Legislature(2017 - 2018)BUTROVICH 205

02/13/2018 01:30 PM TRANSPORTATION

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Audio Topic
01:33:29 PM Start
01:34:03 PM Overview: Alaska Department of Transportation & Public Facilities Design and Construction Update for the Northern Region
02:39:00 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ DOT Regional Construction Update for Northern TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
            SENATE TRANSPORTATION STANDING COMMITTEE                                                                          
                       February 13, 2018                                                                                        
                           1:33 p.m.                                                                                            
MEMBERS PRESENT                                                                                                               
Senator Bert Stedman, Chair                                                                                                     
Senator Anna MacKinnon                                                                                                          
Senator Click Bishop                                                                                                            
Senator David Wilson                                                                                                            
Senator Dennis Egan                                                                                                             
MEMBERS ABSENT                                                                                                                
All members present                                                                                                             
COMMITTEE CALENDAR                                                                                                            
OVERVIEW:   Alaska  Department   of  Transportation   and  Public                                                               
Facilities  Design  and  Constructions Update  for  the  Northern                                                               
     - HEARD                                                                                                                    
WITNESS REGISTER                                                                                                              
RYAN ANDERSON, Northern Region Director                                                                                         
Alaska Department of Transportation & Public Facilities                                                                         
Fairbanks, Alaska                                                                                                               
POSITION   STATEMENT:  Provided   an  overview   of  the   Alaska                                                             
Department of Transportation &  Public Facilities Northern Region                                                               
transportation projects.                                                                                                        
ACTION NARRATIVE                                                                                                              
1:33:29 PM                                                                                                                    
CHAIR  BERT STEDMAN  called  the  Senate Transportation  Standing                                                             
Committee meeting  to order at 1:33  p.m. Present at the  call to                                                               
order were Senators MacKinnon, Wilson, Egan, and Chair Stedman.                                                                 
^OVERVIEW:   Alaska  Department   of   Transportation  &   Public                                                               
Facilities  Design  and  Construction  Update  for  the  Northern                                                               
     OVERVIEW: Alaska Department of Transportation & Public                                                                 
   Facilities Design and Construction Update for the Northern                                                               
1:34:03 PM                                                                                                                    
CHAIR STEDMAN  announced that  the committee  will hear  from the                                                               
Alaska  Department   of  Transportation  and   Public  Facilities                                                               
(DOT&PF)-Northern  Region   regarding  design   and  construction                                                               
1:34:14 PM                                                                                                                    
RYAN  ANDERSON,   Regional  Director,  Northern   Region,  Alaska                                                               
Department  of  Transportation  & Public  Facilities,  Fairbanks,                                                               
Alaska,  addressed   slide  2   in  the   presentation:  Employee                                                               
Spotlight-Bandy  Milles, Northern  Region Employee  of the  Year,                                                               
and  pointed out  Ms. Milles'  involvement with  drone technology                                                               
for DOT&PF.                                                                                                                     
He addressed  slide 3:  Northern Region  Area, and  referenced as                                                               
   • 124 Communities,                                                                                                           
   • 6 boroughs,                                                                                                                
   • Over 50 city governments,                                                                                                  
   • Over 100 tribes,                                                                                                           
   • 1 metropolitan planning organization (FMATS),                                                                              
   • 8,920 road-lane miles,                                                                                                     
   • 37 maintenance stations,                                                                                                   
   • 376 bridges,                                                                                                               
   • 101 airports.                                                                                                              
He  said  the Northern  Region  has  a  vast boundary  area  that                                                               
extends from the  Arctic Ocean to the north,  Bering and Chuckchi                                                               
seas to  the west, the Canadian  border to the east,  Yukon Delta                                                               
and Alaska Range to the  south, and the "pipeline corridor" south                                                               
to Valdez.                                                                                                                      
He detailed  that the Northern  Region has several  major routes:                                                               
Dalton  Highway,  Elliott  Highway,  Steese  Highway,  Richardson                                                               
Highway,  Alaska  Highway, Tok  Cutoff,  Parks  Highway, and  the                                                               
Glenn Highway.  He emphasized that  DOT&PF focuses  on partnering                                                               
with local governments to receive  good input and to move forward                                                               
on projects with the region's 124 communities.                                                                                  
1:38:20 PM                                                                                                                    
He addressed  slide 4: Regional  Focus Areas, and  referenced the                                                               
points that he will cover in his presentation as follows:                                                                       
   • Results Based Alignment (RBA):                                                                                             
   • 2018 Construction Season;                                                                                                  
   • 2017 Accomplishments;                                                                                                      
   • Leveraging Technology;                                                                                                     
   • Innovative Contracting,                                                                                                    
   • Project Teams Pilot Program.                                                                                               
MR. ANDERSON  addressed slide 5:  Results Based  Alignment (RBA),                                                               
and referenced as follows:                                                                                                      
   • Goal: A service delivery framework to measure the                                                                          
     efficiency and effectiveness of the services delivered in                                                                  
     support of our mission.                                                                                                    
   • Regional Measures for Project Delivery:                                                                                    
        o Programmed-dollars planned versus delivered.                                                                          
        o Average project development time.                                                                                     
        o Design/construction costs at award.                                                                                   
        o CIP dollars: contracting versus in-house.                                                                             
He  addressed  slide  6:  RBA   Program  Dollars  Planned  Versus                                                               
