Legislature(1995 - 1996)
02/20/1996 01:39 PM Senate TRA
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SENATE TRANSPORTATION
February 20, 1996
1:39 p.m.
MEMBERS PRESENT
Senator Steve Rieger, Chairman
Senator Robin Taylor, Vice Chair
Senator Lyda Green
Senator Al Adams
Senator Georgianna Lincoln
MEMBERS ABSENT
All members present.
COMMITTEE CALENDAR
Overview of the Three Year Statewide Transportation Improvement
Program (STIP)
WITNESS REGISTER
Joseph Perkins, Commissioner
Department of Transportation & Public Facilities
3132 Channel Drive
Juneau, Alaska 99801-7898
POSITION STATEMENT: Discussed the STIP.
John Horn, P.E.
Regional Director
Department of Transportation & Public Facilities
PO Box 196900
Anchorage, Alaska 99519-6900
POSITION STATEMENT: Discussed the STIP.
ACTION NARRATIVE
TAPE 96-2, SIDE A
Overview of the Three Year Statewide Transportation Improvement
Program (STIP)
CHAIRMAN RIEGER called the Senate Transportation meeting to order
at 1:39 p.m. and invited Commissioner Perkins to the table.
Number 014
JOSEPH PERKINS, Commissioner of the Department of Transportation &
Public Facilities, informed the committee that the department had
completed all its work with regard to the release of the STIP
except for the final review. The Statewide Transportation
Improvement Program document should be out the beginning of next
week. The department has released two draft documents, of which
the committee has the second document entitled Transportation,
Needs & Priorities. Both of these documents have received
extensive comment; reviewing all those comments in order to sort
out the projects for scheduling has taken much time.
Mr. Perkins stated that Governor Knowles announced his
Transportation Initiative in June; Governor Knowles' Initiative is
based on a $220 million federal program. That program can be
broken down as follows: $120 million for the National Highway
System (NHS), $80 million for the Community & Regional
Transportation System and new roads, and $15-20 million for Trails
& Recreational Access to Alaska for Alaska (TRACK) projects. He
explained that the TRACK projects are enhancement projects required
by the federal government. This program was sent out to all the
communities who were asked to submit or resubmit their projects
which lead to the development of a grading system for Community &
Regional projects and TRACK projects. A separate grading system
for rural areas was also established. Mr. Perkins clarified that
the regional boards met to grade the projects submitted by the
communities, then a board convened in Juneau in order to review and
score each project. That process resulted in the Transportation
Needs & Priorities booklet before the committee.
Number 097
Mr. Perkins emphasized that the NHS is extremely critical for
Alaska. Last year, Congress passed the NHS bill which recognized
that the era of interstate transportation has come to an end.
Congress specified the NHS by roads, 159,000 miles of road in the
U.S. is included in this system. Alaska has approximately 2,100
road miles and 1,900 marine miles of ferry connections designated
in the NHS. Mr. Perkins informed the committee that the Dalton
Highway was not initially included in the system, but has since
been added to the legislation. Since that time, the legislation
has requested nominations for intermodal connections.
The department submitted three more portions of state highways
under the intermodal connections request; they too have been added
to the NHS. The portion of road in Juneau between the old ferry
dock and the rock dump is one of the intermodal connections
submitted. Mr. Perkins interjected that being listed on the NHS
allows those roads or portions of roads to be eligible for NHS
funds. He further specified that this was added because of the
intermodal connection with a barge and fuel company. Another
intermodal connection was added in Nenana in order to extend to the
barge facility. The largest intermodal connection is the Whittier
Road and tunnel. Mr. Perkins believed that Congress would
eventually provide federal aid for the NHS, therefore the more
miles Alaska has on the system the better.
Number 164
Mr. Perkins posed the question: how far behind is Alaska in
constructing portions of the NHS in order to function at a minimum
standard? A September assessment of the booklet resulted in a
shortfall of $1.2 billion; this estimate has been refined to
approximately $1.7 billion for over 14 years at $120 million per
year in order to redo only the NHS portions in Alaska. The
department is currently in the midst of scheduling the $120 million
per year for the next three years in the STIP. Mr. Perkins pointed
out that the STIP has taken time because of the care necessary when
allocating $720 million.
