03/31/2005 01:30 PM Senate TRANSPORTATION
| Audio | Topic |
|---|---|
| Start | |
| SB133 | |
| SB16 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| = | SB 16 | ||
| = | SB 133 | ||
ALASKA STATE LEGISLATURE
SENATE TRANSPORTATION STANDING COMMITTEE
March 31, 2005
1:36 p.m.
MEMBERS PRESENT
Senator Charlie Huggins, Chair
Senator John Cowdery, Vice Chair
Senator Gene Therriault
Senator Hollis French
Senator Albert Kookesh
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 133
"An Act establishing the Aviation Advisory Board; and providing
for an effective date."
MOVED SB 133 OUT OF COMMITTEE
SPONSOR SUBSTITUTE FOR SENATE BILL NO. 16
"An Act relating to the powers and duties of the Department of
Transportation and Public Facilities; repealing the requirement
for a long-range program for highway construction and
maintenance; and repealing a requirement that public facilities
comply with energy standards adopted by the Department of
Transportation and Public Facilities."
MOVED CSSSSB 16(TRA) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 133
SHORT TITLE: AVIATION ADVISORY BOARD
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
03/07/05 (S) READ THE FIRST TIME - REFERRALS
03/07/05 (S) TRA, FIN
03/22/05 (S) TRA AT 1:30 PM BUTROVICH 205
03/22/05 (S) Scheduled But Not Heard
03/31/05 (S) TRA AT 1:30 PM BUTROVICH 205
BILL: SB 16
SHORT TITLE: POWERS/DUTIES DOTPF/TRANSPORTATION PLAN
SPONSOR(s): SENATOR(s) STEVENS G
01/11/05 (S) PREFILE RELEASED 12/30/04
01/11/05 (S) READ THE FIRST TIME - REFERRALS
01/11/05 (S) TRA, FIN
01/14/05 (S) SPONSOR SUBSTITUTE INTRODUCED-REFERRALS
01/14/05 (S) TRA, FIN
03/22/05 (S) TRA AT 1:30 PM BUTROVICH 205
03/22/05 (S) Heard & Held
03/22/05 (S) MINUTE (TRA)
03/31/05 (S) TRA AT 1:30 PM BUTROVICH 205
WITNESS REGISTER
Kip Knudson, Deputy Commissioner
Department of Transportation & Public Facilities
3132 Channel Dr.
Juneau, AK 99801-7898
POSITION STATEMENT: Testified in support of SB 133
Karen Casanovas, Executive Director
Alaska Air Carriers Association
2301 Merrill Field Dr. Suite A-3
Anchorage, AK 99501
POSITION STATEMENT: Testified in support of SB 133
Tom George
Aircraft Owners and Pilots Association
No address provided
POSITION STATEMENT: Testified in Support of SB 133
Russ Painter, President
Alaska Airmen's Association
Lake Hood, AK
POSITION STATEMENT: Testified in support of SB 133
Jeff Ottesen, Director
Department of Transportation & Public Facilities
3132 Channel Dr.
Juneau, AK 99801-7898
POSITION STATEMENT: Testified in support of SB 16
ACTION NARRATIVE
CHAIR CHARLIE HUGGINS called the Senate Transportation Standing
Committee meeting to order at 1:36:06 PM. Present were Senators
Hollis French, John Cowdery, Gene Therriault, and Chair Charlie
Huggins.
1:36:24 PM
SB 133-AVIATION ADVISORY BOARD
CHAIR HUGGINS announced SB 133 to be up for consideration.
KIP KNUDSON, Deputy Commissioner, Department of Transportation
and Public Facilities (DOT/PF) testified in support of the
Aviation Advisory Board. He maintained it has been an effective
policy tool since inception. Aviation industry and interest
groups recommended the formation of the board to Governor
Murkowski. Since formation, the board is renewed each year
through an administrative order. The commissioner of DOT/PF
recommends the board become a permanent group.
1:37:19 PM
CHAIR HUGGINS asked Mr. Knudson whether the Aviation Advisory
Board was in existence prior to Governor Murkowski's
administration.
MR. KNUDSON replied no.
SENATOR COWDERY asked the purpose of having the commissioner
consult with the board regarding hiring.
MR. KNUDSON answered the board would like to be involved with
the hiring of airport directors.
SENATOR COWDERY inquired whether the system worked prior to the
board being involved.
MR. KNUDSON responded there was a quick turnover of directors in
Anchorage for eight or nine years.
