Legislature(2007 - 2008)CAPITOL 17

01/17/2008 01:30 PM House TRANSPORTATION


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01:34:04 PM Start
01:34:19 PM Presentation: State Transportation Issues by Commissioner Von Scheben
03:45:01 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ State Transportation Issues TELECONFERENCED
Presentation by Commissioner von Scheben
-- Testimony <Invitation Only> --
                    ALASKA STATE LEGISLATURE                                                                                  
            HOUSE TRANSPORTATION STANDING COMMITTEE                                                                           
                        January 17, 2008                                                                                        
                           1:34 p.m.                                                                                            
                                                                                                                              
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Kyle Johansen, Chair                                                                                             
Representative Mark Neuman, Vice Chair                                                                                          
Representative Anna Fairclough                                                                                                  
Representative Craig Johnson                                                                                                    
Representative Wes Keller                                                                                                       
Representative Mike Doogan                                                                                                      
Representative Woodie Salmon                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                                
Representative Andrea Doll                                                                                                      
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION:  STATE TRANSPORTATION ISSUES BY COMMISSIONER von                                                                  
SCHEBEN                                                                                                                         
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to report                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
LEO VON SCHEBEN, Commissioner                                                                                                   
Department of Transportation & Public Facilities                                                                                
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented an update of state transportation                                                              
issues.                                                                                                                         
                                                                                                                                
NANCY SLAGLE, Director                                                                                                          
Division of Administrative Services                                                                                             
Department of Transportation & Public Facilities                                                                                
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions.                                                                                      
                                                                                                                                
FRANK RICHARDS, Deputy Commissioner                                                                                             
of Highways and Public Facilities                                                                                               
Department of Transportation & Public Facilities                                                                                
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions.                                                                                      
                                                                                                                                
ANDREW NIEMIEC, Executive Director                                                                                              
Knik Arm Bridge and Toll Authority (KABATA)                                                                                     
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions.                                                                                      
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR  KYLE JOHANSEN  called  the  House Transportation  Standing                                                             
Committee  meeting to  order  at 1:34:04  PM.     Representatives                                                             
Johansen, Neuman, Fairclough, Doogan,  Keller, Johnson and Salmon                                                               
were present.                                                                                                                   
                                                                                                                                
^PRESENTATION:   STATE TRANSPORTATION ISSUES BY  COMMISSIONER VON                                                             
SCHEBEN                                                                                                                       
                                                                                                                              
1:34:19 PM                                                                                                                    
                                                                                                                                
CHAIR JOHANSEN  informed the committee he  asked Commissioner Von                                                               
Scheben  to  update  members  about  what  is  going  on  at  the                                                               
Department of Transportation and  Public Facilities (DOT&PF).  He                                                               
then  said that  next  Tuesday's meeting  will  be about  current                                                               
issues facing  the Alaska Marine  Highway System.  He  planned to                                                               
follow up on those issues later  in the session.  He also planned                                                               
to begin  an extensive  discussion about  the procedures  used to                                                               
develop the Statewide  Transportation Improvement Projects (STIP)                                                               
list next week.   Chair Johansen asked that  information from the                                                               
departments  be provided  to  the committee  the  day before  the                                                               
meeting so  that members  have sufficient time  to review  it and                                                               
formulate questions.                                                                                                            
                                                                                                                                
1:36:27 PM                                                                                                                    
                                                                                                                                
LEO  VON SCHEBEN,  Commissioner, Department  of Transportation  &                                                               
Public  Facilities,   told  members   he  has  been   the  DOT&PF                                                               
commissioner  for  a  little  under  one  year  and  thanked  the                                                               
committee  for  inviting  him  to speak.    He  introduced  Frank                                                               
Richards,  Professional  Engineer   and  Deputy  Commissioner  of                                                               
Highways;   Dennis  Hardy,   Professional  Engineer   and  Deputy                                                               
Commissioner of the Alaska Marine Highway System; Nancy Slagle,                                                                 
Director of Administrative Services; and Mary Siroky, Liaison                                                                   
Officer.                                                                                                                        
                                                                                                                                
1:38:00 PM                                                                                                                    
                                                                                                                                
COMMISSIONER VON SCHEBEN provided the following presentation:                                                                   
                                                                                                                                
     On December 11  of 2007 I put together about  14 of the                                                                    
     DOT management and had a  strategic planning meeting in                                                                    
     Fairbanks  and  developed  a  mission  vision  and  re-                                                                    
     evaluated  my  business  goals  and  came  up  with  my                                                                    
     business philosophy and goals  for the department.  I'd                                                                    
     like to share those with you.                                                                                              
                                                                                                                                
     On   page  1,   the  mission   of  the   Department  of                                                                    
     Transportation and Public Facilities  is to provide for                                                                    
     safe  movement  of people  and  goods  and delivery  of                                                                    
     state  services.   This  business  philosophy I've  had                                                                    
     over  the years  of private  practice of  over 40  some                                                                    
     years.     I  believe  in  customer   satisfaction  and                                                                    
     employee  satisfaction, a  quality product,  manage the                                                                    
     money  and have  some fun.    I believe  in those  five                                                                    
     principles and have brought those to the department.                                                                       
                                                                                                                                
     When I  first came on  board a year ago,  Senator Olson                                                                    
     asked me  do I have a  vision for the department  and I                                                                    
     went, uh,  no, I  don't.  Since  then I  have developed                                                                    
     one  and I'd  like to  share that  with you.   At  that                                                                    
     strategic planning  [meeting] on  December 11,  we came                                                                    
     up  with  a  Department of  Transportation  and  Public                                                                    
     Facilities  that plans,  designs, constructs,  operates                                                                    
     and  maintains  quality,  safe,  efficient  sustainable                                                                    
     transportation  and  public  facilities that  meet  the                                                                    
     needs  of Alaska's  diverse  population, geography  and                                                                    
     growing an economy.  That's  our vision.  Now the goals                                                                    
                                                           th                                                                   
     -  we came  up  with four  goals  at our  December  11                                                                     
     meeting.                                                                                                                   
                                                                                                                                
     We're still  working on that  strategic plan.   I still                                                                    
     have to  do some  fine tuning  of it  but ...  the four                                                                    
     goals that came out of  that meeting [were] improve the                                                                    
     safety   of    transportation   systems,    develop   a                                                                    
     transportation   system   for   economic   development,                                                                    
     increase efficiencies and  become more transparent, and                                                                    
     I'll go a  little bit into each one of  those and share                                                                    
     some points  with you.   Those are the four  goals that                                                                    
     I'm going to be using in our strategic planning in the                                                                     
     next three years with the department during the Palin                                                                      
     Administration.                                                                                                            
                                                                                                                                
1:40:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN  welcomed  Commissioner  Von  Scheben  and                                                               
asked  what  procedures he  plans  to  change to  accomplish  his                                                               
goals.                                                                                                                          
                                                                                                                                
COMMISSIONER VON SCHEBEN said he  sees no need to change DOT&PF's                                                               
mission statement; it  does not differ much from the  past but he                                                               
does see  a need to change  the goals.  His  goals are measurable                                                               
so he can  be judged on accomplishing them during  his three year                                                               
tenure.                                                                                                                         
                                                                                                                                
1:41:11 PM                                                                                                                    
                                                                                                                                
CHAIR JOHANSEN said he thought  DOT&PF has statutory missions and                                                               
measures  written   by  the  legislature.     He  asked   if  the                                                               
commissioner's goals differ from those missions and measures.                                                                   
                                                                                                                                
COMMISSIONER VON  SCHEBEN said he  is not aware of  the statutory                                                               
goals but he met  with 14 staff to determine the  new goals so he                                                               
believes  his  staff  is  aware of  the  statutory  missions  and                                                               
measures.                                                                                                                       
                                                                                                                                
CHAIR JOHANSEN said  he would like to see the  two sets of goals.                                                               
He  told the  commissioner that  the committee  would send  him a                                                               
list of the questions that are not answered today.                                                                              
                                                                                                                                
1:42:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SALMON  asked  whether the  economic  development                                                               
goal  pertains  to economic  development  in  communities or  for                                                               
DOT&PF.                                                                                                                         
                                                                                                                                
COMMISSIONER VON  SCHEBEN said the  economic development  goal is                                                               
for the state  in its entirety.  He said  his strategic plan will                                                               
identify specific, measurable goals in that area.                                                                               
                                                                                                                                
REPRESENTATIVE   NEUMAN  asked   the   commissioner  to   include                                                               
statewide projects that need infrastructure to be developed.                                                                    
                                                                                                                                
COMMISSIONER VON SCHEBEN agreed to do so.                                                                                       
                                                                                                                                
REPRESENTATIVE  NEUMAN  noted a  road  in  the Izembek  [National                                                               
Wildlife Refuge] connects to communities that need attention.                                                                   
                                                                                                                                
COMMISSIONER VON SCHEBEN said he  supports road building and will                                                               
be happy to do so.  He continued his presentation, as follows:                                                                  
                                                                                                                                