Mr. Perkins mentioned that the report coming out early next week
will specify the projects with the highest priority for the next
three years. This report will be available for public review. Mr.
Perkins noted that the projects will be programmed according to the
perceived need and assigned grade of that particular project. The
department has made the following assumptions: that Alaska will
continue to receive $120 million per year in federal funds with $25
million in state matching funds, and the establishment of a new
"ISTEA" program. Currently, the "ISTEA" program allocates more
money to Alaska than 22 other states. Mr. Perkins informed the
committee of a GAO study which indicated that Alaska should receive
about $90 million per year; there is a lot at stake. The
reauthorization of the new federal highway program will be one of
the biggest priorities for Mr. Perkins and the governor.
Number 242
Mr. Perkins specified the following negative aspects that Alaska
has with regards to the NHS.
(1) Alaska is one of the few states that does not have a state
funded highway program. Alaska's program is completely based
on federal funds.
(2) Alaska has the lowest gas tax in the U.S.
(3) Alaska ranks second in the nation for the amount of money
received back in comparison to the amount of money Alaska puts
into the program. New York ranks first in this category.
Mr. Perkins said that he would provide committee members with
information regarding state rankings according to how much the
state puts into the program.
Mr. Perkins stated that Alaska is approximately 15 years behind the
lower 48, which has completed its road net. Alaska needs funding
to complete its road net at the minimal standard level, not funding
to maintain interstates and replace bridges (the two major problems
in the lower 48). Mr. Perkins believed that the program identifies
Alaska's problems as well as the magnitude of those problems. The
$120 million for the NHS illustrates to Congress that Alaska places
importance on its basic road system. Alaska must demonstrate that
projects are being constructed based on need; otherwise Alaska will
face difficulties with reauthorization.
Number 276
Mr. Perkins expressed concern with the total highway budget. He
explained that the amount of money spent from the highway trust
fund has been caught up in deficit reduction; the money in the
highway trust fund is counted as an asset towards deficit
reduction. Mr. Perkins said that there is a tendency to allow the
highway trust fund to accrue in order to count against other
expenses. Just that happened this past year. Projections indicate
that the highway trust fund will lose at least $1 billion in total
allocations; last year's allocations totalled about $20 million.
Furthermore, the Congressional budget reduction plan includes a net
reduction of approximately 10-15 percent in the amount of available
trust fund money. The Presidential plan includes a reduction of 7-
9 percent for the funding available for transportation. Therefore,
Mr. Perkins concluded that Alaska is attempting to obtain a piece
of a smaller pie. Under the seven year budget plan, the total
available money will be reduced. Mr. Perkins did not believe that
Alaska would continue to maintain the funding it has in the past;
there will be a reduction.
Number 300
CHAIRMAN RIEGER asked Mr. Perkins to clarify the numbers in the
federal deficit reduction plan. JOSEPH PERKINS explained that a
net reduction of $1 billion would occur next year. Over the seven
year period, the Congressional plan reduces transportation spending
appropriations by approximately 15 percent. The Presidential
proposal includes a reduction of 7-9 percent.
In response to Senator Lincoln, Mr. Perkins stated that the current
transportation spending appropriations are $20 billion. Next year
the $20 billion would shrink to about $19 billion and in the
following years it would shrink to about $15 billion. CHAIRMAN
RIEGER ascertained that the next year would have a five percent
reduction equaling $19 billion.
SENATOR TAYLOR asked Mr. Perkins if he was familiar with a study
done within the department by Roger Allington regarding the marine
highway system. How does this prioritization in scoring reflect
the outcome of that study? JOSEPH PERKINS believed that Mr.
Allington's study was a draft study which was not used in the
development of the priorities in the booklet. Mr. Perkins informed
the committee that the department intends to perform and implement
a Southeast Alaska study. Currently, Southeast is working under a
1986 transportation plan; Southeast should have two fast ferries
running between Juneau and Skagway.
