Legislature(1995 - 1996)
10/14/1996 04:00 PM Senate MHS
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE TASK FORCE ON THE ALASKA MARINE HIGHWAY SYSTEM
Sitka, Alaska
October 14, 1996
TASK FORCE MEMBERS
Senator Robin Taylor
Senator Drue Pearce
Senator John Torgerson
WITNESS REGISTER
Ms. Andrea Barkley
P.O. Box 1037
Ward Cove, AK 99928
Joe Ashby
1808 SMC Road
Sitka, AK 99835
Ms. Stephanie Rainwater
926 Jackson
Ketchikan, AK 99901
Mayor Pete Hallgren
403 Lincoln St.
Sitka, AK 99835
Leif Jenkinson
Inland Boatmen's Union of the Pacific - AK Region
P.O. Box 6300
Ketchikan, AK 99901
Gary Hayden, System Director
Alaska Marine Highway System
Department of Transportation & Pubic Facilities
3132 Channel Drive
Juneau, AK 99801-7898
Commissioner Joe Perkins
Department of Transportation & Public Facilities
3132 Channel Drive
Juneau, AK 99802-7898
Mayor Jack Shay
Ketchikan Gateway Borough
344 Front St.
Ketchikan, AK 99901
Ms. Marlene Campbell
City & Borough of Sitka
100 Lincoln St.
Sitka, AK 99835
Will Petrich
280 Bunchberry Lane
Ketchikan, AK 99901
Paul Post
220 Seward St.
Juneau, AK 99801
Eve Rauscher
Sitka, AK
ACTION NARRATIVE
TAPE 1, SIDE A
Number 001
SENATOR TAYLOR , chairing the meeting of the Senate Task Force on
the Alaska Marine Highway System in the Sitka Centennial Hall,
called the meeting to order at approximately 4:00 p.m., and noted
the presence of Senator Torgerson. He stated the first witness to
testify would be Ms. Andrea Barkley of Ketchikan who was standing
by in California waiting to address the task force via long
distance telephone. He then asked Ms. Barkley if she could relate
the current status of the bars on the fleet.
Number 020
ANDREA BARKLEY said all of the bars on the fleet, with the
exception of the bar on the Columbia, are closed. Bar service on
the Columbia has been reduced to six hours of bar service per day,
which she thinks will last only for the duration of the Columbia's
run that will be ending shortly. There has no been commitment for
Bellingham bar service for whichever ship may pick up that
Bellingham run.
SENATOR TAYLOR said in talking with Stephanie Rainwater, it was his
understanding that a committee within the employees' union had met
with the Administration and made recommendations where the bars
could be open and that the number of the positions they wished to
reduce could be accomplished by shifting and changing some jobs
within each of the vessels. He then asked Ms. Barkley if she could
elaborate on those recommendations.
MS. BARKLEY said several meetings took place between employees from
the vessels and management personnel, and extensive programs were
suggested and discussed in trying to come up with alternate
solutions for cutting costs rather than closing the bars. A
program that was brought forward by employees that would have
allowed the Administration to achieve the cost savings on the
personnel positions that they were looking for without having to
eliminate the actual bar service. However, although these
suggestions were offered, it did not seem to be acceptable and the
bars were summarily closed.
SENATOR TAYLOR asked if the closure of the bars actually means the
elimination of any jobs in the fleet. MS. BARKLEY responded that
with the bartender positions eliminated, they will have to be
assimilated into others positions on the ferries. With the
elimination of these positions, she thinks that it will work its
way down to a bottom-line elimination of several employees at the
very bottom end of the scale. However, it won't be the most
expensive employees, it will be the least expensive employees and
seasonal people at the very bottom.
SENATOR TAYLOR commented that by closing the bars the same
employees will still be on the ferries at basically the same wage
scale but just shifted to other duties, and the people that will
actually be let go will be those that are probably Tier II
employees with lower benefit packages, etc., and that will require
an even greater loss of employees than the 19 bartender positions
that they said would be reductions. MS. BARKLEY said she thinks
they were estimating it would be 9 permanent bartender positions,
not 19, but she agreed that it will result in a domino effect, and
it will result in the elimination of the lesser employees and more
than the actual number of bartender positions.
