Legislature(2021 - 2022)BELTZ 105 (TSBldg)

05/13/2021 01:30 PM TRANSPORTATION

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 117 PROCUREMENT; CONSTRUCTION; CONTRACTS TELECONFERENCED
Moved SB 117 Out of Committee
(HB 160 Companion Bill)
-- Invited & Public Testimony --
+ HB 34 NAMING VIETNAM HELI. PILOTS' MEM. BRIDGE TELECONFERENCED
Moved HB 34 Out of Committee
-- Invited & Public Testimony --
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= HB 63 ALASKA MARINE HIGHWAY OPERATIONS BOARD TELECONFERENCED
Heard & Held
                    ALASKA STATE LEGISLATURE                                                                                  
            SENATE TRANSPORTATION STANDING COMMITTEE                                                                          
                          May 13, 2021                                                                                          
                           1:53 p.m.                                                                                            
                                                                                                                              
                             DRAFT                                                                                            
                                                                                                                              
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Robert Myers, Chair                                                                                                     
Senator Mike Shower, Vice Chair                                                                                                 
Senator Peter Micciche                                                                                                          
Senator Jesse Kiehl                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Click Bishop                                                                                                            
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 63(STA)                                                                                 
"An   Act  relating   to  the   duties  of   the  Department   of                                                               
Transportation and Public Facilities;  renaming the Alaska Marine                                                               
Transportation   Advisory  Board   the   Alaska  Marine   Highway                                                               
Operations Board;  relating to the  membership and duties  of the                                                               
Alaska  Marine  Highway Operations  Board;  and  relating to  the                                                               
comprehensive,  intermodal,  long-range transportation  plan  for                                                               
the state."                                                                                                                     
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
SENATE BILL NO. 117                                                                                                             
"An Act relating to the  state procurement code; establishing the                                                               
construction manager  general contractor procurement  method; and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
     - MOVED SB 117 OUT OF COMMITTEE                                                                                            
                                                                                                                                
HOUSE BILL NO. 34                                                                                                               
"An Act naming the Vietnam Helicopter Pilots' Memorial Bridge."                                                                 
                                                                                                                                
     - MOVED HB 34 OUT OF COMMITTEE                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 63                                                                                                                   
SHORT TITLE: ALASKA MARINE HIGHWAY OPERATIONS BOARD                                                                             
SPONSOR(s): REPRESENTATIVE(s) STUTES                                                                                            
                                                                                                                                
02/18/21       (H)       PREFILE RELEASED 1/15/21                                                                               
02/18/21       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/18/21       (H)       TRA, STA                                                                                               
03/11/21       (H)       TRA AT 1:30 PM BARNES 124                                                                              
03/11/21       (H)       Heard & Held                                                                                           
03/11/21       (H)       MINUTE(TRA)                                                                                            
03/18/21       (H)       TRA AT 1:30 PM BARNES 124                                                                              
03/18/21       (H)       Moved CSHB 63(TRA) Out of Committee                                                                    
03/18/21       (H)       MINUTE(TRA)                                                                                            
03/20/21       (H)       TRA RPT CS(TRA) NT 4DP 2NR                                                                             
03/20/21       (H)       DP:    DRUMMOND,   HANNAN,    SPOHNHOLZ,                                                               
                         HOPKINS                                                                                                
03/20/21       (H)       NR: MCCABE, CRONK                                                                                      
03/30/21       (H)       STA AT 3:00 PM GRUENBERG 120                                                                           
03/30/21       (H)       Heard & Held                                                                                           
03/30/21       (H)       MINUTE(STA)                                                                                            
04/06/21       (H)       STA AT 3:00 PM GRUENBERG 120                                                                           
04/06/21       (H)       Heard & Held                                                                                           
04/06/21       (H)       MINUTE(STA)                                                                                            
04/15/21       (H)       STA AT 3:00 PM GRUENBERG 120                                                                           
04/15/21       (H)       Heard & Held                                                                                           
04/15/21       (H)       MINUTE(STA)                                                                                            
04/22/21       (H)       STA AT 3:00 PM GRUENBERG 120                                                                           
04/22/21       (H)       Moved CSHB 63(STA) Out of Committee                                                                    
04/22/21       (H)       MINUTE(STA)                                                                                            
04/26/21       (H)       STA RPT CS(STA) NT 6DP                                                                                 
04/26/21       (H)       DP: CLAMAN, STORY, KAUFMAN, VANCE,                                                                     
                         TARR, KREISS-TOMKINS                                                                                   
05/05/21       (H)       TRANSMITTED TO (S)                                                                                     
05/05/21       (H)       VERSION: CSHB 63(STA)                                                                                  
05/07/21       (S)       READ THE FIRST TIME - REFERRALS                                                                        
05/07/21       (S)       TRA                                                                                                    
05/11/21       (S)       TRA AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
05/11/21       (S)       -- MEETING CANCELED --                                                                                 
05/13/21       (S)       TRA AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB 117                                                                                                                  
SHORT TITLE: PROCUREMENT; CONSTRUCTION; CONTRACTS                                                                               
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
03/31/21       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/31/21       (S)       STA, TRA                                                                                               
04/27/21       (S)       STA AT 3:30 PM BUTROVICH 205                                                                           
04/27/21       (S)       Heard & Held                                                                                           
04/27/21       (S)       MINUTE(STA)                                                                                            
05/06/21       (S)       STA AT 3:30 PM BUTROVICH 205                                                                           
05/06/21       (S)       Moved SB 117 Out of Committee                                                                          
05/06/21       (S)       MINUTE(STA)                                                                                            
05/07/21       (S)       STA RPT  4NR                                                                                           
05/07/21       (S)       NR: SHOWER, COSTELLO, HOLLAND, REINBOLD                                                                
05/13/21       (S)       TRA AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: HB 34                                                                                                                   
SHORT TITLE: NAMING VIETNAM HELI. PILOTS' MEM. BRIDGE                                                                           
SPONSOR(s): SHAW                                                                                                                
                                                                                                                                
