Legislature(2009 - 2010)BUTROVICH 205
03/18/2010 01:00 PM Senate TRANSPORTATION
| Audio | Topic |
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| Start | |
| SB152 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 152 | TELECONFERENCED | |
SB 152-TRANSPORTATION; TRANSIT AUTHORITIES
VICE CHAIR LINDA MENARD announced the consideration of SB 152.
1:03:33 PM
JODY SIMPSON, Staff to Senator Charlie Huggins, introduced SB
152 on behalf of the sponsor. She spoke to the following sponsor
statement: [Original punctuation provided.]
The Municipality of Anchorage and the Matanuska-
Susitna Borough have approved a Memorandum of
Agreement that commits both entities to cooperate in
the development of a Regional Transit Authority
("RTA") for the purpose of increasing commuter service
between the two communities.
It is important to plan for regional transit service
in South-central Alaska now so that we are prepared
for the future. Conservative estimates indicate that
more than 14,000 people commute between Mat-Su and
Anchorage every day and this number is projected to
grow to 30,000 within 15 years. Fluctuating fuel
costs and over-capacity roadways are driving the
public demand for transit service to record highs.
Park-and-ride lots are overflowing and bus services
in both Anchorage and Mat-Su are experiencing double-
digit ridership growth, with over 700 people on a
waiting list for vanpools.
Thousands of RTAs exist in communities large and small
across the nation and are a proven effective and
efficient approach to managing cross-jurisdictional
service. These authorities plan and deploy multi-modal
services that are funded by a variety of sources,
including federal, state, and local contributions and
"fare box" revenue.
Enabling legislation is required to create RTAs There
is precedent in Alaska for forming multi-
jurisdictional authorities: The Municipal Port
Authority Act, Alaska Statutes 29.35.600 - .730,
provides for the establishment of port authorities by
one or more municipalities, and the Regional Solid
Waste Management Authority Act, Alaska Statutes
29.35.800 - .925, provides for the establishment of
regional solid waste management authorities. SB 152
will provide the framework to authorize the RTA and
empower it to enter into contracts; accept
contributions, grants, or loans from any public or
private agency; incur obligations and issue bonds; and
acquire, manage, and convey real property in
furtherance of its mission.
The creation of an RTA is recommended in both the
Anchorage and Mat-Su Borough Long Range Transportation
plans, as well as in a 2002 Commuter Rail Study that
was commissioned by the Alaska Railroad Corporation.
By planning regionally, we can best meet increasing
demands on Alaska's busiest commuter corridor and
manage the integrated system as it matures.
1:14:24 PM
MS. SIMPSON noted that this framework differs from the Regional
Solid Waste Management Act and the Port Authority Act in two
ways. First, the requirement for a public vote was not included
in this legislation. Second, a taxing authority is not included.
Ms. Simpson offered her understanding that, "By deleting this
from the template that we have here in front of us, thereby we
do have taxing authority for this RTA."
She highlighted key actions for transitioning to a regional
transit authority including public involvement, identification
of services and resources, and planning.
1:17:10 PM
CHAIR MENARD asked how many other states have established RTAs.
MS. SIMPSON offered to provide the information.
CHAIR MENARD asked what other municipalities have expressed an
interest.
MS. SIMPSON replied received inquiries from the Fairbanks North
Star Borough (FNSB) and the Southwest Alaska Municipal
Conference (SWAMC). She added that the Interisland Ferry
Authority was created years ago under the Port Authority.
CHAIR MENARD asked if she'd heard from the Kenai Peninsula.
MS. SIMPSON said no.
SENATOR PASKVAN asked where the taxing authority is found in the
bill.
MS. SIMPSON replied, "The bill is silent on that at this point
because the other templates include a section that says they
will not have taxing authority. By virtue of omitting that for
this bill, it is included."
SENATOR PASKVAN referred to AS 29.35.756 and pointed out that a
taxing authority is not defined within the definitions of powers
and duties.
MS. SIMPSON deferred further explanation to the Mat-Su Borough
attorney.
SENATOR DAVIS expressed a desire to hear from Department of
Transportation and Public Facilities (DOTPF).
1:21:15 PM
NICK SPIROPOULOS, Attorney, Mat-Su Borough, explained that the
Alaska Constitution says the state may delegate taxing powers
only to cities and boroughs and they must have a minimum level
of tax-levying jurisdiction. When the bill was drafted
Anchorage, which is a Home Rule municipality, was of the opinion
that it might one day explore the idea of whether or not it
could delegate taxing authority to the regional transit
authority. He opined that as a second class borough, Mat-Su
would not have that authority under state law.
1:24:39 PM
BRUCE CARR, Director of Strategic Planning, Alaska Railroad
Corporation (ARRC), described SB 152 as a step forward in
developing a public transportation system in Alaska. He reported
that the sole purpose of the 2001-2002 report that the ARRC
commissioned was to identify specific requirements for
implementing commuter rail service between the Mat-Su Valley and
Anchorage. The primary recommendation coming out of the report
was to establish an RTA.