Number 090
SENATOR TAYLOR referred to correspondence Ms. Barkley had sent to
the task force in which she raised some concerns about scheduling
on the Matanuska, Malaspina and Taku, and he asked if she would
address those concerns. MS. BARKLEY said they had an extremely
difficult year on the Matanuska, and the Malaspina did as well.
Every major port the Matanuska had this summer was a night port and
only Wrangell and Petersburg were day ports. They were
disembarking passengers in Ketchikan at 4:15 a.m., and they were
often arriving in Sitka and Skagway at 1:00 a.m. She said the
scheduling was very detrimental to their services, especially for
the bar. There were many times when the business could be there,
but they were just not open because of the off-scheduling, or they
were scheduled into port for long periods. On several occasions
the Matanuska arrived in Prince Rupert at 11:30 a.m. and didn't
leave until 5:00 p.m., and the bar was not allowed to be open while
in port. The scheduling was detrimental for the food service as
well.
SENATOR TAYLOR asked if she ever received any explanation on why
they ended up with that kind of a schedule. MS. BARKLEY responded
that they had this same problem the summer before, and she spoke to
many people who she thought would be in a position to give her some
insight into why they were on this scheduling, but nobody was ever
able to give her or anyone else an explanation as to what the
scheduling was all about. She added there were many times when
people told her they would have liked to have taken the ferry, but
they didn't like the 1:00 a.m. departure, or they didn't want to
have to disembark at 4:00 a.m., so they would make other
arrangements because the scheduling wasn't conducive to their
plans.
SENATOR TAYLOR noted he could recall times during the summer months
when one ferry would arrive in port and another ferry would have to
wait for that ship to load before it could dock, and as a
consequence, the ship in the lead was carrying good heavy loads,
while the ship running behind it was running half empty all summer
long because of the way the schedule had been arranged. MS.
BARKLEY said she has been working for the Alaska Marine Highway
System for 18 years, and she has never seen scheduling as bad as it
has been for the last two years. She also noted that during the
early part of this past summer the Columbia was only about an hour
behind the Matanuska going northbound, so the Matanuska was picking
up the moderate small loads and the Columbia was basically picking
up nothing. There were several incidence where there three vessels
bunched up at the same port.
SENATOR TAYLOR thanked Ms. Barkley for her participation and for
supplying the task force with all the information. He added that
he only wished many other members of the fleet would have done the
same thing, because the only ones that are keeping this system
running are those people out on the fleet. He said he has made the
same types of inquiries concerning scheduling and he gets the same
strange answers which never seem to resolve the issue, and as we
watch it, service further diminishes each year.
Number 185
SENATOR TAYLOR then stated the task force would take testimony from
witnesses waiting to testify in Sitka.
JOE ASHBY of Sitka stated that his only request was that the
ferries continue to be fully funded into Sitka because they are the
community's lifeblood as far as freight goes.
SENATOR TAYLOR thanked Mr. Ashby for his comment, and he told him
that if he wished to make any additional comments, to please submit
them because the record of the task force would be kept open until
a report is rendered to the Legislature in January. He also
pointed out that it was not the Legislature that underfunded the
system, in fact, general funding went up over $20,000, but the
Alaska Marine Highway System fund went up about $3.9 million. The
Legislature did make cuts in the Department of Administration, and
the Administration chose rather than to reduce the Department of
Administration at all to parcel the cuts out among various
departments. The Marine Highway System was hit with a very large
increase in administrative costs, as well a substantial increase by
the Division of Risk Management for its self-insurance, all of
which wiped out the increased funding that had been provided by the
Legislature.
MR. ASHBY said he has heard several people say that the system
should be put out to bid to be operated by private enterprise like
Washington State has done and practically all of the eastern
seaboard has done. SENATOR TAYLOR said it was suggested to the
Administration that if they were so anxious to close all the bars
on the ferries, why not let the bartenders themselves continue to
be members of IBU, etc., and give them the opportunity to contract
out those bars, run them like independent businesses, and then pay
the state out of the profits that they would make. He said the
Administration summarily rejected the suggestion, and he added that
there is absolutely no revenue generating activity that is
replacing those bars.
Number 255
SENATOR TAYLOR stated the task force would begin taking testimony
from witnesses waiting to testify in Ketchikan.