     On slide  2, I think what  I'd just like to  share with                                                                    
     you  is -  and  I'm  not going  to  read  all of  these                                                                    
     numbers,  but  in 2007,  we  put  on the  street  under                                                                    
     contract $564.8  million worth  of work,  a significant                                                                    
     injection  of  money into  the  economy:   Central  had                                                                    
     $220,  Northern   had  $147.7,  Southeast   had  $78.9,                                                                    
     Aviation  had $176.8,  Highways $229.7,  and Facilities                                                                    
     $139.6 and $18.7 for Marine.   That is what went out on                                                                    
     '07.   I think  what's more  interesting is  what we're                                                                    
     going  to do  in '08.   We're  going to  put out  there                                                                    
     $675.3  million divided  up  through Central,  Northern                                                                    
     Region  and  Southeast.   You  can  see those  numbers:                                                                    
     $398, $130, and $140.   The Aviation community will get                                                                    
     $182.4,   the   Highway   community  will   get   $343,                                                                    
     Facilities,  which  is  one   I'm  very  interested  in                                                                    
     elevating and  I'll share that with  you later, $102.5,                                                                    
     and Marine  will get $47  million.  That kind  of gives                                                                    
     you  a spread  of  where we're  putting  our money  out                                                                    
     there.                                                                                                                     
                                                                                                                                
1:45:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH asked  to see the 2006  breakdown.  She                                                               
noted the governor vetoed many items  in the capital budget.  She                                                               
said it  is her understanding  that some of the  architecture and                                                               
engineering firms have less work  going forward so she would like                                                               
to see the trends of state investment before 2007.                                                                              
                                                                                                                                
COMMISSIONER  VON SCHEBEN  offered to  provide that  information.                                                               
He  remarked that  he was  part of  the engineering  community in                                                               
2006; there was  no concern about a downturn at  that time but he                                                               
believes  there  is  now  because the  federal  highway  fund  is                                                               
"starting to go south."                                                                                                         
                                                                                                                                
1:46:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH  concurred and thought  the engineering                                                               
industry  may  be experiencing  some  softening.   She  wants  to                                                               
determine whether  that industry is prepared  for federal funding                                                               
decreases and how the legislature can help to address that.                                                                     
                                                                                                                                
COMMISSIONER  VON  SCHEBEN said  he  would  like to  spread  that                                                               
message  to the  architecture and  engineering community  to help                                                               
them with future planning.                                                                                                      
                                                                                                                                
1:47:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DOOGAN noted the  commissioner's project goals are                                                               
listed by  calendar year while legislative  appropriations follow                                                               
a fiscal  year.   He asked  if calendar year  2008 refers  to the                                                               
second half  of 2007  and the  first half of  2008,   and whether                                                               
legislative  appropriations have  already been  made that  do not                                                               
show up  on the list  because they are  not in the  calendar year                                                               
2009.                                                                                                                           
                                                                                                                                
COMMISSIONER VON SCHEBEN deferred to Ms. Slagle.                                                                                
                                                                                                                                
NANCY  SLAGLE,  Director,  Division of  Administrative  Services,                                                               
Department of  Transportation &  Public Facilities,  told members                                                               
that federal funds  can be appropriated in one year  but not used                                                               
until the next  year so there is an ongoing  overlap of the state                                                               
and  federal  fiscal years  and  the  calendar  year.   She  said                                                               
Representative Doogan  is correct in  that funds could  have been                                                               
appropriated that  are not included  in the chart for  one reason                                                               
or another.   The  most likely  cause for  their omission  is the                                                               
timing of those projects.                                                                                                       
                                                                                                                                
1:49:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DOOGAN said  the  legislature hears  a lot  about                                                               
"lag"  when discussing  appropriations  and that,  on average,  a                                                               
dollar appropriated this  session would not be on  the street for                                                               
three  years.   He asked  when the  projects in  DOT&PF's current                                                               
capital budget request will actually  get started if that request                                                               
is approved by the legislature.                                                                                                 
                                                                                                                                
MS. SLAGLE  explained that with some  appropriations the projects                                                               
are started  right away.   The  department typically  presents to                                                               
the  legislature  capital  project  requests  that  will  receive                                                               
federal funding  in the  next federal  fiscal year,  which begins                                                               
October 1,  based on the STIP  and on the amount  DOT&PF will get                                                               
for the Airport Improvement Program  (AIP).  If the difference in                                                               
fiscal years creates a lag,  or if DOT&PF encounters issues, such                                                               
as right-of-way or  environmental issues that delay  a project, a                                                               
project  would have  to  be  shifted.   She  suggested that  Jeff                                                               
Ottesen address  that scenario  when he  discusses the  STIP with                                                               
the committee.                                                                                                                  
                                                                                                                                
                                                                                                                                
CHAIR JOHANSEN remarked the committee will have plenty of time                                                                  
to go through those details.                                                                                                    
                                                                                                                                
1:51:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON commented:                                                                                               
                                                                                                                                
     If we could break these  numbers down into budget years                                                                    
     that we deal  with, I think we'll get  a better apples-                                                                    
     to-apples comparison and, in terms  of when you get the                                                                    
     money, I know  it's anticipated it may or  may not come                                                                    
     when you  think it  is but  if you  anticipate spending                                                                    
     it,  I'd  certainly  like  to  do  an  apples-to-apples                                                                    
     comparison  and  use  what  we've  appropriated  versus                                                                    
     spent, etcetera, etcetera, and I  don't think we can do                                                                    
     this  with  a  calendar  year  breakout  that  is  this                                                                    
     general  but I  think we  could  if it  was the  fiscal                                                                    
     year.                                                                                                                      
                                                                                                                                
COMMISSIONER VON  SCHEBEN agreed to provide  that information. He                                                               
said the  chart he provided  should give  members an idea  of the                                                               
amount  of  money out  on  the  street  now.   He  continued  his                                                               
presentation, as follows:                                                                                                       
                                                                                                                                
     I'd like  to talk about  accomplishments.  Safety  is a                                                                    
     big thing  at DOT.   The strategic highway  safety plan                                                                    
     is completed and approved.                                                                                                 
                                                                                                                                
     We have  two established  traffic safety  corridors and                                                                    
     are  [indisc.] on  results.   We anticipate  three more                                                                    
     traffic  corridors  being  established in  2008.    The                                                                    
     safety corridor  is one of  those corridors that  has a                                                                    
     sign that  has a  little yellow  marking above  the top                                                                    
     that would double fines.   It really does seem to work.                                                                    
     I drive  one specifically out  of Wasilla to  Big Lake.                                                                    
     I have seen  a real change in the  driving attitudes in                                                                    
     that one stretch.                                                                                                          
                                                                                                                                
     511 Program  - I'll talk  about that in a  second here.                                                                    
     It's  going.   The road  weather information  system is                                                                    
     working.   The  intelligent  transportation system  for                                                                    
     commercial vehicles, if you drive  out of Anchorage you                                                                    
     go past  a little station,  there's a little  pole that                                                                    
     goes over the  top of the road with a  little device on                                                                    
     it.   That measures  the truck's weight,  length, [and]                                                                    
     certification if  they're in the program,  so the truck                                                                    
     doesn't have  to stop  at the weigh  stations.   It's a                                                                    
     clear shot right up to  Fairbanks or whatever so it's a                                                                    
     new  program.   I was  involved in  the ribbon  cutting                                                                    
     ceremony of  that just  recently and  it's active.   If                                                                    
     any  of you  are  interested  and want  to  look at  it                                                                    
     further,  I'd be  happy to  give  you a  mini-tour.   I                                                                    
     think it's a really interesting part of technology.                                                                        
                                                                                                                                
     Size-weight enforcement  - this is  a new program.   We                                                                    
     have roving  patrols for  a check  for compliance.   We                                                                    
     just deployed  them throughout the state  for the first                                                                    
     time ever.  I believe  they're working on compliance of                                                                    
     the  trucking industry  to make  sure that  they're not                                                                    
     overweight and they have all their certifications.                                                                         
                                                                                                                                
1:54:20 PM                                                                                                                    
                                                                                                                                
COMMISSIONER VON SCHEBEN continued:                                                                                             
                                                                                                                                
     Safe routes  to schools  - as  a program  it's ongoing.                                                                    
     We're going to make sure  the kids get to school safely                                                                    
     and it's federally funded.                                                                                                 
                                                                                                                                
     Slick 2 ...                                                                                                                
                                                                                                                                
1:54:41 PM                                                                                                                    
                                                                                                                                
CHAIR  JOHANSEN  asked,  regarding  the  size-weight  enforcement                                                               
program, where the roving patrols  are located, the effect of the                                                               
program  and whether  state-owned vehicles  are subjected  to the                                                               
same standard as private vehicles.                                                                                              
                                                                                                                                
COMMISSIONER VON SCHEBEN  said he would provide  answers to those                                                               
questions.                                                                                                                      
                                                                                                                                