SENATOR TAYLOR pointed out that the study would not be completed
until 1998 which means that two more funding cycles would have
passed. Senator Taylor emphasized that all the options Mr.
Allington's study reviewed resulted in the ferry system being in
gridlock by the turn of the century or shortly thereafter. One
hundred cars would be left at port per sailing. This is only four
years away. Senator Taylor stated that he could find three or four
studies within the department which reached the same conclusion as
Mr. Allington's study. Senator Taylor expressed frustration with
the trend of tying up more ferries longer and increasing the costs
of utilizing the ferry while most of the road projects are upgrades
or replacement of already existing roads. He pointed out that $182
million is going to the Glenn Highway; how many bridges are
necessary for those commuting to Anchorage? What will be done to
interconnect Southeast Alaska? With regards to high speed ferries,
no one in the marine highway business is adopting high speed
ferries.
Number 364
JOSEPH PERKINS clarified that the funding for the Glenn Highway is
going to upgrade the portion of the road between Palmer and
Gunsight Mountain which was constructed in the late 1940s and
1950s. This portion of the Glenn Highway has 15, 20, and 30 mile
per hour curves. Regarding Senator Taylor's comments about the
department's studies, there is not a study indicating what and
where funding should be placed. The department has many pieces
which have never been consolidated into a document that would
specify the appropriation of money. He indicated that following
any of the existing pieces would not be going in the correct
direction.
Mr. Perkins agreed with Senator Taylor's opinion of fast ferries.
The current plan calls for fast ferries, but that portion of the
plan was not implemented. He reiterated that Southeast Alaska
needs a transportation plan. Southeast Alaska has had the same
transportation system for the last 20 years, only now the system
does not work as well. Alaska needs to be looking 20 years in the
future. Mr. Perkins mentioned that a cost estimate had been done
for transportation from Sitka to Warm Springs as an alternative.
The cost estimate was $40 to $200 million which is too expensive.
The ferry situation in Sitka will be resolved because the cost
estimate for the construction of the road is too expensive for that
option to be weighed. Furthermore, every study has been performed
by either the marine highway system or the Southeast Region of the
department. Mr. Perkins emphasized that the study he proposes
would be performed at headquarters and he would supervise it
personally. He hoped that the study could be completed before the
next legislative session. Mr. Perkins said that there is no
document that provides a step-by-step method for transportation.
Number 406
SENATOR TAYLOR stated that Mr. Allington's study was a step-by-step
study which was drafted and performed at headquarters. Mr.
Alington's study has been buried for the last two and a half years;
now the department wants to perform the same study. Senator Taylor
insisted that this was unacceptable. He asked how many studies
were done in the department before deciding to spend money on the
Glenn Highway; he did not know of any such study. Senator Taylor
expressed the need to rethink this process. Why was the Halibut
Point road constructed halfway and due for completion this summer,
but pushed back two years?
JOSEPH PERKINS said that he could not address that specific road.
He explained that the department attempts to base transportation
construction on need. Alaska has state highways that cannot be
travelled in the Spring, those roads should be dealt with first.
Number 437
SENATOR ADAMS asked if all or part of the projects scheduled for
1996 would be included in the three year STIP. JOSEPH PERKINS
replied yes. The majority of the 1996 projects scheduled for
construction were continued because they were too far along in the
process.
CHAIRMAN RIEGER asked if the projects that the six year book
discussed as slated for construction in 1996 were approved in a
legislative appropriations bill. JOSEPH PERKINS assumed that those
projects had already received legislative authorization. Only
those projects needing to be authorized would be brought forth. If
there are problems with those projects on the list, the department
would like to know of them.
SENATOR LINCOLN was unhappy with the six year plan. She expressed
concern with the priorities laid out by the plan. This document is
difficult to interpret; it is not user friendly. Senator Lincoln
was concerned that the public process was not present in the
development of this plan. Commenting on a document that is not
user friendly is difficult. She said that her district had
approximately 51 percent of the highways in Alaska. Senator
Lincoln did not see a transportation plan for the State of Alaska.
