Legislature(1993 - 1994)

11/04/1993 01:30 PM House TRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
         JOINT SENATE AND HOUSE TRANSPORTATION COMMITTEE                       
                          Anchorage, AK                                        
                        November 4, 1993                                       
                            1:30 p.m.                                          
                                                                               
  SENATE MEMBERS PRESENT                                                       
                                                                               
  Senator Bert Sharp, Chairman                                                 
  Senator Randy Phillips, Vice Chairman                                        
  Senator Georgianna Lincoln                                                   
  Senator Tim Kelly                                                            
                                                                               
  SENATE MEMBERS ABSENT                                                        
                                                                               
  Senator Jay Kerttula                                                         
                                                                               
  HOUSE MEMBERS PRESENT                                                        
                                                                               
  Representative Richard Foster, Chairman                                      
  Representative Gary Davis, Vice Chairman                                     
  Representative Bill Hudson                                                   
  Representative Curt Menard                                                   
  Representative Jerry Mackie                                                  
  Representative Eldon Mulder                                                  
  Representative Al Vezey                                                      
                                                                               
  HOUSE MEMBERS ABSENT                                                         
                                                                               
  All members present                                                          
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Senator Suzanne Little                                                       
  Senator Steve Rieger                                                         
  Representative Gail Phillips                                                 
  Representative Ron Larson                                                    
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  DEPARTMENT OF TRANSPORTATION & PUBLIC FACILITIES STATEWIDE                   
  PRIORITIZATION PLAN                                                          
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  BRUCE CAMPBELL, Commissioner                                                 
  Department of Transportation and Public Facilities                           
  3132 Channel Dr.                                                             
  Juneau, AK  99801-7898                                                       
  Phone:  465-3901                                                             
                                                                               
  MIKE MCKINNON, Director                                                      
  Planning                                                                     
  Headquarters                                                                 
  Department of Transportation and Public Facilities                           
  3132 Channel Dr.                                                             
  Juneau, AK  99801-7898                                                       
  Phone:  465-4070                                                             
                                                                               
  JOHN HORN                                                                    
  Central Region                                                               
  Department of Transportation and Public Facilities                           
  P.O. Box 196900                                                              
  Anchorage, AK  99519-6900                                                    
  Phone:  266-1440                                                             
                                                                               
  STEVE SISK                                                                   
  Northern Region                                                              
  Department of Transportation and Public Facilities                           
  2301 Peger Rd.                                                               
  Fairbanks, AK  99709-5316                                                    
  Phone:  451-2210                                                             
                                                                               
  JON SCRIBNER                                                                 
  Southeast Region                                                             
  Department of Transportation and Public Facilities                           
  6860 Glacier Hwy.                                                            
  Juneau, AK  99801-7999                                                       
  Phone:  465-1763                                                             
                                                                               
  JOHN TOLLEY, Chief                                                           
  Planning & Administrative Services                                           
  Central Region                                                               
  Department of Transportation and Public Facilities                           
  P.O. Box 196900                                                              
  Anchorage, AK  99519-6900                                                    
  Phone:  266-1462                                                             
                                                                               
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
  SENATE TAPE 93-23, SIDE A                                                    
  Number 001                                                                   
                                                                               
  SENATOR BERT SHARP, Chairman of the Senate Transportation                    
  Committee, called the meeting to order at 1:43 p.m.  He                      
  noted that the Juneau, Fairbanks, Soldotna and Nome                          
  Legislative Teleconference Sites were on-line, and that                      
  Representatives Hudson and Davis would be participating in                   
  the meeting via the teleconference network.  Also,                           
  Representative Larson was on-line listening to the meeting.                  
                                                                               
  Chairman Sharp said the purpose of the meeting was an                        
  overview by the Department of Transportation and Public                      
  Facilities of the process that has been ongoing during the                   
  summer and fall months.  He then introduced Commissioner                     
  Campbell and asked him to proceed with his presentation.                     
                                                                               