Delivered (FFY2016 vs FFY2017), and referenced as follows:                                                                      
   • FFY2016-Planned: $217,861,000:                                                                                             
        o FHWA: $170,303,000;                                                                                                   
        o FAA: $47,558,000.                                                                                                     
   • FFY2016-Delivered: $168,132,175:                                                                                           
        o FHWA: $93,489,628;                                                                                                    
        o FAA: $74,642,547.                                                                                                     
   • FFY2017-Planned: $259,624,000:                                                                                             
        o FHWA: $203,624,000;                                                                                                   
        o FAA: $56,000,000.                                                                                                     
   • FFY2017-Delieverd: $190,295,000:                                                                                           
        o FHWA: $143,132,000;                                                                                                   
        o FAA: $47,163,000.                                                                                                     
1:41:28 PM                                                                                                                    
He addressed slide  7: RBA Average Project  Development Time from                                                               
Project Initiation to Bid. He  explained that "modernize" denotes                                                               
the more complex projects for  road construction that may involve                                                               
additional  environmental  processes.  He added  that  "Preserve"                                                               
identifies  the  mill-and-pave  jobs. He  explained  the  average                                                               
project development time as follows:                                                                                            
   • 04/01/16-09/30/16:                                                                                                         
        o Modernize: 51 months,                                                                                                 
        o Preserve: 56 months.                                                                                                  
   • 10/01/16-03/31/17:                                                                                                         
        o Modernize: 86 months,                                                                                                 
        o Preserve: 78 months.                                                                                                  
   • 04/01/17-09/30/17:                                                                                                         
        o Modernize: 53 months,                                                                                                 
        o Preserve: 33 months.                                                                                                  
MR. ANDERSON addressed slide  8: RBA-Design/Construction Costs at                                                               
Award  Reported  upon  Project Bid  Opening,  and  referenced  as                                                               
   • 04/01/16-09/30/16:                                                                                                         
        o Modernize: 26 percent,                                                                                                
        o Preserve: 17 percent.                                                                                                 
   • 10/01/16-03/31/17:                                                                                                         
        o Modernize: 39 percent,                                                                                                
        o Preserve: 11 percent.                                                                                                 
   • 04/01/17-09/30/17:                                                                                                         
        o Modernize: 7 percent,                                                                                                 
        o Preserve: 9 percent.                                                                                                  
He explained  that the  design cost  "spikes" were  attributed to                                                               
projects that  have been around  for a  long time. He  noted that                                                               
some  projects  have  been  around since  the  1980s  and  having                                                               
projects around  for a long  period of  time drives costs  up. He                                                               
explained  that projects  are  affected  by changing  regulations                                                               
that requires work to be redone.                                                                                                
1:43:48 PM                                                                                                                    
He addressed slide  9: RBA-CIP Dollars to  Contracting Versus In-                                                               
house  for  July 1,  2016  -  June  30,  2017 and  referenced  as                                                               
   • Contractor payments:                                                                                                       
        o $212.2 million,                                                                                                       
        o 78 percent.                                                                                                           
   • Consultant payments:                                                                                                       
        o $19.6 million,                                                                                                        
        o 7 percent.                                                                                                            
   • In-house design costs:                                                                                                     
        o $12.6 million,                                                                                                        
        o 5 percent.                                                                                                            
   • In-house construction costs:                                                                                               
        o $25.8 million,                                                                                                        
        o 10 percent.                                                                                                           
MR. ANDERSON  summarized that contract  work is  approximately 85                                                               
percent of  yearly expenditures.  He explained that  the Northern                                                               
Region  uses the  information to  balance  in-house and  contract                                                               
work.  He  referenced  a   national  report  that  transportation                                                               
departments throughout the country  contract-out 50 percent to 70                                                               
percent of their work for efficiency purposes.                                                                                  
He addressed  slide 10: 2018 Construction  Season, and referenced                                                               
as follows:                                                                                                                     
   • 25 rural Northern Region projects.                                                                                         
   • 8 projects continuing into second year of construction.                                                                    
   • 6 new projects already bid.                                                                                                
   • 9 new projects funded and will be ready to bid in time for                                                                 
     2018 season.                                                                                                               
   • 2 new projects will be ready to bid but are not currently                                                                  
1:45:45 PM                                                                                                                    
He addressed  slide 11: 2018 Construction  Season: Fairbanks-area                                                               
projects, and referenced as follows:                                                                                            
   • 14 projects.                                                                                                               
   • 2 projects continuing into second year of construction.                                                                    
   • 2 new projects already bid.                                                                                                
   • 8 new projects funded and will be ready to bid in time for                                                                 
     2018 season.                                                                                                               
   • 2 new projects will be ready to bid but are not currently                                                                  
He  addressed  slide   12:  2018  Construction-Highways:  Elliott                                                               
Highway MP 0-12 Rehabilitation. He  noted that the Elliot Highway                                                               
is  in  poor  condition,  primarily   due  to  frozen  subsurface                                                               
