation on the importance of the
Alaska Marine Highway System and the urgent need for more
funding.
JAN HILL, Mayor
Borough of Haines
Haines, Alaska
POSITION STATEMENT: Testified during the presentation on the
importance of the Alaska Marine Highway System and the urgent
need for more funding.
BRAD RYAN, Mayor/Borough Manager
Municipality of Skagway
Skagway, Alaska
POSITION STATEMENT: Testified during the presentation on the
importance of the Alaska Marine Highway System and the urgent
need for more funding.
STEVE PRYSUNKA, Mayor
City and Borough of Wrangell
Wrangell, Alaska
POSITION STATEMENT: Testified during the presentation on the
importance of the Alaska Marine Highway System and the urgent
need for more funding.
CALVIN CASIPIT, Mayor
City of Gustavus
Gustavus, Alaska
POSITION STATEMENT: Testified during the presentation on the
importance of the Alaska Marine Highway System and the urgent
need for more funding.
JOSHUA BOWEN, Mayor
City of Angoon
Angoon, Alaska
POSITION STATEMENT: Testified during the presentation on the
importance of the Alaska Marine Highway System and the urgent
need for more funding.
TERRY HAINES, Mayor
Kodiak Island Borough
Kodiak, Alaska
POSITION STATEMENT: Testified during the presentation on the
importance of the Alaska Marine Highway System and the urgent
need for more funding.
CLAY KOPLIN, Mayor
City of Cordova
Cordova, Alaska
POSITION STATEMENT: Testified during the presentation on the
importance of the Alaska Marine Highway System and the urgent
need for more funding.
CASSIDI CAMERON, City Manager
City of Seldovia
Seldovia, Alaska
POSITION STATEMENT: Testified during the presentation on the
importance of the Alaska Marine Highway System and the urgent
need for more funding.
NORM CARSON, President
Pelican Chamber of Commerce
Pelican, Alaska
POSITION STATEMENT: Testified during the presentation on the
importance of the Alaska marine highway system and the urgent
need for more funding.
DENNIS ROBINSON, Vice Mayor
City of Unalaska
Unalaska, Alaska
POSITION STATEMENT: Testified during the presentation on the
importance of the Alaska marine highway system and the urgent
need for more funding.
CHELSEA TREMBLAY, Member
Petersburg Borough Assembly
Petersburg, Alaska
POSITION STATEMENT: Testified during the presentation on the
importance of the Alaska marine highway system and the urgent
need for more funding.
KEN CASTNER, Mayor
City of Homer
Homer, Alaska
POSITION STATEMENT: Testified during the presentation on the
importance of the Alaska marine highway system and the urgent
need for more funding.
ACTION NARRATIVE
3:44:39 PM
CO-CHAIR LOUISE STUTES called the House Transportation Standing
Committee meeting to order at 3:44 p.m. Representatives Stutes,
Drummond, Story, and Talerico were present at the call to order.
Representative Claman arrived as the meeting was in progress.
^PRESENTATION(S): THE IMPORTANCE OF AMHS TO ALASKA & THE NEED
FOR INCREASED FUNDING
PRESENTATION(S): THE IMPORTANCE OF AMHS TO ALASKA & THE NEED FOR
INCREASED FUNDING
3:45:51 PM
CHAIR STUTES announced that the only order of business would be
a presentation by the Alaska Municipal League (AML) on the
importance of the marine highway system to Alaska and the urgent
need for more funding.
CHAIR STUTES stated that the presentation would be followed by
invited municipal testimony from: Haines, Skagway, Wrangell,
Angoon, Kodiak, Cordova, Pelican, Seldovia, Unalaska,
Petersburg, and Homer. She also explained that she would be
reading written testimony from the municipality of Anchorage.
3:46:28 PM
CHAIR STUTES read an opening statement, as follows:
As anyone who lives in or near a coastal community
knows, ferry service has immeasurable impacts on our
way of life in Alaska. Ferry service provides many
communities with vital access to healthcare,
groceries, equipment, goods and services, school
functions, shipping, and access to the rest of the
state. In short, the Alaska Marine Highway System
[(AMHS)] keeps coastal communities strong, healthy,
and a good place to live and raise a family.
However, the system also provides a strong source of
income to businesses in the Anchorage bowl and
elsewhere in the Interior as businesses and
individuals from coastal areas travel to purchase
goods and services.
