Legislature(1997 - 1998)

03/11/1997 01:45 PM Senate TRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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         SB  27 FERRY SYSTEM HEADQUARTERS IN KETCHIKAN                        
                                                                              
 Number 463                                                                    
                                                                               
  CHAIRMAN WARD  announced that  SB 27  was the final order of business        
 before the committee.                                                         
                                                                               
  JOE AMBROSE , Staff to Senator Taylor, read the following sponsor            
 statement into the record:                                                    
                                                                               
 Ten years ago, Acres International, a Canadian firm contracted to             
 study the Alaska Marine Highway System, reported what it termed "an           
 extraordinary degree of mistrust between ship and shore that has              
 its root in the overall relationship between management and staff".           
                                                                               
 Acres stated flatly that "ship systems and operations cannot                  
 function in isolation from the shore, both are interdependent.                
 There must therefore be an effective dialogue between the two,                
 outside union contract negotiations.  Planning forums for the ship            
 to understand management's prerogatives, and the shore to respond             
 to ongoing needs of each vessel are essential".                               
                                                                               
 In the decade since the Acres Report, little has happened to end              
 the isolation between ship and shore and many believe the situation           
 described 10 years ago is worse today.                                        
                                                                               
 SB 27 has been called a "jobs grab" bill, intended to help                    
 Ketchikan's ailing economy.  Such charges are untrue.  Senate Bill            
 27 is intended to end the isolation between the fleet and the                 
 administration.  Locating some or all of the administrative offices           
 on state-owned property adjacent to the Ketchikan terminal would              
 end that isolation and put the administration within walking                  
 distance of the fleet.                                                        
                                                                               
 It is apparent the administration of the Marine Highway feels                 
 threatened by even consideration of this move.  At the end of                 
 November, in reaction to media reports that a bill would be                   
 introduced addressing this issue, the Marine Highway director                 
 prepared a request for proposals.  That RFP called for an economic            
 analysis of relocating the AMHS administrative office to Ketchikan.           
                                                                               
 The RFP had an ambitious timeline.  It was released on December 2,            
 1996 with a proposal deadline three days later, on December 5.  The           
 RFP originally called for completion of this $25,000 study by                 
 January 15.  That deadline has now been extended and a draft report           
 is due by March 15.                                                           
                                                                               
 The system director told the Finance Sub-Committee on the DOT/PF              
 budget that he had received an initial draft, which has been                  
 returned to the contractor for further review.  AMHS has declined             
 to provide the Senate Transportation Committee with a copy of that            
 draft.                                                                        
                                                                               
 The relocation of some or all of the administrative offices to                
 Ketchikan is not a new idea nor was it prompted by concerns over              
 the Ketchikan economy.  It was prompted by a valid concern over the         
 continued isolation of the Marine Highway administration from the             
 very fleet they are hired to manage.                                          
                                                                               
 In response to Senator Lincoln,  CHAIRMAN WARD  confirmed that SB 27          
 would not be passing out of committee today.                                  
                                                                               
  SENATOR LINCOLN  inquired as to Senator Taylor's response regarding          
 the lack of vacant office space in Ketchikan and the need to                  
 construct a building for this purpose.  How much would such a                 
 building cost?   SENATOR TAYLOR  believed that there is available             
 office space, but those offices are about a mile from the terminal.           
 Senator Taylor emphasized the need to have the offices on the site            
 of the terminal which will require a new building.  Senator Taylor            
 informed the committee that the Ketchikan Borough may be willing to           
 provide some, if not all of the finances and lease the building to            
 the state. In response to Senator Lincoln, Senator Taylor indicated           
 that the employees would be given the opportunity to transfer.  He            
 believed that it would be the state's responsibility to pay for the           
 moving costs, if the employee decided to transfer.  However,                  
 Senator Taylor pointed out that it would be an insignificant one              
 time expenditure.  Senator Taylor believed that Mr. Hayden could              
 inform the committee to the cost of the move.                                 
                                                                               
  CHAIRMAN WARD  interjected that SB 27 was being held so that the             
 Administration could provide the committee with a report that is              
 not quite final.  Mr. Hayden would not be testifying today, but he            
 could provide that at the next hearing on SB 27.                              
                                                                               
  SENATOR LINCOLN  asked if some of the offices would remain in                
 Juneau, and if so which positions and what would the additional               
 travel costs be.  Senator Lincoln also inquired of the cost of                
 travel for face to face discussions between the government and the            
 AMHS if located in Ketchikan.                                                 
                                                                               