  Number 041                                                                   
                                                                               
  BRUCE CAMPBELL, Commissioner, Department of Transportation &                 
  Public Facilities, in his opening comments introduced his                    
  three regional directors:  STEVE SISK, Northern District;                    
  JON SCRIBNER, Southeastern District; and JOHN HORN, Central                  
  District.  He also introduced MIKE MCKINNON, Chief of                        
  Planning in Headquarters and JOHN TOLLEY, Chief of Planning                  
  in the Central District, who were present to respond to                      
  questions.                                                                   
                                                                               
  Commissioner Campbell first spoke to the 1991 Federal                        
  Highway Act (ISTEA), which he said gives the states, Alaska                  
  included, some flexibility and allows them to do more things                 
  with their money, but at a price.  There are a lot more                      
  things that they have to do in order to comply with the                      
  federal law.                                                                 
                                                                               
  First of all, in order to comply with the federal                            
  legislation, the department has to have a program that has a                 
  goal, and they then have to prioritize their projects.                       
  Next, there has to be public input on the projects.  He said                 
  the federal requirements are stringent enough now so that,                   
  apparently, what is desired in Washington is that the                        
  department listens to everybody who wants a say, even to the                 
  extent that they disregard the elected peoples' wishes.                      
                                                                               
  As a result of the federal requirements, the department                      
  started holding public hearings in July with the boroughs,                   
  the municipalities, the villages, etc, all over the state.                   
  Commissioner Campbell said he directed his people that the                   
  department was going to take most of their direction, to the                 
  extent possible, from the elected representatives.  The                      
  department's number one direction has been to listen to the                  
  people who are elected to represent the citizens of the                      
  state.  As a result of these public hearings, the department                 
  has defined what the people in each of these regions feel                    
  their wants and needs are.                                                   
                                                                               
  Projects have been listed as number one priorities, number                   
  two priorities, number three priorities and number four                      
  priorities.  The projects for any particular area are                        
  included in the order, with rare exception, as they were                     
  submitted by the boroughs, etc. The one or two exceptions                    
  will be corrected when the list is republished.                              
                                                                               
  The department still has one more public hearing, and once                   
  that is completed, they will go back through the list and                    
  make any corrections, additions or adjustments that they                     
  feel are merited.  The department will then figure out how                   
  many of what year's projects can be built with the funds                     
  available.                                                                   
                                                                               
  Commissioner Campbell noted that at this point in time, they                 
  really don't know what any one project is going to cost                      
  because they still have to go through their wet lands                        
  procedures, Corps of Engineers procedure, obtain permits and                 
  do all these things that can have a very major effect on a                   
  project's cost.  The same is true with the timing of the                     
  projects.  All of these things are more difficult and  more                  
  time consuming, in many instances, than the design and the                   
  construction of the project.                                                 
                                                                               
  Commissioner Campbell directed attention to the department's                 
  priority list, which he said they will break down from the                   
  knowledge they have now and try to forecast which projects                   
  have the least restrictions, require the fewest approvals,                   
  and in that respect, are most apt to go first.  They will                    
  then prioritize a second time within that list, not based on                 
  need, but based on how fast they think they can get the                      
  project ready to go to construction.  Within the next month                  
  or six weeks, they will end up with a construction program                   
  for the summer of 1994.                                                      
                                                                               
  Commissioner Campbell said that at this point in time, he is                 
  quite happy with the program, and he thinks it is a step in                  
  the right direction.   The priority list will serve,                         
  essentially, as a long range program.  Based on some very                    
  preliminary guesses, there are probably enough projects on                   
  the list to last somewhere between eight and ten years with                  
  the present level of funding they have.                                      
                                                                               
  Number 170                                                                   
                                                                               
  CHAIRMAN SHARP opened the meeting to questions from members                  
  of the joint committee.                                                      
                                                                               
  SENATOR KELLY asked if the construction of a new ferry was                   
  contained in the list of projects.                                           
                                                                               
  COMMISSIONER CAMPBELL acknowledged that it was and said they                 
  are trying to spread the cost of a new ferry to as many                      
  fiscal years as they can.  The Federal Highway                               
  Administration has indicated that they would allow the state                 
  to spread it over a three-year period.                                       
                                                                               
