Legislature(1999 - 2000)

01/28/2000 09:03 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
SENATE FINANCE COMMITTEE                                                                                                        
LOG NOTES                                                                                                                       
01/28/00                                                                                                                        
                                                                                                                                
GENERAL SUBJECT(S):                                                                                                             
Overview:                                                                                                                       
Review of Department's Accomplishments                                                                                          
For FY'99 and FY'00                                                                                                             
Department of Fish and Game                                                                                                     
Department of Transportation and Public Facilities                                                                              
                                                                                                                                
The following overview was taken in log note format.  Tapes and                                                                 
handouts will be on file with the Senate Finance Committee through the                                                          
21st Legislative Session, contact 465-4935.  After the 21st                                                                     
Legislative session they will be available through the Legislative                                                              
Library at 465-3808.                                                                                                            
                                                                                                                                
Time Meeting Convened:  9:03 AM                                                                                                 
                                                                                                                                
Tape(s):  SFC-00 # 15 Side A and Side B                                                                                         
                                                                                                                                
                                                                                                                                
PRESENT:                                                                                                                        
Senator P. Kelly                                                                                                                
Senator Torgerson                                                                                                               
Senator Green                                                                                                                   
Senator Donley                                                                                                                  
Senator Phillips                                                                                                                
Senator Leman                                                                                                                   
NOT PRESENT:                                                                                                                    
Senator Parnell                                                                                                                 
Senator Wilken                                                                                                                  
Senator Adams                                                                                                                   
                                                                                                                                
ALSO PRESENT:                                                                                                                   
FRANK RUE, COMMISSIONNER, DEPARTMENT OF FISH AND GAME;                                                                          
KEVIN BROOKS, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,                                                                    
DEPARTMENT OF FISH AND GAME;                                                                                                    
KEN TAYLOR, DIRECTOR, DIVISION OF HABITAT AND RESTORATION,                                                                      
DEPARTMENT OF FISH AND GAME;                                                                                                    
DOUG MECUM, DIRECTOR, DIVISION OF COMMERCIAL FISHERIES;                                                                         
JOE PERKINS, COMMISSIONER, DEPARTMENT OF TRANSPORTATION AND PUBLIC                                                              
FACILITIES                                                                                                                      
                                                                                                                                
                                                                                                                                
LOG                                                                                                                             
SPEAKER                                                                                                                         
DISCUSSION                                                                                                                      
000                                                                                                                             
CO-CHAIR TORGERSON                                                                                                              
(Chairing the meeting in Co-Chair Parnell's                                                                                     
absence)                                                                                                                        
Introduction                                                                                                                    
11                                                                                                                              
FRANK RUE,                                                                                                                      
COMMISSIONER,                                                                                                                   
DEPARTMENT OF FISH                                                                                                              
AND GAME                                                                                                                        
I will give quick overview and answer the                                                                                       
ten questions that you posed. Ken Taylor of                                                                                     
the Division of Habitat and Restoration and                                                                                     
Doug Mecum of the Division of Commercial                                                                                        
Fisheries will address the specific                                                                                             
measures you gave to their divisions.                                                                                           
29                                                                                                                              
SENATOR PHILLIPS                                                                                                                
Do you have a measurement for revenues                                                                                          
taken in by the department and how they are                                                                                     
spent?                                                                                                                          
31                                                                                                                              
MR. RUE                                                                                                                         
We do and will get you the annual report                                                                                        
showing that information.                                                                                                       
36                                                                                                                              
SENATOR PHILLIPS                                                                                                                
Thank you.                                                                                                                      
37                                                                                                                              
MR. RUE                                                                                                                         
Ten questions.                                                                                                                  
1. What is your mission?                                                                                                        
We've lived under this mission for a number                                                                                     
of years. Project maintain, improve the                                                                                         
fish, game and aquatic plant resources of                                                                                       
the state and manage their use and                                                                                              
development in the best interest of the                                                                                         
economy and well-being of the people of the                                                                                     
state consistent the sustained yield                                                                                            
principle.                                                                                                                      
A few years ago, we did a survey of all                                                                                         
department employees and found that                                                                                             
everyone agreed this is a good mission.                                                                                         
They can do their jobs and understand why                                                                                       
they are doing them.                                                                                                            
61                                                                                                                              
                                                                                                                                
3. Who are our customers?                                                                                                       
People of Alaska and people outside of                                                                                          
Alaska who wish to use and enjoy the fish                                                                                       
and wildlife resources for a wide variety                                                                                       
of uses. The uses include commercial                                                                                            
fishing, sport fishing, subsistence fishing                                                                                     
and hunting, sport hunting, guiding,                                                                                            
viewing and tourism.                                                                                                            
Along with direct users, there are many                                                                                         
others who benefit from uses.                                                                                                   
82                                                                                                                              
                                                                                                                                
2. What are programs and how do they                                                                                            
contribute to the mission?                                                                                                      
The department's programs reflect the                                                                                           
functions we must perform to be successful                                                                                      
in sustaining yield and maintain                                                                                                
opportunity for the future. Those functions                                                                                     
fall into the following areas:                                                                                                  
? protect habitat                                                                                                               
? Good science and information.                                                                                                 
? Sound management principals and sound                                                                                         
infield management to manage harvest of                                                                                         
resources. Key to our success is having                                                                                         
managers close to the resource and the                                                                                          
users of the resource.                                                                                                          
? Access by the public through the boards                                                                                       
and divisions.                                                                                                                  
136                                                                                                                             
                                                                                                                                
4. What are our performance measures and                                                                                        
how did we do last year?                                                                                                        
a. Did we provide opportunity?                                                                                                  
We came up with several measures to check                                                                                       
this: Did we follow the Board of Fisheries                                                                                      
or the Board of Game management plans? Did                                                                                      
we meet our own internal guideline harvest                                                                                      
levels?                                                                                                                         
b. Did we meet our production goals?                                                                                            
Escapement goals? Population goals? Is the                                                                                      
resource sustained over time?                                                                                                   
c. Did we protect the habitat?                                                                                                  
168                                                                                                                             
                                                                                                                                
5. Did we provide the public an opportunity                                                                                     
to participate and influence the regulatory                                                                                     
process and the management program                                                                                              
implemented in the field?                                                                                                       
175                                                                                                                             
                                                                                                                                