MR. CARR pointed out that current federal policy is shifting
funds away from the federal highway system in favor of public
transportation. Because the federal highway system in Alaska is
90 percent federally subsidized, this could have a significant
impact on the availability of funds to maintain highways such as
the Parks, Glenn, Richardson, and Sparrevohn. Mr. Carr
encouraged the committee to include in the legislation the
ability for RTAs to use financial tools even if there are no
plans to use them initially.
1:28:12 PM
JENNIFER WITT, Chief of Planning, Central Region, Department of
Transportation and Public Facilities (DOTPF), said neither the
department nor the administration have taken a position on SB
152. However, she was asked to provide information for the
record.
MS. WITT highlighted that fare box receipts generally do not
cover the cost of operation in public transportation systems.
Ultimately support from local government is needed. This isn't
addressed in the bill. The bill is also silent on the impact an
RTA might have on the existing Anchorage Metropolitan Area
Planning Solutions (AMATS). It could trigger the requirement to
expand the AMATS boundaries to include those of the RTA, which
would change the representation on the metropolitan planning
organization (MPO). The unintended consequence is that because
of the way DOTPF administers federal money to the MPO, the
combined funding for Mat-Su Borough and Anchorage could be
affected.
CHAIR MENARD asked if she feels that the legislation would
dilute AMATS.
MS. WITT replied it would complicate the decision-making and if
Mat-Su became an MPO it would reduce the federal funding.
1:31:39 PM
SENATOR PASKVAN asked her to comment on Mr. Carr's statement
that establishing RTAs fits with the federal policy shift away
from federal highways toward public transportation.
MS. WITT said she agrees and DOTPF doesn't know how this will
affect funding.
SENATOR DAVIS asked why DOTPF hasn't taken a position on the
bill and what it is doing to assess whether or not establishing
an RTA is the right direction to go.
MS. WITT deferred the question and offered her understanding
that the administration has not taken a position.
SENATOR DAVIS mentioned the concern that an RTA could affect
AMATS and asked if this has been a problem in other
jurisdictions.
MS. WITT replied it's fairly clear that re-designation would
have to occur to include the Mat-Su, but this hasn't been
confirmed absolutely.
1:36:14 PM
SENATOR DAVIS questioned how DOTPF could have analyzed the
fiscal impact as zero.
MS. WITT deferred to Ms. Simpson.
SENATOR DAVIS responded that she wants any information she has,
but she also wants to hear from the department.
MS. SIMPSON said she has had a number of conversations with the
department and at this time there is no request for state
funding to put this in place. She provided examples of how
transit authorities nationwide fund their efforts.
MS. SIMPSON acknowledged that DOTPF hadn't spent much time
vetting the bill and that changes were likely. She cited an
April 2009 letter from the MOA and the Mat-Su Borough to deputy
commissioner Frank Richards describing how they would handle the
potential expansion of the MPO. She added that Anchorage has
applied for a $284,000 block grant through the U.S. Department
of Energy that would go toward developing an RTA. The Mat-Su
Borough applied for a similar $50,000 grant and she understands
they have been appropriated.
1:41:54 PM
ALTON STAFF, Planning Manager, People Mover, said he is
available to answer questions.
1:42:16 PM
CHRIS ROSE representing himself, told the committee that he is
also the executive director of the Renewable Energy Alaska
Project (REAP). He said there are many good reasons to establish
RTAs and efficiency is high on the list. This basic structure is
in place nationwide and is necessary to move Anchorage and Mat-
Su into the 21 century of transportation. A lot of work has
already been done to establish commuter rail service in the
area, but the service can't be put in place without establishing
an RTA. This has been a stumbling block for almost a decade. He
pointed out how much money the community exports to buy gasoline
and that those dollars could be re-circulated back into the
community if more people were able to use public transportation.
1:46:38 PM
MARK MASTELLER, representing himself, said he is the director of
Cascadia Region Green Building Council and a member of the Mat-
Su Borough Planning Commission. He stated support for SB 152,
the enabling legislation for establishing RTAs. This is a
critical tool to help with energy conservation and
transportation planning. He said he would like the legislation
to provide the RTA with revenue raising authority.
1:48:24 PM
BRAD SWORTS, Transportation Planning Manager, Mat-Su Borough,
stated support for SB 152 to allow creation of an RTA to
regionally coordinate transit services for a more efficient and
financially stable system. It will reduce congestion, increase
safety, and reduce wear and tear on highways, he said. Public
transportation in the area is already at capacity. Pursuant to
signing the MOA, Anchorage and Mat-Su appointed representatives
to work on the project and authorized funding requests for the
RTA in their annual legislative budgets. He confirmed that the
Mat-Su Borough has received $50,000 to do planning for an RTA.
1:51:57 PM
TIAYA WAGGONER, Alaska Youth for Environmental Action, reported
that about 14,000 cars commute between the Mat-Su Valley and
Anchorage every day. By 2025 Mat-Su is projected to have a
population in excess of 500,000 and she foresees more gridlock
and more pollution contributing to global climate change. Public
transportation between the Mat-Su Valley and Anchorage is
already inadequate. She urged the committee to pass SB 152 in
order to create an RTA and make it possible to develop a
reliable transportation system in Alaska.