The drastic reduction and, in many cases, the complete
elimination of services has had a devastating impact
on coastal communities this summer, fall, and
especially this winter. The current levels of service
represent serious health, safety, transportation
access, and revenue concerns for coastal Alaskans, but
also revenue concerns for the Anchorage bowl
businesses.
I called this hearing to keep the spotlight and the
focus on the urgent need for more Alaska Marine
Highway [System] funding now.
CHAIR STUTES opined that a recently released Northern Economics
report from the Department of Transportation & Public Facilities
(DOT&PF) focuses too much on the financial aspect of AMHS and
"attempts to tailor service to a budget instead of tailoring the
system to what coastal communities and communities in Alaska
need." She noted that on page 204, under the subject of a
Kodiak community profile, the report states, "In 2018, there
were 1,295 permanent residents" in Kodiak Station. Further on
the same page, it is stated that there is one public school in
the Kodiak Station - Peterson Elementary School. Chair Stutes
said this is "woefully incorrect" information, which shows her
just how "out of touch" the report is with the "reality in
Alaskan communities."
CHAIR STUTES said no one argues with the issue that changes need
to be made to the Alaska Marine Highway System's (AMHS's)
operational efficiency, governance, contracts, and overall
structure; however, she expressed that that is a separate
conversation from the one being held today, which is that "the
system needs a higher baseline level of funding to operate and
serve Alaskans effectively."
3:49:45 PM
CHAIR STUTES continued reading her statement, as follows:
Briefly, however, I would like to mention that I find
the state of [disrepair] that AMHS has allowed our
mainliners to fall into extremely alarming. Four of
our mainliners are currently in mothball status, and a
total of six out of twelve of Alaska Marine Highway
System ferries are not in service because of
disrepair, lack of maintenance, or poor planning. The
legislature expects the Alaska Marine Highway System
to properly identify maintenance issue[s] and make
timely funding requests to address those so that the
fleet can operate and serve Alaskans. Serious
conversations will happen this session about a long-
term planning and ensuring that the Alaska Marine
Highway System is properly maintaining our ferry
system for future operations.
That being said, this hearing is about the urgent need
for more operational dollars. As a coastal legislator
and as chair of the [House] Transportation [Standing]
Committee, getting funding back into our ferry system
is my top priority this session.
CHAIR STUTES noted that in attendance were Mike Lesmann,
Legislative Liaison, and Mary Siroky, Deputy Commissioner - both
from DOT&PF. She said Nils Andreassen would give a presentation
on the importance of AMHS to municipal governments.
3:51:16 PM
NILS ANDREASSEN, Executive Director, Alaska Municipal League
(AML), provided a PowerPoint presentation highlighted the
importance of the Alaska Marine Highway System to Alaska and the
urgent need for more funding. [Hard copy of the PowerPoint is
included in the committee packet and is entitled "Value vs. Cost
- The Alaska Marine Highway System."
MR. ANDREASSEN directed attention to slide 2, entitled
"Municipal Perspective." As the slide shows, he noted that the
ferry system has been in place since 1959, resulting from a
voter-approved bond package; there are 34 port communities, and
23 local governments have been incorporated in current form
following the initiation of AMHS; responsibilities of cities and
boroughs range from police powers, hospitals, water and
wastewater, and schools; and the communities are dependent on
AMHS for business, safety, schools, and health. He said this
involves 33 cities and boroughs, 120,114 Alaskans, and a
combined budget for those cities and boroughs of $610 million.
Mr. Andreassen showed a map on slide 3 that illustrates the
location of the 165 cities and boroughs in Alaska; slide 4 shows
AMHS cities and boroughs, and he noted that the light blue
[dots] reflect the Southeast Alaska communities impacted.
3:53:44 PM
MR. ANDREASSEN directed attention to slide 5, entitled
"Budgets." He said that the budgets of the municipalities
combined equal $610 million. He indicated a tax base for AMHS
of $33. He relayed that those cities and boroughs carry a
combined debt of $720 million in general obligation revenue and
school bond debt; they contribute $73 million to school; 15 are
PCE communities; and they receive $24 million in fisheries
taxes. Mr. Andreassen said these numbers demonstrate that any
reduction in ferry service to these communities lessens the
ability of the communities to pay back their debt, contribute to
schools, address the high cost of energy, and contribute to a
thriving fisheries industry.
MR. ANDREASSEN turned to slide 6, entitled "Responsibilities."
He said it is important to remember that in the area of
education, only three of the cities and boroughs are outside of
municipal school districts. He remarked that it is incredible
that these three sustain local governments and contribute to
school districts.