These key areas will define a successful                                                                                        
management program.                                                                                                             
178                                                                                                                             
                                                                                                                                
6. What do we intend to do differently this                                                                                     
year?                                                                                                                           
The main difference is that we will have to                                                                                     
deal with the federal fisheries program. We                                                                                     
will start to see proposals under the                                                                                           
federal subsistence program. We are seeing                                                                                      
a tremendous staff drain regarding data                                                                                         
requests, and having a second, federal,                                                                                         
board.                                                                                                                          
We also have proposals for new and                                                                                              
developing fisheries.                                                                                                           
195                                                                                                                             
SENATOR PHILLIPS                                                                                                                
Assume you are talking about the failure of                                                                                     
the legislature to adopt a constitutional                                                                                       
amendment regarding subsistence, resulting                                                                                      
in a burden to the Department of Fish and                                                                                       
Game.                                                                                                                           
                                                                                                                                
MR. RUE                                                                                                                         
That is correct.                                                                                                                
                                                                                                                                
SENATOR PHILLIPS                                                                                                                
Do we have to cooperate with the federal                                                                                        
government and hand information over to                                                                                         
them?                                                                                                                           
200                                                                                                                             
MR. RUE                                                                                                                         
The information is public and we must                                                                                           
provide it to anyone who asks.                                                                                                  
207                                                                                                                             
SENATOR PHILLIPS                                                                                                                
Are we legally required to cooperate?                                                                                           
208                                                                                                                             
MR. RUE                                                                                                                         
We have to hand over any public                                                                                                 
information. We don't hand over data that                                                                                       
we have not first analyzed. We don't want                                                                                       
to give them raw data.                                                                                                          
                                                                                                                                
SENATOR PHILLIPS                                                                                                                
Are you treating the federal government any                                                                                     
differently than the public?                                                                                                    
                                                                                                                                
MR. RUE                                                                                                                         
No. However, we cooperate all the time with                                                                                     
the federal government on research as land                                                                                      
managers.                                                                                                                       
Do we need to participate in their                                                                                              
regulatory process or just ignore it? It is                                                                                     
to our benefit to participate and try to                                                                                        
influence their process rather than have                                                                                        
them make arbitrary decisions that only                                                                                         
consider subsistence uses.                                                                                                      
232                                                                                                                             
CO-CHAIR TORGERSON                                                                                                              
                                                                                                                                
233                                                                                                                             
SENATOR DONLEY                                                                                                                  
My questions relate to development of                                                                                           
additional performance measures.                                                                                                
234                                                                                                                             
MR. RUE                                                                                                                         
I'll finish answering the restated                                                                                              
questions then address Senator Donley's                                                                                         
specific questions.                                                                                                             
                                                                                                                                
CO-CHAIR TORGERSON                                                                                                              
Concur.                                                                                                                         
238                                                                                                                             
MR. RUE                                                                                                                         
7. What are your strategies and priorities                                                                                      
for this next year?                                                                                                             
Are strategies are similar to those we have                                                                                     
found successful in the past. We will focus                                                                                     
on good management, research, productivity                                                                                      
and providing opportunity.                                                                                                      
We do have some new priorities to get                                                                                           
better data on existing fisheries and also                                                                                      
new fisheries.                                                                                                                  
252                                                                                                                             
                                                                                                                                
8. Which measures are you going to use to                                                                                       
validate and monitor our investment?                                                                                            
We will be using the measures written with                                                                                      
this Committee and the House Finance                                                                                            
Committee. We also have missions and                                                                                            
measures developed in the Administration                                                                                        
that are consistent with the legislatures.                                                                                      
262                                                                                                                             
                                                                                                                                
9. Is there duplication between agencies?                                                                                       
I don't believe so. We complement and work                                                                                      
with other departments, such as the                                                                                             
Department of Environmental Conservation.                                                                                       
272                                                                                                                             
                                                                                                                                
10. Are other options viable to accomplish                                                                                      
these results? I think we've done a good                                                                                        
job using the current system of managing                                                                                        
fish and wildlife. We are always looking                                                                                        
for opportunities to work with the private                                                                                      
sector for research.                                                                                                            
282                                                                                                                             
MR. RUE                                                                                                                         
Conclusion                                                                                                                      
287                                                                                                                             
CO-CHAIR TORGERSON                                                                                                              
                                                                                                                                
292                                                                                                                             
SENATOR DONLEY                                                                                                                  
A recent legislative audit was critical of                                                                                      
the department's method used for measuring                                                                                      
productivity of commercial fishing versus                                                                                       
sport fishing. What have you done to                                                                                            
address that issue?                                                                                                             
                                                                                                                                