1:55:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN noted he asked  the Central Region director                                                               
for  information   on  the  highway  safety   traffic  corridors,                                                               
particularly  from Big  Lake to  Wasilla for  statistics.   He is                                                               
aware  that  no  deaths  have occurred  since  that  program  was                                                               
implemented and  he would  like to  let people  in the  area know                                                               
what that means.   He said that highway is  the most dangerous in                                                               
the state; it  has triple the number of  fatalities and accidents                                                               
than the Seward  highway.  He said the Knik  Road is probably the                                                               
third  most dangerous  highway in  the  state and  asked what  is                                                               
being done to implement a highway safety zone there.                                                                            
                                                                                                                                
COMMISSIONER VON SCHEBEN replied:                                                                                               
                                                                                                                                
     ... We have three  other safety corridors we're looking                                                                    
     at.   One is the Knik-Goose  Bay one.  I  believe we're                                                                    
     very  close to  putting that  on  line.   I'll have  to                                                                    
     check  with Gordon  but I  think  he said  we might  be                                                                    
     doing it  this summer.   I'm  not positive  about that.                                                                    
     Sterling  Highway  from  Scout  Lake  to  Kenai,  we're                                                                    
     looking at  one there and  we're looking at one  on the                                                                    
     Palmer-Wasilla Highway.   What you don't want  to do is                                                                    
     have a bunch  of these all over the  place because then                                                                    
     we're all driving the same  and the idea is to identify                                                                    
     a serious area and Knik is  one so we want to take care                                                                    
     of that.                                                                                                                   
                                                                                                                                
1:57:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN asked  what changes  occur when  a highway                                                               
safety  zone is  designated  and whether  the  number of  highway                                                               
patrols is increased.                                                                                                           
                                                                                                                                
COMMISSIONER VON  SCHEBEN said more state  trooper visibility and                                                               
double fine signs are used as deterrents.                                                                                       
                                                                                                                                
1:58:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN asked  what DOT&PF is doing  to ensure port                                                               
security.                                                                                                                       
                                                                                                                                
COMMISSIONER VON SCHEBEN deferred to Mr. Richards.                                                                              
                                                                                                                                
FRANK  RICHARDS,  Deputy  Commissioner, of  Highways  and  Public                                                               
Facilities,  Department of  Transportation  & Public  Facilities,                                                               
told the committee  that security provisions for  ports and cargo                                                               
are  administered by  the Transportation  Security Administration                                                               
(TSA) in  the federal  Department of  Homeland Security.   DOT&PF                                                               
works hand-in-hand with TSA on  state-owned ports but DOT&PF does                                                               
not have an enforcement arm.                                                                                                    
                                                                                                                                
1:59:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN  asked  that  DOT&PF report  back  to  the                                                               
committee on what it is doing to work hand-in-hand with the TSA.                                                                
                                                                                                                                
COMMISSIONER  VON  SCHEBEN agreed  to  do  so and  continued  his                                                               
presentation:                                                                                                                   
                                                                                                                                
     Slick  4  - this  is  the  state funded  transportation                                                                    
     program.    Back  in  September,  the  previous  deputy                                                                    
     commissioner  of  highways  and myself  approached  the                                                                    
     governor  with   a  ...  need  -   for  a  state-funded                                                                    
     transportation   program.      She  took   that   under                                                                    
     advisement  and the  governor just  recently ...  put a                                                                    
     plan out  there that you all  have to approve -  it's a                                                                    
     state-funded  transportation program.   We  see a  real                                                                    
     need for  that.   Basically, shrinking  federal highway                                                                    
     funds  -  the  federal  highway  trust  fund  is  going                                                                    
     negative  in  2009,  we're going  to  be  getting  less                                                                    
     federal money.                                                                                                             
                                                                                                                                
     We can do  projects faster with state money.   I'd like                                                                    
     to share a couple of points  with you ....  Using state                                                                    
     funds  to do  projects, we  did the  Abbott Loop-Elmore                                                                    
     Road   extension,   the   design  was   in   2003   and                                                                    
     construction was completed  in 2007 - four  years for a                                                                    
     significant project  using state funds.   That's one of                                                                    
     the  biggest  pluses  that  I see  in  a  state  funded                                                                    
     program.   The  McCarthy Road  major maintenance  would                                                                    
     have taken  us three years  using federal funds  but it                                                                    
     was done  in a  year.  The  Richardson Highway,  265 to                                                                    
     341, was  done in  two years,  which it  normally would                                                                    
     have taken five years.   There are some real advantages                                                                    
     to  using state  funds to  get projects  done over  the                                                                    
     federal funds  and we  just are  in a  unique situation                                                                    
     where our federal funds are going south on us.                                                                             
                                                                                                                                
     I'll  show you  a slide  in here  regarding that  exact                                                                    
     issue.                                                                                                                     
                                                                                                                                
CHAIR JOHANSEN noted that both of the [governor's] bills are in                                                                 
the House Transportation Standing Committee and will be                                                                         
reviewed.                                                                                                                       
                                                                                                                                
2:01:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH asked:                                                                                                
                                                                                                                                
     ...  Commissioner, in  an  effort  to prioritize  state                                                                    
     spending money,  have you  developed criteria  then for                                                                    
     recommending a  state project and usage  of state funds                                                                    
     versus  federal funds  so that  on the  larger projects                                                                    
     where   we  know   that  there's   going  to   be  time                                                                    
     constraints and  multiple funding?   Do  you understand                                                                    
     my question?                                                                                                               
                                                                                                                                
COMMISSIONER VON  SCHEBEN asked if  she was referring to  the new                                                               
state-funded program.                                                                                                           
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH said she  was not but acknowledged that                                                               
she supports a state-funded program.  She continued:                                                                            
                                                                                                                                
     I think  that we need  to invest in  infrastructure and                                                                    
     when we look to the  bridge that collapsed in the Lower                                                                    
     48 and then  looking at assessments across  our state I                                                                    
     think  that   there's  a  definite  need   and  sagging                                                                    
     infrastructure that needs an  infusion of dollars.  But                                                                    
     we still  have federal appropriations coming  in and we                                                                    
     have  state  [general  fund]  and  we  understand  that                                                                    
     there's going  to be a  temporary increase  in revenues                                                                    
     to the  State of Alaska  right now.  What  criteria are                                                                    
     you using  to base  decisions on investing  state money                                                                    
     versus federal  money?  And  I want to know  if they're                                                                    
     solidified so that  we can count on  that criteria when                                                                    
     we see a state project in  a request for state funds in                                                                    
     that package.                                                                                                              
                                                                                                                                
COMMISSIONER   VON  SCHEBEN   deferred  to   Deputy  Commissioner                                                               
Richards to answer.                                                                                                             
                                                                                                                                
MR.  RICHARDS  said  DOT&PF  has   not  yet  developed  selection                                                               
criteria.   He noted, as  the commissioner mentioned, one  of the                                                               
greatest  transportation state  fund efficiencies  is due  to the                                                               
fact that  a project can  be completed in a  judicious timeframe.                                                               
He continued:                                                                                                                   
                                                                                                                                
     So that if we see a  very complicated project that has a lot                                                               
     of right-of-way, a lot of  environmental issues, likely that                                                               
     would  be the  best use  of federal  dollars.   When we  see                                                               
     projects that are  straightforward, easy to go  out with and                                                               
     wouldn't  require a  tremendous  amount  of federal  burden,                                                               
     state dollars  would be best  used.   So we hope  to develop                                                               
     that  criteria   over  the  timeframe   from  the   time  of                                                               
     appropriation until  we actually get the  funds appropriated                                                               
     to us.                                                                                                                     
                                                                                                                                
2:03:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH   recalled  the   governor's  proposal                                                               
contains $100  million in bonds.    She said she  understands the                                                               
challenges  caused by  the time  lag,  but asserted  it would  be                                                               
helpful to legislators as they  consider projects to know that it                                                               
is investing  state dollars  wisely on projects  that need  to be                                                               
completed quickly for safety or  other reasons.  In addition, the                                                               
legislation does not want to reduce  the traction it has had at a                                                               
federal level to  move larger projects in a paced  way.  She said                                                               
it would  be helpful to have  criteria to use to  determine which                                                               
source of  funding should be  used for  each project.   She noted                                                               
she will  continue to ask  for criteria as the  committee reviews                                                               
the governor's proposals.                                                                                                       
                                                                                                                                
CHAIR JOHANSEN agreed that some criteria should be developed.                                                                   
                                                                                                                                
2:05:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DOOGAN referred to a chart  on page 4 and asked if                                                               
the chart  is based  on the assumption  that DOT&PF  will receive                                                               
$500 million per  year for two years, which is  in the governor's                                                               
proposal.                                                                                                                       
                                                                                                                                
COMMISSIONER VON SCHEBEN said it is.                                                                                            
                                                                                                                                
REPRESENTATIVE DOOGAN  asked if  [the transportation  fund] would                                                               
be receiving a 7 percent return in the year 2010.                                                                               
                                                                                                                                
COMMISSIONER VON SCHEBEN said it is  set up to earn 5 percent, or                                                               
$50 million per year.                                                                                                           
                                                                                                                                