conditions.  He  provided  road  rehabilitation  details  to  the                                                               
committee. He disclosed  that the project's cost  will be between                                                               
$20 million  to $30  million and  the build  will occur  in March                                                               
He addressed slide 13:  2018 Construction-Bridges: Alaska Highway                                                               
MP 1309-Tok River Bridge Replacement.  He emphasized that bridges                                                               
are the Northern  Region's focal point and noted  that the region                                                               
has 25  or 26  bridges that  have deficiencies  of some  sort. He                                                               
detailed that the  Tok River Bridge at MP 1309  was built in 1944                                                               
and is  a pinch-point on  the Alaska  Highway. He noted  that the                                                               
bridge's  15  foot, 11-inch  clearance  is  the highway's  lowest                                                               
clearance  and does  restrict what  can be  hauled on  the Alaska                                                               
Highway.  He  said  the  project  will  get  bid  on  and  go  to                                                               
construction the summer of 2018.                                                                                                
1:47:46 PM                                                                                                                    
MR.  ANDERSON  addressed  slide 14:  2018  Construction-Fairbanks                                                               
Area: Old  Nenana Highway/Ester Hill Rehabilitation.  He provided                                                               
road  rehabilitation  details to  the  committee.  He noted  that                                                               
project is  an example of  a community-supported project  where a                                                               
lot of community input was provided.                                                                                            
He  addressed  slides  15-16: 2018  Construction-Fairbanks  Area:                                                               
University Avenue Rehabilitation and  Widening. He noted that the                                                               
project  has been  around since  the 1980s.  He explained  that a                                                               
team  approach  was initiated  to  try  new  things to  move  the                                                               
project  forward. He  disclosed that  innovative contracting  was                                                               
attempted where a  contractor was hired through  the CMGC process                                                               
that  allowed  for a  contractor  to  be brought  onboard  during                                                               
design to get  work done quickly. He added  that another approach                                                               
tried was offering a new  right-of-way incentives program to land                                                               
owners to acquire  right-of-way land from owners  more quickly to                                                               
keep the project going forward. He  noted that the intent is also                                                               
to replace the Chena River bridge as well.                                                                                      
He  addressed  slide  17: 2018  Construction  -  Fairbanks  Area:                                                               
Farmers Loop  Resurfacing. He noted  that the project  started in                                                               
1:51:10 PM                                                                                                                    
He    addressed   slide    18:   Fairbanks    Metropolitan   Area                                                               
Transportation System  (FMATS) and detailed  FMATS' participating                                                               
organizations as follows:                                                                                                       
   • State of Alaska:                                                                                                           
        o DOT&PF,                                                                                                               
        o DEC;                                                                                                                  
   • Fairbanks North Star Borough;                                                                                              
   • City of Fairbanks;                                                                                                         
   • City of North Pole;                                                                                                        
   • Fort Wainwright;                                                                                                           
   • University of Alaska-Fairbanks;                                                                                            
   • Fairbanks International Airport;                                                                                           
   • Freight Industry;                                                                                                          
   • Alaska Railroad Corporation.                                                                                               
He  explained  that  FMATS is  the  local  Metropolitan  Planning                                                               
Organization  (MPO) for  the urbanized  portion of  the Fairbanks                                                               
North Star  Borough. He detailed  that FMATS was formed  in April                                                               
2003 as a consensus-based  transportation policymaking body after                                                               
the  Fairbanks  area  was  listed  in  the  Federal  Register  of                                                               
Qualifying Urban  Areas for  the 2000  Census. He  specified that                                                               
the  Federal  Highway  Administration   (FHWA)  and  the  Federal                                                               
Transit  Administration requires  the  establishment  of MPOs  to                                                               
facilitate    increased   local    control   of    transportation                                                               
investments. He  added that the  code of federal  regulations and                                                               
the U.S. codes,  Title 23, primarily stipulate  the conditions of                                                               
FMATS to  receive federal funding.  He explained that  the MAP-21                                                               
followed by  the FAST  Act set the  apportionments for  FMATS and                                                               
the federal  funding that  is received.  He specified  that FMATS                                                               
shares  in an  overall  apportionment with  communities that  are                                                               
between 5,000 and  200,000 in population. He said  FMAT funds are                                                               
dedicated through the Transportation  Improvement Program that is                                                               
like the  STIP and is  approved through the FMAT's  Technical and                                                               
Policy  Board   who  have  members  from   the  previously  noted                                                               
participating  organizations. He  disclosed  that FMAT  currently                                                               
receives   approximately  $8   million   per   year  in   surface                                                               
transportation funds.                                                                                                           
1:53:13 PM                                                                                                                    
SENATOR MACKINNON  asked what population  is required to  form an                                                               
MR. ANDERSON replied  that he does not know the  exact number but                                                               
noted that an MPO is based on "urban density."                                                                                  
SENATOR MACKINNON  pointed out that  the threshold  for Fairbanks                                                               
was  50,000  in addition  to  a  density  level. She  noted  that                                                               
smaller communities funding is distributed differently.                                                                         
CHAIR STEDMAN  confirmed that there is  Anchorage, Fairbanks, and                                                               
everybody else.                                                                                                                 
MR. ANDERSON  addressed slide  19: 2018  Construction-FMATS: 2018                                                               
Surface  Upgrades. He  explained that  every year  FMATS will  go                                                               
through  and repair  roads, replace  pavement,  and fix  drainage                                                               
problems. He explained  that the program is a staple  of a yearly                                                               
road upkeep program.  He detailed that the  2018 surface upgrades                                                               
will address approximately 13 roads at a cost of $3 million.                                                                    
CHAIR  STEDMAN addressed  the  life of  asphalt  and inquired  if                                                               
DOT&PF has  experienced any asphalt-life  issues in  the Northern                                                               