MR. RUE                                                                                                                         
                                                                                                                                
                                                                                                                                
SENATOR DONLEY                                                                                                                  
The department has adopted a method of                                                                                          
"angler days" to measure sport fishing                                                                                          
productivity that is not used anywhere                                                                                          
else. The audit was critical of that method                                                                                     
saying that a lot of revenues dedicated to                                                                                      
sport fish programs are being used for                                                                                          
commercial fishing means. However, because                                                                                      
the measures are so different, you can't do                                                                                     
an analysis of the situation. Why do you                                                                                        
continue to defend the concept of "angler                                                                                       
days"? Why not go to apples and apples and                                                                                      
compare fish caught?                                                                                                            
303                                                                                                                             
MR. RUE                                                                                                                         
It is hard to come up with a useful measure                                                                                     
to allow successful comparison. We could                                                                                        
use dollars or economic benefit of                                                                                              
different uses of wildlife in situations                                                                                        
where there is a conflict between uses.                                                                                         
317                                                                                                                             
SENATOR DONLEY                                                                                                                  
It is a question of what is a fair                                                                                              
allocation of the resource, which is a                                                                                          
constitutional responsibility, as well as                                                                                       
management questions. I think going to an                                                                                       
economic measurement is not appropriate.                                                                                        
You need to compare fish to fish to get a                                                                                       
good measure of the sustained yield                                                                                             
provision. I think the "angler day" theory                                                                                      
is deceptive. To say that an "angler day"                                                                                       
where no fish were caught is the same as                                                                                        
one where fish were caught is a fraud.                                                                                          
I don't think you've taken the spirit of                                                                                        
the legislative audit to heart.                                                                                                 
330                                                                                                                             
MR. RUE                                                                                                                         
We have looked at ways to measure                                                                                               
opportunity for sport fishing. Whether                                                                                          
there is an opportunity to catch fish may                                                                                       
be a better way to measure. I am willing to                                                                                     
work with you on that.                                                                                                          
340                                                                                                                             
KEVIN BROOKS,                                                                                                                   
DIRECTOR, DIVISION                                                                                                              
OF ADMINISTRATIVE                                                                                                               
SERVICES,                                                                                                                       
DEPARTMENT OF FISH                                                                                                              
AND GAME                                                                                                                        
"Angler day" is a widely used measure in                                                                                        
many states and is used by the US Fish and                                                                                      
Wildlife Service to determine the amount of                                                                                     
aide provided to the state.                                                                                                     
This is not to say that sport fish does not                                                                                     
report on harvest information.                                                                                                  
We've worked with the subcommittee staff to                                                                                     
develop measures for next year to address                                                                                       
this matter.                                                                                                                    
352                                                                                                                             
SENATOR DONLEY                                                                                                                  
If the "angler day" method had a factor to                                                                                      
report how many angler days were                                                                                                
successful, the method would be more                                                                                            
appropriate.                                                                                                                    
357                                                                                                                             
MR. RUE                                                                                                                         
"If you took the same concept and applied                                                                                       
it to commercial fishing, for instance, I                                                                                       
don't expect to supply a number of fish to                                                                                      
commercial fisherman. I expect to supply an                                                                                     
opportunity to fish on the harvestable                                                                                          
surplus." I would be concerned if success                                                                                       
were measured by how many fish were caught.                                                                                     
                                                                                                                                
SENATOR DONLEY                                                                                                                  
But that is exactly what you do with                                                                                            
commercial fisherman. If they haven't                                                                                           
caught enough you open up more fishing                                                                                          
days.                                                                                                                           
                                                                                                                                
MR. RUE                                                                                                                         
But we are not fishing to a quota for that                                                                                      
individual fisherman.                                                                                                           
                                                                                                                                
CO-CHAIR TORGERSON                                                                                                              
The audit suggested using different                                                                                             
measurements than apples to oranges. The                                                                                        
audit suggests using numbers and weight of                                                                                      
fish.                                                                                                                           
The recommendation is that you develop "a                                                                                       
better benefit measure approach with                                                                                            
greater commonality in order to better                                                                                          
identify and segregate the user groups."                                                                                        
That doesn't sound difficult.                                                                                                   
384                                                                                                                             
SENATOR DONLEY                                                                                                                  
What is the mission of the sport fish                                                                                           
component of the department relating to the                                                                                     
defense of sport fishermen? There is a                                                                                          
current proposal to limit the catch to one                                                                                      
halibut per day. What actions is the                                                                                            
department taking?                                                                                                              
389                                                                                                                             
MR. RUE                                                                                                                         
We are not supporting a proposal to limit                                                                                       
the charter fleet to only one halibut per                                                                                       
day. That is just one option considered by                                                                                      
the North Pacific Fisheries Management                                                                                          
Council (NPFMC) and is not an actual                                                                                            
proposal. It is a potential management tool                                                                                     
that could be used if halibut numbers                                                                                           
become low.                                                                                                                     
We are working with the council to                                                                                              
establish allocations that are fair for all                                                                                     
users.                                                                                                                          
405                                                                                                                             
SENATOR DONLEY                                                                                                                  
What is department doing? Who has the                                                                                           
department designated as the lead person                                                                                        
and why was he chosen?                                                                                                          
408                                                                                                                             
MR. RUE                                                                                                                         
David Benton is the department's                                                                                                
representative on NPFMC. However, the                                                                                           
department doesn't only work with one                                                                                           
person.                                                                                                                         
                                                                                                                                
SENATOR DONLEY                                                                                                                  
What is Mr. Benton's job title?                                                                                                 
                                                                                                                                
MR. RUE                                                                                                                         
Deputy Commissioner                                                                                                             
                                                                                                                                
SENATOR DONLEY                                                                                                                  
What is the job description?                                                                                                    
                                                                                                                                
MR. RUE                                                                                                                         
It includes international and national                                                                                          
fisheries issues, and he is the                                                                                                 
Commissioner of the Pacific Salmon                                                                                              
Commission. He represented the state at the                                                                                     
table during the treaty talks.                                                                                                  
                                                                                                                                
SENATOR DONLEY                                                                                                                  
Is he actively expressing the position                                                                                          
opposing the one halibut per day limit to                                                                                       
the commission?                                                                                                                 
421                                                                                                                             
MR. RUE                                                                                                                         
Yes. None of the options before the council                                                                                     
include that limit. It is only included as                                                                                      
one of the tools. Other tools are                                                                                               
prohibiting shippers or crew to catching                                                                                        
fish or allowing guides to keep fish. The                                                                                       
Board of Fisheries will give us those                                                                                           
options if the population numbers drop.                                                                                         
432                                                                                                                             
SENATOR DONLEY                                                                                                                  
That sounds reasonable, but there is no                                                                                         
proposal to limit commercial catch if the                                                                                       
numbers went down. Why is the only proposal                                                                                     
on the table to limit the amount individual                                                                                     
Alaskans can catch?                                                                                                             
435                                                                                                                             
MR. RUE                                                                                                                         
Incorrect. The proposal on the table is                                                                                         
that Individual Fish Quota holders will                                                                                         
only get a certain percentage of the                                                                                            
biomass. They are limited by abundance. The                                                                                     
council is dividing allocation. The                                                                                             
commercial catch will go up and down                                                                                            
depending on the resource.                                                                                                      
442                                                                                                                             
SENATOR DONLEY                                                                                                                  
One of you missions is to protect the                                                                                           
public. We've discussed the appropriateness                                                                                     
of having internal policy setting maximum                                                                                       
yield versus putting it into regulation.                                                                                        
What progress have you made at giving more                                                                                      
public notice so the public understands                                                                                         
what the department's position is and                                                                                           
develop maximum yield through the                                                                                               
regulatory process?                                                                                                             
451                                                                                                                             
MR. RUE                                                                                                                         
The department has been working with the                                                                                        
Board of Fisheries on a sustainable salmon                                                                                      
fisheries policy. This will include                                                                                             
definitions of the terms to give the public                                                                                     
a better understanding. It will be put out                                                                                      
for public review and then board will                                                                                           
decide whether to adopt definitions into                                                                                        
regulation.                                                                                                                     
460                                                                                                                             
SENATOR DONLEY                                                                                                                  
Is the final result of this policy going to                                                                                     
be a proposal to adopt the definitions into                                                                                     
regulation?                                                                                                                     
463                                                                                                                             
MR. RUE                                                                                                                         
It will define that but I understand it is                                                                                      
in one of the definitions.                                                                                                      
                                                                                                                                