  Number 180                                                                   
                                                                               
  REPRESENTATIVE DAVIS asked what the federal regulations were                 
  relating to the adding of alternates to the list of                          
  projects.                                                                    
                                                                               
  COMMISSIONER CAMPBELL answered that if it is a minor access                  
  way or approach, perhaps, it could be done without going out                 
  to bid, but he didn't think anything of any substance would                  
  be in compliance with the state purchasing regulations.                      
                                                                               
  Number 200                                                                   
                                                                               
  SENATOR RANDY PHILLIPS asked for an update on the Klondike                   
  Highway, the Alaska Highway and the Taylor Highway.                          
                                                                               
  COMMISSIONER CAMPBELL answered that they have not yet signed                 
  an agreement with the Canadian government on the Klondike                    
  Highway, but as soon as one minor insurance item is                          
  resolved, the agreement should go forward.                                   
                                                                               
  STEVE SISK said they have several projects scheduled for the                 
  Alaska Highway, one that starts right at the border, which                   
  should be ready to start in the coming year, and another one                 
  at the slide at Mile 1268.  From Tok toward Glennallen,                      
  there is a section under construction right now, which                       
  should be completed in 1995, and there is another section                    
  which is currently under design.  The highway from                           
  Glennallen to Gakona Junction is also in design for                          
  rehabilitation because of foundation failures.  On the Glenn                 
  Highway, from Glennallen west, there is a section of highway                 
  under construction which should be completed next year, as                   
  well another section that the design is complete on.                         
                                                                               
  COMMISSIONER CAMPBELL said a joint resolution has been                       
  signed with the Yukon government to try to speed up the loop                 
  from Whitehorse to Dawson to Boundary back down to the                       
  Alaska Highway at Tetlin Junction in time for the                            
  celebration of the Centennial of the gold rush.                              
                                                                               
  Number 270                                                                   
                                                                               
  REPRESENTATIVE GAIL PHILLIPS asked if, when the department                   
  was holding hearings in different communities, did the                       
  public understand that the federal funding was broken down                   
  into the different categories and that, specifically, they                   
  have to use some for bike paths, pedestrian pathways, etc.                   
                                                                               
  COMMISSIONER CAMPBELL answered that they explained this in                   
  every instance that they could, but it is one of those                       
  things that people don't want to hear and they tend not to                   
  listen to it.  He pointed out that the department has just                   
  let the first section of the Seward Highway, and they were                   
  successful in getting a big hunk of their safety money used                  
  on that project because they are relocating to avoid                         
  avalanche chutes.  He said it is a case where they are                       
  actually building a new road and satisfying a lot of their                   
  safety requirements; however, the enhancement area is tough.                 
                                                                               
  REPRESENTATIVE FOSTER commented that he is pleased with                      
  DOT's commitment to some of the small projects in the                        
  villages.  However, he has some RS 2477 projects in his                      
  district, and he asked if there is a time frame on these                     
  test cases.                                                                  
                                                                               
  COMMISSIONER CAMPBELL answered that the Department of                        
  Natural Resources has put together an excellent staff in                     
  Fairbanks that has selected 10 cases, and DOT has started                    
  the procedure to notify the federal government that the                      
  state is claiming the right-of-way on these 10 areas.  He                    
  said it remains to be seen what the federal government does                  
  or doesn't do, but these are test cases, and as they go, the                 
  rest of them will go.                                                        
                                                                               
  Number 344                                                                   
                                                                               
  SENATOR SHARP asked when it would it be most effective for                   
  people like himself and other local officials to suggest                     
  specific projects that may not be on the list, or they have                  
  a problem with the prioritization.                                           
                                                                               
  COMMISSIONER CAMPBELL responded that they are going to try                   
  to have the list finalized in the next four to six weeks,                    
  but a program such as this has got to have flexibility in it                 
  because priorities are going to change, and needs are going                  
  to change.  He said the last public hearing would be held                    
  the following week, and he suggested getting any input in                    
  within a couple of days after that hearing.                                  
                                                                               