MS. STEPHANIE RAINWATER , a second steward on the Alaska Marine
Highway System, stated she is also chairman of IBU's Management &
Labor Advisory Board, and they have been meeting with the state
since June 4th in an attempt to keep the bars open or even put them
on a seasonal basis. They took non revenue job versus the revenue
jobs and were able to come up with the same numbers where they
would be saving money. She said in talking with Brenda Markley and
Bruce Cummings, they agreed that this is the same amount of money
so why not keep the bars open and eliminate the non revenue jobs.
She said she thinks the bars being closed is a political decision
that Commissioner Perkins is involved in and not an economic
decision. She also pointed out that since the bars have been
closed, those areas are not being used in any revenue generating
way.
Ms. Rainwater informed the task force that the Management & Labor
Advisory Board has also been discussing what to do with the
Malaspina and the jobs that will be lost when it is retired from
the fleet, as well as some ideas about coming up with a day boat.
Ms. Rainwater also spoke to cuts in service to communities in
Southeast Alaska and the effect it has had on travel for school
activities.
Ms. Rainwater said she thinks that consideration should be given to
reopening the bars on a seasonal basis and then see what can be
done to get them back into running order on a profitable year-round
basis.
She suggested the task force should be taking a look at exactly
what moves would be good for the public as far as service, and
taking a look at who is running this system, where it is going to
go, how much money is going to be cut out of its budget each year,
etc.
SENATOR TORGERSON said that many of the things that Ms. Rainwater
brought up is what the task force has been dealing with in trying
to determine what kind of an approach to recommend to the
Legislature and the Administration. He commented that the
information is not free flowing between all the groups involved, so
it is difficult for the task force to make up any kind of
recommendations. Many of the problems she spoke to have been
placed to the Administration for answers, but most of those
questions are still unanswered.
SENATOR TAYLOR also spoke to the frustrations of trying to get
information and answers from the Administration, but he said he and
the other members of task force intend to follow through with this
effort and have a full-blown discussion of the purpose, the object
and the reason for maintaining the system, and how we can best do
that to provide service to Alaskans.
Number 696
PETE HALLGREN , Mayor of Sitka, said over the years Sitka has seen
reductions in ferry service. He said the City of Sitka spends a
fair amount of money trying to attract independent travelers to
Sitka during the summer months, and they have found that basically
the cities on the mainline ferry system get a much better return
than they do. Many people who travel in motor homes find that they
have to stay over too long in the city so they don't stop there.
Mayor Hallgren pointed out that the Marine Highway System ties in
with the road highway system, and that there are changes that could
be made to the road highway system which would greatly benefit the
Marine Highway System and Sitka. In particular, Sitka has been
investigating a road to Baranof Warm Springs on the other side of
the island. If this road were to be put in, it would provide not
only more and less expensive ferry service and better freight
service, it would provide an electrical intertie corridor for
southeast as well.
TAPE ONE, SIDE B
Number 025
There was brief discussion on the fact that the Administration has
come up with nine options for the Malaspina, but before coming up
with these options, there was no contact with the Legislature or
the dependent communities and the people who must rely upon the
service to consult with them and formulate the options based on
what was needed by the communities.
SENATOR TAYLOR noted that during the recent Southeast Conference he
met with Commissioner Perkins who told him it wasn't his decision
to take the bars off of the ferries, that it was an internal
decision.
Number 065
LEIF JENKINSON of Ketchikan related that when the executive
committee of the Alaska Region of the Inland Boatmen's Union went
to Juneau last January, the Governor and his chief of staff told
them they had two choices for the Malaspina: it could be sold or
it could used as a day boat between Juneau and the Haines-Skagway
run. At the last Labor & Management Advisory Board meeting, they
were told a third choice was added which was to use it as a shuttle
between Ketchikan and Bellingham, but that the department had made
the decision that they would not spend the $10 million on the
needed repairs to the ship. He pointed out that the new vessel
will not be a replacement for the Malaspina since it has a whole
different mission and will not be in Southeast Alaska the entire
year.
Mr. Jenkinson, addressing the bar issue, said it's very difficult
for the bar on the Taku to make a profit in the month of July when
it makes several sailings with less than 60 people aboard because
the computer reservation system said it was full and turned people
away. He said for ten years we've looked in absolute awe at some
of the messups with the reservation system and the amount of
traffic and money that has been turned away, so he is skeptical
when they keep talking about how they are going to upgrade the
reservation system.