02/18/21       (H)       PREFILE RELEASED 1/8/21                                                                                
02/18/21       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/18/21       (H)       MLV, STA                                                                                               
02/19/21       (H)       FIN REPLACES STA REFERRAL                                                                              
02/19/21       (H)       BILL REPRINTED                                                                                         
03/02/21       (H)       MLV AT 1:00 PM GRUENBERG 120                                                                           
03/02/21       (H)       Heard & Held                                                                                           
03/02/21       (H)       MINUTE(MLV)                                                                                            
03/04/21       (H)       MLV AT 1:00 PM GRUENBERG 120                                                                           
03/04/21       (H)       Moved HB 34 Out of Committee                                                                           
03/04/21       (H)       MINUTE(MLV)                                                                                            
03/09/21       (H)       MLV AT 1:00 PM GRUENBERG 120                                                                           
03/09/21       (H)       Moved HB 34 Out of Committee                                                                           
03/09/21       (H)       MINUTE(MLV)                                                                                            
03/10/21       (H)       MLV RPT 6DP                                                                                            
03/10/21       (H)       DP: CLAMAN, TARR, NELSON, STORY, SHAW,                                                                 
                         TUCK                                                                                                   
05/03/21       (H)       FIN AT 1:30 PM ADAMS 519                                                                               
05/03/21       (H)       Moved HB 34 Out of Committee                                                                           
05/03/21       (H)       MINUTE(FIN)                                                                                            
05/04/21       (H)       FIN RPT 9DP                                                                                            
05/04/21       (H)       DP: ORTIZ, EDGMON, LEBON, CARPENTER,                                                                   
                         THOMPSON,       JOHNSON,      JOSEPHSON,                                                               
                         RASMUSSEN,                                                                                             
05/04/21       (H)       MERRICK                                                                                                
05/04/21       (H)       TRANSMITTED TO (S)                                                                                     
05/04/21       (H)       VERSION: HB 3                                                                                          
05/05/21       (S)       READ THE FIRST TIME - REFERRALS                                                                        
05/05/21       (S)       TRA                                                                                                    
05/13/21       (S)       TRA AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
KERRY CROCKER, Staff                                                                                                            
Representative Louise Stutes                                                                                                    
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Provided the sponsor statement and sectional                                                              
analysis on behalf of the sponsor of HB 63.                                                                                     
                                                                                                                                
SHANNON ADAMSON, Alaska Regional Representative                                                                                 
International Organization of Masters, Mates and Pilots                                                                         
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified during the hearing on HB 63.                                                                    
                                                                                                                                
BEN GOLDRICH, representative                                                                                                    
Marine Engineers Beneficial Association (MEBA)                                                                                  
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified during the hearing on HB 63.                                                                    
                                                                                                                                
ANDY MILLS, Special Assistant to the Commissioner;                                                                              
Legislative Liaison                                                                                                             
Department of Transportation and Public Facilities (DOTPF)                                                                      
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Presented SB 117 on behalf of the                                                                         
administration.                                                                                                                 
                                                                                                                                
ALICIA SIIRA, Executive Director                                                                                                
Associated General Contractors of Alaska (AGC)                                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 117.                                                                           
                                                                                                                                
CHARLIE DEININGER                                                                                                               
Chief Procurement Officer                                                                                                       
Department of Transportation and Public Facilities (DOTPF)                                                                      
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Answered questions during the discussion of                                                               
SB 117.                                                                                                                         
                                                                                                                                
SARAH LEFEBVRE, Office Manager/Contract Administrator                                                                           
Exclusive Paving                                                                                                                
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 117.                                                                           
                                                                                                                                
REPRESENTATIVE LADDIE SHAW                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of HB 34.                                                                                         
                                                                                                                                
JOSH WALTON, Staff                                                                                                              
Representative Laddie Shaw                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified on behalf of the sponsor of HB 34.                                                              
                                                                                                                                
LYNN KILE, President                                                                                                            
Vietnam Helicopter Pilot Association                                                                                            
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Provided invited testimony on HB 34.                                                                      
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:53:22 PM                                                                                                                    
CHAIR  ROBERT MYERS  called  the  Senate Transportation  Standing                                                             
Committee meeting  to order at 1:53  p.m. Present at the  call to                                                               
order were Senators Kiehl, Shower, Micciche and Chair Myers.                                                                    
                                                                                                                                
          HB 63-ALASKA MARINE HIGHWAY OPERATIONS BOARD                                                                      
                                                                                                                              
1:53:59 PM                                                                                                                    
CHAIR MYERS announced the consideration  of CS FOR HOUSE BILL NO.                                                               
63(STA),  "An Act  relating to  the duties  of the  Department of                                                               
Transportation and Public Facilities;  renaming the Alaska Marine                                                               
Transportation   Advisory  Board   the   Alaska  Marine   Highway                                                               
Operations Board;  relating to the  membership and duties  of the                                                               
Alaska  Marine  Highway Operations  Board;  and  relating to  the                                                               
comprehensive,  intermodal,  long-range transportation  plan  for                                                               
the state."                                                                                                                     
                                                                                                                                
1:54:31 PM                                                                                                                    
KERRY CROCKER, Staff, Representative  Louise Stutes, Alaska State                                                               
Legislature, Juneau,  Alaska, provided the sponsor  statement and                                                               
sectional  analysis  on  behalf  of  the sponsor  of  HB  63.  He                                                               
paraphrased the sponsor statement, which read:                                                                                  
                                                                                                                                
     This bill  would establish a nine-member  Alaska Marine                                                                    
     Highway (AMHS)  Operation's Board, with  members having                                                                    
     the skills  and experience of  a ferry commission  or a                                                                    
     marine  business  board.  The   board  would  have  the                                                                    
     ability   to  assess   and   suggest  marine   business                                                                    
     practices  that  enhance   revenue  and  reduce  costs.                                                                    
     Members  of   the  board  would  be   chosen  based  on                                                                    
     experience in  personnel management,  ship maintenance,                                                                    
     construction  and  repair,  plans and  activities,  and                                                                    
     they  would  also  have   insight  on  fleet  strategy,                                                                    
     reliability and other service objectives.                                                                                  
                                                                                                                                