1:54:08 PM
CAITLIN HIGGINS, Executive Director, Alaska Conservation
Alliance and Alaska Conservation Voters, said that SB 152 would
allow RTAs and clear the way for municipalities to innovate and
cooperate to meet transportation needs. Cities and boroughs
could share resources, get the most from existing
infrastructure, and ensure thoughtful decision making about
transportation. According to the American Public Transportation
Association, there were about 578 RTAs nationwide in 2007. The
RTA in the Anchorage/Mat-Su area would decide on the best mix of
public transportation options and would likely be the entity to
operate commuter rail.
As the federal government dedicates more funds to public
transportation, Alaska can expect to receive less federal
transportation funding for roads. Forming regional transit
authorities would give communities an advantage in attracting
federal transportation funds and help them get the most out of
these funds through wise expenditures.
MS. HIGGINS encouraged the committee to include in the bill the
ability for the RTA to raise revenue to ensure ongoing reliable
funding of transit. Public transportation reduces congestion and
road maintenance while it increases safety, and cuts down on
particulate and greenhouse gas pollution. Promoting RTAs brings
Alaska one step closer to safer, less congested roads and a
healthier environment.
MS. HIGGINS encouraged the committee to pass SB 152 or a similar
bill this year. It creates more transportation options. By
planning regionally Alaskans can better meet increased demands
on transportation and manage an integrated system into the
future, she said.
LAMARR ANDERSON, Interim Executive Director, Mat-Su Community
Transit (MASCOT), related that MASCOT is a nonprofit
organization that provides public and partransit in the Mat-Su
Valley and commuter service to Anchorage. Between 70 and 80
percent of their service is to meet transit needs of seniors,
the disabled, and human service agency clients. The need for
community public transportation is abundantly clear, but
operational funding is the Achilles' heel, he said.
MR. ANDERSON said that MASCOT is a prime example of the problem
of Alaska's sustainable operational funding sources for public
transit organizations. Due to a shrinking supply of eligible
matching funds, MASCOT has had to cut its drivers, vehicle hours
and miles traveled by about half since last fall. Needs haven't
changed, just the ability to meet these needs. In Alaska only
federal and local funds are available for operational expenses
and the federal funds require a local match. Local nonprofits
have been very supportive, but local funding is limited and
provides no assurance of long-term continuity and
sustainability. "Senate Bill 152 would be a significant remedy
of help and addition to the equation, not just for MASCOT, but
for all public transit in the state."
2:01:48 PM
LOIS EPTEIN, Director, Alaska Transportation Priorities Project
(ATPP), said she is an engineer and she is paying attention to
regional transit authorities nationwide. She reported that as of
2007 the American Public Transportation Association had
identified 578 RTAs located in every state except Wyoming and
Alaska. It would make sense for Alaska to move in this
direction, she said. It would make for a smarter and more
efficient decision-making process.
ALLI HARVEY, Sustainable Communities Program Director, Alaska
Center for the Environment (ACE), said ACE is fully in support
of SB 152, the enabling legislation to allow formation of
regional transit authorities. ACE focuses primarily on quality
of life issues in Southcentral Alaska and this bill is a giant
step forward. Thousands of people commute daily between Mat-Su
and Anchorage, which is expensive and time consuming. It is
important that there are other options available for these
people to get to their jobs. The Alaska Center for the
Environment encourages the committee to move SB 152 from
committee, she said.
2:05:15 PM
SENATOR MENARD closed public testimony.
SENATOR DAVIS said she certainly supports the bill and believes
it's needed. That's been the overwhelming testimony, but DOTPF
isn't providing any guidance for moving forward and doesn't have
any more information to provide than it did a year ago when the
bill was first introduced. For example, the bill doesn't address
the taxing authority or planning. Public testimony may be closed
but, "At this point I'm not ready to move this bill out of this
committee," she stated. Maybe finance will address some of these
questions, but the transportation department should be driving
this legislation and it isn't even taking a stand.
2:07:25 PM
SENATOR PASKVAN echoed Senator Davis' comments. The fact that
the department's chief planner for the region has taken no
position on the bill is troubling, he said. If the federal
government is going to be moving subsidies away from highways
toward regional transportation authorities, then DOTFP should
provide the committee with their understanding of that and their
plans for the future.
2:09:14 PM
MS. SIMPSON related that the bill was introduced late last
session and the municipalities renewed their MOA in October. The
sponsor didn't want to do more work on the bill until that had
been signed so it's not DOTPF's fault that a year has passed.
This conversation is just beginning.
CHAIR MENARD stated support for the bill.
SENATOR PASKVAN said he thinks there is unanimous support for
the bill, but it needs work. He asked the sponsors intention.
MS. SIMPSON replied the sponsor realizes that this is a new
issue and although it has great support, there are a lot of
questions to address. Clearly, DOTPF needs to be a part of the
conversation.
CHAIR MENARD announced she would hold SB 152 awaiting clarifying
information from the Department of Transportation and Public
Facilities (DOTPF).
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