SENATOR COWDERY indicated that might have been due to a lack of
qualifications by persons holding the job.
MR. KNUDSON neglected to comment. He reiterated the board would
like to be consulted regarding the hiring of airport directors.
SENATOR COWDERY asserted the hiring of airport directors should
be an independent decision of the commissioner.
1:40:13 PM
CHAIR HUGGINS understood any advise from the board was advisory.
MR. KNUDSON agreed. The board has no veto ability.
SENATOR THERRIAULT suggested the Governor's Administration would
welcome the opinion of the board.
MR. KNUDSON said it is the opinion of the Governor and the
commissioner that there are critical infrastructure elements at
stake and the aviation communities need to be involved with the
appointments.
CHAIR HUGGINS asked whether the Governor was in support.
MR. KNUDSON said yes.
SENATOR FRENCH stated the purpose of the board is to comment on
the selection of the two individuals who will run either the Ted
Stevens Airport or the Fairbanks Airport. He inquired as to
their other duties.
MR. KNUDSON admitted the vetting of the candidates is a small
part. The board is used to review and discuss present and future
policies.
1:42:43 PM
MR. KNUDSON advised the committee the board has met 10 times
since creation.
CHAIR HUGGINS commented Anchorage and Fairbanks are represented
and wanted to know if other communities are seeking
representation.
MR. KNUDSON replied no. Anchorage and Fairbanks have large
facilities in the communities. Board members are from the south
central region.
1:44:18 PM
CHAIR HUGGINS asked whether board members should have an
aviation background.
MR. KNUDSON replied both Anchorage and Fairbanks mayors did
chose people with significant aviation backgrounds.
1:45:51 PM
SENATOR COWDERY asked him how many recommendations the board has
made.
MR. KNUDSON replied one formal resolution was forwarded to the
Governor.
1:47:01 PM
SENATOR THERRIAULT commented the Aviation Advisory Board members
receive no pay but are allowed travel expenses yet the fiscal
note is zero. He asked whether it was previously submitted in
the FY 2006 budget.
MR. KNUDSON responded yes. The total amount is $20,000 for the
activity.
SENATOR FRENCH asked where the meetings were held.
MR. KNUDSON advised they were rotated throughout the state.
CHAIR HUGGINS asked whether the board had any oversight with the
Medallion Flyer Program.
MR. KNUDSON advised that program is not included in the mission
statement. The current role of the advisory board is mainly
airport associated.
1:49:34 PM
KAREN CASANOVAS, executive director, Alaska Air Carriers
Association, testified in support of SB 133 and said it would
create a positive impact on air carriers operating in Alaska.
The Aviation Advisory Board provides support, which will
increase the aviation business, promote aviation safety, and
provide for better policy making.
1:51:21 PM
MS. CASANOVAS added the board has discussed multiple priorities
in their meetings.
CHAIR HUGGINS asked whether aviation insurance has been
addressed.
MS. CASANOVAS surmised the subject has been discussed.
MR. KNUDSON advised air carrier insurance has not been a direct
topic.
1:54:18 PM
CHAIR HUGGINS commented there were different insurance
challenges between Part 121 and Part 135 operators.
MR. KNUDSON advised the smaller carriers suffer the squeeze.
MS. CASANOVAS added insurance costs are a continuing issue for
the carriers. Some underwriters give a cost break if the carrier
participates in the Medallion Program.
1:56:05 PM
TOM GEORGE, representative for the Aircraft Owners and Pilots
Association, testified in support of SB 133. Making the Aviation
Advisory Board permanent provides a balanced approach for the
aviation industry to work with the Department of Transportation.
1:59:03 PM
RUSS PAINTER, president, Alaska Airmen's Association, testified
in support of SB 133.
2:01:00 PM
SENATOR COWDERY moved SB 133 from committee with individual
recommendations and attached zero fiscal note(s). There being no
objection, the motion carried.
Chair Huggins announced a brief recess at 2:01:28 PM.
Chair Huggins reconvened the meeting at 2:04:09 PM.
SB 16-POWERS/DUTIES DOTPF/TRANSPORTATION PLAN
2:04:09 PM
CHAIR HUGGINS announced SB 16 to be up for consideration.
SENATOR COWDERY moved to adopt a committee substitute (CS) for
the sponsor substitute for SB 16(TRA). Hearing no objections,
the motion carried.