MR. ANDREASSEN said in terms of public safety, there are 20
police powers; 8 of the port cities and boroughs manage their
own hospitals; and 25 municipalities participate in the Public
Employees Retirement System (PERS). He indicated that the
number managing their own hospitals is "very different" from
"across the state," and "a lot of that is linked to that coastal
transportation function that they depend on." Any cuts to
[AMHS] result in a lessened ability of [port cities and
boroughs] to contribute to education. He indicated that when
these local governments are not able to pay for schools and law
enforcement, the liability for that coverage can fall to the
state. In terms of PERS, he stated, "These municipalities are
actively contributing to paying off the net pension liability
incurred by the state; they're active participants in offsetting
some of the other costs of that system." He continued:
Those 33 cities and boroughs ... have 2,275 employees
that they're directly responsible for. Any threat to
the $33 million in tax base that they experience from
the ferry system means that they have to make hard
decisions about those employees.
3:57:24 PM
MR. ANDREASSEN directed attention to slide 7, entitled "The
Value of the AMHS," which names the following: fishing
industry, health and safety, residents, coast guard, state and
federal construction, education, and tax base. Mr. Andreassen
indicated that AMHS allows coastal communities to access health
care, reach out beyond their community, run businesses, bring in
goods and provide services, undertake capital improvement
projects that would otherwise depend on state and federal
dollars, and move students between communities [to interact with
other schools]. He said the Coast Guard is dependent on the
ferry system. He stated that ultimately, AMHS is "a dependable
tax base and contributing to the tax base of those local
governments."
MR. ANDREASSEN, referred to slide 9, entitled "Indirect
Benefit." As shown on the slide, he noted that the system
reaches [658,959] Alaskans in incorporated areas of the state.
The slide shows two charts from a McDowell Group report. Beyond
coastal communities, there are included the following
municipalities: Denali, Anchorage, and Wasilla. They actively
participate in the ferry system.
3:59:46 PM
MR. ANDREASSEN pointed to slide 10, entitled "Statewide Impact."
He listed the statewide impacts: 1,700 Alaska jobs in 44 Alaska
communities; $104 million in Alaska wages; $273 million in
economic impact; $84 million spent with 500 Alaska companies;
two-thirds of the 39,000 passengers are Alaskans; and AMHS
spending per passenger versus other tourist transportation modes
is $1,700 to $941.
4:01:16 PM
MR. ANDREASSEN, moving on to slide 11, entitled "Value vs.
Cost," asked the legislature to consider "value beyond cost" and
the role of the state in contributing to the future of AMHS. He
advised that stating that the intent is to reduce the state's
financial obligation and/or liability is insufficient. He said,
"When it comes to value versus cost, we have to think beyond
transportation." He said the issue intersects with all the
committees that have been formed by the legislature - cuts
threaten community and economic development. Governor
Dunleavy's $5 million veto, he said, limits the ability of the
state to provide adequate and reasonable service. He said AML
would argue that "$43 million, as a budget item, with $5 million
in reduced cuts has resulted in crisis for communities." He
acknowledged that mayors and managers were present to talk about
what that crisis looks like for their communities.
MR. ANDREASSEN concluded his presentation by showing slide 12,
entitled "Recommendations to Legislature." Those
recommendations include to: overturn the $5 million veto in
order to assist winter service or include additional funding
within a fast-track supplemental budget; establish a more
sufficient budget for fiscal year 2021 (FY 21), including for
maintenance; include municipal leaders in the decision-making
process; include additional funding within the supplemental
budget; establish a more sufficient budget for FY 21; and
include AMHS capital needs in the Coastal Infrastructure general
obligation bond package. Regarding the inclusion of municipal
leaders in the discussion, he acknowledged there is a working
group being formed, and he advised that one of its members
should be a municipal official. Further, he urged that
municipal leaders should be at the table during future
discussions on the issue by the legislature.
4:04:36 PM
REPRESENTATIVE KREISS-TOMKINS expressed appreciation to AML for
its support on this issue and to Chair Stutes for making
possible this hearing.
4:04:52 PM
REPRESENTATIVE STORY related having lunch with Tlingit and Haida
elders and hearing stories about the adverse effects of the
[cut-back] ferry service. She wondered whether AML had
considered urging the governor to declare some of the coastal
areas as disaster areas, thus directing resources to communities
in that fashion. She asked Mr. Andreassen whether he had
"talked about" putting in "extra runs" [of the ferry] to those
communities most impacted and in need of basic services.