     A  continuing  challenge  for AMHS  has  been  frequent                                                                    
     change in  policy direction, coupled  with insufficient                                                                    
     appreciation   of   long-term  implications   of   such                                                                    
     changes.  Lack   of  clarity  and   long-term  planning                                                                    
     objectives  such  as  fleet design,  vessel  deployment                                                                    
     strategy, and marine business  expertise have also been                                                                    
     a hindrance.                                                                                                               
                                                                                                                                
     A Marine  Advisory Board  was established  under Alaska                                                                    
     Statute (AS) 19.65.110, and  though formed with capable                                                                    
     individuals,  it  is   not  structured  to  effectively                                                                    
     direct AMHS with its  large marine business operations,                                                                    
     planning, or  solutions for issues it  currently faces.                                                                    
     Recent agendas  suggest the  Marine Advisory  Board has                                                                    
     kept   community   stakeholders    informed   of   AMHS                                                                    
     activities and  budges and  provided them  with general                                                                    
     feedback  about AMHS  service. Currently  the board  is                                                                    
     comprised of  members from  ferry service  areas, which                                                                    
     brings  public transparency  and community  engagement,                                                                    
     however  the  system   cannot  survive  with  community                                                                    
     feedback  alone. The  members  must additionally  weigh                                                                    
     business  practices  and  have expertise  in  strategic                                                                    
     planning.                                                                                                                  
                                                                                                                                
1:56:37 PM                                                                                                                    
MR. CROCKER continued:                                                                                                          
                                                                                                                                
     The   AMHS  Marine   Operations  Board   would  provide                                                                    
     professional advice  focused on business  and financial                                                                    
     practices   of  the   ferry  system,   including  fleet                                                                    
     planning,  maintenance,  pricing, service  models,  and                                                                    
     capital   asset   investment.   The  board   would   be                                                                    
     comparable to  a board of directors  providing business                                                                    
     leadership  and  long-term  strategic  planning  for  a                                                                    
     corporation.                                                                                                               
                                                                                                                                
1:57:11 PM                                                                                                                    
MR. CROCKER read the sectional analysis for HB 63.                                                                              
                                                                                                                                
     Section 1:  Changes 19.05.030 by  adding two  duties to                                                                    
     the Department  of Transportation. 19.05.030  (8) which                                                                    
     requires  the  Department  to  review  and  respond  to                                                                    
     recommendations by the Marine  Operations Board and (9)                                                                    
     to report whether  or not the Alaska  Marine Highway is                                                                    
     meeting performance goals.                                                                                                 
                                                                                                                                
     Section 2:  Requires the Board to  create comprehensive                                                                    
     long term  and short-term  plans and provides  them the                                                                    
     framework  detailing what  should  be  included in  the                                                                    
     plans.  Requires  the  Department to  submit  both  the                                                                    
     short-term and long-term  plans, revisions, and updates                                                                    
     to the legislature and the  governor and make the plans                                                                    
     available to the public.                                                                                                   
                                                                                                                                
MR. CROCKER continued:                                                                                                          
                                                                                                                                
     Section 3: Changes  the name of the  board from "Marine                                                                    
     Transportation  Advisory   Board"  (MTAB)   to  "Alaska                                                                    
     Marine Highway Operations Board".                                                                                          
                                                                                                                                
     Section 4: Repeals AS 19.65.120(a)  and is reenacted to                                                                    
     do  the  following:  (a) Creates  a  nine-member  board                                                                    
     instead   of   twelve,   which  includes   the   deputy                                                                    
     commissioner  of transportation  and public  facilities                                                                    
     and requires each member to  be an Alaska resident. (1)                                                                    
     Requires one  member to be a  recognized union employee                                                                    
     from the Alaska Marine Highway,  to be appointed by the                                                                    
     governor.  Page |  2 (2)  Requires one  member from  an                                                                    
     Alaska native  organization or tribe, appointed  by the                                                                    
     governor (3)  Requires six members  of the  public: (A)                                                                    
     That   have   experience   in   marine   business   and                                                                    
     procurement  practices,  marine  personnel  management,                                                                    
     commercial    service   options,    ship   maintenance,                                                                    
     construction, and repair,  fleet strategy, reliability,                                                                    
     and regulatory  compliance, or risk management  (B) Two                                                                    
     of  which are  appointed by  the governor,  two by  the                                                                    
     speaker of  the house and  two by the president  of the                                                                    
     senate.                                                                                                                    
                                                                                                                                
1:59:20 PM                                                                                                                    
MR. CROCKER continued:                                                                                                          
                                                                                                                                
     Section  5: Creates  staggered  six-year  terms on  the                                                                    
     board instead  of three-year  terms, with  exception of                                                                    
     the  deputy  commissioner.  If  a  vacancy  arises,  it                                                                    
     allows for  a new appointment  to be made to  serve out                                                                    
     the remaining term of the vacant seat.                                                                                     
                                                                                                                                
     Section 6:  Exempts the deputy commissioner  from being                                                                    
     removed from the board.                                                                                                    
                                                                                                                                
     Section 7:  Requires the  board to  provide orientation                                                                    
     about  the Alaska  Marine Highway  System to  the newly                                                                    
     appointed   members.    Also   allows    for   regional                                                                    
     development  associations to  make recommendations  for                                                                    
     appointments to the board.                                                                                                 
                                                                                                                                
MR. CROCKER continued:                                                                                                          
                                                                                                                                
     Section   8:  Requires   the   Department  to   provide                                                                    
     information at  the request  of the  board in  a timely                                                                    
     manner.                                                                                                                    
                                                                                                                                