Region as  far as  excessive wear from  studded tires  or general                                                               
wear-and-tear.  He inquired  on the  region's rock  sources, rock                                                               
densities, and  hard aggregate supply  levels to extend  the life                                                               
of asphalt.                                                                                                                     
MR. ANDERSON replied that  Fairbanks has different considerations                                                               
for  asphalt as  in  other  areas in  the  state.  He noted  that                                                               
Fairbanks does not have as  much studded-tire usage due to area's                                                               
flat topography. He detailed that  the Fairbanks area does have a                                                               
lot of  asphalt wear-and-tear from  the cold and  the freeze-and-                                                               
thaw cycles. He added the Fairbanks  area has a lot of undulating                                                               
surfaces  from frozen  sub-surfaces  and  movement. He  disclosed                                                               
that  the   typical  life  of   asphalt  life  in   Fairbanks  is                                                               
approximately  10  to  15  years.  He  added  that  aggregate  in                                                               
Fairbanks is good with a lot  of alluvial sources in the area. He                                                               
noted that  the Fairbanks  areas does not  have to  struggle with                                                               
sources for  hard rock  that Anchorage  struggles with.  He added                                                               
that  the aggregate  sources in  the rural  areas is  a different                                                               
story where  there is  a challenge for  materials and  noted that                                                               
some areas require rock to be barged in.                                                                                        
1:56:39 PM                                                                                                                    
SENATOR BISHOP joined the committee meeting.                                                                                    
SENATOR  MACKINNON  asked  what  oil product  is  being  used  on                                                               
asphalt. She inquired if the oil product is Alaska-based.                                                                       
MR.  ANDERSON replied  that a  lot  of products  come from  North                                                               
Pole.  He noted  that DOT&PF  does not  specify in  its contracts                                                               
that oil  products be Alaska-based and  added that specifications                                                               
are performance-based.                                                                                                          
He  addressed  slide  20: 2018  Construction-FMATS:  Yukon  Drive                                                               
Improvements. He  provided construction details to  the committee                                                               
that will be occurring in the university area in Fairbanks.                                                                     
He addressed  slide 21: 2018 Accomplishments-FMATS:  Noble Street                                                               
Upgrades.  He said  Noble  Street is  one  of Fairbanks'  primary                                                               
north-south connectors and noted  that the major project required                                                               
utility relocation  with road rebuilding.  He said  projects like                                                               
Noble Street  are tough  with the FMATS  program when  its annual                                                               
apportionment is  limited to  $8 million.  He disclosed  that the                                                               
Noble Street project cost $11 million to $12 million.                                                                           
1:59:35 PM                                                                                                                    
He   addressed  slides   22-24:   Where   to  Find   Construction                                                               
Information.  He detailed  that construction  and information  is                                                               
accessible on the DOT&PF website.                                                                                               
SENATOR BISHOP  asked Mr. Anderson  to address its  "511" weather                                                               
information  on  the  DOT&PF website.  He  opined  that  DOT&PF's                                                               
weather  information   is  better   than  the   National  Weather                                                               
Service's information.  He pointed out that  the National Weather                                                               
Service is coming to DOT&PF for weather information.                                                                            
MR. ANDERSON  explained that DOT&PF  is testing  new technologies                                                               
in  Fairbanks  that  includes  mounting  sensors  on  maintenance                                                               
trucks to identify road weather  conditions; for example, sensors                                                               
indicate  when  to apply  de-icing  chemicals.  He detailed  that                                                               
DOT&PF has an agreement with  the University of Colorado to allow                                                               
DOT&PF  to get  its own  weather  forecast based  on sensors  and                                                               
equipment  located  around  Fairbanks.   He  concurred  that  the                                                               
National Weather  Service has approached DOT&PF  in accessing its                                                               
weather sensors for forecasting.                                                                                                
2:02:11 PM                                                                                                                    
He addressed slide 25:  2017 Construction Season-Northern Region,                                                               
and referenced accomplishments as follows:                                                                                      
   • 40 active construction projects in 16 communities.                                                                         
   • Over $300 million in active construction contracts.                                                                        
   • Over $100 million in active design contracts.                                                                              
He  addressed slide  26: Accomplishments-Highways:  Parks Highway                                                               
MP  239-252.  He specified  that  the  project started  north  of                                                               
Denali Park to Healy. He noted  that a canyon area on the highway                                                               
is safer after the project was completed.                                                                                       
He  addressed  slide   27:  Accomplishments-Highways:  Richardson                                                               
Highway  MP 337-Eielson  Air Force  Base  (AFB) Intersection.  He                                                               
disclosed  that  DOT&PF  had  discussions   with  the  Air  Force                                                               
regarding the F-35  aircraft that will be coming  to Eielson AFB.                                                               
He  revealed  that   the  Air  Force  asked   for  assistance  in                                                               
establishing a  south-base access  along the  Richardson Highway.                                                               
He  said the  project added  turning lanes  and reconfigured  the                                                               
area to provide  an intersection to support  equipment and supply                                                               
deliveries to the base.                                                                                                         
2:04:04 PM                                                                                                                    
He addressed slides 28-30: Accomplishment-Bridges:                                                                              
   • Taylor Highway MP 64-Chicken Creek Bridge.                                                                                 
   • Tok Cutoff MP 75-Slana Creek Bridge.                                                                                       
   • Richardson Highway:                                                                                                        
        o MP 235 Ruby Creek,                                                                                                    
        o MP 295 Banner Creek.                                                                                                  
MR. ANDERSON disclosed that seven bridge projects were completed                                                                
in 2017 and the focus on bridges continues.                                                                                     
He addressed slide 31: Leveraging Technology: Drones:                                                                           
   • Development of Low Distortion Projections and remote                                                                       
     sensing to support surveying and engineering.                                                                              
He  said  DOT&PF is  focusing  on  drone technologies  to  become                                                               