2:06:16 PM                                                                                                                    
                                                                                                                                
COMMISSIONER VON SCHEBEN continued his presentation:                                                                            
                                                                                                                                
     Some more of  our efficiencies - there's  a slide there                                                                    
     of chip  sealing and  crack sealing.   We're  using new                                                                    
     techniques to  extend life of  pavement.  The  slide on                                                                    
     the right I have personal  knowledge of.  The [Indisc.]                                                                    
     Nome  State Office  Building -  I  was up  in Nome  and                                                                    
     visiting  that facility.   I  have  made a  goal in  my                                                                    
     career  here at  DOT as  to elevate  the importance  of                                                                    
     public facilities.   This building  and that  water you                                                                    
     see there is not fresh  water, that's salt water.  Nome                                                                    
     got two  floods over  the rip-rap  wall there  and that                                                                    
     building is  not in  a good location.   We  have issues                                                                    
     regarding code,  heating, roof.   We've been  hit twice                                                                    
     with salt  water.   So we're going  to work  on getting                                                                    
     some of these public facilities  that the state has and                                                                    
     we  have 700  of them  - 700  buildings that  are DOT's                                                                    
     buildings and  a lot of  them are  30, 40 years  old so                                                                    
     I'm going to be working on that.                                                                                           
                                                                                                                                
     The ports  and harbors  - we had  $5 million  last year                                                                    
     allocated to  us.  This  year we're putting in  for $10                                                                    
     million  -  we're working  on  still  turning over  the                                                                    
     harbor transfer program to the  cities and the boroughs                                                                    
     so that program is going well.                                                                                             
                                                                                                                                
2:07:46 PM                                                                                                                    
                                                                                                                                
     Slide  6 -  Ted  Stevens International  -  some of  the                                                                    
     accomplishments  at Ted  Stevens  - A  and B  concourse                                                                    
     remodel.   If you've been  in the terminal  lately it's                                                                    
     going very  well and it's  $200 million worth  of work.                                                                    
     I  think  it's   one  of  the  best   kept  secrets  in                                                                    
     Anchorage.   That terminal building is  really going to                                                                    
     look  sharp when  it's  all said  and done.    A and  B                                                                    
     concourse will  look like  C concourse.   C is  the one                                                                    
     you  go through  all of  the  time right  now with  the                                                                    
     elevators  and  the  beautiful  interior.    Fairbanks,                                                                    
     they're getting a whole new  facelift there, not even a                                                                    
     facelift. ...  They're getting  a whole new terminal in                                                                    
     Fairbanks.   It's going to  look spiffy.   I'm guessing                                                                    
     about 75  percent complete  so if you  get a  chance to                                                                    
     visit   Fairbanks,  it's   a  very   unique  piece   of                                                                    
     architecture and quite a facility.                                                                                         
                                                                                                                                
2:08:48 PM                                                                                                                    
                                                                                                                                
COMMISSIONER VON SCHEBEN continued:                                                                                             
                                                                                                                                
     Alaska Marine Highways - we  hauled more passengers and                                                                    
     cars this  year than  last year, carried  more vehicles                                                                    
     and  passengers this  year.   Marine Highways  I'm sure                                                                    
     we'll talk some more about.                                                                                                
                                                                                                                                
     The gas line preparation -  I have hired a gentleman by                                                                    
     the  name of  John Reeves,  specifically hired  to take                                                                    
     care of  gas line preparedness for  the infrastructure.                                                                    
     He is working  out of Fairbanks and he  is working with                                                                    
     me; he reports to me  directly.  We have just completed                                                                    
     a  study  for  the  entire   state  for  the  gas  line                                                                    
     infrastructure  and what  needs to  be done  to get  it                                                                    
     ready.   I've also  asked John  to tell  the consultant                                                                    
     and  be more  specific on  his  study and  work on  the                                                                    
     Dalton Highway.   I  think that's going  to be  a major                                                                    
     lifeline of  the gas pipeline no  matter what direction                                                                    
     it  goes.   That study  will  be done  within the  next                                                                    
     couple of months, so I'm real excited about that.                                                                          
                                                                                                                                
CHAIR JOHANSEN said  the committee has heard  testimony about the                                                               
impact  the  gas pipeline  construction  will  have on  the  road                                                               
system.  He asked whether  the study will contain projections for                                                               
expenditures that will  be incurred and whether  that will affect                                                               
the state's overall transportation system.                                                                                      
                                                                                                                                
2:10:17 PM                                                                                                                    
                                                                                                                                
COMMISSIONER VON SCHEBEN related that  a draft of the first study                                                               
is  finished and  addresses what  effects the  gas pipeline  will                                                               
have on  the state's  infrastructure.  The  second study  will be                                                               
more specific  to the  Dalton Highway.   He  expects the  Phase 2                                                               
study to be  complete within a few months; he  will share it with                                                               
the committee.                                                                                                                  
                                                                                                                                
CHAIR JOHANSEN  acknowledged know how  important the gas  line is                                                               
to  the entire  state, however  he  noted concern  that it  might                                                               
delay or stop projects elsewhere in  the state.  He said he looks                                                               
forward to getting that information.                                                                                            
                                                                                                                                
2:11:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH  asked to see  a copy of the  study and                                                               
asked:                                                                                                                          
                                                                                                                                
     I was wondering if there  is also a timeline associated                                                                    
     with those improvements  to be on the ground  for a gas                                                                    
     line if we're looking at  a licensee right now that has                                                                    
     a   faster   paced   moving   project   for   licensing                                                                    
     requirements  whether we  can actually  - if  the study                                                                    
     will do us any good to point us in a direction.                                                                            
                                                                                                                                
COMMISSIONER  VON SCHEBEN  said he  cannot  pick a  date for  the                                                               
pipeline, but he believes the  Dalton Highway project is one that                                                               
could be  completed.  He  expressed concern that  nothing happens                                                               
for ten  years because DOT&PF  didn't know exactly when  [the gas                                                               
line] would  begin.   He noted a  double advantage  to completing                                                               
work  on  the Dalton  Highway:  it  would  be beneficial  to  the                                                               
traveling public and the gas pipeline.  He remarked:                                                                            
                                                                                                                                
     If  I can  get the  Dalton  Highway ready  for the  gas                                                                    
     pipeline, I  will at  least get half  of it  ready, and                                                                    
     then we'll probably  be under somewhat of  a quick pace                                                                    
     to do  the rest once  something is  selected.  So  I am                                                                    
     thinking just  like you  are.   I'm just  wondering how                                                                    
     much do I have to get ready from [indisc.].                                                                                
                                                                                                                                
2:13:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH responded:                                                                                            
                                                                                                                                
     Mr. Chairman, my timeline  wasn't when the construction                                                                    
     of  the pipeline  would  be, but  the  timeline on  the                                                                    
     projects  that are  indicated  for  improvement in  the                                                                    
     study  that's complete,  and  then  that in  comparison                                                                    
     with the  Dalton's priority inside  of - I  assume then                                                                    
     the Dalton  is inside the  study for an  improvement on                                                                    
     the - and that's why you're asking for a second study.                                                                     
                                                                                                                                
COMMISSIONER VON  SCHEBEN explained he  asked for a  second study                                                               
because  the first  study  was  completed two  years  ago and  he                                                               
wanted more  current numbers.   He noted  that he also  wants Mr.                                                               
Reeves to  meld that information  with DOT&PF's plan to  bring it                                                               
up to  date, specifically regarding  the Dalton  Highway project.                                                               
Commissioner  Von Scheben  mentioned  urban congestion  reduction                                                               
and the "Connect Anchorage Initiative."                                                                                         
                                                                                                                                
2:14:42 PM                                                                                                                    
                                                                                                                                
COMMISSIONER VON  SCHEBEN, in response to  Representative Salmon,                                                               
clarified that Phase 1  is a study of the entire  state.  Phase 2                                                               
is more specific to the Dalton Highway.                                                                                         
                                                                                                                                
REPRESENTATIVE SALMON asked for a copy of the draft studies.                                                                    
                                                                                                                                
COMMISSIONER VON SCHEBEN  said he will share a copy  of the Phase                                                               
2 report when it is completed.                                                                                                  
                                                                                                                                
CHAIR  JOHANSEN   asked  that  all  responses   to  requests  for                                                               
information from  committee members  be delivered  to him  and he                                                               
will have them distributed to members.                                                                                          
                                                                                                                                
2:15:24 PM                                                                                                                    
                                                                                                                                
COMMISSIONER VON SCHEBEN returned to his presentation:                                                                          
                                                                                                                                
     Okay.   Knik to  Anchorage, I would  like to  mention a                                                                    
     little bit  about that. ... Through  the Knik Anchorage                                                                    
     Initiative,  the State  of Alaska  and Municipality  of                                                                    
     Anchorage  have agreed  to work  cooperatively to  seek                                                                    
     funding   to  reduce   congestion  by   developing  and                                                                    
     constructing  missing roadway  links  and the  existing                                                                    
     roadway system.  Knik to  Anchorage is kind of an east,                                                                    
     west,  north,  south  and  it's   going  to  help  with                                                                    
     congestion.                                                                                                                
                                                                                                                                
