04/06/2006 01:30 PM House TRANSPORTATION
| Audio | Topic |
|---|---|
| Start | |
| SB304 | |
| HB397 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HCR 38 | TELECONFERENCED | |
| += | HB 397 | TELECONFERENCED | |
| += | SB 304 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE TRANSPORTATION STANDING COMMITTEE
April 6, 2006
1:36 p.m.
MEMBERS PRESENT
Representative Jim Elkins, Co-Chair
Representative Carl Gatto, Co-Chair
Representative Vic Kohring
Representative Woodie Salmon
MEMBERS ABSENT
Representative Mark Neuman
Representative Bill Thomas
Representative Mary Kapsner
COMMITTEE CALENDAR
SENATE BILL NO. 304
"An Act relating to the privileges of airport parking shuttles
and to fees or charges imposed on a person who is not a lessee
or holder of a privilege to use the property or a facility of an
airport."
- MOVED HCS SB 304(TRA) OUT OF COMMITTEE
HOUSE BILL NO. 397
"An Act making an appropriation for an upgrade of signal system
emergency devices in Anchorage, contingent upon matching funds
from the Municipality of Anchorage; and providing for an
effective date."
- MOVED HB 397 OUT OF COMMITTEE
HOUSE CONCURRENT RESOLUTION NO. 38
Urging the Department of Transportation and Public Facilities to
use the Alaska marine highway system fast ferries efficiently by
deploying the fast ferries in northern Lynn Canal and Prince
William Sound beginning in the summer of 2006, and to provide
data regularly to the affected communities to enable the
communities to evaluate the service effectively.
- BILL HEARING POSTPONED
PREVIOUS COMMITTEE ACTION
BILL: SB 304
SHORT TITLE: AIRPORT PARKING SHUTTLES/AIRPORT CHARGES
SPONSOR(s): TRANSPORTATION
02/21/06 (S) READ THE FIRST TIME - REFERRALS
02/21/06 (S) TRA, FIN
02/28/06 (S) TRA AT 1:30 PM BUTROVICH 205
02/28/06 (S) Heard & Held
02/28/06 (S) MINUTE(TRA)
03/09/06 (S) TRA AT 1:30 PM BUTROVICH 205
03/09/06 (S) Moved SB 304 Out of Committee
03/09/06 (S) MINUTE(TRA)
03/10/06 (S) TRA RPT 1DP 2NR
03/10/06 (S) DP: HUGGINS
03/10/06 (S) NR: KOOKESH, FRENCH
03/14/06 (S) FIN AT 9:00 AM SENATE FINANCE 532
03/14/06 (S) Heard & Held
03/14/06 (S) MINUTE(FIN)
03/17/06 (S) FIN RPT 6DP
03/17/06 (S) DP: WILKEN, GREEN, BUNDE, OLSON, DYSON,
STEDMAN
03/17/06 (S) FIN AT 9:00 AM SENATE FINANCE 532
03/17/06 (S) Moved SB 304 Out of Committee
03/17/06 (S) MINUTE(FIN)
03/20/06 (S) TRANSMITTED TO (H)
03/20/06 (S) VERSION: SB 304
03/22/06 (H) READ THE FIRST TIME - REFERRALS
03/22/06 (H) TRA, FIN
03/28/06 (H) TRA AT 1:30 PM CAPITOL 17
03/28/06 (H) Heard & Held
03/28/06 (H) MINUTE(TRA)
04/06/06 (H) TRA AT 1:30 PM CAPITOL 17
BILL: HB 397
SHORT TITLE: APPROP: ANCHORAGE SIGNAL UPGRADE
SPONSOR(s): REPRESENTATIVE(s) ANDERSON
01/25/06 (H) READ THE FIRST TIME - REFERRALS
01/25/06 (H) TRA, CRA, FIN
02/21/06 (H) TRA AT 1:30 PM CAPITOL 17
02/21/06 (H) -- Meeting Canceled --
03/28/06 (H) TRA AT 1:30 PM CAPITOL 17
03/28/06 (H) Heard & Held
03/28/06 (H) MINUTE(TRA)
04/06/06 (H) TRA AT 1:30 PM CAPITOL 17
WITNESS REGISTER
RYAN MAKINSTER, Staff
to Senator John Cowdery
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented SB 304 on behalf of Senator
Cowdery, sponsor.
