Legislature(1999 - 2000)

02/25/1999 01:30 PM Senate TRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
      JOINT SENATE & HOUSE TRANSPORTATION COMMITTEE MEETING                                                                     
                        February 25, 1999                                                                                       
                            1:30 p.m.                                                                                           
                                                                                                                                
SENATE MEMBERS PRESENT                                                                                                          
                                                                                                                                
Senator Jerry Ward, Chairman                                                                                                    
Senator Drue Pearce, Vice Chair                                                                                                 
Senator Georgianna Lincoln                                                                                                      
                                                                                                                                
HOUSE MEMBERS PRESENT                                                                                                           
                                                                                                                                
Representative Beverly Masek, Chair                                                                                             
Representative Bill Hudson                                                                                                      
Representative Jerry Sanders                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                  
                                                                                                                                
Senator Rick Halford                                                                                                            
Senator Mike Miller                                                                                                             
Representative Andrew Halcro, Vice Chair                                                                                        
Representative John Cowdery                                                                                                     
Representative Allen Kemplen                                                                                                    
Representative Albert Kookesh                                                                                                   
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                       
                                                                                                                                
Senator Robin Taylor                                                                                                            
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
Overview and Discussion by Mr. Brian D'Isernia, President of                                                                    
Eastern Shipbuilding Group; Mr. Jack Gilbert, Naval Architect,                                                                  
Boston; and Mr. Bruce Gilbert, Haines.                                                                                          
                                                                                                                                
ACTION NARRATIVE                                                                                                                
TAPE 99-4, SIDE A                                                                                                               
                                                                                                                                
CO-CHAIR WARD called the Joint Senate and House Transportation                                                                  
Committee meeting to order at 1:37 p.m.  Present were Co-Chair                                                                  
Masek, Senator Pearce, Representative Sanders, and Co-Chair Ward.                                                               
CO-CHAIR WARD announced the presence of Senator Robin Taylor.                                                                   
                                                                                                                                
BRIAN D'ISERNIA, President of Eastern Shipbuilding Group (ESG),                                                                 
Inc., introduced John Gilbert, a naval architect with John Gilbert                                                              
& Associates in Boston, who would be assisting Mr. D'Isernia in his                                                             
presentation.  MR. D'ISERNIA provided the following background                                                                  
information about ESG and information on the types of ships it                                                                  
manufactures. ESG is a medium-sized aluminum and steel construction                                                             
shipyard located in Panama City, Florida, with about 400 employees.                                                             
Since 1976, ESG has delivered about 200 vessels; approximately 18                                                               
were ferries, ranging from 60 to 300 feet in length, and ranging                                                                
from high-speed aluminum gas-turbine powered craft, to diesel                                                                   
powered craft.  In 1997, ESG delivered a 200' ferry, named the                                                                  
"Block Island," to a customer in New London, Connecticut.  The                                                                  
"Block Island" was a third generation ferry, each generation having                                                             
improved upon its predecessor.  ESG was contacted by Senator Taylor                                                             
and various mayors of Southeast Alaska communities who were                                                                     
interested in this particular ferry as a type that could meet the                                                               
needs of Southeast's inter-island transportation system.                                                                        
                                                                                                                                
MR. D'ISERNIA described the "Block Island" as 208' in length, 40'                                                               
in width, and 14' in depth.  It is United States Coast Guard (USCG)                                                             
certified for lakes, bays, and sounds, which is the required                                                                    
certification for inter-island transportation in Southeast Alaska.                                                              
It is USCG certified to carry 1000 passengers, and approximately 45                                                             
vehicles, and it is capable of carrying three extended-length                                                                   
tractor trailers in place of 20 cars or trucks.  Maximum speed on                                                               
sea trials was 18.2 knots, and its normal operating speed is 17                                                                 
knots.  The "Block Island" route is from Pt. Judith, Rhode Island,                                                              
to Block Island, Rhode Island, a 13-mile run in an exposed area of                                                              
the North Atlantic with 15-foot seas in the winter.  This boat was                                                              
designed as a winter boat; it contains a lower deck house to                                                                    
minimize windage for better control in small harbors.  The two                                                                  
turbo-charged engines have a total horsepower of 4,000 and they                                                                 
meet California emission standards which are quite strict.  The                                                                 
ship has a 250 horsepower bowthruster, and the rudder design allows                                                             
the vessel to turn within its own length. He noted the ship was                                                                 
designed by John Gilbert, with input from the Block Island                                                                      
operators.  Crew requirements were minimized by the ship's tonnage                                                              
design, to save the operator money.  Its fuel consumption is a                                                                  
relatively modest 140 gallons per hour, its minimum draft is 9+                                                                 
feet, and the vessel was built with camber and sheer to allow                                                                   
water to run off the deck.  He emphasized that this vessel has been                                                             
designed, built, and tested, thereby eliminating the risk of                                                                    
dealing with variables inherent in a new design.                                                                                
                                                                                                                                