better at  acquiring imagery as  well as allowing  the department                                                               
to  share  data. He  detailed  the  use  of drone  technology  as                                                               
   • Susitna River Bridge:                                                                                                      
        o Drone used to monitor foundation movement.                                                                            
   • Survey projects in Fairbanks to acquire horizontal and                                                                     
     elevation data.                                                                                                            
   • Check the progress of construction projects, measure                                                                       
     aggregate stockpiles, and to monitor coastal erosion on the                                                                
     western coast in the villages of Shishmaref and Point Hope.                                                                
   • Drone projects for surveying have been cost effective where                                                                
     costs on some projects have been three times less than a                                                                   
     typical survey.                                                                                                            
2:07:43 PM                                                                                                                    
He addressed slide 32: Innovative Contracting-Construction                                                                      
Manager/General Contractor (CMGC), and referenced as follows:                                                                   
   • Risk Management:                                                                                                           
        o Project risks are shared and can be minimized when                                                                    
          worked through collaborative team effort.                                                                             
        o DOT&PF retains control over design and contract                                                                       
   • Cost/Value:                                                                                                                
        o Risks identified in advance, overall project cost                                                                     
          savings, and cost certainty.                                                                                          
        o Maximizes innovation and efficiencies.                                                                                
        o Improved quality with invested contractor as partner.                                                                 
   • Schedule/Funding:                                                                                                          
        o Permitting assistance on specific contractor methods.                                                                 
        o Collaboration to expedite schedule.                                                                                   
        o Cost certainty allows for flexibility in creating work                                                                
          packages to align with funding.                                                                                       
MR. ANDERSON  explained that  the intent of  CMGC is  to leverage                                                               
the great  experience of DOT&PF's contractors.  He explained that                                                               
CMGC  is an  alternative procurement  method that  is allowed  by                                                               
FHWA where  a contractor is selected  for a project early  in the                                                               
design phase. He  said CMGC allows the department  to include the                                                               
contractor in early project decisions.  He added that CMGC allows                                                               
DOT&PF and the  contractor to equally share a  project's risk. He                                                               
revealed that  contractors that are  involved in projects  in the                                                               
design  phases  are  coming  up  with  innovative  solutions  for                                                               
problems;  example,  there  was  innovative thinking  in  how  to                                                               
replace the Chena River Bridge  for the University Avenue project                                                               
in Fairbanks.  He added that  a contractor assisted on  a project                                                               
to  determine  material  sites. He  pointed  out  that  involving                                                               
contractors  early in  a project's  design has  also helped  with                                                               
permitting. He  admitted that  CMGC is  not a  procurement method                                                               
for  every  project,  but  for   certain  projects  the  CMGC  is                                                               
something that DOT&PF continues to  test. He detailed that DOT&PF                                                               
currently has three  active CMGC contracts and  the department is                                                               
working on putting together two more.                                                                                           
2:10:29 PM                                                                                                                    
SENATOR BISHOP  asked if the chance  for a claim is  less for the                                                               
CMGC process.                                                                                                                   
MR. ANDERSON  replied that he  agreed. He explained  that through                                                               
the  CMGC process  the price  of the  contract is  negotiated and                                                               
estimating  includes  an  estimator  group  from  the  state,  an                                                               
independent  estimator,  and  the  contractor to  come  with  the                                                               
project's cost. He said the idea is  if there is a risk area that                                                               
requires  more work,  the  issue is  addressed  during design  to                                                               
reduce the risk  where the groups involved agree  prior to moving                                                               
forward.  He summarized  that the  hope  is a  project sees  less                                                               
change orders and less claims.                                                                                                  
He  addressed slide  33: Pilot  Program: Project  Delivery Teams-                                                               
Teaming in Construction  for Time and Cost  Savings (TICTACS). He                                                               
addressed the desired program outcomes as follows:                                                                              
   • Improved delivery timeframes.                                                                                              
   • Reduced project costs and greater cost certainty.                                                                          
   • More adaptive project delivery processes recognizing                                                                       
     Alaska's constantly changing transportation needs.                                                                         
He explained  that TICTACS is a  pilot program to address  how to                                                               
keep working and achieving time  and cost savings on projects. He                                                               
said everyone working to deliver  capital projects are challenged                                                               
everyday by  whether the project  is environmental  in regulatory                                                               
processes that  require starts and  stops, or  how organizational                                                               
structures are  formed to find pinch-points  when something needs                                                               
to get done. He noted that  some DOT&PF projects take up to eight                                                               
years to  get done. He  said the department questioned  itself as                                                               
to what would  happen if a project was completed  in eight months                                                               
and what  kind of approach  would be required. He  explained that                                                               
the new process would require a  team approach to get the desired                                                               
program  outcomes of  an  improved  delivery timeframes,  reduced                                                               
project  costs,  greater  cost  certainty, and  to  have  a  more                                                               
adaptive project delivery process  that recognizes the constantly                                                               
changing transportation  needs of Alaska. He  said DOT&PF-Norther                                                               
Region put a focus on TICTACS and experienced good results.                                                                     
2:13:26 PM                                                                                                                    
MR. ANDERSON addressed slide 34:  Pilot Program: Project Delivery                                                               
Teams-Teaming Successes, and referenced as follows:                                                                             
   • Condensed environmental approval timelines.                                                                                