JOHN TORGERSON, Deputy Commissioner
Highways and Public Facilities
Department of Transportation & Public Facilities
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to SB 304.
JOHN BARSALOU, Property Director
Anchorage International Airport
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to SB 304.
JOHN KIEWIK
Municipality of Anchorage
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 397.
CRAIG GOODRICH, Chief
Anchorage Fire Department
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 397.
ACTION NARRATIVE
CO-CHAIR CARL GATTO called the House Transportation Standing
Committee meeting to order at 1:36:25 PM. Representatives
Gatto, Elkins, Kohring, and Salmon were present at the call to
order.
SB 304-AIRPORT PARKING SHUTTLES/AIRPORT CHARGES
CO-CHAIR GATTO announced that the first order of business would
be SENATE BILL NO. 304, "An Act relating to the privileges of
airport parking shuttles and to fees or charges imposed on a
person who is not a lessee or holder of a privilege to use the
property or a facility of an airport."
CO-CHAIR ELKINS moved Amendment 1, labeled 24-LS1678\F.2, Kane,
4/6/06, as follows [original punctuation provided]:
Page 1, lines 2-3:
Delete "holder of a privilege to use the property
or a facility"
Insert "concessionaire"
Page 2, lines 8-9:
Delete "person holding a privilege to use the
property or facility"
Insert "concessionaire of the airport"
Page 2, line 10, following "person":
Insert "as a condition of on-site access to
customers who use the airport facility, unless the
charge, rental, or fee was in existence before January
1, 2006, and this exception is not affected if the
department amends, increases, or decreases a charge,
rental, or fee that was in effect before January 1,
2006"
RYAN MAKINSTER, Staff to Senator John Cowdery, Alaska State
Legislature, said, "The bill removes the ability to charge
percent-of-gross revenue for off-airport establishments," and
on-airport services are exempt. It was brought to his attention
that the bill would affect other ratepayers, and he explained
that off-airport rental facilities already pay 8 percent of
gross revenue. So without the amendment, the bill will affect
that group of business people, he stated. Amendment 1 keeps the
intent of the bill while excluding all users that already pay
such a fee. He said those companies have "obviously been
comfortable" with those fees. But the amendment says that the
off-airport parking company or any new facility cannot be
charged the same way for access to the airport.
CO-CHAIR GATTO asked if [the fee system] would default to
another system, or if that would be negotiated.
MR. MAKINSTER said, "Right now it's kind of defaulting to what
system they're working on; right now they have a fee schedule.
We're not dictating, necessarily, the fee schedule or system
that the airport has. We're just saying, unless you're a small
group, you're on-air, or you're currently being charged by gross
revenue, you won't be charged by that computational method.
We're not putting a limit on prices, what the fees are, what
they may be. That's been up to the discretion of the department
before, and we're not changing that. We're just saying that you
cannot go into a private entity's books to fulfill the
obligation to decide fees."
1:39:25 PM
CO-CHAIR GATTO asked if any system that pertains to gross
revenue would have to be across the board for concessions,
parking, taxis, or anything else.
MR. MAKINSTER said no, only for similar services. "They're
receiving a different privilege depending on the different
service groups, so a rental car agency would, in fact, be
different than a shuttle agency," he said. It is defined by
similarity of business, he explained.