  CAPTAIN JAN SANDE , Master on the Aurora, concurred with Mr.                 
 Ambrose's comments regarding the Acres' report.  Captain Sande                
 discussed the great communication between the crew and the                    
 administration in the 1960s when the offices were located in                  
 downtown Juneau.  When the sailings moved to Auke Bay, the                    
 communication was lost and the problem has increased every year.              
 Captain Sande believed the move to Ketchikan was important and he             
 supported SB 27.                                                              
                                                                               
  SENATOR LINCOLN  asked how the communication would improve by moving         
 the offices to Ketchikan.   CAPTAIN JAN   SANDE  believed that person         
 to person communication has an aspect not found through                       
 communication on the phone or through writing.  The proximity of a            
 building on the property allows better communication.                         
                                                                               
  TAPE 97-7, SIDE B                                                            
                                                                               
 Captain Sande indicated that personal contact is imperative, there            
 is not time for all the written communication.                                
                                                                               
 Number 580                                                                    
                                                                               
  CAPTAIN   ERV HAGERUP , Columbia, echoed Captain Sande's sentiments          
 regarding the lack of communication between the ship and the shore.           
 The ships and shoreside should be in proximity to have a dialogue.            
 Currently, the ships are ignorant about the goings on with the                
 fleet and often rumors are heard from the Stewards Department.                
 Captain Hagerup recalled that during his 30 years, there have only            
 been three masters meetings with the office.  What other agency has           
 the main people in the field only meet once every 10 years?  In               
 conclusion, Captain Hagerup emphasized the need to address the                
 problems with communication regardless of where the office is                 
 located.  In response to Senator Taylor, Captain Hagerup informed             
 the committee that he had been with the AMHS for about 31 years.              
                                                                               
 In response to Chairman Ward, Captain Hagerup reiterated that not             
 much communication is received from the office.  Captain Hagerup              
 noted that he did have good communication with the port captain to            
 whom he called to determine which rumors were valid.  Better                  
 communication is necessary.                                                   
                                                                               
  CHAIRMAN WARD  asked if anyone else wished to testify.                       
                                                                               
  ROBERT GLENN , 15 year AMHS employee and union representative on the         
 Executive Board, agreed with Captain Sande's, Captain Hagerup's and           
 Mr. Ambrose's testimony.  Mr. Glenn believed it logical to have at            
 least some of Juneau's Central Office (JCO) personnel in Ketchikan            
 due to the other facilities located there.  Mr. Glenn agreed with             
 Mr. Ambrose's comments regarding the Acres report and hoped the               
 committee would address the concerns presented in that report.  Mr.           
 Glenn said that he had given Senator Taylor a brief report.                   
 Communication is a problem.  Mr. Glenn said that dispatching would            
 be an appropriate area to move to Ketchikan in order to better                
 communication regarding grievances.                                           
                                                                               
 Mr. Glenn emphasized the need to downsize the support services of             
 JCO no matter its location.  The JCO positions should be reviewed             
 and determinations regarding the importance, efficiency and money             
 made from the positions should be done.  The managers on the AMHS             
 have done just that on the ship for years.  Mr. Glenn noted the               
 growth of the JCO.  Mr. Glenn stressed the importance to know from            
 where the money to move the facility to Ketchikan would come.                 
 Taking money from the operating budget for that purpose would be              
 unacceptable.  Mr. Glenn discussed a scenario in which the ferries'           
 schedule is not amenable, services decrease and the prices rise               
 which result in less riders.  Mr. Glenn also pointed out that JCO             
 does not participate in the winter reduction that the ferry crew              
 experiences each year.                                                        
                                                                               
  CHAIRMAN WARD  noted that Senator Taylor had shared the report with          
 the committee.  With regard to the money being taken from the                 
 operations budget, Senator Taylor has shared that concern with the            
 committee as well.  Chairman Ward asked if anyone else wished to              
 testify.  Hearing none, Chairman Ward held SB 27 at the request of            
 the Administration.                                                           
                                                                               
  JOE AMBROSE  requested that the initial draft of the report be               
 submitted to the committee by Mr. Hayden in order to track the                
 changes requested by DOT.   CHAIRMAN WARD  stated that Mr. Hayden             
 agreed to provide that initial report.                                        
                                                                               
 There being no further business before the committee, the meeting             
 was adjourned at 2:45 p.m.                                                    

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