Legislature(2017 - 2018)BUTROVICH 205

02/06/2018 01:30 PM TRANSPORTATION

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01:30:54 PM Start
01:31:36 PM Overview: Airport Project Evaluation Board/aviation Projects
02:10:44 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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+ Aviation Overview and Project Updates TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
            SENATE TRANSPORTATION STANDING COMMITTEE                                                                          
                        February 6, 2018                                                                                        
                           1:30 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Bert Stedman, Chair                                                                                                     
Senator Anna MacKinnon                                                                                                          
Senator Click Bishop                                                                                                            
Senator Dennis Egan                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator David Wilson                                                                                                            
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
OVERVIEW: AIRPORT PROJECT EVALUATION BOARD/AVIATION PROJECTS                                                                    
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JOHN BINDER, Deputy Commissioner                                                                                                
Alaska Department of Transportation and Public Facilities                                                                       
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Provided an overview of Alaska's Airport                                                                  
Improvement Program (AIP) and the Airport Project Evaluation                                                                    
Board (APEB).                                                                                                                   
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:30:54 PM                                                                                                                    
CHAIR BERT STEDMAN called the Senate Transportation Standing                                                                  
Committee meeting to order at 1:30 p.m. Present at the call to                                                                  
order were Senators MacKinnon, Egan, and Chair Stedman.                                                                         
                                                                                                                                
^OVERVIEW: Airport Project Evaluation Board/Aviation Projects                                                                   
  OVERVIEW: Airport Project Evaluation Board/Aviation Projects                                                              
                                                                                                                              
1:31:36 PM                                                                                                                    
CHAIR STEDMAN announced that the committee will hear several                                                                    
presentations from the Alaska Department of Transportation and                                                                  
Public Facilities  (DOT&PF) over the course  of several meetings.                                                               
He said  the meeting  will provide an  overview of  the Statewide                                                               
Transportation  Improvement   Program  (STIP),   specifically  on                                                               
airports  that will  encompass  the  Airport Improvement  Program                                                               
(AIP) and the Airport Project Evaluation Board (APEB).                                                                          
                                                                                                                                
CHAIR STEDMAN  detailed that the Senate  Transportation Committee                                                               
will try to  augment the work of the Senate  Finance Committee to                                                               
provide  a  base to  allow  for  capital  budget focus,  an  area                                                               
outside the purview of the Senate Transportation Committee.                                                                     
                                                                                                                                
1:32:54 PM                                                                                                                    
JOHN   BINDER,   Deputy   Commissioner,  Alaska   Department   of                                                               
Transportation  and Public  Facilities (DOT&PF),  Juneau, Alaska,                                                               
summarized that  his presentation will  focus on APEB as  well as                                                               
some of  the aviation projects  going on across the  state during                                                               
FY2017  and FY2018.  He  added that  budget  information will  be                                                               
presented on how projects are funded.                                                                                           
                                                                                                                                
He addressed slide  2: Our People, Alaskans  Serving Alaskans. He                                                               
called  attention  to  Sergeant  Darcey Perry  and  detailed  her                                                               
accomplishments at DOT&PF as follows:                                                                                           
                                                                                                                                
 • Sergeant, Anchorage International Airport Police and Fire.                                                                   
   • Twelfth year serving DOT&PF.                                                                                               
   • Lead instructor for the Firefighter Academy.                                                                               
   • Organized the Aircraft Rescue Fire Fighting (ARFF)                                                                         
     conference in Alaska.                                                                                                      
   • Project manager for DOT&PF-wide ARFF training videos which                                                                 
     earned the National Innovation Award from the National                                                                     
     Association of State Aviation Officials.                                                                                   
   • Lead for Critical Incident Stress Management (CISM) Team                                                                   
     that provides stress management for public safety members                                                                  
     statewide in coordination with Alaskan Chaplains Ministry.                                                                 
                                                                                                                                