  Number 400                                                                   
                                                                               
  SENATOR LINCOLN noted that several Bush communities felt                     
  that they were left out of the process totally, and she                      
  asked for the Commissioner's comments on what opportunity                    
  the people had to participate in the hearings held by the                    
  department.  She also expressed her disappointment that                      
  there are not more projects on the list relating to roads                    
  for water and sewer projects in the rural areas.                             
                                                                               
  MIKE MCKINNON related that while they didn't get to a lot of                 
  individual villages for public meetings, they did do a mail-                 
  out of the package.  They have also been in phone contact                    
  with individual community leaders, working with the AFN                      
  (Alaska Federation of Natives), and they will soon be                        
  participating in the Tribal Providers Conference in                          
  December.                                                                    
                                                                               
  COMMISSIONER CAMPBELL added that the department's budget                     
  doesn't allow them to conduct a public hearing in every                      
  community in the state, and the department has tried to have                 
  regional public hearings where they got as close to as many                  
  people as they could.                                                        
                                                                               
  Responding to Senator Lincoln's question concerning sewer                    
  and water roads, COMMISSIONER CAMPBELL said they have been                   
  working with the DEC, the Public Health Service and the                      
  Bureau of Indian Affairs, and they included every one of                     
  those projects that they are ready to go on.                                 
                                                                               
  Number 506                                                                   
                                                                               
  SENATOR LINCOLN asked if the department anticipates that                     
  they can take care of all of the projects on the list with                   
  the money that is available.                                                 
                                                                               
  COMMISSIONER CAMPBELL answered that all of the projects they                 
  have on the list right now will take somewhere around ten                    
  years of funding at the present level.  It will take                         
  approximately three to four years to get through the                         
  priority one projects.  He added that they only have one                     
  year of assured funds, which is the $204 million they have                   
  for 1994, but they don't know what obligational ceiling the                  
  federal government will put on next year.                                    
                                                                               
  Number 610                                                                   
                                                                               
  REPRESENTATIVE MULDER said DeBarr Road has become a major                    
  thoroughfare in Anchorage and has become a real problem, and                 
  he stated his concern that it is listed as a priority two                    
  project and it could be another three to four years before                   
  it rates significant repair.                                                 
                                                                               
  SENATE TAPE 93-23, SIDE B                                                    
  Number 001                                                                   
                                                                               
  COMMISSIONER CAMPBELL responded that the department is going                 
  to do the best that they can.  For instance, with the Copper                 
  River Highway, which is a $120 million project, if the                       
  lawsuit goes on, that project may stay in priority number                    
  one, but it may not require any funding for four or five                     
  years.  So the cash that develops out of that can be quite                   
  different than the priority listing.  He said they are                       
  dealing with so many changeable unknowns that about the only                 
  thing they are sure of is what their priorities are.                         
                                                                               
  Commissioner Campbell briefly discussed the Copper River                     
  Highway project, saying they have not yet negotiated a                       
  settlement and he does not know what the timing might be,                    
  and that they are not doing anything on the road right now.                  
                                                                               
  Number 060                                                                   
                                                                               
  JOHN HORN discussed the Whittier project, which he said is                   
  on schedule.  The DOT is going through the public hearing                    
  process, and they are working on an environmental impact                     
  statement, which should be done towards the end of 1994, and                 
  from that point, they will proceed into a design phase.                      
                                                                               
  Number 075                                                                   
                                                                               
  REPRESENTATIVE MACKIE asked the Commissioner why the borough                 
  ISTEA plan was abandoned.                                                    
                                                                               
  Number 079                                                                   
                                                                               
  COMMISSIONER CAMPBELL replied that when he first started                     
  looking at the program, he realized there were several                       
  short-comings.  Even though it was a borough transportation                  
  plan, it was part of ISTEA and they have to abide by all of                  
  the federal rules and regulations or they don't get the                      
  money.  The problem with the federal highway monies is that                  
  it is on a reimbursable basis, and if the federal government                 
  says they haven't followed all the rules and regulations,                    
  they won't give the state the money.  Then the department is                 
  in the position of having to go back to the Legislature for                  
  a supplemental.  He said in looking over the boroughs that                   
  were to be a part of that plan, there were only two or three                 
  of the boroughs that had the staff, the knowledge and the                    
  expertise to go ahead with that program and not get them                     
  into trouble.  Also, there were many of the boroughs,                        
  especially the unorganized boroughs, that under the borough                  
  transportation plan were required to take over the                           
  maintenance of the project after it was built who didn't                     
  have the tax base to come up with the dollars necessary to                   
  do the maintenance.                                                          
                                                                               