4:06:13 PM
MR. ANDREASSEN responded that AML has been hearing similar
stories. He said in response to resolutions passed by AML
members last November, the organization has established
"something like a ferry caucus" within AML, which would help
with information gathering and decision making at the state
level.
4:06:54 PM
REPRESENTATIVE DRUMMOND expressed fascination upon learning that
the spending per passenger [on the ferries] is almost twice that
of other tourists. She opined that more ferries are needed for
more passengers, and she stated that obviously that cannot
happen if the state is not "running ships." She offered her
understanding that AMHS raises almost 42 percent of the cost of
running the system through fares and freight. She stated that
it is crucial that the state get the system running again.
4:07:55 PM
REPRESENTATIVE STUTES announced she would begin invited
testimony. She explained that she would read a statement sent
by the mayor of Anchorage, Alaska, who could not be present
today.
4:08:27 PM
ETHAN BERKOWITZ, Mayor, Municipality of Anchorage, had his
testimony read into the record by Chair Stutes. The testimony
[copy available in the committee packet] read as follows
[original punctuation provided]:
Dear Representative Stutes and Wool,
Before Alaska had oil, the pipeline, or the Dalton
highway, we had the Marine Highway system. In a state
without roads, we rely on our waterways to be our
highways. For more than fifty years, ferries have
linked our communities, spurred economic development,
and a been a source of statewide identity and pride.
Through boom and bust, Alaskans prioritized the
transportation system that connects us.
Anchorage is an Alaska Marine Highway city -- even
though we do not have a ferry dock, Anchorage benefits
from a functional and robust marine highway system.
Anchorage is the top destination for Alaska Marine
Highway System (AMHS) travelers. More than half of
visitors who travel on the AMHS pass through
Anchorage. These visitors typically spend $1700 per
person during the course of their Alaska visit,
compared to $1300 for other travelers. In a city where
the tourism industry accounts for one in nine jobs, we
benefit from the prosperity the Marine Highway system
delivers.
Goods and services from some 500 Alaska businesses
support the daily operation of the AMHS, resulting in
an infusion of millions of dollars throughout the
Alaska economy. Anchorage businesses receive the third
highest share of that spending.
And Anchorage is a destination and waystation for many
of our Prince William Sound neighbors who come here
to shop, to socialize, for medical care and for onward
travel. We also use the ferry ourselves. Anchorage and
Mat-Su account for 15% of AMHS revenue from Alaskans.
Just as we expect the state to maintain the Glenn and
Seward highways, as well as the many roads inside the
Municipality, we count on the state to maintain our
Marine Highway system. And while we enjoy the drive to
Whitter, I look forward to the day when AMHS ferries
get a berth in Anchorage.
Ethan Berkowitz
4:11:13 PM
JAN HILL, Mayor, Borough of Haines, related one of her fondest
memories was standing on the dock, playing her clarinet,
welcoming the first ferry to Haines. She said [the community of
Haines] loves the ferry system. She said the last couple years
have resulted in struggle for businesses having to close or have
limited hours, for school kids' who need to travel, and seniors
needing health care and the ability to travel. She related that
recently a friend had to spend a week in Juneau because the
weather was too bad [to fly back to Haines] and no ferries were
operating. She said, "That has impacted more families than I
can even count."
MS. HILL concurred with the remarks of Mr. Andreassen and the
opening remarks of Chair Stutes. She said communities need to
work better with the legislature. She expressed that it has
been rare to have the support of people from Interior Alaska for
the ferry system, but some of the borough's working groups have
been able to illustrate how Haines serves as a "pass-through
community" to the Interior. She noted that military families
access stations in the Interior through Haines. Businesses
cannot get the materials they need and have had to lay off
workers. She emphasized, "We can survive with less ferry
service than we grew accustomed to, but we can't survive with
none." She appealed to the committee to listen to the
suggestions that would be forthcoming during the hearing and
allow communities to help with a solution. She acknowledged the
need for more money and the scarcity of it. She concluded that
it is necessary to become creative in order "to figure out ways
to make this work."