     Section 9:  The board  will provide  recommendations to                                                                    
     the  commissioner  of  the department.  (f)  creates  a                                                                    
     mechanism for reporting if  the recommendations are not                                                                    
     followed. (g)  allows the board  to create  a taskforce                                                                    
     consisting of non-board  members to investigate matters                                                                    
     relevant.  (h)  Requires  the board  to  annually  make                                                                    
     recommendations regarding preparation  of the "STIP  to                                                                    
     the department.                                                                                                            
                                                                                                                                
     Section 10: Changes the name  of the board from "Marine                                                                    
     Transportation  Advisory   Board"  (MTAB)   to  "Alaska                                                                    
     Marine Highway Operations Board".                                                                                          
                                                                                                                                
     Section 11  AS 44.0Section  11: Amends  44.42.050(a) to                                                                    
     require   the    commissioner   to    incorporate   the                                                                    
     comprehensive long-term  plan recommended by  the board                                                                    
     into the long-range plan required under the statute.                                                                       
                                                                                                                                
2:01:19 PM                                                                                                                    
MR. CROCKER continued:                                                                                                          
                                                                                                                                
     Section 12: Repeals 19.65.120(B)                                                                                           
                                                                                                                                
     Section  13: Once  this bill  is enacted,  this section                                                                    
     directs  the terms  of members  of  the current  Marine                                                                    
     Transportation   Advisory  Board   to  expire   on  the                                                                    
     effective  date and  sets new  staggered terms  for the                                                                    
     members of the Alaska Marine Highway Operations Board.                                                                     
                                                                                                                                
2:01:53 PM                                                                                                                    
SENATOR KIEHL asked whether the intention was for the board to                                                                  
only consider vessels or if it would also include shoreside                                                                     
activities, such as strategy, reliability and reservations.                                                                     
                                                                                                                                
MR. CROCKER responded that the sponsor's intent was that all                                                                    
aspects of AMHS would be covered, including terminals and                                                                       
marketing.                                                                                                                      
                                                                                                                                
2:03:06 PM                                                                                                                    
SENATOR   MICCICHE  recalled   that   the  committee   previously                                                               
considered  and  amended  [SB  103] with  respect  to  the  board                                                               
composition for  an Alaska Native  from a coastal  community that                                                               
is served  by the AMHS. However,  that language does not  seem to                                                               
be part of this bill. The  committee agreed it was important that                                                               
the Alaska Native participant be  from a coastal community served                                                               
by AMHS.                                                                                                                        
                                                                                                                                
MR.  CROCKER  answered   that  was  covered  in  HB   63  [in  AS                                                               
19.65.120(a)(2)],  which read  "one representative  of an  Alaska                                                               
Native organization  or tribe who  is currently from  a community                                                               
served  by the  Alaska marine  highway system,  appointed by  the                                                               
governor;".                                                                                                                     
                                                                                                                                
2:04:13 PM                                                                                                                    
SENATOR KIEHL  referred to another  change the committee  made to                                                               
[SB  103] was  to require  the Alaska  Marine Highway  Operations                                                               
Board  propose  an operating  and  capital  budget ahead  of  the                                                               
governor's usual  budget schedule.  He asked whether  the sponsor                                                               
considered this.                                                                                                                
                                                                                                                                
MR.  CROCKER  answered  that  the  sponsor  believed  this  would                                                               
inherently  happen in  the process  of developing  the short  and                                                               
long-term plans. The  sponsor did not believe it  was possible to                                                               
craft the plans without considering a budget.                                                                                   
                                                                                                                                
2:05:31 PM                                                                                                                    
CHAIR MYERS opened public testimony on HB 63.                                                                                   
                                                                                                                                
2:05:49 PM                                                                                                                    
SHANNON  ADAMSON, Alaska  Regional Representative,  International                                                               
Organization of  Masters, Mates and Pilots,  Juneau, Alaska, said                                                               
she serves  on the current  Marine Transportation  Advisory Board                                                               
(MTAB). She spoke  in support of HB 63 because  it created a more                                                               
diverse  board membership  than the  current MTAB.  MM&P believes                                                               
this will help depoliticize the  board and isolate AMHS from some                                                               
political infighting, she  said. HB 63 also  includes language to                                                               
require that  DOTPF incorporate the  board's short  and long-term                                                               
plans, which  would help the  board with existing  management and                                                               
create  better solutions.  As a  current MTAB  member, she  found                                                               
that  aspect  invaluable because  DOTPF  has  not adopted  MTAB's                                                               
recommendations. She offered her view  that increasing funding to                                                               
AMHS would  not produce significant  positive changes  in service                                                               
or  sustainability unless  AMHS's  management  structure were  to                                                               
change. In  fact, every  report related  to AMHS  has recommended                                                               
changes  to  its  management structure.  This  bill  starts  that                                                               
process and MM&P looks forward to that change.                                                                                  
                                                                                                                                
2:07:36 PM                                                                                                                    
SENATOR SHOWER asked  whether MM&P would support  moving AMHS out                                                               
of DOTPF.                                                                                                                       
                                                                                                                                
MS. ADAMSON responded that MM&P  will support any positive change                                                               
to AMHS's current structure. The  current system does not work so                                                               
any change would be considered a positive one.                                                                                  
                                                                                                                                
2:08:32 PM                                                                                                                    
BEN   GOLDRICH,  representative,   Marine  Engineers   Beneficial                                                               
Association  (MEBA), Juneau,  Alaska,  said  MEBA represents  the                                                               
engineers on  board AMHS  vessels and shoreside.  He said  he was                                                               
fully supportive of Ms. Adamson's  comments. Although he does not                                                               
work  on the  vessels, he  has worked  closely with  AMHS for  18                                                               
years.  He  said Governor  Dunleavy  appointed  him to  serve  on                                                               
AMHS's Reshaping Work Group. One  recommendation of the group was                                                               
to  change  AMHS's  management structure,  which  MEBA  views  as                                                               
necessary.                                                                                                                      
                                                                                                                                