A transportation plan for rural and bush Alaska is needed.
What parallel projects could be impacted by these roads? For
example, economic development would be effected by the
transportation in that area as well as education, and
infrastructure. Senator Lincoln could not grasp all this with the
document before her. She suggested developing a 50 year
transportation plan. Transportation is the key to any development
in Alaska. She further pointed out health issues regarding the
dust problems associated with transportation. In conclusion,
Senator Lincoln requested a short and long term plan that receives
legislative and public review before becoming final.
Number 524
JOSEPH PERKINS informed the committee that John Horn, the Regional
Director of Central Regions, was present. Mr. Horn participated in
the public participation of the plan and could discuss the process
that took place at the regional level.
SENATOR GREEN interjected that her district had input during this
planning process. SENATOR LINCOLN said that perhaps that was
because Senator Green's district was a city. SENATOR GREEN thought
that on the whole a good job was done with the public process.
JOHN HORN, Regional Director of the Department of Transportation &
Public Facilities, specified that he would concentrate his comments
on the ranking criteria and public process in the Central Region.
The department has moved from a regional allocation to determining
the statewide needs of Alaska. The process began with the
Governor's Transportation Initiative in June 1995. After that,
community input was solicited. Communities were informed of the
plan and the department worked with local governments, state and
federal agencies, interest groups, and solicited participation from
citizens. The department then developed ranking criteria; that
criteria was not oriented to any particular area in Alaska.
Therefore, a separate criteria was established for remote roads and
trails not on the contiguous highway system, the marine highway,
TRACK, and rural and urban roads on the contiguous highway system.
Mr. Horn said that the following areas were reviewed:
* possible economic benefits,
* health and quality of life with regards to air and water
quality as well as dust concerns and access to basic
sanitation,
* safety
* intermodal connectivity (if the placement of a road could
eliminate the need for an airport),
* local government contributions (whether that be a right of
way or materials),
* the maintenance priority,
* public support (a project did not receive as much weight if
the public support was weak),
* environmental considerations because most projects require
an environmental impact statement or analysis,
TAPE 96-2, SIDE B
* new access to water sources, landfills, sewage lagoons,
honeybucket sites, health care, airports,
* system preservation such as projects that other groups were
doing which could be correlated with the department's
project,
* other unique factors.
Number 571
Mr. Perkins informed the committee that the Central Region received
about 1,100 different projects which were scored. Those receiving
high enough scores were then sent to the Project Evaluation Board.
He noted that he was a member of the Project Evaluation Board which
enabled him to score other regions. The board then averaged the
scores they had assigned the projects, the final score, and the
booklet was produced. The booklet was sent out to anyone
interested and any comment was welcomed. The process began again
and finally, a booklet was produced in December requesting that
comments be sent by January 8th. This process will be completed
early next week and the final document finished.
JOSEPH PERKINS interjected that the final document also would
receive public comment.
SENATOR LINCOLN pointed out that cities and boroughs have planning
people who are full-time and paid to review such documents as this.
Smaller rural and bush communities do not have the city and borough
councils to review this document. She reiterated that this
document is not user friendly. She asked if these communities had
to request or inform the department of interest in order to review
the document. JOHN HORN clarified that every community received
the document. Through the process, the mailing list increased. In
the central region alone, 500 or 600 booklets were mailed. Mr.
Horn said that they solicited people to participate in the process.
Number 525
SENATOR GREEN asked if a community that maintains its roads and
does not have anything to trade for work on its roads would be
penalized. JOHN HORN was not sure that such a community would
necessarily be penalized. In working with the criteria, some
things have been identified as needing to be changed. For example,
the maintenance which the local government in the Mat-Su took over
was one item number; those need to be two separate items. Mr. Horn
mentioned that a local government could also take over the
maintenance of some like facility in order to reduce the
department's maintenance load.
SENATOR GREEN asked if that meant the local government could go
outside of its city limits. JOHN HORN did not think that the local
charter would allow going outside of the city limits. The dilemma
is that there is no doubling of points; a high maintenance priority
is given points and the local government who wanted to assume the
maintenance received the same points.