SENATOR DONLEY                                                                                                                  
My concern is that the definitions would be                                                                                     
in internal policy rather than regulation.                                                                                      
                                                                                                                                
MR. RUE                                                                                                                         
The intent is for the definitions to be in                                                                                      
regulation at some point. First we have to                                                                                      
decide whether it should be a board                                                                                             
regulation or a department regulation.                                                                                          
468                                                                                                                             
SENATOR DONLEY                                                                                                                  
How much is currently in the fish and game                                                                                      
fund?                                                                                                                           
                                                                                                                                
MR. BROOKS                                                                                                                      
I can't give today's balance. We have a                                                                                         
balance sheet that I can provide. . We                                                                                          
generate approximately $21 million a year                                                                                       
through license revenue and we allocate the                                                                                     
funds to the Division of Wildlife                                                                                               
Conservation and the Division of Sport Fish                                                                                     
depending on the source. As of this year we                                                                                     
are also depositing revenue from the sale                                                                                       
of crewmember licenses and tracking those                                                                                       
funds as a separate account.                                                                                                    
476                                                                                                                             
SENATOR DONLEY                                                                                                                  
Can you estimate within a couple million                                                                                        
dollars?                                                                                                                        
                                                                                                                                
MR. BROOKS                                                                                                                      
No.                                                                                                                             
                                                                                                                                
SENATOR DONLEY                                                                                                                  
How about if it is narrowed down to                                                                                             
Pittman-Robertson and Dingell-Johnson                                                                                           
funds?                                                                                                                          
                                                                                                                                
MR. BROOKS                                                                                                                      
Those are federal funds that are not in the                                                                                     
fish and game fund.                                                                                                             
                                                                                                                                
SENATOR DONLEY                                                                                                                  
Separate fund?                                                                                                                  
                                                                                                                                
MR. BROOKS                                                                                                                      
Correct. We get an annual allocation from                                                                                       
the federal government                                                                                                          
                                                                                                                                
SENATOR DONLEY                                                                                                                  
Do you have an account balance?                                                                                                 
                                                                                                                                
MR. BROOKS                                                                                                                      
We don't hold the balance, the federal                                                                                          
government does. We have a couple of years                                                                                      
to spend down our allocation and there is                                                                                       
some fluctuation.                                                                                                               
                                                                                                                                
SENATOR DONLEY                                                                                                                  
What is the non-obligated balance in that                                                                                       
fund, plus a summary of what you intend to                                                                                      
do this year?                                                                                                                   
Last year the legislature gave money for an                                                                                     
indoor shooting range in Anchorage. How did                                                                                     
you utilize that?                                                                                                               
493                                                                                                                             
MR. BROOKS                                                                                                                      
Wayne Reglin, Director of the Division of                                                                                       
Wildlife Conservation is the best person to                                                                                     
respond to that.                                                                                                                
                                                                                                                                
CO-CHAIR TORGERSON                                                                                                              
Please supply that information to my                                                                                            
office.                                                                                                                         
502                                                                                                                             
KEN TAYLOR,                                                                                                                     
DIRECTOR, DIVISION                                                                                                              
OF HABITAT AND                                                                                                                  
RESTORATION                                                                                                                     
There are four performance measures you                                                                                         
provided for us to apply to the division.                                                                                       
1) Permit projects involving construction                                                                                       
of a dam or other obstruction in a fish-                                                                                        
bearing water body where efficient fish                                                                                         
passage was maintained, mitigated, or                                                                                           
compensated compared to projects permitted.                                                                                     
Last we had 324 projects and only one                                                                                           
permit was denied.                                                                                                              
2) Permit projects where fish and game                                                                                          
populations and habitat in specified                                                                                            
anadromous water bodies were maintained,                                                                                        
protected, or enhanced compared to number                                                                                       
of projects permitted.                                                                                                          
Of 1100 projects last year, 1043 were                                                                                           
permitted, nine were denied and 48 did not                                                                                      
require a permit.                                                                                                               
3) Compare projects where unavoidable                                                                                           
losses to fish and game populations were                                                                                        
successfully mitigated compared to the                                                                                          
number of (A) projects involving                                                                                                
unavoidable losses to fish and game and (B)                                                                                     
all projects permitted.                                                                                                         
We had some difficulty getting the                                                                                              
statistics for this measurement. Will have                                                                                      
information within a week.                                                                                                      
519                                                                                                                             
                                                                                                                                
4) Issue permits where violations of permit                                                                                     
terms and conditions are satisfactorily                                                                                         
resolved compared to the number of (A)                                                                                          
permits whose terms and conditions were                                                                                         
violated; and (B) all permits issued.                                                                                           
We estimate that less than 30 Notices of                                                                                        
Violation were issued last year and less                                                                                        
than 10 violations were pursued for                                                                                             
prosecution during this period.                                                                                                 
The normal procedure is to approach the                                                                                         
person in violation and work with them to                                                                                       
bring the project into compliance.                                                                                              
528                                                                                                                             
                                                                                                                                
We've suggested to the budget subcommittee                                                                                      
some modifications to those measures to                                                                                         
more accurately reflect what the division                                                                                       
does. We have three primary functions:                                                                                          
protect anadromous water bodies and fish                                                                                        
passage for resident fish; review large-                                                                                        
scale projects of other departments for                                                                                         
consistency with habitat protection; and                                                                                        
restoration. Therefore, it would be better                                                                                      
to measure how well we do that and how                                                                                          
timely we are.                                                                                                                  
536                                                                                                                             
CO-CHAIR TORGERSON                                                                                                              
The subcommittee is working on this matter.                                                                                     
538                                                                                                                             
SENATOR PHILLIPS                                                                                                                
Who bears the cost of the permits?                                                                                              
                                                                                                                                