1:34:32 PM                                                                                                                    
He  addressed  slide 3:  Mission  Statements.  He disclosed  that                                                               
DOT&PF's  mission statement  is  to "Keep  Alaska moving  through                                                               
service  and infrastructure."  He added  that DOT&PF  breaks down                                                               
the airport system into "international"  and "rural." He detailed                                                               
that the  Alaska International  Airports System's  (AIAS) mission                                                               
statement  is  "To keep  Alaska  flying  and thriving,"  and  the                                                               
Statewide Aviation's  (SWA) mission statement is  "To sustain and                                                               
improve  the quality  of life  throughout  Alaska." He  specified                                                               
that  AIAS is  focused  on the  economic  generating piece  while                                                               
SWA's  240  airports  deal  primarily  with  access  as  well  as                                                               
providing for critical needs and services to rural Alaska.                                                                      
                                                                                                                                
MR. BINDER  addressed slide 4: Organization/Leadership  and slide                                                               
5: AIAS  Structure. He disclosed  that he oversees both  AIAS and                                                               
SWA. He detailed that AIAS  was established by the Legislature as                                                               
an  enterprise system  that requires  self-sustainability without                                                               
state  funding and  no  revenues from  the  system-flow from  the                                                               
state as well.                                                                                                                  
                                                                                                                                
He addressed  slide 6: Annual Operating  Revenues and Operations,                                                               
Maintenance  and  Debt  Costs-Funded  from  Customer  Charges  as                                                               
follows:                                                                                                                        
                                                                                                                                
   • AIAS FY2017 Annual Operating Costs: $148.43 million.                                                                       
   • AIAS FY2017 Revenue Sources: $151.11 million.                                                                              
                                                                                                                                
He pointed  out that  more revenue than  costs was  generated. He                                                               
specified that rates and fees  are developed based on anticipated                                                               
costs. He added  that any excess revenue rolls into  the rate and                                                               
fee  structure for  the following  year  while revenue  shortfall                                                               
years are  covered by air carriers  that have signed on  with the                                                               
operating agreement  make up  the difference  to keep  the system                                                               
whole.                                                                                                                          
                                                                                                                                
1:36:16 PM                                                                                                                    
CHAIR STEDMAN  asked Mr. Binder  to address the  rate adjustments                                                               
that have  been made at  some of  the airports. He  recalled that                                                               
adjustments were made to some of the leases.                                                                                    
                                                                                                                                
MR.  BINDER  confirmed  that  lease  adjustments  were  made.  He                                                               
detailed that SWA made rate  adjustments that take effect July 1,                                                               
2018. He explained  that SWA has a five-year  rate structure that                                                               
generally increases  rates by 10  percent per year  because rates                                                               
are lower  than fair  market value.  He noted  that 2015  was the                                                               
last cycle,  a rate analysis  occurred in  2016, and the  next 5-                                                               
year cycle  was implemented in  2017 where a  20-percent increase                                                               
was initially  implemented with  a 10-percent-annual  increase at                                                               
most airports.                                                                                                                  
                                                                                                                                
He  addressed  slide  7:  AIAS  Primary  Revenue  Driver-Airfield                                                               
Activity Certified  Maximum Gross Takeoff Weight  (CMGTW): Up 2.1                                                               
pct.,  FY2017/Up  4.8 pct.,  FY2018  year-to-date.  He said  AIAS                                                               
landing fees have  been encouraging over the  past several years.                                                               
He  revealed that  an overall  drop  has occurred  over a  longer                                                               
period, but  noted that the  international air cargo  market, the                                                               
primary fees driver, has a positive outlook.                                                                                    
                                                                                                                                
1:38:09 PM                                                                                                                    
MR.   BINDER   addressed   slide   8:   Capital   Funding-Airport                                                               
Improvement Program (AIP) and referenced as follows:                                                                            
                                                                                                                                
   • Anchorage (ANC) FFY2017:                                                                                                   
        o Discretionary: $25.4 million                                                                                          
        o Entitlements: $17.5 million                                                                                           
        o Total: $42.9 million                                                                                                  
   • Anchorage (ANC) FFY2018-Anticipated:                                                                                       
        o Discretionary: $26 million                                                                                            
        o Entitlements: $17 million                                                                                             
        o Total: $43 million                                                                                                    
   • Fairbanks (FAI) FFY2017:                                                                                                   
        o Discretionary: $0.0 million                                                                                           
        o Entitlements: $4.2 million                                                                                            
        o Total: $4.2 million                                                                                                   
   • Fairbanks (FAI) FFY2018-Anticipated:                                                                                       
        o Discretionary: $0.0 million                                                                                           
        o Entitlements: $1.7 million                                                                                            
        o Total: $1.7 million                                                                                                   
                                                                                                                                