2:04:48 PM
JEFF OTTESEN, director, Department of Transportation and Public
Facilities (DOTPF) advised the committee the previous concerns
with SB 16 have been addressed. He explained the changes to the
committee. Page 3, line 19 delete "periodically" and insert
"every five years". Page 4, line 23 delete "periodically" and
insert "every four years". Page 5, line 31 is a new subsection
that requires cost effective analysis for projects that fall
into the threshold.
2:07:14 PM
MR. OTTESEN recommended the committee delay the effective date
to July 2006 due to future projects approved by the voters,
which are well underway.
2:08:05 PM
SENATOR THERRIAULT moved to adopt Amendment 1. There being no
objection, the motion carried.
CHAIR HUGGINS asked Mr. Ottesen to speak of public facilities.
MR. OTTESEN advised the DOT's Public Facilities was created upon
the merger of the old departments of highways and departments of
public works. The DOTPF inherited the duties of public works for
state buildings as well as many works for smaller communities.
Through time, the smaller duties have essentially dissolved.
Smaller communities now perform their own public works.
2:10:08 PM
CHAIR HUGGINS commented the DOTPF was attempting to implement
business practicality.
MR. OTTESEN agreed. He pointed out AS 44.42.020(a) Paragraph 11
requires the DOTPF to annually evaluate cost, efficiency and
availability of alternative fuels such as natural gas. Since
natural gas is no longer considered the fuel of the future, DOT
will watch the rest of the world for alternative fuel trends.
2:11:56 PM
MR. OTTESEN added Section 2; paragraph 15 is a new requirement
to study alternative funding. Other states are looking for new
funding for DOT such as mileage taxes and toll roads.
2:13:10 PM
SENATOR FRENCH asked Mr. Ottesen to describe the difficulty in
cost/benefit analysis studies.
MR. OTTESEN referred to Section 3, line 6. A road project had
been in the works since the 1970s and in 2002 litigation halted
the project since they had not performed a cost/benefit
analysis.
2:15:15 PM
MR. OTTESEN added the DOTPF has written a regulation saying they
will consider the costs and benefits for all projects. There is
no minimal threshold to which the current language applies. City
governments are required to do their own cost/benefit analysis
studies before they can submit projects to the DOTPF.
2:18:43 PM
SENATOR FRENCH commented regulations would dictate their
options.
MR. OTTESEN agreed regulations would help define cost/benefit
studies as well as local projects.
SENATOR FRENCH asked Mr. Ottesen how the proposed new law would
have voided litigation.
MR. OTTESEN said it wouldn't.
2:21:26 PM
SENATOR FRENCH asked Mr. Ottesen how the DOTPF would treat the
road to the Kenai Peninsula.
MR. OTTESEN answered they would treat it as an existing highway.
SENATOR FRENCH asked Mr. Ottesen to explain how the new system
is different than the old.
MR. OTTESEN advised many new roads are being proposed.
SENATOR FRENCH said he is unclear whether a cost/benefit
analysis is required for projects such as widening the Parks
Highway or straightening the Seward Highway.
MR. OTTESEN advised under the new law the DOTPF would not be
required to perform a cost/benefit analysis. Section 5;
Subsection (e) singles out evaluating of new highways, airports,
and other major components.
SENATOR FRENCH commented the intent of SB 16 is to stop having
to do cost/benefit analysis for every upgrade in the state.
MR. OTTESEN agreed. They spent close to $100,000 on one
cost/benefit study for one rural project.
SENATOR FRENCH noted the sponsor statement says requiring
studies to be done 10 years in advance is burdensome.
2:24:03 PM
SENATOR FRENCH added the new language still requires them to do
the cost/benefit study on new projects far in advance.
MR. OTTESEN clarified the current language uses the phrase,
"consider cost and benefits." That does not necessarily mean a
cost/benefit analysis is required. There are several techniques
one can use to consider costs and benefits. A cost effective
analysis is a much simpler technique and can be done on an excel
spreadsheet. The court case revolved around whether DOT was
using the correct methodology.
2:26:22 PM
SENATOR FRENCH asked Mr. Ottesen whether the DOTPF was required
to do a cost/benefit analysis under the old statute.
MR. OTTESEN answered no. The new statute would clarify when a
cost/benefit analysis is required.
2:28:34 PM
SENATOR COWDERY moved CSSSSB 16(TRA) from committee with
individual recommendations and attached fiscal note(s). There
being no objection, the motion carried.
There being no further business to come before the committee,
Chair Huggins adjourned the meeting at 2:29:54 PM.
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