   • Time savings with focused planning.                                                                                        
   • Cost savings with shorter time frames.                                                                                     
   • Actively involved communities.                                                                                             
   • Innovative contracting.                                                                                                    
   • Leveraging technology.                                                                                                     
   • Management team:                                                                                                           
        o DOT&PF Planning Team,                                                                                                 
        o State Agencies Team,                                                                                                  
        o DOT&PF Environmental Team,                                                                                            
        o Federal Agencies Team,                                                                                                
        o DOT&PF Engineering Team,                                                                                              
        o Construction Contractor Team,                                                                                         
        o Local Hire/Economic Development Team,                                                                                 
        o FHWA/FAA Team.                                                                                                        
He said DOT&PF  began a different approach  by developing project                                                               
demonstration teams centered around  a core management team where                                                               
other entities  were brought in to  be part of team  early on. He                                                               
detailed  that  not  only were  core  competencies  for  managing                                                               
construction considered,  but also  to bring in  outside entities                                                               
to contribute their knowledge and expertise as part of the team.                                                                
He  emphasized that  all team  members must  work towards  mutual                                                               
goals and operate by a set  of rules. The disclosed that the team                                                               
has  regular check-in  meetings and  address "task  trackers." He                                                               
emphasized that  success is measured  with the team  being honest                                                               
when success is  not occurring. He said information  sharing is a                                                               
primary tenant of the team  approach where technology is used for                                                               
information sharing amongst the team.                                                                                           
MR. ANDERSON noted that when  DOT&PF-Northern Region came up with                                                               
the team  approach, the DOT&PF  commissioner liked  the approach,                                                               
but required  that the team  approach prove results.  He detailed                                                               
that the DOT&PF-Northern Region came  up with 21 projects for the                                                               
demonstration  team  to  work  on   and  disclosed  that  amazing                                                               
successes have occurred over the past year.                                                                                     
He said an example of the  team approach is a project in Kivalina                                                               
that  entailed  an evacuation  and  school  site access  road,  a                                                               
challenging project  that required  an environmental  document to                                                               
be  completed.  He  shared  that team  approach  brought  in  the                                                               
community  as well  as state  and federal  agencies early  in the                                                               
process.  He revealed  that the  team  was able  to complete  the                                                               
Kivalina's  environment  document in  11  months.  He noted  that                                                               
environmental documents like  the one in Kivalina  can take years                                                               
to complete.  He said  the Kivalina project  was big  success for                                                               
the team  approach that required  a focused group of  people from                                                               
both DOT&PF  as well as  the private sector and  outside agencies                                                               
to move forward.                                                                                                                
2:16:27 PM                                                                                                                    
SENATOR EGAN thanked  the "public facilities" part  of DOT&PF for                                                               
all the work  they did on the state's "world  class" Alaska State                                                               
Museum in  Juneau, [Father Andrew  P. Kashevaroff  State Library,                                                               
Archives, and  Museum]. He said  the $140 million project  was on                                                               
time and under budget.                                                                                                          
CHAIR  STEDMAN   noted  that  a   project's  overview   from  the                                                               
Southcoast Region of  DOT&PF will occur at  an upcoming committee                                                               
He  asked if  the team  approach that  Mr. Anderson  addressed is                                                               
being done in other DOT&PF regions.                                                                                             
MR. ANDERSON replied  that the team approach is  strictly a pilot                                                               
program in  the Northern Region.  He explained that  the Northern                                                               
Region  is documenting  how the  team approach  is being  done as                                                               
well as the successes and  challenges. He added that the Northern                                                               
Region  is  sharing information  with  other  regions during  the                                                               
pilot program process.                                                                                                          
He pointed out that the  time savings on Kivalina's environmental                                                               
document  project provided  cost  savings. He  noted that  design                                                               
costs are  typically 5 to  10 percent  or more, but  the Kivalina                                                               
project's design cost was less than 1 percent.                                                                                  
2:18:35 PM                                                                                                                    
CHAIR STEDMAN noted  that the Southcoast Region  has had projects                                                               
that have been out for 10  years and getting the projects down to                                                               
5 or 4 years would be a huge success. He commented as follows:                                                                  
     I  think  it  would  be incredible  if  we  could  turn                                                                    
     projects  that   fast,  we   could  actually   be  more                                                                    
     proactive in manipulating the  economy in downturns; it                                                                    
     would be  a very valuable  tool for us  as policymakers                                                                    
     to have because if we try  to respond to a downturn now                                                                    
     we  can't  get a  project  out  in  time, by  then  the                                                                    
     economic  course   has  moved   on  and  it   makes  it                                                                    
     I think  it is a  good idea, I  don't know who  came up                                                                    
     with  the process  to  try this  pilot  program, but  I                                                                    
     think it  is a good idea.  I think it would  be nice to                                                                    
     have a  report back  in a  year or  what have  you from                                                                    
     DOT&PF  on  how   successful  it  was  and   if  it  is                                                                    
     successful,  what  the plans  are  on  spreading it  to                                                                    
     other  regions  because  it  seems  like  the  Northern                                                                    
     Region is  the stellar  region of the  state as  far as                                                                    
     relationships with contractors and productivity.                                                                           
2:20:08 PM                                                                                                                    