He  disclosed that  "entitlements"  are based  on  the number  of                                                               
passengers and or cargo that comes through an airport.                                                                          
                                                                                                                                
1:38:46 PM                                                                                                                    
SENATOR BISHOP joined the committee meeting.                                                                                    
                                                                                                                                
CHAIR STEDMAN  asked that  Mr. Binder  address the  Anchorage and                                                               
Fairbanks airports'  capacity levels, the ability  to accept more                                                               
flights without major renovation,  and improvements or expansions                                                               
that  would  be  required  if the  coming  gas-line  construction                                                               
occurred.                                                                                                                       
                                                                                                                                
MR. BINDER  disclosed that the  peak for Anchorage  and Fairbanks                                                               
airports   occurred  in   the  2006-to-2007   timeframe  when   a                                                               
significant  downturn  occurred  afterwards   due  to  the  world                                                               
recession and  Russia opening their  airspace that  allowed long-                                                               
range  aircraft to  fly between  Asia and  North America  without                                                               
having to  refuel in Anchorage.  He revealed that  operations are                                                               
down by  25 percent  since the  peak. He  added that  fleets have                                                               
upgraded to wide-body and longer-range  aircraft that has reduced                                                               
the number of passenger and  cargo flights as well. He summarized                                                               
that  Anchorage  and  Fairbanks   both  have  significant  excess                                                               
capacity in terms  of aircraft operations. He said in  terms of a                                                               
gas-pipeline,  there is  a lot  of  land available,  particularly                                                               
around the Anchorage Airport for development.                                                                                   
                                                                                                                                
1:41:55 PM                                                                                                                    
CHAIR  STEDMAN  asked  how  quickly  the  Anchorage  Airport  can                                                               
respond if there  was a fast timeframe  for gas-line construction                                                               
or other  related interest  from Asia  that included  tourism. He                                                               
pointed  out that  Alberta had  their tourism  industry maxed-out                                                               
when they had interest from China coming into the oil sands.                                                                    
                                                                                                                                
MR. BINDER replied that response  would be dependent on available                                                               
state or  federal dollars.  He noted  that federal  dollars would                                                               
include  permitting  requirements.  He   opined  that  state  and                                                               
private dollars  would streamline operations. He  added that ramp                                                               
availability  is  feasible  at  the [Kulis  Business  Park],  the                                                               
former  Kulis  Air  National  Guard  Base,  to  fill  gaps  while                                                               
development is occurring.                                                                                                       
                                                                                                                                
CHAIR STEDMAN asked to confirm  that Anchorage and Fairbanks have                                                               
airport facilities  available where commerce would  not be turned                                                               
away.                                                                                                                           
                                                                                                                                
MR. BINDER answered correct.                                                                                                    
                                                                                                                                
SENATOR  MACKINNON noted  Mr. Binder's  explanation of  decreased                                                               
landings and asked him to restate what market was moving.                                                                       
                                                                                                                                
MR.  BINDER  specified  that  the impact  was  due  to  passenger                                                               
flights where  upgraded aircraft for transpacific  flights can go                                                               
between Asia  and North America  without refueling in  Alaska. He                                                               
noted that cargo  flights, due to maximizing  weight, continue to                                                               
land in Anchorage for refueling.                                                                                                
                                                                                                                                
1:44:45 PM                                                                                                                    
He  addressed slides  9  and 10:  Statewide  Aviation (SWA);  and                                                               
Rural System Scope and Scale. He referenced SWA data as follows:                                                                
                                                                                                                                