  Number 195                                                                   
                                                                               
  REPRESENTATIVE MACKIE asked for the Commissioner's comments                  
  on a dedicated fund that would be dedicated strictly towards                 
  the maintenance and operations of the state's highways in                    
  the future.                                                                  
                                                                               
  COMMISSIONER CAMPBELL said he didn't have any strong                         
  feelings on that one way or the other.  However, one of the                  
  things he has looked at is doubling the gasoline tax, which                  
  would produce approximately $25 million in additional                        
  revenue, although that is a long way from funding the                        
  maintenance of the highways.  He added that he would have no                 
  objection to doubling the gasoline tax because most of the                   
  states now are over 20 cents on the gasoline tax while                       
  Alaska is at eight cents.                                                    
                                                                               
  Number 213                                                                   
                                                                               
  SENATOR LITTLE said people on the Kenai Peninsula work very                  
  hard at getting their roads on a priority list and then                      
  there is a new list and their road is not on it, so they                     
  have to start the process all over again.  She asked                         
  Commissioner Campbell if he sees this priority list as one                   
  that will be here for the next several years.                                
                                                                               
  COMMISSIONER CAMPBELL replied that this is not only a                        
  priority list, it is an inventory of the needs for the                       
  state.  He thinks that this inventory will go on and on, and                 
  each year it will be revised somewhat as the needs advise.                   
  He predicts that next year the process will be very simple                   
  because it will just be a process of adding on whatever new                  
  priorities have come up and changing priorities as                           
  conditions have changed.                                                     
  Number 275                                                                   
                                                                               
  REPRESENTATIVE MENARD said it his understanding that next                    
  year's budget will be put together with approximately $204                   
  million in ISTEA monies and those monies will be obligated                   
  to just priority one projects.                                               
                                                                               
  COMMISSIONER CAMPBELL acknowledged that is the case.  He                     
  added that it is possible that a number two priority could                   
  make it somewhere, but with the amount that they have in                     
  priority one projects, he doubts that will happen.                           
                                                                               
  Number 318                                                                   
                                                                               
  REPRESENTATIVE FOSTER said a couple of years ago ISTEA                       
  funding was  about $160 million and they are now up to about                 
  $205 million.  He asked the Commissioner what kind of                        
  budgets from the federal government will the state have to                   
  match five or six years down the road.                                       
                                                                               
  COMMISSIONER CAMPBELL answered that the amount of money that                 
  is allocated to Alaska is set by law, but then the executive                 
  branch can set the obligational ceiling at somewhat less                     
  than the amount that has been appropriated, and that's the                   
  game they have been playing for 20 years.                                    
                                                                               
  Number 336                                                                   
                                                                               
  REPRESENTATIVE FOSTER said a lot of small villages see a                     
  little bit of hope for a little work coming out of the BIA                   
  (Bureau of Indian Affairs) construction fund.  He asked if                   
  there has been any cooperative role between the state and                    
  the BIA to help some of the villages, or do they have to go                  
  to one or the other.                                                         
                                                                               
  MIKE MCKINNON answered that DOT met with the BIA and they                    
  are in the process of trying to get a package ready that                     
  talks about cooperative funding for borough projects.                        
                                                                               
  COMMISSIONER CAMPBELL added that they don't want to have too                 
  much administration in any village, and they would like to                   
  combine it so that it is all under one administration.                       
                                                                               
  Number 375                                                                   
                                                                               
  REPRESENTATIVE FOSTER pointed out that a lot of buildings                    
  like the airport buildings in some of the smaller                            
  communities are in sad shape and there has really never been                 
  any push by the Legislature to help fund DOT toward the                      
  maintenance of those buildings, as well as the replacement                   
  of some of the older equipment in some of the smaller                        
  communities.  He asked the Commissioner what he saw as the                   
  committee's role in giving DOT a hand to help these                          
  situations.                                                                  
                                                                               