MR. ANDERSON  emphasized that  communication is  key to  the team                                                               
approach. He added that the  other benefit from the team approach                                                               
is having  a group  of people  that are  familiar with  a project                                                               
that  mitigates challenges  from overturn  when people  may leave                                                               
for one reason or another.                                                                                                      
CHAIR STEDMAN recognized  that DOT&PF's regions vary  in size and                                                               
noted the  Northern Region's  sheer size and  scale that  it must                                                               
deal with. He asked how  many contractors the Northern Region has                                                               
with $10 million or more in bonding capacity.                                                                                   
MR. ANDERSON  replied that he did  not know the exact  number but                                                               
noted  that a  recent project  in western  Alaska received  seven                                                               
bidders. He  noted that depending  on the project,  the Fairbanks                                                               
area typically receive 5 to 10 bidders.                                                                                         
CHAIR STEDMAN  asked that the  committee receive a  response back                                                               
from DOT&PF's  other regions regarding the  number of contractors                                                               
with bonding capacity of more  than $10 million. He admitted that                                                               
he  was  concerned  about  the   number  of  contractors  in  the                                                               
Southcoast  Region. He  opined that  competition is  good, and  a                                                               
region does  not want to be  down to one contractor.  He asked if                                                               
the Northern  Region has  approximately a  half-dozen contractors                                                               
that meet the criteria he previously noted.                                                                                     
2:22:22 PM                                                                                                                    
MR. ANDERSON replied correct.                                                                                                   
He  addressed slide  35: Pilot  Program: Project  Delivery Teams,                                                               
and referenced as follows:                                                                                                      
   • Focus on Planning:                                                                                                         
        o Active federal involvement in planning processes.                                                                     
        o Focusing on project planning will result in projects                                                                  
          that are better-defined with greater cost certainty.                                                                  
   • Team Support:                                                                                                              
       o Active participation in multidisciplinary teams.                                                                       
        o Advocating for federal agency participation at all                                                                    
          phases of project development.                                                                                        
   • Flexibility to Perform Concurrent Processes:                                                                               
        o Reduce duplicative efforts.                                                                                           
        o Allow   for    environmental   document    and   permit                                                               
          application public reviews to run concurrently.                                                                       
   • Innovative Contracting:                                                                                                    
        o Alternative procurement.                                                                                              
        o Ability to fully integrate alternative procurement                                                                    
          processes at the team's discretion.                                                                                   
   • Community Economic Development:                                                                                            
        o Community involvement.                                                                                                
        o Provide flexibility to maximize local involvement in                                                                  
CHAIR STEDMAN  asked if Mr.  Anderson has been with  the Northern                                                               
Region for the entirety of his DOT&PF career.                                                                                   
MR. ANDERSON answered yes.                                                                                                      
CHAIR STEDMAN asked if the  regions cross-train the management to                                                               
different regions or  is Mr. Anderson "siloed"  into the Northern                                                               
MR. ANDERSON  replied that DOT&PF  does have  some cross-training                                                               
going  on.  He noted  that  there  has  been  talk about  a  more                                                               
"programmatic"  way  to  do  cross-training.  He  disclosed  that                                                               
resources  are  shared  at times,  primarily  with  construction,                                                               
bridge  design and  some of  the other  functions. He  noted that                                                               
DOT&PF personnel are moved around to gain experience.                                                                           
2:25:28 PM                                                                                                                    
CHAIR  STEDMAN asked  how DOT&PF's  regions  communicate what  is                                                               
working and what is not working.                                                                                                
MR.  ANDERSON explained  that  the regions  meet  on a  quarterly                                                               
basis  for  a  performance  measure  that  is  results-based.  He                                                               
explained that  the regions look  at results and  review measures                                                               
regarding design  costs, time to  get projects  out, construction                                                               
cost, maintenance, and safety.                                                                                                  
CHAIR  STEDMAN commented  that he  was  an advocate  of the  team                                                               
approach. He remarked that getting  projects down close to a year                                                               
is a huge benefit to the organization and state.                                                                                
MR. ANDERSON agreed with Chair Stedman.                                                                                         
2:27:07 PM                                                                                                                    
SENATOR WILSON  asked if the  projects he mentioned that  go back                                                               
to  the 1980s  were either  project ideas  or projects  that were                                                               
started and never completed.                                                                                                    
MR.  ANDERSON  replied that  the  projects  from the  1980s  that                                                               
Senator  Wilson  mentioned  is  a  combination  of  starting  and                                                               
stopping, perhaps  there was a loss  of funding and a  project is                                                               
put on the shelf for a while.  He admitted that when a project is                                                               
pulled  back  out  there  may  have  been  regulation  or  design                                                               
standard changes  that require a  redo. He said DOT&PF  is trying                                                               
to  get  out  of  the  project-shelfing  cycle  and  noted  three                                                               
projects  that  have  been  around  for a  long  time  have  been                                                               
completed  over the  past  two  years. He  pointed  out that  the                                                               
Fairbanks' University Avenue  Rehabilitation and Widening Project                                                               
is an example of  a project that has been around  for a long time                                                               
that will get done in 2018.                                                                                                     
SENATOR  BISHOP  noted that  he  was  recently in  Fairbanks  and                                                               
commended  DOT&PF   for  hauling  snow  from   the  city's  major                                                               
thoroughfares. He  referenced slide  35 regarding  the "Community                                                               
Economic Development"  point and asked if  local involvement also                                                               