1:40:21 PM
DAN COFFE, Attorney, Diamond Parking, said he once owned a
rental car company and fought paying this fee then, but he
doesn't care if the car rental companies remain in the bill or
not. He said rental car companies won't "flee the airport" if
"we stop charging a $250 or small percentage fee to off-airport
operators." He said they are "trying to blow smoke at you." He
stated, "What we are trying to accomplish here, is have a
reasonable and appropriate fee for using the curb service
applicable to those of us who are operators of shuttle
companies." There are a variety of shuttles, including hotel
operators and Diamond Parking, he said, and the airport wants to
charge Diamond Parking a fee of 8 percent of its gross receipts.
Eight percent of their receipts would be $108,000 per year, and
he believes it is contradictory to existing law, which requires
reasonable fees. He said he was told his company was using the
entire airport because the parking lot would not be there unless
the airport existed. That is a disingenuous argument, he
opined. He said he told the airport to charge per trip, by
permit, or per head for all shuttle companies, "but don't be
seeking to tax us with a percentage of the gross revenue."
1:43:24 PM
MR. COFFE, in response to Co-Chair Gatto, said Diamond Parking
is not on airport property.
CO-CHAIR GATTO said the airport makes a good argument of "no
airport, no clients."
MR. COFFE said you could extend that to a lot of other
businesses that depend on travelers coming to Alaska.
CO-CHAIR GATTO asked if the airport gets part of the bed tax.
1:44:09 PM
MR. COFFE said no; "we keep all the bed tax for the citizens of
Anchorage." The problem is compounded by the fact that Diamond
Parking provides very good service, and the airport should have
a competitive advantage on the airport property. "Instead
they've sought to impose this, we call it a tax, gross receipts
tax on an off-airport enterprise, and, frankly, Diamond Parking
is the only one that they've addressed this to." It is like
getting the money from the private sector instead of making
their airport parking a better service, he stated. He said
Diamond Parking had offered to install an automatic counting
mechanism, and it was turned down.
1:45:52 PM
CO-CHAIR GATTO noted that there is an airport facility being
built for rental cars and asked Mr. Coffe if he foresees a
better competitor.
MR. COFFE said he was previously involved with the on-airport
parking garage, and the airport was very receptive to that. The
car rental companies were willing to impose a fee on themselves
to pay for it. The notion of the major car companies fleeing
the airport if the off-airport companies are not taxed mystifies
him. The small companies have a 1 percent market share. The
statute shows that fees are meant to be commensurate with the
amount of the airport that is used, he said.
1:47:37 PM
CO-CHAIR GATTO noted that the car companies took on that
expense, but actually, when he rents a car it is listed as a
separate expense. "They're not picking up any part of it." It
went up to 10 percent in no time, he said.
MR. COFFE said that is true, and he said "we" were the impetus
behind the project and willing to take the risks of what it
might do to business. He listed the taxes that are added to the
cost of renting a car and asked how many people would go
elsewhere to rent a car.
1:49:07 PM
JOHN TORGERSON, Deputy Commissioner of Aviation, Department of
Transportation & Public Facilities, said he hasn't had time to
look at the amendment. The airport is reaching out and charging
fees for an off-airport business, and this bill does not
preclude it from doing that but only prohibits it from using the
gross revenue as a way of collecting fees, he said. He added
that it is not true that the bill is not telling the airport
what to collect. He told the committee to read page 2, line 22,
where it puts airport parking shuttles in with courtesy cars.
"There is a regulation and fee structure already set for that,
which is one of the lowest at the airport."
CO-CHAIR GATTO asked what the courtesy car fee is.
JOHN BARSALOU, Property Director, Anchorage International
Airport, said it is $250 or $500 per vehicle per year.
CO-CHAIR GATTO asked about the size of the shuttle.
MR. BARSALOU said it depends on the class of business, and there
are six different classes of ground transportation.
CO-CHAIR GATTO said he wants to confirm that it is $500 for the
first vehicle and $50 for each vehicle thereafter, per year. He
asked if that is for any size shuttle, from a car to a bus.