MR. TAYLOR                                                                                                                      
There is no charge. It is paid for by an                                                                                        
allocation of the legislature.                                                                                                  
                                                                                                                                
SENATOR PHILLIPS                                                                                                                
So the user of this state resource is paid                                                                                      
for from general funds? Are there any                                                                                           
proposals for the permitee to pay for this                                                                                      
service?                                                                                                                        
                                                                                                                                
MR. TAYLOR                                                                                                                      
There have been some larger-scaled                                                                                              
discussions between the Department of                                                                                           
Natural Resources, the Department of                                                                                            
Environmental Conservation and the                                                                                              
Department of Fish and Game.                                                                                                    
                                                                                                                                
SENATOR PHILLIPS                                                                                                                
The Department of Natural Resources budget                                                                                      
subcommittee is looking into having the                                                                                         
permittees pay for services. I think that                                                                                       
philosophy should apply to other                                                                                                
departments as well.                                                                                                            
                                                                                                                                
CO-CHAIR TORGERSON                                                                                                              
I image many services are paid for out of                                                                                       
general funds. I understand what you are                                                                                        
trying to do and hope all subcommittees are                                                                                     
looking at this as well.                                                                                                        
556                                                                                                                             
MR. TAYLOR                                                                                                                      
The department receives about 3000                                                                                              
applications a year. Most are for smaller                                                                                       
projects. In the larger projects such as                                                                                        
the Red Dog Mine, the industry tends to pay                                                                                     
for the inspection work.                                                                                                        
                                                                                                                                
SENATOR PHILLIPS                                                                                                                
Of the 3000 permits, how much is taken from                                                                                     
the general fund?                                                                                                               
                                                                                                                                
MR. TAYLOR                                                                                                                      
$1.6 million                                                                                                                    
                                                                                                                                
CO-CHAIR TORGERSON                                                                                                              
Conclude the Division of Habitat and                                                                                            
Restoration                                                                                                                     
566                                                                                                                             
DOUG MECUM,                                                                                                                     
DIRECTOR, DIVISION                                                                                                              
OF COMMERCIAL                                                                                                                   
FISHERIES,                                                                                                                      
DEPARTMENT OF FISH                                                                                                              
AND GAME                                                                                                                        
Handout                                                                                                                         
We have been working with the subcommittee                                                                                      
on developing new measures.                                                                                                     
The attached tables are our best attempt to                                                                                     
address last year's measures.                                                                                                   
Two of the proposed measures are                                                                                                
achievement of escapement goal objectives                                                                                       
and allocation objectives.                                                                                                      
I would say our grade is a B+.                                                                                                  
576                                                                                                                             
CO-CHAIR TORGERSON                                                                                                              
Were there any of the six measures adopted                                                                                      
last year that you could not obtain                                                                                             
information?                                                                                                                    
578                                                                                                                             
MR. MECUM                                                                                                                       
We were able to put information together                                                                                        
for all the measures. However, there was                                                                                        
some question as to how meaningful those                                                                                        
measures were and how manageable they were.                                                                                     
For example: Fishery Harvests Compared with                                                                                     
10-Year Average. For salmon, we were 122%                                                                                       
of the ten-year average. Does that mean we                                                                                      
performed well or that the environmental                                                                                        
conditions were favorable?                                                                                                      
586                                                                                                                             
                                                                                                                                
Another example is the percentage of                                                                                            
permits actively fished compared to the 10-                                                                                     
year average.  The purpose of some programs                                                                                     
is to actually limit participation.                                                                                             
589                                                                                                                             
CO-CHAIR TORGERSON                                                                                                              
The subcommittee has agreed with new                                                                                            
performance measures based upon your                                                                                            
recommendations.                                                                                                                
                                                                                                                                
                                                                                                                                
SFC-00 #15 Side B   9:50 AM                                                                                                     
                                                                                                                                
CO-CHAIR TORGERSON                                                                                                              
Conclude Department of Fish and Game                                                                                            
584                                                                                                                             
                                                                                                                                
Department of Transportation and Public                                                                                         
Facilities                                                                                                                      
(No Handout)                                                                                                                    
575                                                                                                                             
JOE PERKINS,                                                                                                                    
COMMISSIONER,                                                                                                                   
DEPARTMENT OF                                                                                                                   
TRANSPORTATION AND                                                                                                              
PUBLIC FACILITIES                                                                                                               
The mission of the department is to improve                                                                                     
the quality of life for Alaskans by cost-                                                                                       
effectively providing, operating and                                                                                            
maintaining safe, environmentally sound and                                                                                     
reliable transportation systems and public                                                                                      
facilities.                                                                                                                     
I'm representing 3000 employees who work                                                                                        
hard. They don't understand the budget                                                                                          
difficulties, but only know that they have                                                                                      
to work harder with fewer resources. If we                                                                                      
don't support them we can't meet goals.                                                                                         
562                                                                                                                             
                                                                                                                                
Performance measures included in SLA99,                                                                                         
starting with the Alaska Marine Highway                                                                                         
System.                                                                                                                         
We were told these areas needed monitoring                                                                                      
but no specific goals were established in                                                                                       
the legislation.                                                                                                                
We've developed three into performance                                                                                          
measures for this year's budget.                                                                                                
1) The percentage of on-time departures for                                                                                     
vessels                                                                                                                         
Currently, we are running at 80 percent and                                                                                     
our goal is to improve by five percent to                                                                                       
85 percent.                                                                                                                     
555                                                                                                                             
                                                                                                                                
2) Also pertains to the marine highway                                                                                          
system, revenue received and expenditures                                                                                       
made for each rider mile.                                                                                                       
Revenues for the last three years have been                                                                                     
between 58 and 59 cents and expenditures                                                                                        
have been between $1.05 and $1.12. Our goal                                                                                     
to improve this ratio by three percent up                                                                                       
from the current 61 percent.                                                                                                    
Compare to Washington State's ratio of 6-0.                                                                                     
We are currently at 6-1 and want to go to                                                                                       
6-4.                                                                                                                            
545                                                                                                                             
                                                                                                                                