     Working   on  rural   airport   leasing,  making   land                                                                    
     available for economic development  - examples - Seward                                                                    
     airport  relocating  a power  line  to  make four  lots                                                                    
     developable.   Three  of the  new  lots are  generating                                                                    
     revenue.   We're  doing those  kinds of  things at  the                                                                    
     airport areas.                                                                                                             
                                                                                                                                
     Transparency ...                                                                                                           
                                                                                                                                
2:16:55 PM                                                                                                                    
                                                                                                                                
COMMISSIONER VON SCHEBEN continued:                                                                                             
                                                                                                                                
     The transparency aspect  - accomplishments recently and                                                                    
     this  wasn't my  idea, by  the  way.   At the  Northern                                                                    
     Region Transportation  Forum Representative  Jay Ramras                                                                    
     came to  me last  fall and said  - Frank  introduced me                                                                    
     to...Representative Ramras  - and  he said  wouldn't it                                                                    
     be nice if the DOT could  come up to the north and give                                                                    
     us a  spiel on what  DOT does.   I thought that  was an                                                                    
     excellent idea.   We had that forum.  It  was a one-day                                                                    
     get together.  We  invited mayors, representatives, and                                                                    
     Native leaders and we talked  about what DOT does.  I'm                                                                    
     going to  have one in  Southcentral here this  fall and                                                                    
     then  Southeast we're  going to  have  one in  '09.   I                                                                    
     strive very  hard to communicate  with the public.   In                                                                    
     fact, well I  mentioned, I do a lot  of public speaking                                                                    
     and I  don't want  to go  into a great  deal there.   I                                                                    
     must  average four  speeches a  month just  getting out                                                                    
     there talking to the communities.                                                                                          
                                                                                                                                
     Our STIP  program is  an open  public process  and it's                                                                    
     ongoing.   We're about  to wrap  up another  STIP here.                                                                    
     AIP,  Airport Improvement  Program, is  an open  public                                                                    
     process.   It's  going well.   I  threw in  this Elmore                                                                    
     Road  because  I thought  that  was  a unique  project.                                                                    
     It's a  north-south connection that cuts  two miles off                                                                    
     a  one-way  trip  from   Hillside  to  East  Anchorage.                                                                    
     That's a very special project.                                                                                             
                                                                                                                                
     If you get  a chance to drive that, it's  a very unique                                                                    
     project  and, like  I mentioned  before,  it's done  in                                                                    
     four years when  it would have taken us  many more than                                                                    
     that through federal funding.                                                                                              
                                                                                                                                
2:18:41 PM                                                                                                                    
                                                                                                                                
COMMISSIONER VON SCHEBEN continued:                                                                                             
                                                                                                                                
     This slide here I think is  - I want to kind of impress                                                                    
     upon you on  Slick 8 - this is our  highway trust fund.                                                                    
     It's our  national slide  here.   This just  shows that                                                                    
     the federal  highway trust fund  is going south  on us.                                                                    
     We're  going to  be out  of  funds in  2009. ...  We're                                                                    
     going  to be  stressed  for getting  federal funds  and                                                                    
     this is another  reason why the DOT  is very supportive                                                                    
     of  a  state-funded  transportation  program  that  the                                                                    
     governor has submitted to the  legislature.  So, we get                                                                    
     about 70 percent of our  money from federal funding and                                                                    
     not to  say we're going to  lose all of that  money but                                                                    
     we're going to be down some.   In fact, Frank, you said                                                                    
     somewhere around 20 or 30 percent?                                                                                         
                                                                                                                                
DEPUTY COMMISSIONER RICHARDS responded affirmatively.                                                                           
                                                                                                                                
COMMISSIONER VON SCHEBEN continued:                                                                                             
                                                                                                                                
     We're  estimating  20 or  30  percent  down in  federal                                                                    
     funds  in   2009,  2010,  so   ...  we  could   take  a                                                                    
     significant hit and I don't  know ... what the Congress                                                                    
     is going  to do.  I  can't believe they'll let  that go                                                                    
     negative, but it is a real challenge to us.                                                                                
                                                                                                                                
2:19:48 PM                                                                                                                    
                                                                                                                                
CHAIR  JOHANSEN asked  how the  governor's  stated reluctance  to                                                               
accepting federal  earmarks will impact  the revenue flow  to the                                                               
state.  He also asked  how many federal earmarks DOT&PF requested                                                               
this year.                                                                                                                      
                                                                                                                                
COMMISSIONER VON SCHEBEN responded:                                                                                             
                                                                                                                                
     ... Part of  the reluctance in earmarks is  a policy to                                                                    
     use earmarks.   Let  me just  give you  an example.   A                                                                    
     certain area will  go and get a  million dollar earmark                                                                    
     for a  road job and  that road is  a $10 million  - I'm                                                                    
     just giving you an example -  so we are $9 million shy.                                                                    
     What's basically happened a lot  of times with earmarks                                                                    
     is  they  are  getting  identified  but  they  are  not                                                                    
     sufficient funds  to finish the project  so the earmark                                                                    
     kind  of   sits  there   without  proper   planning  or                                                                    
     coordination with say the DOT.   We can't get a project                                                                    
     ... on its feet.  For  example, the Chignik one was a -                                                                    
     I  think they  got an  earmark for  $5 million  and the                                                                    
     project is  $35 million.   We don't know where  the $30                                                                    
     million  is going  to come  from.   We  don't have  the                                                                    
     money  at this  time.   So,  part of  the problem  with                                                                    
     earmarks  is  not having  enough  funds  to finish  the                                                                    
     project.                                                                                                                   
                                                                                                                                
     Now the second half of your question - Frank?                                                                              
                                                                                                                                
MR. RICHARDS told  members that the federal  earmarks for highway                                                               
funds  through   SAFETEA-LU  were   deducted  from   the  state's                                                               
allocation of  $400 million.   Therefore, DOT&PF did not  have as                                                               
much  money as  it  anticipated spending  on  its normal  formula                                                               
projects.   In previous  legislation, like  TEA 21,  the earmarks                                                               
were  added to  the state's  base allocation  and were  therefore                                                               
beneficial  to the  state.   In trying  to reduce  the amount  of                                                               
earmarks being put  forward to Congress, DOT&PF  put forward four                                                               
earmarks for FY 09.                                                                                                             
                                                                                                                                
2:22:46 PM                                                                                                                    
                                                                                                                                
CHAIR JOHANSEN  asked if  in every instance  all of  the earmarks                                                               
contained  in   SAFETEA-LU  were   deducted  [from   the  state's                                                             
allocation].                                                                                                                    
                                                                                                                                
MS.  SLAGLE clarified  that Section  1702 contained  the earmarks                                                               
that  were  deducted.    Other sections  of  the  bill  contained                                                               
earmarks that were additive so the bill contained a combination.                                                                
                                                                                                                                
2:23:27 PM                                                                                                                    
                                                                                                                                
CHAIR JOHANSEN asked  Ms. Slagle to provide the  committee with a                                                               
list of the additive earmarks.                                                                                                  
                                                                                                                                
MS. SLAGLE  agreed to  provide a list  of the  earmarks, sections                                                               
and whether they were additive or deductive.                                                                                    
                                                                                                                                
2:24:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN  said  he   was  told  by  Central  Region                                                               
Director Gordon  Keith that  the federal  funds available  to the                                                               
state are matching at about 10 to 1.  He asked:                                                                                 
                                                                                                                                
     ...  So what  roads do  you look  at ...  when you  say                                                                    
     okay, you're  looking at a  road project, what  type of                                                                    
     matching funds can  you get?  Can you get  four to one?                                                                    
     Can you get  ten to one on them and  how does that come                                                                    
     together?   I'd  like  to understand  that process  and                                                                    
     maybe what roads are incorporated  in that a little bit                                                                    
     further.                                                                                                                   
                                                                                                                                
COMMISSIONER VON SCHEBEN said that  question can best be answered                                                               
by Jeff Ottesen when he testifies before the committee.                                                                         
                                                                                                                                
2:25:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH asked if  the state can refuse earmarks                                                               
and whether the governor has directed DOT&PF to refuse earmarks.                                                                
                                                                                                                                
COMMISSIONER  VON  SCHEBEN said  he  recently  sent a  letter  to                                                               
Alaska's  congressional delegation  about  12 earmarked  projects                                                               
that  have  insufficient  funds.     He  is  trying  to  get  the                                                               
delegation's opinions  on that  process.   He said  some projects                                                               
may not go forward because  of technical problems or insufficient                                                               
funds.                                                                                                                          
                                                                                                                                
2:26:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH  said  her question  was  whether  the                                                               
governor is  in the  position of  telling the  federal government                                                               
that the  state is refusing funds.   She said she  can understand                                                               
refusing funds for projects that are  not within the STIP and are                                                               
deductive.   However, if the  project funds are additive  and can                                                               
be  advanced in  their totality  or  only require  a small  state                                                               
match,  she believes  legislators in  those areas  would like  to                                                               
know that those funds are available.  She furthered:                                                                            
                                                                                                                                