1:53:20 PM
CO-CHAIR GATTO noted that the total cost for the year for
Diamond Parking is probably $750 per year, and the airport plan
would raise it to $108,000, and that is why the bill is in front
of the committee, as well as amendment 1.
Hearing no objections, Amendment 1 carried.
CO-CHAIR ELKINS moved to report SB 304, as amended, out of
committee with individual recommendations and the accompanying
fiscal notes. Hearing no objection, HCS SB 304(TRA) passed out
of the House Transportation Standing Committee.
1:55:13 PM
HB 397-APPROP: ANCHORAGE SIGNAL UPGRADE
CO-CHAIR GATTO announced that the final order of business would
be HOUSE BILL NO. 397, "An Act making an appropriation for an
upgrade of signal system emergency devices in Anchorage,
contingent upon matching funds from the Municipality of
Anchorage; and providing for an effective date."
REPRESENTATIVE MAX GRUENBERG, Alaska State Legislature,
presented HB 397 as sponsor. He showed an Anchorage map showing
where "opticoms" are needed and where ones are currently
located. He said upgrades are in the process so that an
emergency vehicle can press a button and the [traffic] light
will turn green. The vehicle can then proceed safely, he said.
1:57:32 PM
JOHN KIEWIK, Municipality of Anchorage, said he doesn't have the
map, but he would like [opticoms] to be [at every intersection].
He added that some corridors have been installed.
1:59:17 PM
CO-CHAIR GATTO asked about a quantitative reduction in
collisions from the installation of the devices.
CRAIG GOODRICH, Chief, Anchorage Fire Department, said for any
fires in the Muldoon area, it is quite a run from the closest
fire stations. With opticoms, truck five can beat station three
into the Chugach foothill, he stated, and that illustrates a
dramatic decrease in response time. He said time is the most
important factor for emergency vehicles. Without opticoms,
other vehicles do unsafe things, but with them, the light turns
green, and cars proceed normally. The use of the devices
factors heavily into the city's master plan. "If we do not have
any definitive change in the way we're doing business, in 50
years the operating expense for the fire department is going to
approach $300-350 million."
2:03:28 PM
MR. GOODRICH said with sprinkler ordinances and opticoms, the
department can maximize the efficiency of station locations and
reduce the number of stations and vehicles, saving the public a
considerable amount of money.
CO-CHAIR GATTO asked if opticoms would negate the next fire
station.
MR. GOODRICH said absolutely. He said EMS may need a facility,
but with opticoms, the next fire station may not be needed.
2:05:47 PM
CO-CHAIR GATTO said each one costs $1,000, and asked if all are
already installed on the vehicles.
MR. GOODRICH said all the vehicles have them.
CO-CHAIR GATTO said only the installation on the traffic lights
is needed, and he asked who maintains them.
MR. GOODRICH said the ambulances have them but not the trucks.
The municipality maintains them, he stated.
2:07:03 PM
CO-CHAIR ELKINS moved to report HB 397 out of committee with
individual recommendations and the accompanying fiscal notes.
REPRESENTATIVE SALMON asked if it will complete all the signals.
MR. GOODRICH said it comes very close, and as other
intersections are improved, the opticoms will be included.
CO-CHAIR GATTO asked what the price is for each traffic light
and how many are needed.
MR. GOODRICH said it is $15,000 per intersection, and the state
and municipal specifications now require them, so it is built
into all new and rehabilitated intersections.
2:09:16 PM
MR. GOODRICH said, in response to Co-Chair Gatto, that opticoms
are used in Fairbanks, Kenai, and Juneau.
REPRESENTATIVE GRUENBERG said he had a recent ambulance trip,
and he learned that opticoms are at all signals in Juneau.
Hearing no objections, HB 397 passed out of the House
Transportation Standing Committee.
2:10:43 PM
ADJOURNMENT
There being no further business before the committee, the House
Transportation Standing Committee meeting was adjourned at
2:10:50 PM.
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