3) Total ridership including passengers,                                                                                        
vehicles and cabin occupancy compare to a                                                                                       
five-year ridership average                                                                                                     
We currently have more cars and fewer                                                                                           
people.                                                                                                                         
534                                                                                                                             
                                                                                                                                
4) Onboard sales for each passenger for                                                                                         
food, alcohol, etc.                                                                                                             
Currently onboard sales are about $10.75                                                                                        
per passenger. The goal is to raise this 50                                                                                     
cents.                                                                                                                          
526                                                                                                                             
                                                                                                                                
The biggest goal is safety and we won't                                                                                         
compromise to reach a performance goal such                                                                                     
as on-time departure.                                                                                                           
521                                                                                                                             
                                                                                                                                
We have and are reviewing other                                                                                                 
departmental operations to set baselines                                                                                        
and establish performance goals. We are                                                                                         
proceeding carefully because performance                                                                                        
measures must be designed to provide the                                                                                        
required information to support measurement                                                                                     
and management of these goals.                                                                                                  
Setting up a system and providing that                                                                                          
information can be extremely costly and                                                                                         
sometimes systems take on their own life                                                                                        
information that is provided can end up                                                                                         
being only used by those in the system.                                                                                         
The system we are developing will be to                                                                                         
measure only our most critical functions.                                                                                       
We've targeted the maintenance operations                                                                                       
as an area we will define and measure.                                                                                          
We have completed an inventory of equipment                                                                                     
statewide and in the field. This includes                                                                                       
the scope of the work required, the status                                                                                      
of that work, and the assets we have to do                                                                                      
that work.                                                                                                                      
We are now ready to decide what systems we                                                                                      
will use and how we will report and monitor                                                                                     
the work.                                                                                                                       
494                                                                                                                             
                                                                                                                                
Will going out with a Request for Proposals                                                                                     
(RFP) to set up this system.                                                                                                    
                                                                                                                                
                                                                                                                                
Deferred maintenance needs and defined them                                                                                     
as never before. Our total deferred                                                                                             
maintenance needs total $303 million. The                                                                                       
state is incurring deferred maintenance at                                                                                      
a rate of $24 million per year. Even if                                                                                         
that amount is cut in half, it is still                                                                                         
tremendous.                                                                                                                     
This also takes into account $25 million of                                                                                     
federal funds for highway surface                                                                                               
maintenance each year.                                                                                                          
The management system that we come up with                                                                                      
will help but won't be a major contributor                                                                                      
to reducing the deferred maintenance needs.                                                                                     
476                                                                                                                             
                                                                                                                                
We've done a lot of work with finance                                                                                           
committee staff on coming up with                                                                                               
performance measures.                                                                                                           
471                                                                                                                             
                                                                                                                                
We now have a list we are in agreement of,                                                                                      
that we can use and will show results.                                                                                          
468                                                                                                                             
                                                                                                                                
Goals:                                                                                                                          
Project design to stay within the approved                                                                                      
budget. When we estimate a project will                                                                                         
cost $1 million, I want to stay within 10                                                                                       
percent of that amount. We are currently                                                                                        
above that.                                                                                                                     
465                                                                                                                             
SENATOR DONLEY                                                                                                                  
There is a lot of concern in the private                                                                                        
engineering sector that designs done within                                                                                     
the department take much longer and cost                                                                                        
about four times as much as the same                                                                                            
designs done in the private sector. How are                                                                                     
you working to reduce the design costs                                                                                          
within the department?                                                                                                          
458                                                                                                                             
MR. PERKINS                                                                                                                     
I'm talking about all design costs. Studies                                                                                     
show that the department is not four times                                                                                      
higher and is sometimes cheaper and faster.                                                                                     
Fifty percent is contracted out to private                                                                                      
industry. We will measure both the                                                                                              
department and private industry to keep                                                                                         
design costs down.                                                                                                              
Small projects can balloon up but large                                                                                         
projects can be as low as six or seven                                                                                          
percent.                                                                                                                        
448                                                                                                                             
SENATOR DONLEY                                                                                                                  
There is private sector concern on how the                                                                                      
department calculates those percentages                                                                                         
possibly by using a different accounting                                                                                        
system.                                                                                                                         
                                                                                                                                
MR. PERKINS                                                                                                                     
It is difficult to measure this. For                                                                                            
example, bonuses in private sector don't                                                                                        
show up in overhead but are charged to                                                                                          
government. We need to compare apples to                                                                                        
apples. We don't include the costs to heat                                                                                      
our building, but the private sector does                                                                                       
count as overhead.                                                                                                              
I could take our staff and work them well                                                                                       
in the private sector and still make money.                                                                                     
They are trying to make a profit and we                                                                                         
don't.                                                                                                                          
427                                                                                                                             
SENATOR PHILLIPS                                                                                                                
Will hold questions.                                                                                                            
425                                                                                                                             
SENATOR LEMAN                                                                                                                   
You've set a goal for design cost. What                                                                                         
about other professional costs?                                                                                                 
421                                                                                                                             
MR. PERKINS                                                                                                                     
Pre-design includes "right of way",                                                                                             
environmental impact, etc.                                                                                                      
                                                                                                                                
SENATOR LEMAN                                                                                                                   
Does it include services during                                                                                                 
construction?                                                                                                                   
                                                                                                                                
MR. PERKINS                                                                                                                     
No.                                                                                                                             
We have to be careful with big projects in                                                                                      
Anchorage with right of way costs.                                                                                              
                                                                                                                                
CO-CHAIR TORGERSON                                                                                                              
                                                                                                                                
                                                                                                                                
MR. PERKINS                                                                                                                     
2) Try to bring construction costs within                                                                                       
five percent of the bid amount.                                                                                                 
We are currently running seven percent.                                                                                         
407                                                                                                                             
                                                                                                                                
3) Increase driver safety and commercial                                                                                        
inspections to 3600 next year and more the                                                                                      
next year.                                                                                                                      
We are currently at 3500.                                                                                                       
404                                                                                                                             
                                                                                                                                