  COMMISSIONER CAMPBELL answered that the DOT did get an 11                    
  percent raise in its equipment rental rates going into the                   
  next budget year, so they will be generating a little bit                    
  more, which will be reflected in their maintenance budget.                   
  At this point in time, he thinks the department is on track.                 
                                                                               
                                                                               
  Number 419                                                                   
                                                                               
  REPRESENTATIVE FOSTER asked if there has been any progress                   
  in resolving some of the trucking inspection issues between                  
  the DOT and some of the other departments.                                   
                                                                               
  Number 423                                                                   
                                                                               
  COMMISSIONER CAMPBELL replied that under ISTEA there are 19                  
  sanctions, one of which is vehicle inspection and                            
  enforcement, and they are kind of on the ragged edge on                      
  that.  The department is working with the Alaska Trucking                    
  Association and they plan on getting together on November 15                 
  to work out the regulations.  He said the safety records on                  
  the highways are of great concern to him, and part of the                    
  problem is that there are not enough police officers to do                   
  the day-to-day truck inspection.                                             
                                                                               
  Commissioner Campbell pointed out that one way to cut down                   
  on the maintenance of the state's highways would be to                       
  outlaw studded tires like the state of Minnesota has done.                   
  Committee members requested that more information be                         
  received on the Minnesota law and how it is working.                         
                                                                               
  Number 457                                                                   
                                                                               
  REPRESENTATIVE HUDSON asked if there are many projects that                  
  have been appropriated to over several years that are still                  
  outstanding accounts and have to paid before they get into                   
  the priority one projects.                                                   
                                                                               
  COMMISSIONER CAMPBELL answered that he didn't know how many                  
  outstanding projects they have that might have some                          
  obligation.  He said he thought if they had to clean up                      
  something, it would be pretty minor, and that it would have                  
  to come out of the $204 million.                                             
                                                                               
  STEVE SISK added that they don't have any outstanding claims                 
  that are going to cut into it to any extent at all.                          
                                                                               
  Number 503                                                                   
                                                                               
  REPRESENTATIVE HUDSON asked if the Legislature can have some                 
  assurance that the local input to the total prioritization                   
  is going to be listened to.                                                  
                                                                               
  COMMISSIONER CAMPBELL responded that once they establish                     
  their priority list, they are going to follow it.  If they                   
  have to change priorities, he said he would hope the                         
  legislative representatives would recognize the need for                     
  that.  In researching the past nine years, they found that                   
  the department has pretty much held to every project, to                     
  every commitment that was made, although it may not have                     
  been for the right number of dollars and it may not have                     
  been in the year that someone thought it was going to be                     
  built.                                                                       
                                                                               
  MIKE MCKINNON said one of the things that the department has                 
  heard from local governments across the state is that they                   
  need to do a timely and effective job of reporting on the                    
  work that they are doing.                                                    
                                                                               
  COMMISSIONER CAMPBELL agreed that communication is not at                    
  the level it should be at.                                                   
                                                                               
  SENATE TAPE 93-24, SIDE A                                                    
  Number 001                                                                   
                                                                               
  SENATOR RANDY PHILLIPS asked for a clarification on how the                  
  list for aviation statewide is developed.                                    
                                                                               
  MIKE MCKINNON explained that it is the very same process                     
  that is used for the federal highway program.  The projects                  
  are discussed with the communities, the projects are ranked                  
  at the regional level and submitted to the statewide                         
  aviation group in Anchorage, and they are then reviewed and                  
  submitted to the commissioner.                                               
                                                                               
  SENATOR RANDY PHILLIPS expressed concern that Merrill Field                  
  is a heavily used airstrip and is in need of attention.  He                  
  also asked the status of land acquisition at Klunie Lake.                    
                                                                               
  JOHN HORN answered that there is a policy committee looking                  
  at how to proceed with Klunie Lake.                                          
                                                                               