4:15:40 PM
BRAD RYAN, Mayor/Borough Manager, Municipality of Skagway, said
most people know that Skagway is a cruise ship town that is
doing well at one million passengers per year. He added that
Skagway is one of the few populations that is growing in
southeast Alaska; nonetheless, with the current ferry schedule
it seems that families who have been there for decades are ready
to move out because they can't get their children in and out for
sports, medical facilities, appointments, et cetera. He
expressed one of his biggest fears, that Skagway will become a
cruise ship port that's only open from April through October,
leaving him [mayor] of an empty community. He stated that while
on one level Skagway is a prosperous small community that's
growing, it wouldn't take much change "in the connection with
the rest of Alaska," to propel Skagway backwards. He concluded
by saying he would appreciate any efforts that the committee
might put in towards maintaining the ferry service, especially
the wintertime ferry service.
4:17:39 PM
STEVE PRYSUNKA, Mayor, City and Borough of Wrangell, pointed out
that his colleagues have expressed concerns about the ability
for residents to move back and forth and for freight to come in
and out; however, there is another element to consider when
deciding whether to contract or expand the ferry service. That
element, he said, is emergency services to mariners. He
explained that the ferry system provides a safety net to
mariners throughout the coast. He added that there are numerous
examples of the ferry being in the right place at the right time
and saving lives - most recently being in August 2019 when a
ferry saved three fishermen whose vessel had sunk. Recently the
USCG approached him about the new mega-cruise ships that will be
traveling the Inside Passage with 3,000-5,000 people on board.
He questioned how that many people would be accommodated in an
emergency situation, adding that Wrangell's sewage system and
water utility wouldn't suffice. He noted that the ferry system
is supposed to be the diversion plan if there were ever a major
cruise ship disaster. He reemphasized that transportation is
one important element of the ferry system, with the second being
the security of Alaska as a maritime state. He said the ferries
give Alaska the opportunity to move goods and people anywhere at
any time, which makes it part of the state's natural disaster
planning process.
4:20:31 PM
CALVIN CASIPIT, Mayor, City of Gustavus, discussed how the ferry
schedule is impacting Gustavus directly. He noted that while
most coastal communities have an Alaska Marine Lines (AML) barge
landing, Gustavus has a river that only a small, 80-foot maximum
landing craft can maneuver. He said without the ferries
Gustavus won't get heavy freight deliveries, adding that the one
grocery store in town gets all its food and building items off
the ferry. He indicated that without the ferry system, Gustavus
is at a loss with no way for the bed & breakfast establishments
and businesses to prepare for the tourism season. He expressed
concern about the 2020 summer ferry schedule, which only lists
two ferries every two weeks for Gustavus. He further questioned
how traveling for medical appointments would be possible with
such a limited ferry schedule.
4:23:54 PM
JOSHUA BOWEN, Mayor, City of Angoon, stated that he is
testifying in favor of additional funding for the Alaska Marine
Highway as soon as possible. He recounted the most common
issues that most coastal communities are facing, such as travel,
medical travel, freight [delivery], food and supplies,
affordable sports travel, and transportation issues centered
around the lack of flights due to weather and space limitations.
He requested that the committee consider several important
issues that are getting overlooked. Specifically, multiple
layover days in between travel destinations that are being spent
on Medicaid's dollar. He also reflected another anecdote
wherein a teacher had revived the school's cross-country program
but left because he felt isolated without a certain schedule to
be able to travel out of town. He noted that Angoon just saw
its last ferry until March 3, 2020, adding that the new schedule
has [adversely] impacted the city's ability to received
refrigerated products because there's no guarantee that the
product will be fresh upon arrival.
4:28:19 PM
MR. BOWEN spoke about projects on the horizon that will increase
in cost without the ferry to transport the necessary materials.
He said over Thanksgiving 2019, the municipal leaders were under
pressure to figure out a solution to the lack of ferry service.
They unanimously voted to charter a catamaran from Juneau to
Angoon and back, which cost a total of $13,000. He explained
that the city only received $5,000 back, resulting in an $8,000
loss. He stated that Angoon's locally generated revenues are
nowhere near high enough to sustain those costs regularly.
Furthermore, he said he doesn't see it as the local government's
responsibility. Finally, he asked the committee to consider
additional funding either through a veto override on the $5
million or a fast-tracked supplemental to get a reasonable level
of service to Alaska's coastal communities as soon as possible.
4:30:29 PM
REPRESENTATIVE KREISS-TOMKINS asked whether Angoon has a barge
landing.
MR. BOWEN said Angoon has half of a barge landing; however, the
city does not receive regular barge service.
REPRESENTATIVE KREISS-TOMKINS asked whether Angoon has a landing
strip.
MR. BOWEN explained that currently the only way to get anything
in or out of Angoon is by seaplane.
REPRESENTATIVE KREISS-TOMKINS said that these very community-
specific details and facts about Angoon are concerning because
the stakes are high.