2:09:42 PM                                                                                                                    
SENATOR SHOWER asked if he would  support AMHS being moved out of                                                               
DOTPF.                                                                                                                          
                                                                                                                                
MR. GOLDRICH answered that MEBA would support such a change.                                                                    
                                                                                                                                
2:10:12 PM                                                                                                                    
CHAIR MYERS,  after first determining  no one wished  to testify,                                                               
closed public testimony on HB 63.                                                                                               
                                                                                                                                
[HB 63 was held in committee.]                                                                                                  
                                                                                                                                
          SB 117-PROCUREMENT; CONSTRUCTION; CONTRACTS                                                                       
                                                                                                                                
2:10:39 PM                                                                                                                    
CHAIR MYERS  announced the consideration  of SENATE BILL  NO. 117                                                               
"An Act relating to the  state procurement code; establishing the                                                               
construction manager  general contractor procurement  method; and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
2:10:50 PM                                                                                                                    
ANDY MILLS,  Special Assistant  to the  Commissioner; Legislative                                                               
Liaison,  Department  of  Transportation  and  Public  Facilities                                                               
(DOTPF), Juneau, Alaska, on behalf  of the administration, stated                                                               
that SB  117 was in response  to the department's desire  to work                                                               
directly with  the contracting community.  SB 117 would  amend AS                                                               
36.30,   the  state's   procurement   code,   by  codifying   the                                                               
department's   current   use   of    the   CM/GC   or   construct                                                               
manager/general contractor contracting  method. He explained that                                                               
the CM/GC method would provide  a two-phase contract for both the                                                               
preconstruction and  construction phases  of a  project. Although                                                               
this method was  not an option under current  procurement law for                                                               
competitive  sealed bidding,  the department  has used  the CM/GC                                                               
contracting  methodology under  the  state's existing  innovative                                                               
procurement  statute for  over fifteen  years.  He recalled  that                                                               
this  process was  used on  over  20 complex  projects. CM/GC  is                                                               
included  in Federal  Highway  Administrative regulations,  other                                                               
states' regulations and is a  common and accepted practice in the                                                               
construction industry,  he said. In the  department's experience,                                                               
CM/GC   contracts  could   decrease  contractor   change  orders,                                                               
administrative delays and leverage department resources.                                                                        
                                                                                                                                
2:12:33 PM                                                                                                                    
MR. MILLS  said this process  could allow the department  and its                                                               
contractors  to  improve Alaska's  transportation  infrastructure                                                               
faster, which is  its mission. Once the  CM/CG contracting method                                                               
is adopted in statute, the  department would collaborate with the                                                               
Associated  General   Contractors  of  Alaska  (AGC)   and  other                                                               
stakeholders   to   adopt   regulations,  policy   and   guidance                                                               
materials,   which   would   further   refine   this   innovative                                                               
contracting method for use in Alaska.                                                                                           
                                                                                                                                
2:13:23 PM                                                                                                                    
ALICIA SIIRA, Executive  Director, Associated General Contractors                                                               
of  Alaska (AGC),  Anchorage, Alaska,  stated  that AGC  supports                                                               
having  the CM/CG  tool as  an alternative  project delivery  for                                                               
DOTPF.  She stated  that AGC  is a  statewide construction  trade                                                               
association  representing   contractors,  specialty  contractors,                                                               
suppliers   and  manufacturers   in   Alaska.   AGC  unites   the                                                               
construction  industry to  focus on  balance and  work to  foster                                                               
constructive   legislation,   regulation    and   standards.   As                                                               
previously stated, CM/CG has been used  in Alaska for more than a                                                               
decade.  SB  117  will  benefit   the  construction  industry  by                                                               
modifying procurement  statutes to  codify the  CM/CG procurement                                                               
process,  she said.  It  would  allow DOTPF  to  use the  process                                                               
without  having to  submit an  innovative procurement  request to                                                               
the  Department of  Law and  the  Federal Highway  Administration                                                               
(FHWA)  for  each  project.  This  will  modernize,  clarify  and                                                               
improve  the state's  procurement process  and align  Alaska with                                                               
the majority of other states.                                                                                                   
                                                                                                                                
MS.  SIIRA  said  passage  of  this bill  will  also  provide  an                                                               
opportunity for  the industry to  participate in  the development                                                               
of regulations  that would remedy  concerns about  consistency in                                                               
CM/CG  projects. SB  117 would  allow  DOTPF to  add clarity  and                                                               
consistency  for  CM/CG  use  across  all  regions,  which  is  a                                                               
priority for the construction industry.  In closing, she said AGC                                                               
supports  this  bill  and  looks forward  to  being  included  in                                                               
further enhancing the CM/CG process.                                                                                            
                                                                                                                                
2:15:48 PM                                                                                                                    
SENATOR KIEHL  asked how broadly  this process would be  used. He                                                               
related  his understanding  that it  was not  appropriate to  use                                                               
this process in lots of projects.                                                                                               
                                                                                                                                
MR.  MILLS agreed  with Senator  Kiehl.  He stated  that low  bid                                                               
process   was   predominately   used  by   the   department   for                                                               
administrative ease. Given the nature  of many DOTPF projects, it                                                               
wasn't necessary  to use CM/GC  to add efficiency or  to complete                                                               
the process, he said.                                                                                                           
                                                                                                                                
2:17:10 PM                                                                                                                    
CHARLIE  DEININGER,  Chief  Procurement  Officer,  Department  of                                                               
Transportation  and Public  Facilities  (DOTPF), Juneau,  Alaska,                                                               
responded that DOTPF has typically used  CM/GC on one to three of                                                               
the 100 to  120 total DOTPF projects per year.  He explained that                                                               
the  department would  develop criteria  in regulation  for CM/CG                                                               
contracting.  Further,   it  would  require   the  commissioner's                                                               
approval on whether to use the CM/CG process.                                                                                   
                                                                                                                                