Mr. Jenkinson made reference to a document entitled "The AMHS
Budgeted Position Comparison Fiscal Year '85 versus Fiscal Year
'97," which states that there have been no vessel positions lost.
He questioned where they came up with those numbers because he can
name the positions that have been lost.
SENATOR TAYLOR interjected that he has raised that same point at
both task force meetings -- that there are fewer employees out on
the vessels than there were 10 years ago.
Returning to the bar issue, Mr. Jenkinson said the bartenders who
worked on the ferries really felt that there was a lot that could
be done to change the revenue picture, but everyone who has been
working so hard on trying to resolve this issue has been told that
the Administration doesn't want to hear their ideas for revenue
enhancement and they don't want to hear their ideas for cost
cutting. He said all of this is depressing to hear, and the morale
in the fleet has been bad enough.
Number 175
SENATOR TAYLOR thanked Mr. Jenkinson for his comments, and said
that everyone shares the same concern, and that is a concern that
this ferry system survive and thrive in the future.
Number 225
GARY HAYDEN , System Director, Alaska Marine Highway System,
testifying from Juneau, said since the last meeting of the task
force, the Malaspina issue as to what happens to it has come out in
the public arena as a need to make a decision. In 1997, there is
new set of requirements that kick in that will dictate that the
system in the state make a decision about the Malaspina. There is
set of fire safety regulations, and it would cost approximately $5
million to do the work to upgrade to meet these regulations. He
said they don't have that money in this year's program so now is
the time to have the public input on what to do with the Malaspina.
Mr. Hayden said a couple of things have been said in other
testimony that he believes are incorrect. During his presentation
at the Southeast Conference, the Commissioner clearly said that the
decision as to what to do with the Malaspina has not been made. He
also said the department would be working with members of the
Southeast Conference over the next several months to bring the
decision to the table for a public discussion. A meeting with the
Transportation Committee of the Southeast Conference is going to be
held during the month of November.
Mr. Hayden he said they have a got a year to make this decision,
and, at this point, he thinks there are several options. Some of
the options outlined by Mr Hayden were:
(1) The Malaspina could be redeployed to the Bellingham run, which
would mean there would be two vessels running out of the southern
port.
(2) The Malaspina could be redeployed to run up Lynn Canal as a
day boat.
(3) The Malaspina could be sold and the ocean class vessel could
be run out of Prince Rupert. He noted that selling the Malaspina
option was discussed as part of the 1991 master plan.
(4) The Malaspina could be upgraded to meet the requirements and
have it remain on the Prince Rupert run and have the new vessel run
on the Bellingham run with the Columbia.
Mr. Hayden said they are currently trying to get the numbers
together for people to look at and to understand the cost of each
one of those options. They are also doing a vessel condition
survey on the Malaspina, as well as an appraisal of the vessel, and
they will then develop estimates as to what the capital cost of
each one of those alternatives is. A break-even cost analysis will
be done to determine what the additional traffic demand would be to
generate the revenue in order for the state to afford to run the
Malaspina as the ninth vessel with no additional cost to the state,
or, if it was run as a ninth vessel and it required additional
subsidy, what amount would be required to run it. A fleet-wide
replacement analysis is also being developed so that there is an
understanding of what the costs down the road are for bringing
replacements on line. He said these documents will be ready for
the task force by the time it gets to Juneau for the next
legislative session.
Mr. Hayden reiterated that there has been no decision to sell the
Malaspina although it may have been reported that way.
Number 300
SENATOR TORGERSON asked Mr. Hayden if it would take legislative
approval to sell that big an asset of the Marine Highway System,
and MR. HAYDEN responded that it would not, but he added that they
don't see themselves making this decision in the vacuum without
having a discussion with the Legislature as to what happens to the
Malaspina. He also clarified for Senator Torgerson that a previous
appraisal of the Malaspina was $3 million, and it was his hope that
if the vessel were sold, the money would go into the vessel
replacement fund, but he does not have a legal opinion at this
point and that will be part of the package as to what happens to
those revenues. He also said they need to make the decision in
time to write the schedule for next winter.