Number 254                                                                                                                      
                                                                                                                                
CHAIRMAN WARD asked if all 1000 passengers could sit inside of the                                                              
ship.                                                                                                                           
                                                                                                                                
MR. D'ISERNIA said it is a combination of inside and outside.  The                                                              
inside seating capacity is approximately 350; the total USCG                                                                    
carrying approved capacity is 1000.  He added excess passenger                                                                  
capacity in Southeast occurs during the summer months when people                                                               
are more amendable to sitting outside.                                                                                          
                                                                                                                                
CHAIRMAN WARD announced the presence of Senator Lincoln and                                                                     
Representative Hudson.                                                                                                          
                                                                                                                                
MR. D'ISERNIA gave a slide presentation that included photos of the                                                             
"Block Island" and ESG's shipyard.  He noted that he and Mr.                                                                    
Gilbert will be visiting several port facilities in Southeast.                                                                  
                                                                                                                                
Number 329                                                                                                                      
                                                                                                                                
SENATOR TAYLOR asked what distance the vessel requires to turn in.                                                              
MR. GILBERT replied it turns in about 1-1/10 lengths.  He explained                                                             
the rudder design is similar to an air foil design.                                                                             
                                                                                                                                
REPRESENTATIVE HUDSON asked if ESG manufactures the wheels on the                                                               
shafts.  MR. D'ISERNIA replied it does not, but the propellers are                                                              
shipped to its machine shop for a certified fit.                                                                                
                                                                                                                                
Number 447                                                                                                                      
                                                                                                                                
SENATOR LINCOLN asked where the propellers are manufactured.  MR.                                                               
D'ISERNIA answered the shafts and propellers are manufactured in                                                                
the United States by [indis.] Johnson, but the rudders are made in                                                              
Germany.                                                                                                                        
                                                                                                                                
SENATOR LINCOLN asked if parts are easily attainable for the                                                                    
rudders.  MR. D'ISERNIA replied it is advisable to keep two spare                                                               
propellers and one spare rudder in stock to minimize downtime.                                                                  
                                                                                                                                
SENATOR TAYLOR pointed out the Kennecott needed a part replaced on                                                              
one of its two engines.  The part arrived 10 days later from Europe                                                             
and was replaced, except shortly thereafter, the same part on the                                                               
other engine broke.                                                                                                             
                                                                                                                                
MR. D'ISERNIA clarified that he was not advising that a spare                                                                   
rudder be available solely because it is manufactured in Germany,                                                               
but also because replacing a rudder is a time-consuming job,                                                                    
requiring the vessel to be pulled out of the water.                                                                             
                                                                                                                                
Number 490                                                                                                                      
                                                                                                                                
JOHN GILBERT stated that, because rudders are always vulnerable to                                                              
damage, his company always sets up with the original manufacturer                                                               
a spare parts machine shop which would probably be located in                                                                   
Ketchikan.  The machine pattern would be in that shop so that a new                                                             
one could be built, if necessary.  He noted he tries to keep parts                                                              
made by foreign manufacturers to a minimum but has found these                                                                  
rudders to be quite durable.                                                                                                    
                                                                                                                                
CHAIRMAN WARD asked if enclosing some of the passenger areas with                                                               
plastic would affect the stability of the vessel.                                                                               
                                                                                                                                