4) Technical goals such as maintaining                                                                                          
pavement condition indexes of 70 for                                                                                            
runways and 60 for taxiways at the                                                                                              
international airport.                                                                                                          
This will tell us when we should do what                                                                                        
and where.                                                                                                                      
We will continue our pavement management                                                                                        
system.                                                                                                                         
395                                                                                                                             
SENATOR GREEN                                                                                                                   
Please explain.                                                                                                                 
                                                                                                                                
MR. PERKINS                                                                                                                     
The system looks at every road in the state                                                                                     
and rates their condition as red, needing                                                                                       
work, yellow, will soon need work, and                                                                                          
green, no work needed. We also look at                                                                                          
pavement grade smoothness.                                                                                                      
We base construction projects off this                                                                                          
system.                                                                                                                         
                                                                                                                                
SENATOR GREEN                                                                                                                   
Are you working with communities?                                                                                               
                                                                                                                                
MR. PERKINS                                                                                                                     
This applies to National Highway System                                                                                         
(NHS) highways.                                                                                                                 
378                                                                                                                             
                                                                                                                                
We are also reducing the physical part of                                                                                       
the infrastructure of people, equipment and                                                                                     
material, as low as possible. The places to                                                                                     
improve efficiencies are in the process. We                                                                                     
will make major changes in the right-of-way                                                                                     
and leasing processes, through new                                                                                              
regulations.                                                                                                                    
We need to save money on how we issue                                                                                           
permits.                                                                                                                        
362                                                                                                                             
                                                                                                                                
Accomplishments.                                                                                                                
We have a new system of advertising when                                                                                        
going out to bid. We put information on the                                                                                     
Internet with a much shorter ad in the                                                                                          
newspaper.                                                                                                                      
350                                                                                                                             
                                                                                                                                
Y2K was an intensive program and we spent                                                                                       
$1.3 million to look at all facilities.                                                                                         
There were only two problems. The credit                                                                                        
card machines on the ferries did not                                                                                            
function and the information had to be                                                                                          
taken by hand. A sander on Thompson Pass                                                                                        
had a counter that needed to be reset by                                                                                        
hand to the year of 2001.                                                                                                       
335                                                                                                                             
                                                                                                                                
We received good report from the Federal                                                                                        
Highway Administration on completion and                                                                                        
review of the department's affirmative                                                                                          
action plan. If not done, they would have                                                                                       
cut our money off. A court decision changed                                                                                     
the federal regulations and we had to spend                                                                                     
a great deal of time rewriting our plan.                                                                                        
We now set the goals rather than the                                                                                            
federal government on criteria that are set                                                                                     
by the federal government.                                                                                                      
318                                                                                                                             
                                                                                                                                
Anchorage International Airport has the                                                                                         
highest cargo landed weight in the US and                                                                                       
is still growing.                                                                                                               
312                                                                                                                             
                                                                                                                                
Important projects completed include a                                                                                          
project on the Alaska Highway near Crystal                                                                                      
River that now brings the entire highway up                                                                                     
to standard for width, line and grade.                                                                                          
305                                                                                                                             
                                                                                                                                
We put extensive effort with the Federal                                                                                        
Resurfacing Program to smooth roads. I've                                                                                       
even had compliments on the Tok Cutoff.                                                                                         
300                                                                                                                             
                                                                                                                                
We reopened the entrance to the University                                                                                      
of Alaska in Fairbanks at the intersection                                                                                      
of College Road and University Avenue.                                                                                          
                                                                                                                                
                                                                                                                                
We started the Gateway Alaska project in                                                                                        
Anchorage.                                                                                                                      
290                                                                                                                             
                                                                                                                                
A total of $21 million was spent on the                                                                                         
Anchorage and Fairbanks airports.                                                                                               
289                                                                                                                             
                                                                                                                                
We finished major construction on the                                                                                           
Whittier Tunnel, which will open in June.                                                                                       
283                                                                                                                             
                                                                                                                                
The Gravel to Black Program was only                                                                                            
approved in July but we still paved sixty                                                                                       
miles before the end of the construction                                                                                        
season.                                                                                                                         
We are getting Alaska out of the mud and                                                                                        
dust.                                                                                                                           
276                                                                                                                             
                                                                                                                                
The first phase of construction was started                                                                                     
of the road into Wasilla.                                                                                                       
271                                                                                                                             
                                                                                                                                
We spent $1 million to make Americans With                                                                                      
Disabilities corrections to facilities. We                                                                                      
will need to address this on a larger scale                                                                                     
someday.                                                                                                                        
267                                                                                                                             
                                                                                                                                
We obligated all federal money and received                                                                                     
$1.4 million in extra money that other                                                                                          
states could not obligate.                                                                                                      
261                                                                                                                             
                                                                                                                                
We contracted out $328 million for                                                                                              
professional services, construction                                                                                             
projects, etc. This was our direct impact                                                                                       
on the private economy.                                                                                                         
255                                                                                                                             
                                                                                                                                
We operated the dayboat service between                                                                                         
Juneau, Skagway and Haines and the cross-                                                                                       
gulf ferry service.                                                                                                             
We spent millions to bring all vessels up                                                                                       
to Safety Of Life At Sea (SOLAS)                                                                                                
Requirements. If not up to standards, a                                                                                         
vessel cannot land in a foreign port.                                                                                           
245                                                                                                                             
                                                                                                                                
We also completed our business plan for                                                                                         
Intelligence Transportation System for                                                                                          
commercial vehicles. This enables trucks to                                                                                     
go by weigh stations and be weighed while                                                                                       
they are in motion.                                                                                                             
The system also will know the temperature                                                                                       
on bridges to know when to sand the                                                                                             
bridges. This will save money.                                                                                                  
232                                                                                                                             
                                                                                                                                
We've finished the Southeast Transportation                                                                                     
Plan.                                                                                                                           
An RFP for a new ferry, that is funded,                                                                                         
will be issued this spring.                                                                                                     
226                                                                                                                             
                                                                                                                                
We've continued the regional transportation                                                                                     
plans for the Prince Williams Sound and the                                                                                     
YK Delta and Southwest Alaska. We are                                                                                           
starting to look at the transportation                                                                                          
system in Northwest Alaska.                                                                                                     
219                                                                                                                             
                                                                                                                                