SENATOR TAYLOR said under the scheduling system the LaConte was
supposed to operate until September 11, but under a contract let by
the department is was supposed to go into the shipyard on September
1, but that Mr. Hayden assured him that it would continue its run
as opposed to going to the shipyard. He asked Mr. Hayden if he has
any idea at this point how much that one mistake on the part of
their central office administrators cost the state. MR. HAYDEN
responded that he was not aware that it was going to cost anything.
Number 360
SENATOR TORGERSON asked Mr. Hayden if he has been involved in the
negotiations for a new system that may be established by either
local governments or private enterprises between a couple of
communities in Southeastern Alaska. MR. HAYDEN acknowledged that
he has been involved in those discussions. DOT has funded the City
of Craig close to $300,000 for two different studies. SENATOR
TORGERSON asked what the impact of something like this would be to
the Marine Highway System. MR. HAYDEN responded that an analysis
on that hasn't been done. He added that at one end of the extreme,
if the Aurora was no longer on that run and it was not needed to
provide service anywhere within the system, it would save $2.5
million. The next question is whether it could be deployed
somewhere else and generate enough money to overcome that $2.5
million. He said he would send Senator Torgerson information on
what the other options are for redeploying the Aurora. SENATOR
TORGERSON said he would be more interested in information in
respect to an overall plan on what happens to the Malaspina and the
new ferry coming on line and even the possible sale of another
ferry.
SENATOR TORGERSON asked Mr. Hayden the status of a list of
questions that had been submitted to him by the task force. MR.
HAYDEN responded that he gave answers to earlier questions at the
meeting in Seward, but that he had not received any further
questions. JOE AMBROSE added that everything that was relayed to
the Ketchikan office was relayed to Mr. Hayden's office, but he
said he would send them again.
Number 490
SENATOR TORGERSON inquired as to the status of the reservation
system. MR. HAYDEN said the contractor has been hired, they have
been working on the design and programmers at DOT are currently
programming the system. The design of the system should be
completed in May of 1997, and they are looking forward to
installing and having it up and running for next winter's schedule.
SENATOR TORGERSON asked since the new system won't be available for
next summer's scheduling, what steps have been taken to change the
bureaucratic mess that has happened in the last couple of years
with summer reservations. MR. HAYDEN responded that they are going
to get the telephone system to do more forwarding of calls so that
there will be more sites this winter answering the incoming calls.
SENATOR TORGERSON wondered why a whole new reservation system is
needed if they can do something as simple as call forwarding. MR.
HAYDEN said their current reservation system is about 12 years old
and it is very difficult to make changes to it. He also said he
wished the new system could be on line for next summer's
reservations, but that is not going to happen.
SENATOR TORGERSON asked if consideration was being given to
reopening the bars on the ferries on a seasonal basis. MR. HAYDEN
acknowledged there was such a discussion, but the decision was made
to not open the bars on a seasonal basis. He also clarified that
in their contract, bartenders get paid at a rate per hour. Those
bartender positions have been eliminated so those employees will
not be earning wages at the bartender wage rate. Bartenders,
because of the seniority system, will displace some other persons
within the terms of their contract and they will be paid at the
rate of the position that they are filling.
SENATOR TORGERSON requested Mr. Hayden's comments concerning an
article in the Ketchikan Daily News where somebody had written in
and said that the present administration talks of selling the
Malaspina and giving up the most lucrative ferry runs. MR. HAYDEN
emphasized that there has been no decision on selling the
Malaspina. The new vessel will start service out of Prince Rupert
in 1998 and will pick up the Malaspina traffic, so they would not
be giving up any lucrative runs.
Number 657
MR. HAYDEN noted that Commissioner Perkins of the Department of
Transportation & Public Facilities had joined him the Butrovich
Committee Room in Juneau.
SENATOR TAYLOR said in a meeting he had with the Commissioner
during the Southeast Conference he had expressed his concern about
the mission and purpose of the ferry system. He then asked if the
Commissioner would address that issue.
COMMISSIONER PERKINS said one thing they want to look at in the
Southeast transportation study, as well as the Prince William
transportation study, is what is the mission right now, is it the
same mission it had when it first came into being, and has the
mission changed. He said he really thinks that we must decide what
the people, particularly in Southeast Alaska and somewhat in
Southwest Alaska, are expecting the ferry system to do. He thinks
they need to get that portion of the mission statement reaffirmed
so they know where they are heading so they can try to structure
something that supports the desires and anticipations of the people
that use the system.