4:32:23 PM
TERRY HAINES, Mayor, Kodiak Island Borough, communicated his
request for the committee to find a way to fund AMHS to a base
level of service for its port communities. He acknowledged that
the system "needs fixing"; nonetheless, it's unfair to the
businesses and individuals who utilize the system to severely
curtail sailings right now. He said that AMHS, like all
transportation infrastructure, is an economic enabler. He
further noted that its users have made great use of it. In
Kodiak, homebuilders, fishermen, retailers, and service-
providers, all depend on AMHS. He related that "accessing goods
and services in other parts of Alaska" was the most common
response from people when asked how they use the system. He
conveyed that the routes of the marine highway are like economic
arteries that link Alaska's economy. Furthermore, he said, the
users are "holding up their end of the bargain" by using the
system to circulate value in the Alaska economy. As an analogy
for the canceled ferry service, he offered that a doctor would
never treat a swollen foot by amputating it. He pointed out
that the marine highway adds to the viability of the ports and
harbors that it visits, and port viability will be a necessary
part of Alaska's bright future in the face of global warming and
a shifting economy. He also mentioned the large coastguard
population in Kodiak that depends on the ferries to access the
rest of the state. He concluded his testimony with one final
analogy: "I don't think it's wise to starve the chickens to
death in an attempt to cut the price of eggs."
CHAIR STUTES noted that Kodiak's Coast Guard base is the largest
in the nation.
4:35:51 PM
CLAY KOPLIN, Mayor, City of Cordova, emphasized the importance
of this hearing given the importance of transportation along
with energy and available workforce as the pillars of Alaska's
economy. He shared a personal anecdote with the committee to
communicate Cordova's need for short-term funding and long-term
solutions.
MR. KOPLIN shared the implications of the ferry service being
suddenly and unexpectantly canceled. He explained that the
economy in Prince William Sound is "in a sector that is 94
percent imports into the U.S." He pointed out that as Alaska
has these great fisheries and opportunities, fishermen and
tenders are coming from all over the state to participate. He
equated the canceled ferry system to a closed highway, just as
fishermen are trying to get their boats, trailers, and equipment
home.
4:41:10 PM
MR. KOPLIN related Cordova's appreciation for the efforts of
AMHS to work within its resources to provide service, but
frankly, he said, it's not working. He emphasized the
importance of an April 15 service date for the start of the
Copper River Fishery, a marketing standard Cordova has worked
hard to set for the entire state. That standard has allowed the
city to make $75 per pound retail for Copper River king salmon.
He further noted that 4 million pounds of silver salmon were
delivered in 2018 at $2.50 per pound, which is a $10 million
fishery that moves back and forth on the ferries. He emphasized
the need for bridge funding and a system that will work going
into the future. He said too many mistakes are being repeated
that take successes off the table. To conclude, he shared his
vision for the system's future, which is to be a world leader
that establishes the best practices for tomorrow.
4:43:26 PM
REPRESENTATIVE ORTIZ asked when the ferry service is scheduled
to return to Cordova under the current funding scenario.
MR. KOPLIN answered May 20, 2020, according to the summer
schedule. He stated that if the supplemental [budget] that was
requested last fall had come through, there would have been time
to work on the vessels and get one in operation. He expressed
his hope that there is still time to do so.
4:44:12 PM
REPRESENTATIVE DRUMMOND reflected on the hearing on the AMHS
fall/winter schedule that took place in the Cordova Center last
July 2019. She related that 55 of the 250 people who showed up
testified and displayed the community's commitment to Cordova
and support of the ferry system. She said she would do
everything she could to restore the city's ferry service, adding
that the attempt to destroy Cordova's fishing community and
everything else is completely unfair. She sought clarification
on Mr. Koplin's statement about getting as close to fully
covering the cost of service as he had ever seen it. She asked
whether that was in reference to one specific ferry or whether
more than one ship serves Cordova when the system is running
regularly.
MR. KOPLIN replied that it was the fast ferry, the motor vessel
(M/V) Chenega. He explained that it was the outcome of years of
DOT&PF planning that culminated in that ferry staying in Prince
William Sound for less than a year. He said one of the systemic
problems is moving [the ferries] around like pawns and not
giving captains and crews the opportunity to live locally and
have some sort of certainty. He added that contrary to what
people might think, the vessels are designed to run in the
Prince William Sound weather, adding that if the stabilizers had
been installed on the vessel it would have been even better. He
reiterated that this is a systemic problem between the
legislature, the governor's office and commissioners, and AMHS.