MR. D'ISERNIA replied it would not affect the stability, but might                                                              
upset the wind heel calculations.                                                                                               
                                                                                                                                
CHAIRMAN WARD asked if 350 passengers would sit on the passenger                                                                
deck, and 650 would sit on the top deck.  MR. D'ISERNIA replied the                                                             
vessel is certified, safe, and stable to carry 1000 passengers in                                                               
the worst stability criteria mode, which would be on the top deck;                                                              
therefore the vessel can hold that many.  He repeated it can only                                                               
seat 350 indoors.                                                                                                               
                                                                                                                                
SENATOR LINCOLN asked what the width of the vessel is in the bow.                                                               
MR. D'ISERNIA answered the vessel width is 40 feet; however, the                                                                
width at the spot Senator Lincoln referred to is about 25 feet.                                                                 
SENATOR LINCOLN expressed concern that the 40-foot width would not                                                              
accommodate the vehicular traffic in Alaska, such as motor homes                                                                
and vans.                                                                                                                       
                                                                                                                                
SENATOR TAYLOR responded the busiest ferry in the state, which                                                                  
hauls more cars, passengers, and vans than any other, is 85 feet                                                                
long and operates out of Ketchikan.                                                                                             
                                                                                                                                
TAPE 99-04, SIDE B                                                                                                              
SENATOR TAYLOR also noted the longest run contemplated for                                                                      
Southeast is three hours, and most runs would take 1+ hours.  He                                                                
asked  what the useful life of the engines is.  MR. D'ISERNIA                                                                   
replied about 35,000 hours, stating that the engines can be rebuilt                                                             
many times.                                                                                                                     
                                                                                                                                
MR. D'ISERNIA stated the price of the vessel, as configured, cost                                                               
less that $10 million.  Delivery time is about 10 months, with                                                                  
succeeding vessels at two-month intervals.   He repeated this                                                                   
vessel has a proven record, and he extended an invitation to                                                                    
legislators to ride the vessel.                                                                                                 
                                                                                                                                
Number 500                                                                                                                      
                                                                                                                                
JOHN GILBERT added the vessel was designed to meet USCG                                                                         
requirements for lakes, bays and sounds, however it is also capable                                                             
of being designed for "ocean service" with a reduction of top-deck                                                              
passengers.  The American Disabilities Act requirements were                                                                    
partially met; the vessel contains a wheelchair lift and handicap                                                               
accessible bathrooms.  He described the water, fuel, and sewage                                                                 
tank capacities, and other mechanical features that meet USCG                                                                   
regulations.  The original design was constrained by the State of                                                               
Rhode Island's dock maximum width requirement of 40 feet, and a 9+                                                              
foot depth.                                                                                                                     
                                                                                                                                
CHAIRMAN WARD asked if the "Block Island" regularly encounters                                                                  
swells of up to 15 feet.                                                                                                        
                                                                                                                                
MR. GILBERT replied it can actually encounter breaking waves of 15                                                              
feet.  The area often has short, steep, heavy seas.                                                                             
                                                                                                                                
CO-CHAIR MASEK asked about maintenance costs.                                                                                   
                                                                                                                                
MR. GILBERT said the standard package, which includes full-kit                                                                  
replacements for liner, piston, valve cages, etc., is $3500 per                                                                 
cylinder.  The only other problem that occurs on occasion is a                                                                  
teething problem with the turbo chargers.                                                                                       
                                                                                                                                
CO-CHAIR MASEK asked what the most common maintenance problem is on                                                             
this ship.  MR. GILBERT said these particular engines use quite a                                                               
bit of lubricating oil, but this engine is the most user-friendly                                                               
for licensed engineers.                                                                                                         
                                                                                                                                
CO-CHAIR MASEK asked for a comparison of the Rhode Island area                                                                  
weather and Southeast Alaska.  MR. GILBERT replied the Rhode Island                                                             
area can experience about two weeks of -9 degrees and 40 to 50 mile                                                             
per hour winds.                                                                                                                 
                                                                                                                                