SENATOR TAYLOR asked how long he thought that process might take,
and COMMISSIONER PERKINS said he thinks they should be able to have
an idea of what the mission statement is going to be by the first
of the year. He said in the process of doing this study, they will
be going out to a lot of people in Southeast Alaska to get their
input on what they want this ferry system to do.
TAPE 2, SIDE A
Number 010
SENATOR TAYLOR said it is his understanding that both the fleet of
ferries in Puget Sound and the entire ferry fleet in British
Columbia are expanding, and expanding significantly, and he finds
it difficult to understand how those government operated systems
have not only been successful but are expanding at the very same
time when Alaska is seriously looking at constricting and reduction
both in the size of the fleet and the level of service to be
provided.
COMMISSIONER PERKINS said he and Mr. Hayden spent a day with the
people that run the Washington State ferries. He said they found
that Washington operates at a little bit more subsidy than Alaska,
and they have not had much trouble receiving their funding from the
Legislature. A lot of their big paying system is short runs with
high production. They have not visited British Columbia, but they
intend to do so in the near future.
MR. HAYDEN agreed that the Washington State ferries have a lot of
traffic volume. Their traffic has increased as the population in
that area has increased, whereas Alaska's population and traffic
demand has not been growing at that rate. He said Alaska does need
to be adding to and expanding our fleet, and the ocean class vessel
is one of the first commitments to doing that. However, it comes
down to traffic and how much we are willing to pay for the
services. He pointed out that the Washington State ferry system
carries 25 million passengers a year and Alaska has 400,000
passengers a year.
SENATOR TAYLOR asked if they foresee any expansion of the ferry
fleet, or they asking for any expansion of the ferry fleet at this
time. COMMISSIONER PERKINS responded that he didn't think they
could answer that question until they find out from their southeast
study what they are going to do about future transportation in
Southeast Alaska. Once they get the results of that study, they
are going to implement those results, whatever they may be, and
whatever proves to best for Southeast Alaska. Until they find out
and get some priorities as to what to spend on, he doesn't think
they can ask the Legislature for anything as far as new capital
projects. He said they need to be looking at exactly where they
are going to head, not just for the next two years, but for the
next 10 to 20 years.
SENATOR TAYLOR commented that apparently the department knows
enough about the rest of the highway needs of the state because we
are putting $182 million into the old Glenn Highway, several new
bike paths are being initiated, etc., so somebody seems to be
making some major decisions on transportation in other areas of the
state. COMMISSIONER PERKINS responded that a lot things govern
that such as safety. He said one thing that needs to be discussed
a little bit is whether or not you have a subsidy road versus ferry
system. Anybody who uses a highway in the state is paying an 18
cent federal gas tax. The state gets back six times in
construction dollars what it puts into the federal gas tax. That
is the money that is repairing the roads, and about $60 million of
it happens to be going into the ferry system this year. Every year
the average is somewhere between fifteen and twenty million in
capital money from the federal gas tax that is being put into the
ferry system, so there is a subsidy coming in for capital projects
from the federal government, from the people instate and out of
state who are paying gas tax to drive on the roads. He said the
Marine Highway System is benefited from every contribution that
other people have made with the federal gas tax. He noted this
year the NHS program, statewide, is a little over $100 million, and
of that, $50 million is going for the new vessel, which he said is
pretty good.
SENATOR TAYLOR said when the road system mileage maintenance costs,
per mile that you run between Anchorage and Fairbanks costs twice
the amount to maintain than it does per mile to operate the Marine
Highway System, he does not think there is an allocation that
justifies the type of rhetoric that he hears about subsidy. He
said he gets upset with the word "subsidy" that constantly gets
used as if somehow we're some poor stepchild down here and have to
be fed by the generous people of the state.
Number 180
SENATOR TAYLOR asked what will be the total volume of revenues lost
by the bar closures on the ferry. He noted that Captain Sande has
testified that since the bar was closed on the Aurora, they have
lost $3,000 a week in revenue, which includes food service and the
gift shop. He said he considers that a very significant loss of
revenue. MR. HAYDEN responded that the traffic has been down on
the run too; the revenues generated as a result of passengers and
the car deck are down on that run since 1992. Since 1992 they have
provided more runs, more port calls and the traffic has dropped.
