Legislature(2017 - 2018)BUTROVICH 205
03/30/2017 01:30 PM Senate TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| Overview: Ports & Harbors | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
SENATE TRANSPORTATION STANDING COMMITTEE
March 30, 2017
1:31 p.m.
MEMBERS PRESENT
Senator Bert Stedman, Chair
Senator David Wilson
Senator Dennis Egan
MEMBERS ABSENT
Senator Anna MacKinnon
Senator Click Bishop
COMMITTEE CALENDAR
OVERVIEW: PORTS & HARBORS
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
MICHAEL LUKSHIN, State Ports & Harbors Engineer
Division of Statewide Design & Engineering Services
Department of Transportation and Public Facilities (DOTPF)
Juneau, Alaska
POSITION STATEMENT: Presented an overview of Alaska's ports and
harbors.
ACTION NARRATIVE
1:31:45 PM
CHAIR BERT STEDMAN called the Senate Transportation Standing
Committee meeting to order at 1:31 p.m. Present at the call to
order were Senators Egan, Wilson, and Chair Stedman.
^OVERVIEW: PORTS & HARBORS
OVERVIEW: PORTS & HARBORS
1:32:27 PM
CHAIR STEDMAN announced an overview of Ports and Harbors by the
Alaska Department of Transportation and Public Facilities
(DOTPF).
1:32:59 PM
MICHAEL LUKSHIN, State Ports & Harbors Engineer, Division of
Statewide Design & Engineering Services, Department of
Transportation and Public Facilities (DOTPF), presented an
overview of Alaska's ports and harbors.
1:33:22 PM
MR. LUKSHIN began by showing a map of commercial, private, and
public ports and harbors in Alaska, of which there are over 500.
He said DOTPF only tracks the publically-owned facilities. He
listed the users of ports and harbors: commercial and
recreational fishers and boaters, freight and fuel tug
operators, tourism-related charters, and subsistence hunters and
fishers. Numerous facilities are unable to maintain or repair
aging infrastructure due to lack of local funding and waning
state revenue.
He noted that Alaska lacks a deep water Arctic port, which is a
barrier to providing infrastructure necessary to develop
Alaska's resources and carry out national strategic goals in the
region.
1:34:49 PM
MR. LUKSHIN discussed the purpose of ports and harbors:
Provide for the movement of people and the transfer of
goods and services between coastal destinations and
other transportation modes (airports, ferries, trucks)
Provide access to nearby and distant Alaskan villages
and communities;
Enhance the mobility of a dynamic fishing fleet;
Provide a safe harbor for commercial fishermen, marine
operators, and recreational users;
Provide a waterway portal for the public's benefit.
He commented that there are 43,000 miles of coastline and most
Alaskans live within ten miles of the coast.
1:35:33 PM
MR. LUKSHIN provided details about why Alaska needs ports and
harbors:
Over 62,000 vessels of all types use our waterways.
Alaska does not title boats.
Alaska's fish management system and limited entry
areas and high capital investment in the fishing fleet
require mobility for maximum efficiency.
Harbors are spaced and sized to minimize travel time,
fuel, spoilage, and safety cost factors to ensure a
productive fleet.
Weather is a significant risk for vessels in transit
or engaged in fishing in Alaska's waters.
Public demands access to the waterways for
recreational and cultural pursuits.
1:37:15 PM
MR. LUKSHIN provided DOTPF's perspective:
DOT&PF works with local government to provide
navigation improvements in Alaska
DOT&PF established to manage across all modes
Federal funding is still controlled by mode: air
(FAA), highways (FHWA), transit (FTA), railroad (FRA),
marine (Corps of Engineers)
For federal projects, we only spend the necessary
state funds to match Corps projects. Funds are limited
due to earmarks
Most port and harbor projects are funded entirely with
state funds.
1:38:32 PM
He described what the State Ports and Harbors Engineer does:
Manages DOT&PF investments in navigation projects.
Maximizes federal investment in Alaska's marine
infrastructure.
Provides policy and guidance to regional functions
(i.e., planning, design, construction, maintenance and
operations).
Maintains database of conditions of DOT&PF harbor
facilities and prioritizes harbor M&O projects.
Assists local government with their water
transportation needs, providing technical and
financial assistance.
Administers the 50/50 matching Municipal Harbor
Facility Grant program.
1:39:25 PM
MR. LUKSHIN said DOTPF is the largest harbor owner of harbor
facilities in the state. There are at least 132 harbor
facilities statewide and 102 were built by the state in the
1960s and 1970s. Today, DOTPF manages only 20 harbors and 20
seaplane floats because they have transferred most of them to
municipalities.