He said the governance and management needs to be done right
because currently, it's not working.
4:46:43 PM
REPRESENTATIVE KREISS-TOMKINS described how the governance of
the ferry system changes with each administration every four to
eight years, with each administration spending millions of
dollars undoing the previous administration's work. He called
this management "schizophrenic" and "inane." He expressed his
hope that the legislature can look at a different management and
governance model. He noted that there is a misconception in
coastal Alaska that only coastal legislators support the ferry
system, adding that since his arrival to the legislature in
2012, many of his "Railbelt" colleagues have been steadfast
supporters of the ferry system. He stated that Mayor
Berkowitz's letter is a good example of that even though he's
not presently a legislator.
4:48:30 PM
REPRESENTATIVE STORY questioned whether Mr. Koplin had looked at
what service level Cordova would need with the money requested
by the Marine Transportation Advisory Board (MTAB). She also
sought clarification on the level of communication between the
board and DOT&PF.
MR. KOPLIN clarified that he no longer serves on MTAB by choice.
He noted that [the board] had worked for years to get a three-
year schedule in place that started rapidly growing revenues.
He further noted that MTAB was working to do right by the system
not the individual communities or districts. As to the
recommendations, he said he contacted DOT&PF early and often, as
well as spoke directly with the commissioner, deputy
commissioner, Captain Falvey, and the unions about multiple
scenarios from a minimum baseline service up to "an absolute
(indisc.) of April 15th." He said the ball kept getting kicked
down the road farther and farther. Regardless, he said Cordova
will survive without the ferry, but it will change the city's
trajectory from a one of growth to one that's in economic
decline.
REPRESENTATIVE STORY questioned whether the specific
recommendations that were given to DOT&PF would be priced out
for the legislature to understand the level of service that's
needed and the associated cost.
4:51:58 PM
CHAIR STUTES replied that her office is currently working on
that.
4:52:34 PM
CASSIDI CAMERON, City Manager, City of Seldovia, expressed her
hope that legislators have listened to public testimony from
Alaskans over the last year because it all tells the same story
with different details. She said despite having different
roles, revenues, and resources, Alaskans rely on transportation
and depend on the ferry service as a highway. She noted that
Seldovia has exhibited growth over the last five to seven years.
She said the residents appreciate the quality of life in
Seldovia, which includes the ferry service. If that disappears,
she said, Seldovia will be crippled and isolated from
opportunities and the rest of the world.
4:55:06 PM
MS. CAMERON further expressed her hope that the committee
members are using this opportunity to gain knowledge. She asked
them to consider municipalities and local leaders as assets.
She pointed out that Seldovia has been unseasonably cold and,
because of the limited ferry service, residents are having to
purchase their heating oil locally at $5 per gallon to heat
their homes, which is putting a strain on their cost of living
and diminishing their quality of life. She said she hopes that
supplemental funding can be given as a short-term solution and
that the problems DOT&PF is facing will be identified and worked
out for a better future for all Alaskans.
4:58:43 PM
NORM CARSON, Chamber of Commerce President, City of Pelican,
addressed the limited AMHS schedule and pointed out that Pelican
won't see a ferry in the foreseeable future because only two
vessels serve the community, the M/V Aurora and the M/V LeConte,
and both were overhauled for repairs this year. Of the two, the
M/V LeConte is the only boat that will return to service this
summer; however, it will be serving Prince William Sound
instead, leaving Pelican without service unless an alternate
vessel picks up the route. He voiced his support for any kind
of supplemental funding that could help AMHS and said that
Pelican would particularly like to see the Aurora come back to
service in FY 21.
5:01:25 PM
DENNIS ROBINSON, Vice Mayor, City of Unalaska, stated that
Unalaska receives very little ferry traffic; nonetheless, all of
it contributes greatly to the economy. He pointed out that
eliminating the ferry service puts Alaskan contractors at a
disadvantage to contractors in the Lower 48 because Alaskan
companies rely on transporting their equipment and supplies by
ferry at a cheaper rate than the commercial lines. He added
that Unalaska has plenty of shipping vessels, including weekly
barges, ships, and a domestic container boat; however, the
barges primarily deliver fish which leaves no room for the
equipment. He continued by saying the only way to help the
economy is to keep money in the state. He offered his belief
that AMHS needs to be built to benefit communities.