He said he would expect there would be a drop in food services
during that same period because there has been a drop in traffic.
SENATOR TORGERSON commented that when the Mayor of Sitka testified
he suggested looking into the land based roads and other things
that might tie in with the ferry system. COMMISSIONER PERKINS said
they have been doing that. A study was commissioned last year to
do a fairly conceptual look at the Baranof Warm Springs road and
try to get a cost estimate. That study has been completed and they
know what that road would generally cost to build so they can
compare it against the service improvement that it would bring. In
that study they are also going to look at the Bradfield Canal road
and a Juneau access road, so he thinks for the first time in quite
awhile, they will have information on most of the road links in
Southeastern Alaska and they are going to play a very important
role in this study of how is the best way to serve Southeast as far
as transportation is concerned.
COMMISSIONER PERKINS reaffirmed that their primary mission, and
what he wants to do, is to make sure that we've got the best
transportation system that we can possibly have in Southeast
Alaska. He said the same is true with Southwest Alaska.
Number 250
SENATOR TORGERSON asked if these roads he had discussed would have
to compete on a statewide basis for construction funds.
COMMISSIONER PERKINS responded that right now the state is blessed
with having the Marine Highway System on the National Highway
System, which is one of the major money sources for federal money,
so that can be used as a source of money. If the roads he
mentioned were to go on to construction, they would be National
Highway System roads. Their competition would be repair on the
Glenn, the Parks, etc. He added that the department may even take
a look at toll roads, because last year the legislation that
Congress passed allows the state to do toll roads with federal
money, with the state kicking in 20 percent of the cost.
Number 290
SENATOR TAYLOR thanked Commissioner Perkins for his participation
in the meeting, and said he appreciates what he knows to be his
sincere desire to make for a better system. But he suggested that
every single road he gets on in Southeast Alaska to go to any
community within his district is a toll road, and he pays through
the nose to get on it, so when he hears him talking about highway
toll roads his fear is that the only roads he is thinking of will
be in Southeast Alaska. COMMISSIONER PERKINS responded that the
Whittier road will be a toll road.
SENATOR TAYLOR said it is his understanding there is one employee
that has been working basically at home at a salary of
approximately $80,000 a year, and his job for the last four plus
years has been to design a computerized system for maintenance on
the vessels. He said that if, in fact, this is correct, he would
like to have a report from the department on the status of this
project and if this individual will be continued at that same
salary or can he be let go.
Also, the task force has been concerned and made inquiries about
increases and numbers of administrative personnel in Juneau
relative to the size and employment within the fleet. He asked if
the two planners that have been discussed have been hired. MR.
HAYDEN acknowledged that two planners have been hired, and they are
doing an analysis on the Malaspina break-even report, but he also
clarified that there are still fewer people working because of a
number of positions that are not being filled.
SENATOR TAYLOR expressed his thanks and appreciation to
Commissioner Perkins and Gary Hayden for participation in the
meeting. He then stated testimony would be taken from Mayor Shay
in Ketchikan.
MAYOR JACK SHAY of Ketchikan expressed his appreciation for the
work the task force has been doing relative to the Alaska Marine
Highway System.
Mayor Shay said he has recently being going door to door to
thousands of Southeast Alaska homes and businesses in Wrangell,
Petersburg, Sitka, Ketchikan, as well as meeting with persons on
Prince of Wales Island, and one think he keeps hearing time and
time again is to please keep the ferry system going and see what
can be done to improve the service.
Mayor Shay said he would also like to put in a little plug for
doing some of the maintenance on the Columbia in Ketchikan to try
to create some jobs, although he knows it may cost a little extra.
He said the City of Ketchikan is looking forward to working with
the task force in any way they can to help improve the system
there.
Mayor Shay commented that in regard to a recent snowfall which
occurred in the Anchorage, they would recommend that in order to
save some money, they plow the roads northbound on Thursdays and
Saturdays from 2:00 p.m. to 4:00 p.m., and then do the eastbounds
yet another day at a certain time. He added that may sound a bit
sarcastic, but it is.
SENATOR TAYLOR thanked Mayor Shay for his comments, and added that
he is somewhat dismayed from the answers that have been received
that apparently if he wants to participate and bring some southeast
perspective to the issue of the Marine Highway System, he is going
to need to do so through the Transportation Committee of the
Southeast Conference because apparently that's who is going to be
asked for input over the next month or two.