1:40:38 PM
MR. LUKSHIN turned to harbor maintenance and operations:
Deferred maintenance backlog = $15.7 million
No dedicated M&O staff
$80K harbor maintenance allocation in SLA16
Average facility age = 29 years, oldest is 66 years
old
Most major harbor maintenance projects cost $1 million
Recently replaced DOT&PF harbor facilities: Hyder
(2010), Port Alexander Inner (2011), Kasaan (2012),
Tenakee (2014), Naukati (2014), Elfin Cove Outer
(2016), Baranof (2016)
In construction: Port Alexander Outer (2017)
1:42:14 PM
SENATOR EGAN noted that when he was the mayor of Juneau, the
state transferred harbors to the City and Borough of Juneau for
10 cents on the dollar and now Juneau must maintain them. He
asked how Port Alexander will afford to maintain its harbor.
MR. LUKSHIN responded that Port Alexander would collect user
fees to maintain its harbor. This project will leave them with
brand new facilities with a 30 to 40 year design life. They
could also use the harbor facility grant program to maximize
local contributions.
SENATOR EGAN pointed out that the deferred maintenance fund is
nearly depleted.
MR. LUKSHIN reiterated that Port Alexander must accept user
fees. He said DOTPF is not doing deferred maintenance in other
places; all available funds will be invested in Port Alexander.
1:44:42 PM
CHAIR STEDMAN noted many user groups use Port Alexander and they
are able to generate funds to pay for their own facilities. The
smaller communities have a hard time accepting that the state
will not build new harbors for free. The matching grant fund
could help them. For example, Gustavus may not be able to
maintain a harbor, but Port Alexander is a commercial harbor.
1:46:09 PM
MR. LUKSHIN explained how harbor facilities are preserved:
Transfer of ownership is the most efficient way for
these assets to be preserved because it:
Promotes local ownership of the facility and the
responsibility to advocate locally for preservation
and quality of facility.
Strengthens the State's position that fees must cover
all expenses, including capital replacement.
Reduces the long term state burden to preserve and
make improvements.
State to local ownership is an objective that
satisfies the administration and legislature.
He stated that to date, there have been 82 harbor transfers. He
showed a graph of transfers per year and which ones are locally
owned and which are DOTPF harbors. He said the first transfer
was to Klawock.
1:47:59 PM
CHAIR STEDMAN asked about Klawock.
MR. LUKSHIN said it was the first transfer they did in 1986.
CHAIR STEDMAN noted that their dock already needs an upgrade.
MR. LUKSHIN replied that Klawock has not contacted DOTPF.
1:48:45 PM
SENATOR EGAN commented that the municipalities had to pay to
upkeep the "free" harbors.
CHAIR STEDMAN requested more information about the harbor
matching grant fund and how facility requests are ranked. He
said it has been a subject of great discussion.
MR. LUKSHIN said he would address that shortly.
1:49:38 PM
MR. LUKSHIN remarked that Juneau received seven harbors in 2003
as part of a general obligation bond, along with $7 million. He
agreed with Senator Egan that it was not enough.
1:50:13 PM
MR. LUKSHIN spoke of types of local government assistance:
Deferred maintenance and transfer (AS 35.10.120), a
formal resolution declaring local government's intent
to take over harbor ownership from DOT&PF
Bond debt service for certain named port and harbor
projects (AS 29.60.700) for Matanuska-Susitna Borough,
Valdez, Akutan, False Pass, Unalaska, Fairbanks North
Star Borough, Fairbanks, Chignik, Nome
Municipal Harbor Facility Grant (AS 29.60.800), a
State 50/50 matching grant program
Corps of Engineer projects (AS 35.10.090), which
requires a formal letter asking for technical and
financial assistance. Federal funding varies depending
on depth and the Corps is 100 percent responsible for
any maintenance dredging.
1:52:32 PM
CHAIR STEDMAN asked for more details on the bond debt service.
He wondered if the Fairbanks and North Slope Borough projects
were for the Chena River.
MR. LUKSHIN explained that they were unique pieces of statute.
The Fairbanks North Slope Borough project was for Eielson
Airforce Base school maintenance and upgrades and the City of
Fairbanks project was for the fire station headquarters
replacement. They were contained in the same legislation as the
harbor and port projects.
CHAIR STEDMAN said they were not port programs, but part of a
political package.
MR. LUKSHIN added that the Mat-Su Borough project was for Port
Mackenzie.
1:54:04 PM
MR. LUKSHIN described the harbor facility grant program:
Purpose: State funding for Small Boat Harbors
State money only for construction projects
State provides 50/50 matching funds with a maximum of
$5 million per municipality per year and a minimum
state match of $50,000
Projects locally inspired and managed
Competitive process
He explained that the grant program is the most successful
harbor program. Once the grant program has been used, the harbor
moves from tier one to tier two status. Over time, the grant
program will ensure that all harbors compete equally. The
department allows for local control on projects. A highlight of
the grant program is the fast delivery timeframe; municipalities
don't have to wait for planning or design work.
1:56:06 PM
CHAIR STEDMAN referred to Senator Egan's concern about the
inequities related to previously transferred harbors and floats.