CO-CHAIR MASEK asked if the "Block Island" travels in open,                                                                     
unprotected waters.  MR. GILBERT said it does, but that some of                                                                 
Southeast's passages are open.  SENATOR TAYLOR added that a few of                                                              
Southeast's passages are exposed, but Southeast Alaska does not                                                                 
experience as many days of severe cold as the Northeast does                                                                    
because of its maritime climate.                                                                                                
                                                                                                                                
SENATOR TAYLOR calculated a major rebuild at 35,000 hours would                                                                 
take place at 11+ years if the vessel operated nine hours per day,                                                              
365 days per year.                                                                                                              
                                                                                                                                
CO-CHAIR WARD asked if the sleeves need to be replaced every four                                                               
years.  MR. GILBERT replied they need to be replaced on these                                                                   
engines about every four to five years, but on fishing boats they                                                               
run for 8,000 hours each year.                                                                                                  
                                                                                                                                
Number 391                                                                                                                      
                                                                                                                                
SENATOR LINCOLN asked about the fuel consumption.  MR. GILBERT                                                                  
replied when the vessel is running at 17 plus knots, and turns at                                                               
850 rpm, it burns 140 gallons per hour.                                                                                         
                                                                                                                                
SENATOR LINCOLN asked Mr. D'Isernia if he would be willing to hire                                                              
Alaskans to assist in building an Alaska ferry.  MR. D'ISERNIA said                                                             
2+ years ago ESG employed about 120 people; that number is 400                                                                  
today.  ESG has been looking for people to hire and would not be                                                                
adverse to hiring qualified Alaskans.  SENATOR LINCOLN asked Mr.                                                                
D'Isernia if he would be willing to include such a provision in a                                                               
contract.  MR. D'ISERNIA said he would, and in addition, he has                                                                 
been exploring with a local shipyard owner the possibility of                                                                   
forming a partnership which would be advantageous for routine                                                                   
maintenance.                                                                                                                    
                                                                                                                                
Number 350                                                                                                                      
                                                                                                                                
SENATOR TAYLOR confirmed that discussions have taken place with the                                                             
owners of the Ketchikan shipyard, and that a shipyard is also                                                                   
located in Seward.  He added that he has spoken to seven different                                                              
companies about building a ferry, and that although the Ketchikan                                                               
shipyard is limited in its manufacturing capacities, many                                                                       
possibilities for partnerships exist.                                                                                           
                                                                                                                                
SENATOR LINCOLN said she brought the topic up because Alaskans                                                                  
welded the oil pipeline, and it looks as though a lot of welding                                                                
will need to be done on a steel ferry.                                                                                          
                                                                                                                                
Number 329                                                                                                                      
                                                                                                                                
REPRESENTATIVE HUDSON indicated he would like Alaska's ship people                                                              
to review any plans and suggest modifications.  He said he would                                                                
like to speak to the operators of the "Block Island" about how the                                                              
ship functions.  JOHN GILBERT said his firm has designed over 100                                                               
ferries for various areas of the United States, including Maine,                                                                
the Great Lakes, Lake Champlain, Martha's Vineyard, all with                                                                    
differing requirements.                                                                                                         
                                                                                                                                
Number 302                                                                                                                      
                                                                                                                                
CO-CHAIR WARD introduced Bruce Gilbert from Haines, Alaska.                                                                     
                                                                                                                                