 • 240 DOT&PF owned-and-operated airports and seaplane bases.                                                                   
   • 173 "gravel" and 46 "paved" airports.                                                                                      
   • 23 seaplane bases and 1 heliport.                                                                                          
   • 20 "part" and 139 certified airports.                                                                                      
   • Primary access for 82 percent of Alaskan communities off                                                                   
     the contiguous road system.                                                                                                
   • SWA is primarily funded by:                                                                                                
        o General Fund: $37 million,                                                                                            
        o Lease Revenue: $5.3 million,                                                                                          
        o Aviation Fuel Tax: $4.5 million.                                                                                      
   • SWA operating cost: $42 million.                                                                                           
                                                                                                                                
MR. BINDER noted  that the aviation-fuel tax  flows directly into                                                               
the general fund.                                                                                                               
                                                                                                                                
1:45:47 PM                                                                                                                    
He addressed  slide 11: Rural  System Budget and  referenced data                                                               
as follows:                                                                                                                     
                                                                                                                                
   • FY2017:                                                                                                                    
        o Operating Cost: $42 million,                                                                                          
        o Revenue: $5.3 million,                                                                                                
        o Federal Funds: $7 million,                                                                                            
        o Fuel Tax to General Fund: $4.5 million.                                                                               
   • System Sustainability-Cost Reductions & Efficiencies:                                                                      
        o Sand and chemical optimization.                                                                                       
        o Maintenance conversion to federal program.                                                                            
        o After-hours service agreements.                                                                                       
   • System Sustainability-Revenue Generation Options:                                                                          
        o Fuel tax,                                                                                                             
        o User/Registration fee,                                                                                                
        o Landing fees.                                                                                                         
                                                                                                                                
He called attention to the $7  million in federal funds and noted                                                               
that  DOT&PF has  made a  concerted  effort to  partner with  the                                                               
Federal  Aviation  Administration  (FAA)  by  transitioning  many                                                               
maintenance activities to use federal  dollars to minimize impact                                                               
on the general fund.                                                                                                            
                                                                                                                                
He  addressed  sand  and chemical  optimization  and  noted  that                                                               
DOT&PF   pre-wets  the   sand   with   chemicals  before   runway                                                               
application to minimize icing.                                                                                                  
                                                                                                                                
He pointed out that one of  the biggest components that has taken                                                               
a hit  within DOT&PF due to  budget reductions is the  ability to                                                               
conduct overtime, especially at  airports. He noted that carriers                                                               
have  desired the  ability to  fly into  airports after-hours  if                                                               
needed. He disclosed that DOT&PF  has after-hours agreements with                                                               
carriers that are  associated to specific needs  to recoup after-                                                               
hours costs.                                                                                                                    
                                                                                                                                
He  addressed revenue  generation options,  noting that  carriers                                                               
and pilots  have said the  aviation-fuel tax is the  simplest and                                                               
most equitable way to generate revenue for SWA.                                                                                 
                                                                                                                                
He disclosed  that a  registration proposal  is currently  in the                                                               
works based  on FAA  requirements as  another option  to generate                                                               
revenue as well as provide benefits to carriers.                                                                                
                                                                                                                                
1:48:13 PM                                                                                                                    
SENATOR BISHOP responded to Mr.  Binder's final comment regarding                                                               
"User/Registration" fee as follows:                                                                                             
                                                                                                                                
     That  one has  generated some  initial discussion  with                                                                    
     the pilots  early on  and I think  there has  been some                                                                    
     more subsequent follow up  conversations with your shop                                                                    
     and  people kind  of moving  back to  the drawing-board                                                                    
     with the user groups taking a wait-and-see attitude.                                                                       
                                                                                                                                
MR.  BINDER answered  correct. He  detailed that  DOT&PF has  had                                                               
some good work with the  Aviation Advisory Board which represents                                                               
most of  the stakeholder  groups around  the state.  He specified                                                               
that  DOT&PF has  developed a  new  framework that  will be  more                                                               
appealing to the stakeholder groups  that will be understandable,                                                               
fair and  equitable. He added  that a couple of  FAA requirements                                                               
are having to be addressed as well.                                                                                             
                                                                                                                                
SENATOR BISHOP  concurred that there are  some underlying federal                                                               
requirements that people may not have been initially aware of.                                                                  
                                                                                                                                