     I guess  I would  think Alaskans would  hate to  see us                                                                    
     turning  away  federal  money.     I  understand  being                                                                    
     personally accountable.   I understand process  and how                                                                    
     the   whole  package   needs  to   come  together   for                                                                    
     prioritization  but I  want  to be  very  clear if  the                                                                    
     governor   has   given   the  direction   to   DOT   to                                                                    
     specifically not accept money.                                                                                             
                                                                                                                                
MR.  RICHARDS  said   he  hoped  he  did   not  misrepresent  the                                                               
governor's  intentions.    He clarified  that  the  future  funds                                                               
DOT&PF  seeks for  earmarks will  be  limited in  number and  the                                                               
dollar amounts.                                                                                                                 
                                                                                                                                
2:27:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH  commented that Chair Johansen  said he                                                               
heard  the governor  was refusing  earmarks.   She said  she just                                                               
wants  a yes  or  no  answer about  the  direction  given by  the                                                               
Administration to DOT&PF.                                                                                                       
                                                                                                                                
COMMISSIONER  VON   SCHEBEN  repeated   that  he  wrote   to  the                                                               
congressional delegation  and identified  up to 15  projects that                                                               
cannot go forward,  primarily because of insufficient  funds.  He                                                               
prepared that  letter in conjunction  with the  governor's Office                                                               
but does not know whether the governor was involved.                                                                            
                                                                                                                                
2:28:21 PM                                                                                                                    
                                                                                                                                
CHAIR JOHANSEN asked who signed the letter.                                                                                     
                                                                                                                                
COMMISSIONER VON SCHEBEN said he signed it.                                                                                     
                                                                                                                                
CHAIR JOHANSEN  said the committee  would like  to see a  copy of                                                               
the letter.                                                                                                                     
                                                                                                                                
2:28:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH  said she pressed the  question because                                                               
she  does not  believe  the governor  quantitatively  said no  to                                                               
earmarks.  She believes the  Administration is trying to evaluate                                                               
what is  important for Alaska  inside of  a larger package.   She                                                               
stated:                                                                                                                         
                                                                                                                                
     So I don't  want it on the record  as being disparaging                                                                    
     one  way or  another.   I just  want to  understand ...                                                                    
     what process we're using to  ask the federal delegation                                                                    
     to reprioritize our  requests.  I hope  the money stays                                                                    
     on the table, is my point, for Alaska.                                                                                     
                                                                                                                                
2:29:03 PM                                                                                                                    
                                                                                                                                
CHAIR JOHANSEN said  he believes that is fair but  he thought the                                                               
governor's  tone  in  her  State  of the  State  Address  and  in                                                               
comments to  the press is that  Alaska needs to start  paying its                                                               
own way.   He  would prefer  to see  the actual  documentation to                                                               
determine what is happening.  He  said he would also like to know                                                               
what  sort of  flexibility the  state has  to transfer  earmarked                                                               
funds to another project.                                                                                                       
                                                                                                                                
MS.  SLAGLE  explained  that  similar  to  state  appropriations,                                                               
federal  appropriations   are  limited  based  on   their  title.                                                               
Therefore, if  a community  does not have  funds to  do something                                                               
with  the earmark,  DOT&PF works  with the  community to  find an                                                               
alternative project,  but DOT&PF has  to take the new  project to                                                               
the congressional  delegation.  The  delegation is trying  to fix                                                               
some of  the project  titles with  technical corrections  so that                                                               
the communities can use the earmarked funds for other purposes.                                                                 
                                                                                                                                
2:31:31 PM                                                                                                                    
                                                                                                                                
CHAIR  JOHANSEN said  when a  press release  from the  governor's                                                               
Office said the money for the  Ketchikan bridge would be used for                                                               
projects in other  parts of the state, and  hundreds of community                                                               
officials had  worked on getting  that money  for 30 years  and a                                                               
great  deal   of  those   funds  were   additive,  many   of  his                                                               
constituents were insulted.                                                                                                     
                                                                                                                                
2:33:10 PM                                                                                                                    
                                                                                                                                
COMMISSIONER VON SCHEBEN continued his presentation:                                                                            
                                                                                                                                
     Slick 9 -  cost of doing business.  It's  been going up                                                                    
     at 15  to 20 percent per  year.  The cost  of steel has                                                                    
     gone up.  The cost of  concrete has gone up.  These are                                                                    
     some of  the challenges  we face at  DOT.   Asphalt has                                                                    
     increased   80  percent   over   the   last  6   years.                                                                    
     Excavation  has increased  55 percent  over the  last 6                                                                    
     years.   I know  these statistics  might run  one right                                                                    
     after  another but  basically what  I'm telling  you is                                                                    
     the cost of doing business is  going up and the cost of                                                                    
     doing projects is  going up so we're  getting less bang                                                                    
     for the  buck, which  also gives  us a  good indication                                                                    
     that we should  try and get as many projects  as we can                                                                    
     get done  in the  next few  years or  the cost  is just                                                                    
     going  to be  prohibitive  - I  can't say  prohibitive.                                                                    
     It's just going  to keep going up and going  to be more                                                                    
     expensive to do business.                                                                                                  
                                                                                                                                
2:34:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   FAIRCLOUGH  said   she   wondered  whether   the                                                               
legislature needs  to change  its requirement  regarding DOT&PF's                                                               
procurement of  the asphalt  mix.  She  said she  understands the                                                               
legislature requires  DOT&PF to use  Alaska crude in  the asphalt                                                               
mix but the  viscosity of the crude may be  of lower quality than                                                               
what  is on  the market  elsewhere.   She questioned  whether the                                                               
cost  factor is  starting to  outweigh  the benefits  of using  a                                                               
local product.                                                                                                                  
                                                                                                                                
MR. RICHARDS  said DOT&PF's challenge  is that the  aggregates it                                                               
uses are produced in Alaska and  are relatively soft.  DOT&PF has                                                               
few  sources of  hard  aggregates  but tries  to  use those  when                                                               
projects  are located  near those  sources.   In many  cases that                                                               
requires  trucking,  train  transport  or  barge  transport  many                                                               
miles.  DOT&PF is finding  that hard aggregate imported and mixed                                                               
in the asphalt provides a longer lasting surface.  He explained:                                                                
                                                                                                                                
     We  used that,  I believe,  on the  Tudor Road  project                                                                    
     that we just  completed in the fall of 2005.   That was                                                                    
     a  test section  where the  eastbound lane,  I believe,                                                                    
     was  hard  aggregate.    The  westbound  lane  was  the                                                                    
     regular  Mat-Su Valley  gravel.   We're waiting  to see                                                                    
     the results of that to see  if that road system in that                                                                    
     high traffic  - the  most highest  traffic road  in the                                                                    
     state, holds up.                                                                                                           
                                                                                                                                
     In  regards to  the asphalts  themselves, we  are using                                                                    
     polymer additives  to try and  give us  the flexibility                                                                    
     and the strength that maybe  the local viscosity of the                                                                    
     Alaska  Crude  may  not  be   providing  us.    So  our                                                                    
     materials  engineers  are   very  concerned  and  we're                                                                    
     trying to  come up with  the best technologies  that we                                                                    
     have, utilizing those  modifiers, those additives, that                                                                    
     we can  put into  the mix  to try and  get us  the best                                                                    
     quality product rather than ultimately  - or if we need                                                                    
     to, go out and import oils into the state.                                                                                 
                                                                                                                                
 2:38:02 PM                                                                                                                   
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH  said she  would be interested  to know                                                               
whether  a procurement  procedure  within DOT&PF  is costing  the                                                               
department  money.   She also  noted  that soft  cements are  now                                                               
being  produced  that  have  some  flexibility  in  cold  weather                                                               
climates.  She  asked whether DOT&PF has looked at  or tested any                                                               
of those for use in cold weather climates.                                                                                      
                                                                                                                                
MR.  RICHARDS  replied  he  is  not aware  of  a  more  malleable                                                               
concrete.   Private contractors and  the Army Corps  of Engineers                                                               
have used  a certain  concrete in  freezing conditions  that does                                                               
not need heat  to set but it  is still a rigid product.   He said                                                               
the procurement  procedure depends on  the mix design  that comes                                                               
out of DOT&PF's materials  group and what is put in  the bid.  He                                                               
offered  to follow  up with  Representative Fairclough  regarding                                                               
the cost to Alaska producers and importers.                                                                                     
                                                                                                                                
2:39:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH said a  follow-up is not necessary. She                                                               
asked  that  DOT&PF  notify  the  legislature  if  a  procurement                                                               
problem exists.                                                                                                                 
                                                                                                                                
2:39:34 PM                                                                                                                    
                                                                                                                                
CHAIR  JOHANSEN noted  the meeting  will be  transcribed and  the                                                               
questions sent to  DOT&PF.  He noted the committee  wants to know                                                               
what options DOT&PF is looking at to mitigate costs.                                                                            
                                                                                                                                