2:18:48 PM                                                                                                                    
SENATOR SHOWER stated that this  bill was previously heard in the                                                               
State  Affairs Committee,  which he  chairs, so  he was  familiar                                                               
with it.  He pointed  out that the  administration made  it clear                                                               
that the  department would work  with smaller contractors  on the                                                               
process. He suggested the committee  may wish to consider a small                                                               
amendment to  require the administration  to conduct  outreach to                                                               
inform contractors about  this process and provide  them with any                                                               
assistance needed,  even though CM/CG would  generally be limited                                                               
to larger, more complex projects.                                                                                               
                                                                                                                                
2:20:32 PM                                                                                                                    
SENATOR  KIEHL recalled  slides during  a presentation  discussed                                                               
using an  independent cost estimator.  He characterized it  as an                                                               
important part  of the process but  he did not see  any provision                                                               
for an independent cost estimator in the bill.                                                                                  
                                                                                                                                
MR. MILLS  related his understanding  that many aspects  would be                                                               
included in  regulations for CM/CG.  He assured members  that the                                                               
independent cost estimator would be part of the process.                                                                        
                                                                                                                                
SENATOR KIEHL said the independent  cost estimator was a critical                                                               
safeguard for the owner so he wants to be sure it is addressed.                                                                 
                                                                                                                                
2:22:30 PM                                                                                                                    
CHAIR MYERS opened public testimony on SB 117.                                                                                  
                                                                                                                                
2:22:51 PM                                                                                                                    
SARAH LEFEBVRE, Office  Manager/Contract Administrator, Exclusive                                                               
Paving,  Fairbanks,  Alaska, spoke  in  support  of SB  117.  She                                                               
provided  her  background,  such  that  she  has  worked  in  the                                                               
construction  industry for  over 20  years. She  said she  agreed                                                               
with AGC's testimony.                                                                                                           
                                                                                                                                
MS. LEFEBVRE spoke to her  experience with the CM/CG process. She                                                               
said that  each proposal is  different depending on  whether best                                                               
practices   are   incorporated   into  the   proposal.   From   a                                                               
contractor's  perspective, she  expected that  the largest  CM/CG                                                               
project  her  company was  involved  in  would provide  the  best                                                               
experience. However,  that was not  the case. She  predicted that                                                               
the inconsistencies  and flaws within the  process would continue                                                               
unless legislation  were passed. Other  than the steps  the state                                                               
uses  to  obtain  the  authority to  use  the  CM/CG  procurement                                                               
method, the state does not  have any defined processes, she said.                                                               
She said  CM/CG was  being used as  a procurement  concept. After                                                               
that,  how it  was  used  depended on  the  specific DOTPF  staff                                                               
involved. If the CM/CG projects  from 2012 to 2021 were compared,                                                               
the  results  would  show  the  process  varied  widely  and  the                                                               
sequence of changes did not  track for developing or implementing                                                               
best practices. Placing  CM/CG in statute would  create a pathway                                                               
to  develop  regulations  and  clear  guidelines  to  define  the                                                               
process and ensure that the  best value was truly being described                                                               
and sought  on behalf of the  state. She said this  is crucial to                                                               
achieve the best competitive environment.                                                                                       
                                                                                                                                
MS.  LEFEBVRE explained  that contractors  must make  significant                                                               
investments for  CM/CG projects. In her  experience, the internal                                                               
costs  ranged  from  $30,000  to  $100,000  for  her  company  to                                                               
participate  in  the  process.   She  suggested  that  the  small                                                               
business amendment  would be better  addressed by  regulation. In                                                               
closing,  she urged  members  not  to delay  passing  SB 117  for                                                               
another    year.   With    forthcoming   federal    funds   state                                                               
infrastructure  projects will  increase,  she  said. The  CM/CG's                                                               
procurement method will  provide an opportunity for  the state to                                                               
ensure that Alaska can maximize  the opportunities to use federal                                                               
funding. She  cautioned that it may  take a year to  complete the                                                               
regulation  process  after  passage  of  SB  117.  She  said  the                                                               
construction  industry is  prepared  to  actively participate  in                                                               
drafting regulations  to ensure that  Alaska is a  sound platform                                                               
for which to build future CM/CG Request for Proposals (RFPs).                                                                   
                                                                                                                                
2:25:45 PM                                                                                                                    
CHAIR MYERS,  after first determining  no one wished  to testify,                                                               
closed public testimony on SB 117.                                                                                              
                                                                                                                                
2:26:00 PM                                                                                                                    
SENATOR SHOWER  offered to  work with the  Chair on  an amendment                                                               
for small businesses.                                                                                                           
                                                                                                                                
2:27:02 PM                                                                                                                    
SENATOR MICCICHE stated his desire for SB 117 to pass this year.                                                                
                                                                                                                                
SENATOR SHOWER offered to make a conceptual amendment.                                                                          
                                                                                                                                
MR. MILLS  interjected that  an amendment  was not  necessary for                                                               
public  outreach.  He offered  to  commit  to initiate  a  public                                                               
information campaign. Further, he  said he already discussed with                                                               
Mr. Deininger  ways to  supplement the  process to  better inform                                                               
contractors.                                                                                                                    
                                                                                                                                
SENATOR SHOWER indicated that he  was comfortable with Mr. Mill's                                                               
commitment.                                                                                                                     
                                                                                                                                
CHAIR  MYERS informed  members that  HB 160,  the companion  bill                                                               
passed  the  house.  He  wondered   about  the  process  for  the                                                               
companion bill.                                                                                                                 
                                                                                                                                
SENATOR MICCICHE explained that if SB  117 were to pass, it would                                                               
meet up with  HB 160 in Senate Rules. He  expressed concern about                                                               
any potential delays by holding SB 117 in committee.                                                                            
                                                                                                                                
CHAIR MYERS said he was comfortable moving SB 117.                                                                              
                                                                                                                                
SENATOR SHOWER stated that he was comfortable moving SB 117.                                                                    
                                                                                                                                
2:30:41 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
2:31:15 PM                                                                                                                    
CHAIR MYERS reconvened the meeting.                                                                                             
                                                                                                                                