CHAIRMAN RIEGER asked if the actual 1996 construction program could
be provided to the committee. According to prior comments,
Chairman Rieger assumed that most of the 1996 projects were
authorized from prior legislative appropriations. Mr. Perkins and
Mr. Horn said that information would be provided. Chairman Rieger
inquired as to what is happening now that the projects have been
prioritized.
Number 485
JOHN PERKINS explained that the department is trying to determine
that the money is going to the correct years. A normal project
development in an urban area would have preliminary engineering one
year, in some cases, two years. Then a design followed by right of
way activity and construction would occur. This entire process
could stretch over six or seven years for a major project. Mr.
Perkins said that the department is trying to free up as much money
as possible for each year. For example, a priority one project
without a design would not be funded for construction in 1996.
Such a project would be funded for design and the construction
dollars would be for 1997. He reiterated that the department is
attempting to balance over $700 million. Mr. Perkins mentioned the
AMATS situation in which the department gives AMATS an amount that
it must utilize in the development of its projects. The AMATS area
develops the projects, the state does not.
Mr. Perkins informed the committee that the department received
hundreds of letters, in fact the board had to convene for an extra
session in order to review the comments. He was pleased with what
the communities have offered; this will create great savings. For
example, communities donating right of way and gravel where
previously the department had to purchase those. Such communities
were ranked higher because of those donations. The ownership of
several highways is being relinquished which decreases the
department's maintenance costs. The project supports communities
who help themselves.
Number 445
CHAIRMAN RIEGER asked if the NHS is controlled by AMATS within
Anchorage or only the community. JOSEPH PERKINS explained that the
NHS must be included in AMATS program; however, it is controlled by
the department.
CHAIRMAN RIEGER inquired as to the level of cooperation or
interaction between the department and people proposing the Prince
of Wales Island and Haines ferries. JOSEPH PERKINS said that the
department funded the second study of this issue. The feasibility
boat study has been completed. Mr. Perkins felt that the
department's relationship and involvement had been good. The
Prince of Wales route is not part of the NHS which would place it
under Community & Regional Program funding.
SENATOR LINCOLN requested a copy of the GAO study. She also asked
if transportation would be considered at the federal level for
block grants to the states for highway money.
Number 415
JOSEPH PERKINS did not believe that block grants for transportation
would be considered. The problem lies in the amount of the funds
per state, not in the fund's delivery. Alaska has flexibility,
similar to that of a block grant, under the "ISTEA" program. Mr.
Perkins expressed concern with the notion that the NHS should only
be funded at a federal level; then the national gas tax is lowered
in the amount of the other programs. If the states then want the
other programs, they would be required to raise their gas or other
tax in order to pay for the programs. Mr. Perkins believed that
this line of thinking is becoming more popular. That scenario
would hurt Alaska badly; Alaska cannot raise the necessary money
for those other projects through a tax increase. Therefore, it is
imperative for Alaska to have as many miles on the NHS as possible.
The NHS is tied into the defense of the U.S. and the commerce of
Alaska. Mr. Perkins pointed out that the plan for the Central and
Northern Regions is to upgrade the NHS.
SENATOR LINCOLN expressed concern with the Northern Region's
reported allegations. How far along is the investigation of those
allegations? JOSEPH PERKINS said that he was watching this. There
are sexual discrimination type allegations. Outside counsel is
performing the investigation. Mr. Perkins indicated that the
investigation would be completed in the next few days. A deputy
has been assigned to the case. Mr. Perkins informed the committee
that he would review the final recommendations from the
investigators. Mr. Perkins emphasized that he would take the
necessary action.
JOSEPH PERKINS agreed to make copies of the GAO report for all the
committee members.
CHAIRMAN RIEGER requested a copy of the 1996 construction program.
JOSEPH PERKINS said that he would also be providing information
regarding transportation and its funding at the federal level.
SENATOR LINCOLN assumed that when the three year plan is out, the
committee would receive copies. JOSEPH PERKINS replied yes.
There being no further business before the committee, the meeting
was adjourned at 2:50 p.m.
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