He provided a historical perspective of the transfer, the lack
of a deferred maintenance program, and the need for a harbor
grant. He said the legislature enacted a 50/50 matching grant
harbor program and a plan for municipalities to charge user fees
after that. He noted that the originally transferred harbors
have the first options for the grant. Communities also have the
option to build their own harbors. If they go to the state for
monies, they must run their harbor as an enterprise fund,
maintain it, and have a sinking reserve. Rate increases to users
have caused some objections.
He noted that small communities can build their own docks. He
used Port Alexander as an example of a community that made use
of the grant. He thought the program worked well and he hoped it
would be in Governor Walker's budget. The old system was not
working any more.
2:01:31 PM
SENATOR EGAN agreed. He described the problem that when harbors
were transferred they were in disrepair and they became a burden
on the municipalities. He noted that there is a very long
waiting list for the grant. He reported that the American
Society of Civil Engineers recently gave Alaska a D plus on
harbors. He asked Mr. Lukshin what DOTPF's solution is for
getting that grade up to a C.
MR. LUKSHIN replied "more investment and higher fees."
CHAIR STEDMAN said at least the state is going in the right
direction from F minus to a D plus. He described the huge
improvements recently made to harbors and did not understand the
reasoning behind the low grade.
He asked for information about the matching grant list.
2:03:58 PM
MR. LUKSHIN explained that DOTPF received seven applications for
this year's harbor facility matching grant program. They had an
aggregate total of $18.1 million. DOTPF ranked the projects; the
highest ranked project was from Wrangell for $5 million,
followed by Sitka for $5 million. Next, were five tier two
projects - Sitka, Valdez, Ketchikan, Kake, and Skagway. He noted
these are requests from the state and the municipalities provide
an equal match for a total of $36 million.
SENATOR EGAN commented that most of the projects are in Senator
Stedman's district.
CHAIR STEDMAN said it is very costly to build your own dock and
drive your own pilings - $40,000 or more per dock. It costs more
to stay in Juneau, but less than if he had to build his own
dock.
2:06:41 PM
MR. LUKSHIN continued with a map that showed the location of
harbor facilities funded by the Municipal Harbor Facility
Grants. The program has broad support from the coastal community
as demonstrated by yearly resolutions. He provided the data on
the grants and local matches, which equaled $169.9 million of
local match offered by municipalities. They have authorized 37
grants this year.
2:07:59 PM
MR. LUKSHIN addressed one Corps of Engineers project using the
positive benefit-to-cost ratio for the Arctic Deep Draft Port
Study:
In 2011, entered into a cooperative joint agreement to
investigate and conduct a study for a deep water port
in the Arctic. They identified fourteen sites for in-
depth study and three sites were short listed and
studied in-depth.
Point Spencer/Port Clarence, requires new 27 mile road
at cost of $137.2 million
Port of Nome
Cape Riley (Teller), new 5.5 mile road at a cost of
$13.7 million
The preferred alternative is to expand the Port of
Nome. They will extend a causeway 2,150 feet and build
a 450 foot long dock. They will deepen port to -28
feet and the ration will be B/C = 1.75.
The Corps suspended the project in October 2015 after
Shell Oil discontinued its oil and gas exploration
activities in the Arctic.
He noted that the current Water Infrastructure Improvements for
the Nation Act would help Nome and provide hope for this project
to happen.
2:12:08 PM
CHAIR STEDMAN drew attention to the problem of floats in Sitka
having invasive species underneath. He asked if DOTPF has an
answer for that issue.
MR. LUKSHIN said he has heard about it, but it seems to be
unique to each harbor.
CHAIR STEDMAN said it is also in Ketchikan and they are trying
to figure out how widespread it is. It has huge impacts for
damage to harbors and would be expensive to fix. Crescent
Harbor, which is on the list to be redone, is one of them. He
thought it needed to be looked into.
MR. LUKSHIN agreed to do so.
2:15:20 PM
CHAIR STEDMAN said another issue is derelict vessels in harbors.
SB 92 is in another committee and addresses that problem.
Another problem is live-aboards, but he did not think the state
had requirements for them.
MR. LUKSHIN thought it was a local issue.
2:17:05 PM
CHAIR STEDMAN asked about the availability of funds for ports
from the federal FAST Act Grant Program.
MR. LUKSHIN offered to help find information about it.
2:18:23 PM
SENATOR EGAN asked for information about unfunded needs of
harbors.
MR. LUKSHIN said he could provide that information.
CHAIR STEDMAN requested more information on the Harbor Matching
Grant Fund.
MR. LUKSHIN offered to provide that information.
2:20:06 PM
There being no further business to come before the committee,
Chair Stedman adjourned the Senate Transportation Standing
Committee at 2:20 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| STWD Ports and Harbors presentation_03-30-17_final.pdf |
STRA 3/30/2017 1:30:00 PM |