Number 457
MARLENE CAMPBELL , representing the City & Borough of Sitka, said
Sitka is sending the same message as spoken to by Mayor Shay and
that is that they have basically between one-third to one-half of
the service of any mainline port because of their geographic
location. Over the years Sitka has been increasing pressure on the
Marine Highway System to provide better service for Sitka and at
least minimum basic services for their citizens during the winter,
as well as during the summer months when most of their revenues
come in, not only through their visitors, but also through seafood
industry shipments. She stressed that with the loss of their pulp
mill in 1993, the Marine Highway System is absolutely critical to
their economy.
TAPE 2, SIDE B
Number 001
Ms. Campbell said Sitka has supported the new ferry since its
inception, as well as advocating for the Malaspina to be a day
boat. They also advocate for the Baranof road as a long-term
solution to connect in a more effective way to the rest of the
system. They ask that DOT complete the system-wide analysis of
impacts of putting Sitka on the mainline route. She said they
appreciate the work that has been done, but it's very preliminary
and a lot more analysis needs to be done.
Number 060
WILL PETRICH of Ketchikan, who is a second and third mate on the
Alaska Marine Highway System, said he has some real problems with
the supposed budgetary crisis of $1.6 million, when you are looking
at $71.447 million for operations, 60 percent of that being a
derivative of revenues, which is something less than 2 percent of
the overall collective budget. He said for the Marine Highway
System being savaged for a less than the 2 percent overall budget
cut does not compute.
Mr. Petrich said he has met many times with Commissioner Perkins
and Mr. Hayden, and he submitted many suggestions that could be
implemented at little or no cost to state for increasing revenues,
but they are simply not willing to act upon them. He said they are
either so inept that they really can't figure it out or there is a
hidden agenda there.
Mr. Petrich said it is a management problem partially derivative of
the fact that there is no one in upper level management with any
credible maritime background at all, or minimal at best. He added
that somehow the Legislature has to make it incumbent upon the
Administration to see that a professional maritime put is put at
the helm of the ferry system.
SENATOR TAYLOR thanked Mr. Petrich for all of the time he has put
in on these problems with the AMHS, and he informed him that all of
the comments he has submitted to the task force will be included
within its record and will be part of the final report rendered.
Number 130
PAUL POST , a resident of Juneau testifying in Sitka, said he is a
frequent traveler on the ferry between Juneau and Sitka, and he is
concerned about a recent decision to get rid of the lockers on the
ferries and in the terminals as a security measure. He spoke to
the importance of these lockers to people traveling on the ferries
without cars or people who do not have cabins. He asked if the
task force could scrutinize where that decision came from and if
there is any real justification for it.
SENATOR TAYLOR thanked Mr. Post for bringing up the locker issue,
and he said a letter asking that question would be written.
EVE RAUSCHER of Sitka said she is the owner of two businesses, one
in Sitka and the other in Skagway, and it is difficult for her to
schedule her life with the Alaska Marine Highway in the sense that
it takes 16 hours each to make the trip between Sitka and Skagway.
She said during the winter months she would probably remain in
Skagway for just two days, but with the way the schedule is set up,
she has stay there for a week, so as a business owner, it is not
very economical for her. She also stressed the economic importance
of Sitka having the equal service that other ports in Southeastern
Alaska enjoy.
Number 200
SENATOR TAYLOR stated for the record that the majority of testimony
taken by the task force has been from people within the fleet
itself -- people like Captain Art Johnson and Captain Jan Sande who
have spent practically their entire careers aborad these vessels.
He said under this Administration those men are placing their jobs,
so to speak, in jeopardy. He noted he has letters on file
threatening employees with their jobs anytime those employees do
anything that displeases the Administration. He also noted that
between the two of them, Andrea Barkley and Stephanie Rainwater
have over 33 years within this system, and the point he is trying
to make is that the people within this system care a great deal
about it -- they care a great deal about the level of service that
they can provide to their friends and neighbors.
SENATOR TAYLOR thanked all the participants, and stated the task
force would probably have a final meeting in January after the
Legislature convenes. He adjourned the meeting at approximately
6:15 p.m.
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