2:39:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON noted the  wide disparity between the cost                                                               
of asphalt produced in Alaska  and the accelerated price increase                                                               
nationally and asked if that is  caused by reasons other than the                                                               
procurement procedure.                                                                                                          
                                                                                                                                
COMMISSIONER  VON  SCHEBEN  related his  understanding  that  the                                                               
rapid  increase is  due to  the rising  costs of  labor, oil  and                                                               
materials.                                                                                                                      
                                                                                                                                
2:40:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON  asked if  those  costs  for asphalt  and                                                               
concrete  are increasing more in Alaska than elsewhere.                                                                         
                                                                                                                                
MR. RICHARDS said  he would prefer to provide  the committee with                                                               
the facts behind the rising costs  of those products in Alaska as                                                               
compared to the national average at a later date.                                                                               
                                                                                                                                
2:41:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON  asked if the  cost increase in  the price                                                               
of concrete is similar to that  of asphalt or whether the problem                                                               
is related to the procurement requirement for asphalt.                                                                          
                                                                                                                                
MR.  RICHARDS  said  information   from  the  Associated  General                                                               
Contractors shows that the cost  of concrete is higher in Alaska,                                                               
probably because the base materials have to be imported.                                                                        
                                                                                                                                
2:42:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON said he would then expect the line [on                                                                   
the chart] for concrete to be more elevated than asphalt.  He                                                                   
commented:                                                                                                                      
                                                                                                                                
     If we get an analysis  and it shows that concrete isn't                                                                    
     higher than the  asphalt, then I see a  problem that we                                                                    
     need to  get to  the bottom  to.  If  not, then  it may                                                                    
     just be the cost of doing  business in Alaska.  I think                                                                    
     we're  probably  going  to find  that  even  though  we                                                                    
     import  it, we  bring it  up, it's  still not  going to                                                                    
     elevate to  the level  that the asphalt  does so  I see                                                                    
     the  same  problem  looming   or  somewhere  out  there                                                                    
     there's a flashing light, whether  it's red or yellow I                                                                    
     don't know  but there's a  flashing light on  the costs                                                                    
     here and I'd like to find  out the reason why.  I think                                                                    
     a good analysis  would be something that  we import 100                                                                    
     percent of in concrete, if  it hasn't gone up more than                                                                    
     asphalt,  then I'd  see that  as being  a red  light as                                                                    
     opposed to a yellow light.                                                                                                 
                                                                                                                                
2:43:29 PM                                                                                                                    
                                                                                                                                
COMMISSIONER VON SCHEBEN offered to provide the committee with                                                                  
more information and continued his presentation:                                                                                
                                                                                                                                
     Slide 10  - that really  tells the tale  regarding what                                                                    
     the department has to  go through regarding challenges.                                                                    
     If you  look back  to the '60s  backwards, we  only had                                                                    
     about nine  regulations we  used to  deal with  in 1960                                                                    
     and now  when you look up  in the 2000s, these  are the                                                                    
     regulations that DOT  has to be confronted  with.  It's                                                                    
     another  50 or  60 more  regulations totaling  probably                                                                    
     almost 70 regulations compared to  the old days when it                                                                    
     was  only 10  so  it's pretty  awe inspiring  regarding                                                                    
     what we have to go through.                                                                                                
                                                                                                                                
     Climate change - Slick 11.                                                                                                 
                                                                                                                                
2:44:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER interrupted to say he would like to know                                                                  
if Alaska's oil product used in the manufacturing of asphalt is                                                                 
inferior to the imported oil product.  He also asked:                                                                           
                                                                                                                                
     Also,  you  talked about  the  softer  aggregate.   Now                                                                    
     that's the  gravel, right,  that goes  in?   Okay, does                                                                    
     that have to  do with proportions?  Does it  have to do                                                                    
     with the  silt that's in  our gravel?  What's  going on                                                                    
     here?  I'd like a little  bit of education on that when                                                                    
     you answer the question.                                                                                                   
                                                                                                                                
COMMISSIONER VON SCHEBEN said he would provide that information.                                                                
                                                                                                                                
2:45:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN asked:                                                                                                    
                                                                                                                                
     ...   You  know   how  I   like  to   promote  economic                                                                    
     development within  the state of Alaska  and to support                                                                    
     our Fairbanks friends. You know  there's quite a bit of                                                                    
     product up  there that can  be used in the  creation of                                                                    
     some [indisc.].   I'd like  to know what you  are doing                                                                    
     to  help support  those  folks and  are  we looking  in                                                                    
     state to use that?                                                                                                         
                                                                                                                                
COMMISSIONER VON SCHEBEN questioned whether Representative                                                                      
Neuman is asking whether Alaska can manufacture its own Portland                                                                
cement.                                                                                                                         
                                                                                                                                
REPRESENTATIVE NEUMAN said he is.                                                                                               
                                                                                                                                
CHAIR JOHANSEN told the commissioner he can respond to that                                                                     
question when he responds to the others.                                                                                        
                                                                                                                                
2:45:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DOOGAN said he would like to know whether DOT&PF                                                                 
still maintains any gravel roadways and the difference in the                                                                   
per lane mile cost versus pavement.                                                                                             
                                                                                                                                
2:46:11 PM                                                                                                                    
                                                                                                                                
COMMISSIONER VON SCHEBEN continued his presentation:                                                                            
                                                                                                                                
     Climate change,  I think you're  all pretty  much aware                                                                    
     that things  are changing  out there.   You can  see by                                                                    
     these slides the freezing and  thawing.  Frank Richards                                                                    
     - he represents the department  on the subcommittee.  I                                                                    
     wanted  to share  one  event  with you  -  a couple  of                                                                    
     events  on  intense  rainfall, especially  in  southern                                                                    
     Alaska it  seems to be occurring  more often, resulting                                                                    
     in flooding  and washed out  roads.  As an  example, we                                                                    
     had two 100-year  floods in the Kenai  in 2002, costing                                                                    
     us over $10  million in repairs.  Also, in  the fall of                                                                    
     2006 the Richardson  Highway was closed for  a week due                                                                    
     to severe  flooding.  A  100-year flood is  supposed to                                                                    
     happen once in 100 years.   We [had] two of them happen                                                                    
     within a  month of  each other so  we are  getting some                                                                    
     unusual climate changes.                                                                                                   
                                                                                                                                
2:47:10 PM                                                                                                                    
                                                                                                                                
     Dust  control  - federal  funding  can  be impacted  if                                                                    
     areas are  designated as non-attainment areas.   A non-                                                                    
     attainment area,  that's on Slide 12,  a non-attainment                                                                    
     area  is  dust  that   exceeds  national  air  quality.                                                                    
     States can be required to  come up with plans to reduce                                                                    
     that kind  of particulate in  the air so  we're getting                                                                    
     more    and   more    dust    issues   regarding    our                                                                    
     villages...even  in the  Valley  where  I live  there's                                                                    
     dust areas.                                                                                                                
                                                                                                                                
     That slide  on the right is  an airport.  I  don't know                                                                    
     where  the airport  is.   I know  Frank could  tell you                                                                    
     where it  is.   That's a  unique dust  prohibitive type                                                                    
     material.   It's - if  you look  at the runway  you can                                                                    
     actually even  see tire  marks in the  slide.   This is                                                                    
     [indisc.] about  three or four  years for  dust control                                                                    
     and  it's some  type  of motion  and chemical  reaction                                                                    
     with the  soil that's  already there  and it  keeps the                                                                    
     dust down so ...                                                                                                           
                                                                                                                                
2:48:12 PM                                                                                                                    
                                                                                                                                
CHAIR JOHANSEN noted  the chair of the Bush  Caucus has mentioned                                                               
serious  dust  problems  in rural  Alaska,  especially  regarding                                                               
honey buckets.   He asked  the commissioner to work  on solutions                                                               
with the  Department of Environmental Conservation  (DEC) and the                                                               
Bush Caucus.   He  thought the  conditions at  the aforementioned                                                               
airport might be applicable to the villages.                                                                                    
                                                                                                                                
COMMISSIONER  VON  SCHEBEN  agreed  and said  he  thought  DOT&PF                                                               
requested $600,000  for water trucks  and other equipment  in the                                                               
capital budget.                                                                                                                 
                                                                                                                                
2:49:17 PM                                                                                                                    
                                                                                                                                
MR. RICHARDS clarified that DOT&PF  made a capital budget request                                                               
to  specifically  address  the  needs  in  the  Northwest  Arctic                                                               
communities.   DEC and  EPA have done  air quality  monitoring in                                                               
eight villages.  The results  showed [the dust particulate level]                                                               
is above the national air quality standards.  He explained:                                                                     
                                                                                                                                
     We  are hoping  to work  with DEC  by utilizing  simple                                                                    
     techniques,  which is  just  applying  through a  water                                                                    
     tank and  distributor truck and  apply it to  the roads                                                                    
     and the airports in those  communities, which appear to                                                                    
     be some of the biggest contributors to the dust.                                                                           
                                                                                                                                