BRUCE GILBERT, owner of a catamaran ferry, The Silver Eagle,                                                                    
informed committee members he had with him literature from the 15th                                                             
International Fast Ferry Conference in Boston.  He then referred to                                                             
a two-page outline he provided to committee members, and made the                                                               
following comments.  In 1994, the phrase "fast ferry" was                                                                       
considered a dirty word; however, in 1995 people began to see the                                                               
advantages.  Fast ferries are vessels that travel at 25 knots or                                                                
more.  As a Haines resident for 34 years, he became engrossed with                                                              
the problems with the Alaska ferries and decided that Haines needed                                                             
a private, high speed ferry to Juneau.  Determining the feasibility                                                             
of a ferry route requires the consideration of three factors:  the                                                              
geography of the area; demographics; and economics.  Southeast's                                                                
geographical make-up and distance from Seattle is conducive to a                                                                
good ferry route; its demographics are not.  He stated he would                                                                 
like to see the Legislature establish a fact-finding committee of                                                               
four to six people to study the feasibility of the use of fast                                                                  
ferries in Southeast.  He suggested the fact-finding committee                                                                  
consist of a pilot, a former director of the Alaska Marine Highway,                                                             
a former terminal manager, a shipyard owner-operator, and a naval                                                               
architect.  He emphasized the need to remove the politics of                                                                    
management of the Alaska Marine Highway System, to remove the                                                                   
union's ability to veto management's decisions, and to look at the                                                              
use of fast ferries to provide the level of service that passengers                                                             
want by establishing an advisory board of panhandlers to improve                                                                
Southeast's ferry service.  He stated, "With the impending budget                                                               
crisis due to low oil prices where we have to either tap our                                                                    
permanent reserves or pay state income taxes, we must improve our                                                               
ferry system.  I believe we should do it soon and along the                                                                     
direction of fast ferries."  He recounted the financial problems he                                                             
had in trying to start a fast ferry business in Southeast.                                                                      
                                                                                                                                
Number 167                                                                                                                      
                                                                                                                                
SENATOR TAYLOR asked Mr. Gilbert why he lands his ferry in Echo                                                                 
Cove rather than Auke Bay.   MR. GILBERT said for reasons of cost,                                                              
as the increased distance is 25 miles.  SENATOR TAYLOR noted the                                                                
Alaska ferries travel an extra 50 miles on a round trip to Skagway                                                              
because the Marine Highway will not locate a terminal at Echo Cove.                                                             
He asked Mr. Gilbert how long he has operated from Echo Cove.  MR.                                                              
GILBERT said since 1995, and he added the state ferries on that                                                                 
route average 6+ miles per hour, which includes port time.                                                                      
                                                                                                                                
CO-CHAIR WARD thanked Mr. Gilbert for providing committee members                                                               
with literature from the International Fast Ferry Conference.  He                                                               
asked Mr. Gilbert to meet with Senator Taylor's staff about the                                                                 
fact-finding committee.                                                                                                         
                                                                                                                                
CO-CHAIR MASEK also thanked participants for attending and                                                                      
providing the committee with information.                                                                                       
                                                                                                                                
SENATOR TAYLOR noted that Representative Hudson asked him to relay                                                              
to committee members that the State could have purchased and had                                                                
delivered ten of the 200-foot ferries for the same price it paid                                                                
for the Kennecott.  Had four or five of the smaller ferries been                                                                
purchased, SENATOR TAYLOR asserted that interconnecting roads and                                                               
terminals also could have been constructed.                                                                                     
                                                                                                                                
TAPE 99-5, SIDE A                                                                                                               
                                                                                                                                
CO-CHAIR MASEK asked Mr. Tom Brigham and Mr. Bob Dahl if they would                                                             
like to make any comments.                                                                                                      
                                                                                                                                
BOB DAHL, General Manager of the Alaska Marine Highway, said he was                                                             
delighted to speak with Mr. D'Isernia and Mr. Gilbert because their                                                             
proposal dovetails well with the Southeast Plan.  He noted when the                                                             
Alaska Marine Highway System was first designed 35 years ago, it                                                                
was to be a long haul system to carry passengers from Bellingham or                                                             
Prince Rupert to Skagway.  That system has advantages and                                                                       
disadvantages that remain to this day.  One feature of the                                                                      
Southeast Plan is to adopt a point to point service for which a                                                                 
"Block Island" type ferry would be ideally suited.  He repeated he                                                              
was interested to hear the presentations before the committee                                                                   
today.                                                                                                                          
                                                                                                                                
Number 058                                                                                                                      
                                                                                                                                
SENATOR TAYLOR showed a map of Southeast Alaska and the proposed                                                                
ferry routes that would connect to logging roads within the Tongass                                                             
National Forest.  He discussed the new possibilities that could                                                                 
result from an interconnected system of smaller and faster ferries.                                                             
                                                                                                                                
CO-CHAIR WARD thanked all participants.  He asked Mr. Brigham and                                                               
Senator Taylor's staff to work with Bruce Gilbert regarding a fact-                                                             
finding group.  He adjourned the meeting at 3:20 p.m.                                                                           

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