  Number 063                                                                   
                                                                               
  REPRESENTATIVE GAIL PHILLIPS referred to a project in                        
  Seldovia and said that when the BIA comes into Alaska to do                  
  projects, the way the funding was established and the                        
  prohibitions on federal highway policies, not a single                       
  person in Seldovia could be hired to do that road project.                   
  She expressed concern that people were brought in from out-                  
  of-state to do a road project in a small community in                        
  Alaska.                                                                      
                                                                               
  COMMISSIONER CAMPBELL responded that he was not sure what                    
  the BIA rules were in those areas, but it is something they                  
  will discuss with them.  He also noted that with federal                     
  funds, the state can't discriminate against anybody because                  
  of their place of residence.                                                 
                                                                               
  Number 100                                                                   
                                                                               
  REPRESENTATIVE FOSTER asked for an explanation on an 8                       
  percent tax the state has placed upon ground transportation                  
  units at the  Anchorage International Airport.                               
                                                                               
  COMMISSIONER CAMPBELL explained that the state rents space                   
  at the airport to car rental agencies.  The tax was placed                   
  on ground transportation units that do not rent space at the                 
  airport and they pay a head tax for anybody they pick up at                  
  the airport to get one of their rental cars.                                 
                                                                               
  Number 161                                                                   
                                                                               
  REPRESENTATIVE AL VEZEY commented that the priority list is                  
  a well balanced list, and he was particularly pleased that                   
  the reconstruction of approximately 25 percent of the Dalton                 
  Highway was on the priority one list.                                        
                                                                               
  COMMISSIONER CAMPBELL said the Dalton Highway is very                        
  important to the state, both from the industrial point of                    
  view and the tourist point of view.  The Tanana Chiefs and                   
  the Arctic Borough went to court and got the opening of that                 
  road closed.  There has been some negotiation with those                     
  groups and they have some requests for certain things to                     
  happen on that road which the state is attempting to                         
  address.  The Department of Public Safety has put together                   
  some estimates for the additional services being requested,                  
  and as soon as that gets up on their priority list, the DOT                  
  may be including that in some requests from the Legislature.                 
                                                                               
                                                                               
  Number 225                                                                   
                                                                               
  SENATOR LINCOLN said the priority list includes the McGrath                  
  Road access, and she asked for assurance that this is, in                    
  fact, a road to Kantishna and not to McGrath, because the                    
  people of McGrath do not want a road to McGrath.  She                        
  expressed the same concern with a road to McCarthy.                          
                                                                               
  COMMISSIONER CAMPBELL said he could not give her that                        
  assurance, and that would be determined as the project                       
  develops.  He added that his responsibility was to look to                   
  the overall state need, but in doing so, he would also                       
  consider the objections of a local community.                                
                                                                               
  Number 306                                                                   
                                                                               
  REPRESENTATIVE DAVIS asked when the committee can expect to                  
  see a new list of the priority projects, as well as if they                  
  know what some of the changes might be.                                      
                                                                               
  COMMISSIONER CAMPBELL responded that the new list should be                  
  out around December 15 and they hope it will be their final                  
  list.  They know that the priority list for the Kenai-                       
  Soldotna Borough was not right and they will be correcting                   
  it.                                                                          
                                                                               
  MIKE MCKINNON added that there are a few adjustments coming                  
  into the department from communities that they will take                     
  action on and make available to the public.                                  
                                                                               
  Number 365                                                                   
  REPRESENTATIVE MACKIE asked if it was correct that Jim Ayers                 
  would be resigning his position as director of the Alaska                    
  Marine Highway System.  He added that should that happen, it                 
  will be a tremendous loss to the state and to the ferry                      
  system, and he encouraged the commissioner to involve the                    
  coastal communities in the effort of selecting a new                         
  director.                                                                    
                                                                               
  COMMISSIONER CAMPBELL answered that Mr. Ayers is probably                    
  going to be leaving, but that is not final at this moment in                 
  time.                                                                        
                                                                               
  Number 399                                                                   
                                                                               
  SENATOR SHARP and REPRESENTATIVE FOSTER expressed their                      
  appreciation to Commissioner Campbell and his staff for                      
  their appearance before the committee.                                       
                                                                               
  The meeting was adjourned at approximately 3:45 p.m.                         
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