MR.  BINDER  addressed  landing  fees   noted  on  slide  11  and                                                               
disclosed that the  fees are the least desirable  by the aviation                                                               
community,  but   the  landing  fees  are   the  primary  revenue                                                               
generation mechanism at airports.                                                                                               
                                                                                                                                
He addressed slide  12: AIP Rural System  Funding FFY2014 through                                                               
FFY2017 as follows:                                                                                                             
                                                                                                                                
   • Federal Capital Spending:                                                                                                  
        o Rural System AIP annual average FFY2014-FFY2016:                                                                      
          $136.7 million.                                                                                                       
        o FFY2017 AIP: approximately $130.6 million.                                                                            
   • Rural Airport System State Match Required:                                                                                 
        o 6.25 pct. of project eligible costs.                                                                                  
        o A few Essential Air Service airports in designated                                                                    
          economically distressed communities qualify for a 5-                                                                  
          pct. match of project eligible costs.                                                                                 
       o Annual airport match: approximately $11 million.                                                                       
                                                                                                                                
He  said  that   the  rural  system's  AIP   annually  brings  in                                                               
approximately $130 million  to $135 million and the  state gets a                                                               
"Lot of bang  for the buck" for most airports.  He specified that                                                               
the match  required by the state  is 6.25 percent of  the project                                                               
cost, a 20:1 benefit for the state dollars.                                                                                     
                                                                                                                                
MR. BINDER  pointed out that a  lot of rural airports  are taking                                                               
part  in  the Essential  Air  Service  program through  the  U.S.                                                               
Department  of  Transportation  (USDOT).   He  explained  that  a                                                               
community  being served  with an  Essential Air  Service contract                                                               
drops the match down to 5 percent as well.                                                                                      
                                                                                                                                
He summarized that the annual  capital match is approximately $11                                                               
million for the rural system.                                                                                                   
                                                                                                                                
CHAIR  STEDMAN addressed  airport  projects  in Southeast  Alaska                                                               
regarding the  capital funding  match and  noted that  an airport                                                               
project in Angoon is already in the capital budget.                                                                             
                                                                                                                                
1:51:00 PM                                                                                                                    
MR. BINDER replied correct. He  noted that specific projects will                                                               
be reviewed  later in  his presentation  that will  address Chair                                                               
Stedman's inquiry.                                                                                                              
                                                                                                                                
He  addressed slide  13: Airport  Improvement  Program (AIP)  for                                                               
DOT&PF  Airports  in  FFY2017.  He noted  that  the  FAA  airport                                                               
capital  improvement  project  funding program  of  approximately                                                               
$177.7 million and itemized subcategories as follows:                                                                           
                                                                                                                                
   • Cargo Entitlement ($12.8 million):                                                                                         
        o Earned by airports with more than 100-million pounds                                                                  
          landed weight.                                                                                                        
   • Primary Passenger Entitlement ($34.2 million):                                                                             
        o Earned by airports with more than 10,000-passengers                                                                   
          (enplanements) and scheduled commercial service.                                                                      
   • Non-Primary Passenger Entitlement ($14.5 million):                                                                         
        o Earned by airports with fewer than 10,000-passengers                                                                  
          annually.                                                                                                             
   • State Appointment ($22.4 million total less Muni Sponsors:                                                                 
     $22.4 million):                                                                                                            
        o An area-population formula used after cargo/passenger                                                                 
          entitlements calculated.                                                                                              
   • Alaska Supplemental ($21.3 million total less Muni                                                                         
     Sponsors: $16.2 million):                                                                                                  
        o Legislative amount based on 1980 amounts.                                                                             
   • Discretionary ($111.2 million less Muni Sponsors: $77.6                                                                    
     million):                                                                                                                  
        o What remains is divided among 50 states.                                                                              
                                                                                                                                
He detailed  that AIP  is funded through  the Airport  and Airway                                                               
Trust  Fund  (AATF),  which  is  a  portion  of  every  ticket  a                                                               
passenger pays  as well as  fuel-excise taxes and cargo  fees. He                                                               
detailed that AIP apportionment progresses as follows:                                                                          
                                                                                                                                