We need to continue to do our needs based                                                                                       
assessment of capital projects.                                                                                                 
We need to continue our efforts to receive                                                                                      
federal funds.                                                                                                                  
We must stay on top of technology.                                                                                              
We need to address deferred maintenance.                                                                                        
We need to continue to get NHS up to                                                                                            
standards.                                                                                                                      
We need to find ways to stop the drain on                                                                                       
services. Construction workers are aging,                                                                                       
and we need to entice new workers.                                                                                              
178                                                                                                                             
SENATOR PHILLIPS                                                                                                                
You mentioned the cost of operation of the                                                                                      
marine highway. What about British                                                                                              
Columbia's ratio?                                                                                                               
                                                                                                                                
MR. PERKINS                                                                                                                     
I will get that information for you.                                                                                            
171                                                                                                                             
SENATOR PHILLIPS                                                                                                                
Constituents in my district want to sell                                                                                        
the ferry system.                                                                                                               
164                                                                                                                             
MR. PERKINS                                                                                                                     
The problem with selling is that revenue                                                                                        
only pays for 60 percent of operation. The                                                                                      
only way to turn a profit is to run ferries                                                                                     
only in the summer and only from                                                                                                
Bellingham. This would be no benefit to the                                                                                     
residents of SE Alaska.                                                                                                         
I know of no ferry system in nation that                                                                                        
pays for itself.                                                                                                                
151                                                                                                                             
SENATOR PHILLIPS                                                                                                                
I haven't seen this feeling in about 20                                                                                         
years.                                                                                                                          
147                                                                                                                             
MR. PERKINS                                                                                                                     
We need to get the information out.                                                                                             
The question is who would be the buyer?                                                                                         
142                                                                                                                             
SENATOR PHILLIPS                                                                                                                
I don't think that message has been                                                                                             
delivered.                                                                                                                      
                                                                                                                                
MR. PERKINS                                                                                                                     
Agree.                                                                                                                          
                                                                                                                                
SENATOR PHILLIPS                                                                                                                
Are the renovations to the Anchorage                                                                                            
International Airport to be completed on                                                                                        
July 1?                                                                                                                         
131                                                                                                                             
MR. PERKINS                                                                                                                     
The road will be open on that date.                                                                                             
                                                                                                                                
SENATOR LEMAN                                                                                                                   
                                                                                                                                
                                                                                                                                
MR. PERKINS                                                                                                                     
                                                                                                                                
                                                                                                                                
SENATOR PHILLIPS                                                                                                                
I want to brace myself for delays.                                                                                              
                                                                                                                                
MR. PERKINS                                                                                                                     
The project is currently on schedule.                                                                                           
124                                                                                                                             
SENATOR LEMAN                                                                                                                   
I served on the deferred maintenance task                                                                                       
force and we developed a long list, which                                                                                       
continues to grow faster than we can                                                                                            
complete.                                                                                                                       
One of my concerns is that government                                                                                           
projects are among the highest costing                                                                                          
projects for a number of constraints such                                                                                       
requirement for Davis/Bacon Wages,                                                                                              
environmental cleanup. While these may not                                                                                      
be appropriate constraints in many areas of                                                                                     
the state, they are still included.                                                                                             
Could you look at that list and find ways                                                                                       
to reduce the cost of some projects so we                                                                                       
can spread the money further?                                                                                                   
I'm also working with Department of                                                                                             
Environmental Conservation on this.                                                                                             
                                                                                                                                
MR. PERKINS                                                                                                                     
I will provide that information.                                                                                                
                                                                                                                                
SENATOR LEMAN                                                                                                                   
This will be a constructive effort and we                                                                                       
should look for cooperation of the                                                                                              
engineering and contracting community.                                                                                          
Are you going to be losing Mike Downing?                                                                                        
                                                                                                                                
MR. PERKINS                                                                                                                     
No.                                                                                                                             
77                                                                                                                              
SENATOR DONLEY                                                                                                                  
You say the Marine Highway System pays for                                                                                      
about 60 percent of its operations, how                                                                                         
much money is that other 40 percent?                                                                                            
                                                                                                                                
MR. PERKINS                                                                                                                     
About $28 million.                                                                                                              
67                                                                                                                              
SENATOR DONLEY                                                                                                                  
How much of that is general funds?                                                                                              
                                                                                                                                
MR. PERKINS                                                                                                                     
It is all general funds.                                                                                                        
                                                                                                                                
SENATOR DONLEY                                                                                                                  
There are no federal funds?                                                                                                     
                                                                                                                                
MR. PERKINS                                                                                                                     
There are some federal inspection funds.                                                                                        
58                                                                                                                              
SENATOR DONLEY                                                                                                                  
In perspective, how much money is spent in                                                                                      
Southcentral?                                                                                                                   
                                                                                                                                
MR. PERKINS                                                                                                                     
I will have to get that information for                                                                                         
you.                                                                                                                            
The statewide amount is about $71-72                                                                                            
million plus $28 million for the marine                                                                                         
highway system.                                                                                                                 
                                                                                                                                
SENATOR DONLEY                                                                                                                  
Comments about percent allocated for the                                                                                        
distribution of population.                                                                                                     
                                                                                                                                
MR. PERKINS                                                                                                                     
                                                                                                                                
33                                                                                                                              
CO-CHAIR TORGERSON                                                                                                              
                                                                                                                                
31                                                                                                                              
SENATOR DONLEY                                                                                                                  
Last year you made a commitment to the                                                                                          
Committee that if we submitted                                                                                                  
modifications to the projects you proposed                                                                                      
in the Statewide Transportation Improvement                                                                                     
Plan (STIP) and if we made allowances in                                                                                        
funding, you would incorporate the changes                                                                                      
we made.                                                                                                                        
Did you meet that?                                                                                                              
16                                                                                                                              
MR. PERKINS                                                                                                                     
This is a capital issue and I will provide                                                                                      
an answer in that overview.                                                                                                     
10                                                                                                                              
CO-CHAIR TORGERSON                                                                                                              
                                                                                                                                
6                                                                                                                               
                                                                                                                                
Adjourn 10:36 AM                                                                                                                
                                                                                                                                
SENATE FINANCE COMMITTEE                                                                                                        
LOG NOTES                                                                                                                       

01/28/00 Page 17

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