2:31:23 PM                                                                                                                    
SENATOR SHOWER  moved to  report SB  117, work  order 32-GS1579\A                                                               
from  committee  with  individual  recommendations  and  attached                                                               
fiscal note(s).                                                                                                                 
                                                                                                                                
CHAIR MEYERS found no objection and  SB 117 was reported from the                                                               
Senate Transportation Standing Committee.                                                                                       
                                                                                                                                
         HB 34-NAMING VIETNAM HELI. PILOTS' MEM. BRIDGE                                                                     
                                                                                                                                
2:31:56 PM                                                                                                                    
CHAIR MYERS announced the consideration  of HOUSE BILL NO. 34 "An                                                               
Act naming the Vietnam Helicopter Pilots' Memorial Bridge."                                                                     
                                                                                                                                
2:32:34 PM                                                                                                                    
REPRESENTATIVE  LADDIE SHAW,  Alaska  State Legislature,  Juneau,                                                               
Alaska, sponsor  of HB  34, stated  that he  served two  tours of                                                               
duty in  Vietnam. He related  that he  is an associate  member of                                                               
the  Vietnam   Helicopter  Pilots  Association  as   a  certified                                                               
helicopter   pilot   and   a   Vietnam   veteran.   He   credited                                                               
Representative Tilton with the original  idea for this bill since                                                               
the  bridge is  in  her  district. However,  she  allowed him  to                                                               
sponsor HB 34 due to  his helicopter pilot experience in Vietnam.                                                               
He  also  acknowledged  the  work  on  HB  34  by  Representative                                                               
Tilton's staff,  Health Hilyard.  He informed members  that every                                                               
veteran signed on as a co-sponsor of HB 34.                                                                                     
                                                                                                                                
2:34:20 PM                                                                                                                    
REPRESENTATIVE SHAW related one  of his personal experiences from                                                               
his time in Vietnam. He  referred to a photograph dated September                                                               
20, 1970, identifying  the person in the lower  right hand corner                                                               
of the photograph  as himself. The Huey  helicopter shown arrived                                                               
within  seven minutes  and evacuated  three of  his teammates  to                                                               
Dang, Vietnam,  but sadly,  two others died.  One of  the injured                                                               
teammates was  put into an  induced coma  due to the  severity of                                                               
his  wounds. He  credited his  teammate's survival  to the  radio                                                               
strapped  on  his back  and  the  quick evacuation.  Thirty-seven                                                               
years  later he  crossed paths  with this  friend, who  recovered                                                               
from  his  injuries  and  had   been  working  20  years  in  law                                                               
enforcement. He  retired as  Chief of  Police in  Horseheads, New                                                               
York. The photograph emphasized  the importance of helicopters to                                                               
the troops in Vietnam.                                                                                                          
                                                                                                                                
REPRESENTATIVE SHAW said he previously  served as the director of                                                               
Military and Veterans  Affairs. He reviewed several  peaks in the                                                               
Chugach  Mountains   that  were  named  in   honor  of  veterans,                                                               
including Mount POW/MIA  and Gold Star Peak. Both  of those peaks                                                               
look down on the bridge that HB 34 proposes to name.                                                                            
                                                                                                                                
2:36:27 PM                                                                                                                    
REPRESENTATIVE  SHAW  emphasized  the  value  of  honoring  these                                                               
helicopter pilots. He noted that  the bill carries a small fiscal                                                               
note.                                                                                                                           
                                                                                                                                
2:37:18 PM                                                                                                                    
JOSH  WALTON, Staff,  Representative  Laddie  Shaw, Alaska  State                                                               
Legislature,  Juneau,  Alaska,  stated  that  HB  34  would  name                                                               
bridges  1124 and  1889 the  Vietnam Helicopter  Pilots' Memorial                                                               
Bridge. He explained  that these bridges span both  the north and                                                               
southbound bridges over  the Matanuska River at mile  30.4 of the                                                               
Glenn Highway. He  noted that members' packets  contain photos of                                                               
the bridges. He stated that  anyone who travels from Anchorage to                                                               
the Mat-Su Valley crosses over  one of these bridges. He referred                                                               
to  a  1994  article,  "The  Coming  of  Age:  The  Role  of  the                                                               
Helicopter in  the Vietnam War," which  characterized the Vietnam                                                               
conflict  as the  first true  helicopter conflict.  Several other                                                               
articles emphasize the heroism of  helicopter pilots, including a                                                               
September 15,  2016, Time magazine  article and a  September 2015                                                               
Air &  Space Magazine  article, he  said. He  reviewed additional                                                               
support for the bill.                                                                                                           
                                                                                                                                
2:39:46 PM                                                                                                                    
LYNN  KILE,  President,   Vietnam  Helicopter  Pilot  Association                                                               
(VHPA), Anchorage, Alaska,  stated that he is  a Vietnam veteran.                                                               
He stated that VHPA's membership  in Alaska consists of 85 pilots                                                               
and crewmembers.  He estimated an  additional 300 pilots  live in                                                               
Alaska but  he was  unsure of  the number  of crewmembers  in the                                                               
state.                                                                                                                          
                                                                                                                                
MR. KILE  said the story  Representative Shaw mentioned  was just                                                               
one  of many  experienced  by helicopter  crews  and pilots.  The                                                               
medevac helicopters  flew over  500,000 missions  evacuating over                                                               
900,000 soldiers  and troops  with an  82 percent  survival rate.                                                               
From  logistics to  medical evacuations,  helicopter pilots  flew                                                               
thousands of missions.  He said he is honored  that the committee                                                               
is taking up  this bill. Naming these bridges  represents a small                                                               
token  of  thanks to  honor  the  contributions these  helicopter                                                               
pilots made  to the state  and nation. He recalled  that veterans                                                               
did not  receive a warm  welcome home  like WWI or  WWII veterans                                                               
did  so  now  is  the  time  to  honor  their  contributions  and                                                               
sacrifices  made to  the nation  and state  by the  dedication of                                                               
these  small  landmark bridges  over  the  Matanuska River.  This                                                               
landmark memorial will remind those who  see it of the trials and                                                               
tribulations  of the  Vietnam  conflict and  to  honor those  who                                                               
dedicated their skills to our state and country.                                                                                
                                                                                                                                