   1. Percentage of cargo and passengers for the nation.                                                                        
   2. Primary and non-primary entitlements.                                                                                     
   3. State apportionment based on land mass and population.                                                                    
   4. Alaska specific supplement.                                                                                               
   5. Discretionary apportionment based on factors that includes                                                                
     how many aircraft are based at each airport and activity                                                                   
     generated.                                                                                                                 
                                                                                                                                
1:53:00 PM                                                                                                                    
SENATOR  BISHOP addressed  discretionary apportionment  and asked                                                               
to confirm  that the  FAA knows that  an aircraft  is registered,                                                               
but not what specific airport an aircraft is located at.                                                                        
                                                                                                                                
MR. BINDER answered correct.                                                                                                    
                                                                                                                                
SENATOR  BISHOP  pointed  out that  registering  an  aircraft  is                                                               
important for receiving discretionary apportionment.                                                                            
                                                                                                                                
MR.  BINDER answered  correct. He  specified that  the underlying                                                               
item is understanding where aircraft are based.                                                                                 
                                                                                                                                
He  addressed  slide  14: Major  Rural  System  AIP  Construction                                                               
Projects  Expected  to be  Funded  in  FFY2017 and  FFY2018,  and                                                               
referenced as follows:                                                                                                          
                                                                                                                                
   • Pavement Rehabilitation:                                                                                                   
        o Bethel                                                                                                                
        o Dillingham                                                                                                            
        o Galena                                                                                                                
        o Gambell                                                                                                               
        o Haines                                                                                                                
        o King Salmon                                                                                                           
        o Nome                                                                                                                  
   • Rural Access:                                                                                                              
        o Aniak                                                                                                                 
        o Holy Cross                                                                                                            
        o Kiana                                                                                                                 
        o Kivalina                                                                                                              
        o Kotlik                                                                                                                
        o Kwigillingok                                                                                                          
        o Newtok                                                                                                                
        o Pilot Station                                                                                                         
        o South Naknek                                                                                                          
        o Toksook Bay                                                                                                           
        o White Mountain                                                                                                        
   • Buildings:                                                                                                                 
        o Brevig Mission                                                                                                        
        o Buckland                                                                                                              
        o Homer                                                                                                                 
        o Kobuk                                                                                                                 
        o Kotlik                                                                                                                
        o Toksook Bay                                                                                                           
                                                                                                                                
CHAIR  STEDMAN asked  if the  AIP  projects list  is complete  or                                                               
partial.                                                                                                                        
                                                                                                                                
MR. BINDER replied  that the projects list is a  sampling and the                                                               
noted projects are the highest  priorities. He noted that he will                                                               
explain  how  DOT&PF  prioritizes  projects.  He  explained  that                                                               
DOT&PF  has many  more projects  that are  projected out  for the                                                               
next five years and added  that AIP dollars are already allocated                                                               
on the out-years.                                                                                                               
                                                                                                                                
1:55:07 PM                                                                                                                    
He addressed  slide 15: Airport  Project Evaluation  Board (APEB)                                                               
and referenced as follows:                                                                                                      
                                                                                                                                
   • Board Members:                                                                                                             
        o Deputy Commissioner;                                                                                                  
        o Regional Directors;                                                                                                   
        o Statewide Aviation (SWA) Division Manager;                                                                            
        o Director of Program Development.                                                                                      
   • Project Evaluation Board Process:                                                                                          
        o Needs list development-conducted by regional planners;                                                                
        o Project nominations to the board;                                                                                     
        o Project scoring-criterion for airports (16), buildings                                                                
          (8);                                                                                                                  
        o Regular review.                                                                                                       
   • Airport Spending Plan Development:                                                                                         
        o Multi-year rolling plan.                                                                                              
                                                                                                                                
He  detailed  that the  APEB  process  determines priorities.  He                                                               
disclosed  that  projects  come   to  fruition  through  DOT&PF's                                                               
regional  planners who  are always  engaged  with communities  in                                                               
their region  to make assessments for  infrastructure, needs, and                                                               
desires.  He continued  that  regional  planners submit  proposed                                                               
projects to APEB for scoring.                                                                                                   
                                                                                                                                