5:05:43 PM
MR. ROBINSON noted that Unalaska is a hub community for smaller
communities. He explained how the ferry brings the "Mammogram
van" to Unalaska, as well as other supplies. He said it allows
women from outlying communities to come to Unalaska for health
care and to shop for groceries, adding that 50 percent of the
groceries that supply the Bering sea come from Anchorage. He
expressed his hope that those services will remain in Alaska.
He emphasized that AMHS is an integral part of building the
state's economy.
5:07:40 PM
CHELSEA TREMBLAY, Assembly Member, Borough of Petersburg,
recounted several personal anecdotes indicating the importance
of the state ferry system. She reminded the committee that the
cities' representatives know their communities and what they
need and are testifying in hopes that they are heard. She said
that Petersburg is lucky because it has an airstrip; however,
many neighboring cities do not, which is what propelled Ms.
Tremblay to attend this meeting. Nevertheless, she related that
Petersburg is also feeling the hurt with extreme freight costs,
school costs, and more.
5:11:01 PM
REPRESENTATIVE KREISS-TOMKINS emphasized that there is zero
northbound service out of Sitka. Therefore, in order to get his
vehicle from Sitka to Juneau he described putting it on a
southbound ferry to Petersburg, where it must sit for 3-4 days
before someone transfers it on to a northbound ferry to Juneau.
5:12:03 PM
KEN CASTNER, Mayor, City of Homer, made four points. First, he
stated, "We do things together that we can't do as individuals."
Second, he highlighted the importance of the movement of goods,
services, fish, and tourists to the state's economy. Third, he
pointed out that the ferry system was poorly tested last summer
with the loss of ferry service due to the strike and the Kenai
peninsula fires. Fourth, he stated that isolation is a
punishment. He said people living in coastal communities
already pay a little more for their transportation and a lot
more for goods and services, but they are willing to do it as
long as they don't feel cut off from the rest of the world. He
concluded by imploring the committee to address this issue
quickly and help get these communities back on their feet
because the summer season starts sooner there than in the
Interior.
5:15:19 PM
CHAIR STUTES thanked the testifiers and read her closing
statement, as follows:
Our ferry system is a vital piece of the
transportation infrastructure in Alaska. Coastal
Alaska needs its highway just as Interior Alaska needs
its road system. Testimony on the Alaska Marine
Highway System received more support by the numbers
than any other issue last session. We broke every
record that had been kept by the hearings we had last
year with the public testimony, and it widely, wholly
supported maintaining the Alaska Marine Highway
System. My hope is that the administration finally
hears its constituents and realizes that the ferry
system is vital, not optional, for our Alaskan way of
life. There are some serious policy discussions that
need to - and are - happening this session regarding
long-term decision making and planning; however, we
have communities suffering with no winter service
right now. The most urgent need is to increase the
Alaska Marine Highway System funding to avoid
irreparable damage to coastal communities and get
these communities back on a path to prosperity. I
will work tirelessly towards that this session.
5:17:36 PM
ADJOURNMENT
There being no further business before the committee, the House
Transportation Standing Committee meeting was adjourned at 5:17
p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| AML AMHS Presentation 01.20.19.pdf |
HTRA 1/21/2020 2:00:00 PM |
AMHS |
| AML Resolution $5 million Veto Overide 11.22.19.pdf |
HTRA 1/21/2020 2:00:00 PM |
AMHS |
| AML Resolution Ferry Funding 11.19.19.pdf |
HTRA 1/21/2020 2:00:00 PM |
AMHS |
| City and Borough of Sitka Resolution AMHS Service 10.27.15.pdf |
HTRA 1/21/2020 2:00:00 PM |
AMHS |
| City of Gustavus Resolution Importance of AMHS 03.11.19.pdf |
HTRA 1/21/2020 2:00:00 PM |
AMHS |
| City of Homer Resolution AMHS Funding 10.28.19.pdf |
HTRA 1/21/2020 2:00:00 PM |
AMHS |
| City of Seldovia Resolution $5 million Veto Overide 12.17.19.pdf |
HTRA 1/21/2020 2:00:00 PM |
AMHS |
| City of Tenakee Springs AMHS Resolution 01.20.20.pdf |
HTRA 1/21/2020 2:00:00 PM |
AMHS |
| City of Unalaska Importance of AMHS Service 01.13.20.pdf |
HTRA 1/21/2020 2:00:00 PM |
AMHS |
| Municipality of Anchorage AMHS Support Letter 01.20.20.pdf |
HTRA 1/21/2020 2:00:00 PM |
AMHS |