includes native corporations.                                                                                                   
MR. ANDERSON  replied yes. He  said there are areas  where tribes                                                               
contribute match funds, maintenance  funds, and right-of-way land                                                               
for projects.                                                                                                                   
2:30:00 PM                                                                                                                    
SENATOR  WILSON  addressed   community  involvement  regarding  a                                                               
possible public-private  partnership on  the Parks  Highway north                                                               
of Willow.  He noted that  Willow has a maintenance  facility and                                                               
suggested  that  DOT&PF  focus  should be  south  to  Palmer  and                                                               
recommended  a  private  partnership  for  maintenance  north  of                                                               
Willow  should  be  considered  for  a  more  responsive  highway                                                               
service.  He added  that  a private  partnership  should also  be                                                               
considered for other areas north of Fairbanks as well.                                                                          
MR.  ANDERSON answered  that on  the Parks  Highway for  the area                                                               
noted  by  Senator  Wilson  there is  a  maintenance  station  in                                                               
Cantwell that  covers a 30-mile area  to the north and  south. He                                                               
noted that staffing has been  reduced but disclosed that there is                                                               
no plan by DOT&PF for a public-private partnership.                                                                             
SENATOR  MACKINNON addressed  tribal  governments  being able  to                                                               
match  money.   She  asked  if  DOT&PF   was  assisting  regional                                                               
corporations or tribal governments in  going after a specific set                                                               
of federal  funds. She asserted that  there is a separate  pot of                                                               
money that Alaska  has not competed well  for regarding federally                                                               
designated grants for tribes.                                                                                                   
MR. ANDERSON  answered that Transportation  Investment Generating                                                               
Economic Recover  (TIGER) Grant  Funds is  a funding  source that                                                               
DOT&PF and  the tribal  governments have  applied for  on several                                                               
projects. He  said DOT&PF typically  likes to  have communication                                                               
with the tribes as well as  other groups that includes cities. He                                                               
said everyone  working together when applying  for federal grants                                                               
is  important  so  that  entities  are  not  competing  with  one                                                               
2:33:02 PM                                                                                                                    
SENATOR MACKINNON  asked of the  TIGER Grant Funds is  outside of                                                               
the normal funding stream.                                                                                                      
MR. ANDERSON  replied that  the TIGER Grant  Funds is  a separate                                                               
program and said he believes the fund is administered by FHWA.                                                                  
CHAIR  STEDMAN   asked  that  the   department  respond   to  the                                                               
committee's inquiries on major funding sources.                                                                                 
SENATOR   MACKINNON  addressed   slide  15:   2018  Construction-                                                               
Fairbanks  Area: University  Avenue Rehabilitation  and Widening.                                                               
She noted that Mr. Anderson addressed incentives for right-of-                                                                  
way  acquisition. She  asked that  Mr.  Anderson further  explain                                                               
about incentives as well as who pays for the incentives.                                                                        
MR. ANDERSON answered that he  will get back to Senator MacKinnon                                                               
regarding incentives.  He explained that typically  the incentive                                                               
is time sensitive  that is allowable by the FHWA  so that federal                                                               
funds  can be  used. He  detailed  that the  program offers  cash                                                               
incentives if  a landowner responds  to an  offer by DOT&PF  in a                                                               
certain amount of time.                                                                                                         
SENATOR  WILSON  addressed bridge  projects  and  noted that  Mr.                                                               
Anderson mentioned that the Northern  Region has 26 bridges under                                                               
construction  or repair.  He asked  if DOT&PF  has a  priority or                                                               
degradation status for bridges in  the Northern Region as well as                                                               
on the state level as well.                                                                                                     
MR. ANDERSON replied that DOT&PF  does have a statewide list that                                                               
prioritizes  bridges.   He  noted  that   environment  regulatory                                                               
requirements are factors  that adds to the time for  a project to                                                               
be delivered.                                                                                                                   
2:35:30 PM                                                                                                                    
CHAIR STEDMAN opined that there  is a reasonable chance the state                                                               
is going  to have  a gas-line  that will  be a  huge construction                                                               
project where  DOT&PF will  be at  the core  in moving  goods and                                                               
materials to  the North  Slope. He asked  if the  Northern Region                                                               
has considered  preparing for the  potential gas-line as  well as                                                               
its aftermath.                                                                                                                  
MR.  ANDERSON  replied that  DOT&PF  has  discussed the  gas-line                                                               
project.  He noted  that DOT&PF  has a  statewide map  that shows                                                               
projects that  are scheduled in  the proposed  gas-line corridor.                                                               
He said  when the gas-line  construction becomes  clearer, DOT&PF                                                               
will  look at  the projects  in the  gas-line corridor  that make                                                               
sense to construct before or after the project.                                                                                 
CHAIR STEDMAN  said the committee  will ask DOT&PF to  return and                                                               
provide  an   overview  specifically  on  the   gas-line  project                                                               
regarding  preparation  for  construction.  He  said  a  gas-line                                                               
overview will  provide committee  members with  a better  idea of                                                               
what is going  on as well as to address  mundane topics that will                                                               
allow the Senate Finance Committee to focus on pertinent issues.                                                                
CHAIR STEDMAN  thanked Mr. Anderson  and reminded him  to provide                                                               
continued  feedback on  the Northern  Region's pilot  program for                                                               
project  delivery  teams.  He  emphasized  that  if  the  Project                                                               
Delivery   Teams   Project   works,   he  would   like   to   see                                                               
implementation in other regions.                                                                                                
2:39:00 PM                                                                                                                    
There being no further business to come before the committee,                                                                   
Chair Stedman adjourned the Senate Transportation Standing                                                                      
Committee at 2:39 p.m.                                                                                                          

Document Name Date/Time Subjects
Sen Trans Comm NR Construction Briefing 2018.pdf STRA 2/13/2018 1:30:00 PM