He summarized that APEB's total  project scoring determines which                                                               
projects are  the most critical  at a time that  ultimately leads                                                               
to prioritized projects spending  plan. He revealed that projects                                                               
are not  displaced within the  current or following years  due to                                                               
the  funding process  unless  there is  an  emergency or  natural                                                               
disaster. He disclosed that projects  are constantly reviewed and                                                               
noted  that some  projects take  many years  before they  come to                                                               
fruition.                                                                                                                       
                                                                                                                                
MR. BINDER summarized that DOT&PF  keeps a five-year-rolling plan                                                               
that is  coordinated significantly  with the  FAA. He  added that                                                               
DOT&PF's criteria match  closely with the FAA's  criteria to help                                                               
with   the   state's   national-priority   ranking   for   annual                                                               
discretionary-fund distribution.                                                                                                
                                                                                                                                
1:57:32 PM                                                                                                                    
He  addressed  slide  16:  Scoring  Criteria  and  referenced  as                                                               
follows:                                                                                                                        
                                                                                                                                
   • Airport Improvements (16):                                                                                                 
        o Safety,                                                                                                               
        o Health and Quality of Life,                                                                                           
        o Economic Benefit,                                                                                                     
        o Community Support,                                                                                                    
        o Community Maintenance and Operations Contribution,                                                                    
        o Local Capital Contribution,                                                                                           
        o Maintenance and Operations,                                                                                           
        o Security Certification,                                                                                               
        o Aviation Alternatives,                                                                                                
        o Community Transportation Alternatives,                                                                                
        o Runway Length Needed,                                                                                                 
        o Runway Surface Condition,                                                                                             
        o Aviation Hazards,                                                                                                     
        o Erosion and Flooding,                                                                                                 
        o Other Factors Not Considered,                                                                                         
        o Cost Effectiveness.                                                                                                   
   • Buildings:                                                                                                                 
        o Safety of Current Structure,                                                                                          
        o Needs,                                                                                                                
        o Project Conditions,                                                                                                   
        o Appearance,                                                                                                           
        o Weather Conditions,                                                                                                   
        o Airfield Safety,                                                                                                      
        o Land Ownership Status,                                                                                                
        o Other Factors Not Considered.                                                                                         
                                                                                                                                
SENATOR MACKINNON asked if the  criteria is listed by importance.                                                               
She   commented  on   proximately   of   nearby  airports   where                                                               
maintaining   roads  between   venues   should   be  taken   into                                                               
consideration versus consolidating to a single airport.                                                                         
                                                                                                                                
MR. BINDER  replied that the  criteria listing is random  and not                                                               
listed by importance.                                                                                                           
                                                                                                                                
1:59:31 PM                                                                                                                    
He addressed slide 17:  Aviation Challenges-Future and referenced                                                               
as follows:                                                                                                                     
                                                                                                                                
   • Fleet Changes:                                                                                                             
        o International wide-body aircraft:                                                                                     
             square4 Changed the dynamics of rates and fees at                                                                  
               international airports.                                                                                          
        o In-state changes (SAAB 2000, 737 Freighter, Q-400):                                                                   
             square4 PenAir is using SAAB 2000 aircraft that requires                                                           
               an   airport   to    be   certificated   per   FAA                                                               
               requirements which is a more expensive way to                                                                    
               operate an aircraft.                                                                                             
             square4 Alaska Airlines is using 737 freighters which has                                                          
               impacted scheduling and ground crews.                                                                            
             square4 Alaska Airlines is phasing out Bombardier Q400s                                                            
               in March.                                                                                                        
   • Climate Change:                                                                                                            
        o Increasing number of freezing rain and ice events,                                                                    
        o Rural runway subsurface maintenance from thawing                                                                      
          permafrost,                                                                                                           
        o Coastal erosion.                                                                                                      
   • Ever-Increasing Federal Compliance Requirements:                                                                           
        o Access controls and ID management,                                                                                    
        o Friction requirements,                                                                                                
        o National Environmental Policy Act (NEPA) determination                                                                
          requirements for non-AIP development.                                                                                 
   • Potential Legislative Program Changes:                                                                                     
        o Bypass Mail,                                                                                                          
        o Essential Air Service.                                                                                                
                                                                                                                                