2:42:24 PM                                                                                                                    
SENATOR SHOWER thanked  the sponsor for introducing  the bill. He                                                               
said his  father-in-law served  three tours  of duty  in Vietnam;                                                               
and half of  his academy class died in Vietnam.  Further, his son                                                               
was airlifted in  Iraq due to significant  injuries he sustained.                                                               
He acknowledged  the importance of helicopter  evacuation because                                                               
treatment can begin on board.  This bill is important because the                                                               
Vietnam   veterans   served   their  country   but   were   often                                                               
disrespected, he said.                                                                                                          
                                                                                                                                
2:44:55 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
2:45:15 PM                                                                                                                    
CHAIR MYERS reconvened the meeting.                                                                                             
                                                                                                                                
2:45:23 PM                                                                                                                    
SENATOR KIEHL said it was his  privilege to work in civilian life                                                               
under  four Vietnam  veterans. He  stated that  he learned  about                                                               
duty and hard work from them  but it cannot begin to compare with                                                               
the comments  and service  of Senator Shower  and the  sponsor of                                                               
the bill. He thanked them for their service.                                                                                    
                                                                                                                                
2:46:11 PM                                                                                                                    
SENATOR MICCICHE said he was honored  to support HB 34. He stated                                                               
that  when  he  worked  offshore  in  Cook  Inlet  he  relied  on                                                               
helicopters.  He commended  the skills  of the  helicopter pilots                                                               
who helped many survive the Vietnam War.                                                                                        
                                                                                                                                
2:47:24 PM                                                                                                                    
CHAIR  MYERS opened  public testimony  on HB  34 and  after first                                                               
determining no one wished to  testify, closed public testimony on                                                               
HB 34.                                                                                                                          
                                                                                                                                
2:47:48 PM                                                                                                                    
SENATOR MICCICHE  referred to the  fiscal notes.  He acknowledged                                                               
the importance of  respecting the fiscal note  on bills. However,                                                               
he related  his understanding that  bridge signs are  often taken                                                               
out by  snowblowers, car  crashes or wear  and tear  so replacing                                                               
signs was  common. Thus,  he said he  grapples to  understand the                                                               
necessity  for  a fiscal  note  to  replace  this sign  when  the                                                               
department will  need to replace  it at  some point and  the sign                                                               
honoring these veterans seems worthy, he said.                                                                                  
                                                                                                                                
2:49:00 PM                                                                                                                    
MR. MILLS agreed  that signs are replaced but he  was not certain                                                               
of the  mechanism to do so.  He said the department  provided the                                                               
sponsor's office  with several options. The  fundamental issue of                                                               
zeroing out a  fiscal note was that it would  escalate the number                                                               
of requests to rename bridges  and require numerous new signs. He                                                               
related his  understanding that the Department  of Administration                                                               
has a  specialty plate  mechanism whereby the  costs are  paid by                                                               
user fees.  He suggested that  a similar concept could  be worked                                                               
out. The  department cannot pursue  it within  this legislature's                                                               
timeframe given that the legislative  session was nearly over. He                                                               
stated that the department believes  in equal treatment but would                                                               
like to address this at a later date.                                                                                           
                                                                                                                                
SENATOR  MICCICHE said  he  hopes the  legislature  can create  a                                                               
method for  people to  privately donate.  He said  he understands                                                               
how important it is for people to do so.                                                                                        
                                                                                                                                
SENATOR SHOWER  also offered  his support  to find  a way  to get                                                               
receipt authority  so those who wish  to cover the cost  of signs                                                               
could do so.                                                                                                                    
                                                                                                                                
2:53:11 PM                                                                                                                    
SENATOR SHOWER  moved to  report HB  34, work  order 32-LS0265\A,                                                               
from  committee  with  individual  recommendations  and  attached                                                               
fiscal note(s).                                                                                                                 
                                                                                                                                
CHAIR MEYERS found  no objection and HB 34 was  reported from the                                                               
Senate Transportation Standing Committee.                                                                                       
                                                                                                                                
2:53:56 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair  Meyers   adjourned  the  Senate   Transportation  Standing                                                               
Committee meeting at 2:53 p.m.                                                                                                  

Document Name Date/Time Subjects
HB34 Sponsor Statement 2.25.2021.pdf STRA 5/13/2021 1:30:00 PM
HB 34
HB34 Bridge Images 2.7.2020.pdf STRA 5/13/2021 1:30:00 PM
HB 34
HB34 Additional Info - Vietnam Helicopter Memorial - Time Magazine 2.7.2020.pdf STRA 5/13/2021 1:30:00 PM
HB 34
HB34 Additional Info - VHPA Honored 2.7.2020.pdf STRA 5/13/2021 1:30:00 PM
HB 34
HB34 Additional Info - Helicopters in Vietnam 2.7.2020.pdf STRA 5/13/2021 1:30:00 PM
HB 34
HB34 Additional Info - Air & Space Magazine Article 2.7.2020.pdf STRA 5/13/2021 1:30:00 PM
HB 34
HB34 Additional Info - VHPA Website 2.7.2020.pdf STRA 5/13/2021 1:30:00 PM
HB 34
SB 117 Sponsor Statement.pdf STRA 5/13/2021 1:30:00 PM
SB 117
SB 117 Sectional Analysis 3.31.2021.pdf STRA 5/13/2021 1:30:00 PM
SB 117
CMGC Award Process - Flow Chart STEP 2.pdf STRA 5/13/2021 1:30:00 PM
SB 117
CMGC Award Process - Flow Chart STEP 1.pdf STRA 5/13/2021 1:30:00 PM
SB 117