2:01:57 PM                                                                                                                    
CHAIR  STEDMAN asked  Mr. Binder  to provide  information on  the                                                               
Angoon Airport.                                                                                                                 
                                                                                                                                
MR. BINDER  replied that the  Angoon Airport is new,  the project                                                               
is funded, and the airport is  in the design process. He said the                                                               
plan is for initial construction to begin in 2020.                                                                              
                                                                                                                                
CHAIR STEDMAN asked that Mr. Binder  get back to him with details                                                               
on the Angoon  Airport project as well as  a repurposed firetruck                                                               
planned to be used at Klawock  Airport on Prince of Wales Island.                                                               
He  asked committee  members from  larger  metropolitan areas  to                                                               
keep surplus equipment in mind for possible use in rural areas.                                                                 
                                                                                                                                
2:04:33 PM                                                                                                                    
SENATOR  BISHOP  asked  how   many  flights  Fairbanks'  Northway                                                               
Airport receives that require customs inspection.                                                                               
                                                                                                                                
MR.  BINDER  replied  that  he does  not  believe  that  Northway                                                               
Airport has  customs inspection anymore.  He said he  will follow                                                               
up and confirm.                                                                                                                 
                                                                                                                                
SENATOR BISHOP  referenced a customs situation  he experienced at                                                               
Northway Airport.                                                                                                               
                                                                                                                                
CHAIR STEDMAN asked that Mr. Binder  get back to the committee on                                                               
the Angoon and Northway airports.                                                                                               
                                                                                                                                
SENATOR EGAN  pointed out  that Juneau's  airport has  received a                                                               
decrease in state-matching  grants. He noted that  Juneau has the                                                               
largest municipal airport in the  state. He asked that Mr. Binder                                                               
comment on Juneau Airport's decreased funding.                                                                                  
                                                                                                                                
2:06:36 PM                                                                                                                    
MR. BINDER explained that DOT&PF  adopted a policy many years ago                                                               
to  help communities  who run  their  own airports  to "meet  the                                                               
match" by  using state-matched dollars.  He conceded that  as the                                                               
state  budget  continued  to  shrink the  decision  was  made  to                                                               
utilize   all  the   matching  funds   for   the  state   capital                                                               
requirements  versus partnering  with the  local communities  for                                                               
theirs. He  explained that the  reason for the decision  was that                                                               
the airports could generate revenue  through their rates and fees                                                               
programs that do not exist in the state's rural airports.                                                                       
                                                                                                                                
SENATOR  MACKINNON asked  if  regional-collaborative planning  is                                                               
taken  into  consideration  during  project  prioritization  when                                                               
heavy equipment  is moved into a  rural area for possible  use in                                                               
multiple projects.                                                                                                              
                                                                                                                                
MR.  BINDER replied  that project  scoring  does include  whether                                                               
alignment can  be done with  nearby projects to "get  the biggest                                                               
bang for the buck."                                                                                                             
                                                                                                                                
2:08:58 PM                                                                                                                    
SENATOR MACKINNON  addressed accidents  on the Glenn  Highway and                                                               
disclosed that slower emergency  response times are occurring due                                                               
to emergency-turnaround lanes not being  cleared of snow when the                                                               
highway is  being cleared. She  asked that DOT&PF respond  to her                                                               
concern to address the emergency-turnaround lane issue on the                                                                   
Glenn Highway.                                                                                                                  
                                                                                                                                
CHAIR STEDMAN announced that the committee will continue to hear                                                                
from DOT&PF on a regional basis regarding projects from 2018-                                                                   
2020 in upcoming meetings.                                                                                                      
                                                                                                                                
2:10:44 PM                                                                                                                    
There being no further business to come before the committee,                                                                   
Chair Stedman adjourned the Senate Transportation Standing                                                                      
Committee at 2:10 p.m.                                                                                                          

Document Name Date/Time Subjects
2018 APEB Airport Projects - Sen Trans - 6 Feb 18.pdf STRA 2/6/2018 1:30:00 PM