CHAIR JOHANSEN  encouraged the  commissioner to  direct attention                                                               
to  that  problem  because  it   is  a  health  problem  for  the                                                               
communities.                                                                                                                    
                                                                                                                                
2:50:13 PM                                                                                                                    
                                                                                                                                
COMMISSIONER VON SCHEBEN continued his presentation, as follows:                                                                
                                                                                                                                
     Okay, I'm  on my last  slide on page  13.  If  you talk                                                                    
     about challenges,  the biggest  challenge - one  of the                                                                    
     biggest  challenges   I  have   and  I  hope   you  can                                                                    
     appreciate what I'm up against  here, but we have 3,200                                                                    
     employees and  between the  next zero  to five  years a                                                                    
     third  of  them  can  depart from  the  department  and                                                                    
     retire  because  of  reaching   retirement  age.    Our                                                                    
     turnover in the  DOT is around 30 percent.   When I was                                                                    
     in the private sector just a  year or so ago, it was 15                                                                    
     to 17  percent.   The average age  of our  employees is                                                                    
     older; it's 46  years old and in  private practice it's                                                                    
     around 40.  So I'm up  against running out of staff and                                                                    
     people are  going to  be retiring  and [DOT&PF  has] an                                                                    
     aging staff so  it's going to be a real  issue.  I have                                                                    
     the potential of losing some  real core competencies in                                                                    
     the department if I can't  find people to replace them.                                                                    
     I  call it  the  war for  talent.   It's  hard to  find                                                                    
     people and  when I was  in private practice  I actually                                                                    
     had to  go out  of state  for surveyors,  engineers and                                                                    
     architects.  It's hard to find these people.                                                                               
                                                                                                                                
     Anyway, with that I'm open to questions.                                                                                   
                                                                                                                                
2:51:26 PM                                                                                                                    
                                                                                                                                
CHAIR JOHANSEN commented  that DOT&PF has already  lost some very                                                               
valuable people  and has had  to hire  new directors lately.   He                                                               
asked  what  proactive  measures  DOT&PF  is  taking  to  improve                                                               
recruitment, other than offering higher salaries.                                                                               
                                                                                                                                
COMMISSIONER  VON  SCHEBEN  told members  through  Administrative                                                               
Order  237,  he  is  working  with  Annette  Kreitzer  and  other                                                               
commissioners to address hiring and  retention problems.  He said                                                               
he has no  quick answers.  Some people are  choosing to return to                                                               
state   employment  and   older  employees   could  be   rehired.                                                               
Retaining  employees of  retirement age  is another  possibility.                                                               
Right now,  DOT&PF uses  the Internet, head  hunters, or  word of                                                               
mouth to find  employees.  He is working with  the University and                                                               
private sector on  the same issues.  This problem  applies to the                                                               
entire gamut  of business.   More  people need  to be  trained in                                                               
engineering, business, marketing, and in other fields.                                                                          
                                                                                                                                
2:53:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SALMON  asked  for a  rural  airport  improvement                                                               
project  schedule   for  District  6  that   shows  the  airports                                                               
currently being worked on.                                                                                                      
                                                                                                                                
COMMISSIONER VON SCHEBEN agreed to provide a list.                                                                              
                                                                                                                                
2:54:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DOOGAN  asked why the  turnover rate in  DOT&PF is                                                               
twice what it is in the private sector.                                                                                         
                                                                                                                                
COMMISSIONER VON SCHEBEN  opined that it is primarily  due to the                                                               
fact that DOT&PF's aging workforce is retiring.                                                                                 
                                                                                                                                
MS. SLAGLE agreed it is due  to Baby Boomers retiring.  She noted                                                               
the commissioner  requested that  an employee  survey be  done to                                                               
determine what drew employees to  DOT&PF, what would keep them at                                                               
DOT&PF and why they would leave.   She said DOT&PF is doing quite                                                               
a  bit to  attract people  to transportation  professions and  is                                                               
finding it has to attract people  at an earlier age.  This spring                                                               
DOT&PF is  having its first  Construction Days fair in  the [Mat-                                                               
Su] Valley  to reach out  to high school students.   Furthermore,                                                               
DOT&PF  provides internships,  an  engineering training  program,                                                               
and holds job fairs.                                                                                                            
                                                                                                                                
2:56:56 PM                                                                                                                    
                                                                                                                                
CHAIR JOHANSEN asked if the employee survey addresses morale.                                                                   
                                                                                                                                
MS. SLAGLE said it does.  It  also asks questions, such as how do                                                               
you feel about your supervisor, to  get an idea about the general                                                               
feeling of employees.                                                                                                           
                                                                                                                                
CHAIR JOHANSEN asked when the survey will be complete.                                                                          
                                                                                                                                
COMMISSIONER  VON SCHEBEN  said the  survey would  be distributed                                                               
electronically in  a month and he  expects a quick response.   He                                                               
informed members the  survey is very similar to one  done at DEC.                                                               
He added the McDowell Group is handling the survey.                                                                             
                                                                                                                                
2:57:53 PM                                                                                                                    
                                                                                                                                
CHAIR JOHANSEN said  the committee would be  interested in seeing                                                               
the results of the survey.                                                                                                      
                                                                                                                                
COMMISSIONER VON SCHEBEN agreed to  provide the results.  He then                                                               
told  Representative  Doogan  that  the private  sector  is  also                                                               
looking for people.  Salary and  quality of life are also issues.                                                               
Younger people want time off.                                                                                                   
                                                                                                                                
2:59:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DOOGAN  said a  30 percent  turnover rate  is huge                                                               
and asked if  DOT&PF could have difficulty doing  its job because                                                               
it is losing important employees every year.                                                                                    
                                                                                                                                
COMMISSIONER   VON  SCHEBEN   said  he   has  seen   that  happen                                                               
repeatedly.  It is a "threat," but it can be addressed.                                                                         
                                                                                                                                
REPRESENTATIVE DOOGAN  said he appreciates  the fact  that DOT&PF                                                               
is doing a survey to provide actual data.                                                                                       
                                                                                                                                
COMMISSIONER VON SCHEBEN said a survey  is a tool he would use in                                                               
private practice  to manage  his business.   He said  he believes                                                               
staff feedback is key to managing DOT&PF.                                                                                       
                                                                                                                                
CHAIR JOHANSEN questioned the turnover rate at the legislature.                                                                 
                                                                                                                                
3:01:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON  asked whether  DOT&PF requires  new hires                                                               
to be  current employees  of DOT&PF.   He expressed  concern that                                                               
some  departments  are  requiring employment  for  specific  time                                                               
periods at the  department as a prerequisite for  employment.  He                                                               
believes that is a big pitfall to recruitment.                                                                                  
                                                                                                                                
COMMISSIONER  VON SCHEBEN  said he  is working  with Commissioner                                                               
Kreitzer and Ms. Slagle regarding  job qualifications.  He agrees                                                               
with  Representative Johnson  that some  of the  job requirements                                                               
immediately eliminate  qualified people and that  managers should                                                               
at least  be able  to review those  resumes to  determine whether                                                               
those people are possible candidates.   He acknowledged that some                                                               
of the  questions asked  on Workplace Alaska  eliminate a  lot of                                                               
people that might  otherwise be qualified.   Those questions have                                                               
been removed but other problems remain.                                                                                         
                                                                                                                                
REPRESENTATIVE  JOHNSON encouraged  the commissioner  to continue                                                               
to work on that problem.   He then informed the commissioner that                                                               
he does  not plan to support  any bond proposals.   He questioned                                                               
why the  state would  sell $100  million worth  of bonds  when it                                                               
will  have a  $1 billion  surplus.   He said  until he  sees $100                                                               
million  being saved  or getting  a high  return so  that bonding                                                               
makes sense,  it will be difficult  for him to argue  the need to                                                               
mortgage the state's future when it has the cash right now.                                                                     
                                                                                                                                
3:04:25 PM                                                                                                                    
                                                                                                                                
CHAIR JOHANSEN  reminded members  that the governor's  bills will                                                               
be heard in committee.                                                                                                          
                                                                                                                                
COMMISSIONER VON  SCHEBEN said the  cost of bonding right  now is                                                               
low so investing the money elsewhere  at a greater rate of return                                                               
could be  advantageous.  He said  a second aspect of  the bonding                                                               
request  is  that   the  governor  is  trying   to  hold  capital                                                               
expenditures to under  $375 million, so bonding  would allow some                                                               
infrastructure projects to move forward now.                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON  said he hates  budgeting by mirrors.   He                                                               
said the  capital budget will  not be  under $375 million  if the                                                               
state gets $100 million elsewhere;  in his mind, the $100 million                                                               
is part of the capital budget.                                                                                                  
                                                                                                                                
3:06:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN  commented, regarding managing  people, the                                                               
commissioner  started  one  of the  most  successful  engineering                                                               
companies  in   the  state  and   that  requires   good  employee                                                               
management.  He said Knik  Arm Bridge and Toll Authority (KABATA)                                                               
is extremely  important to his  district and asked for  an update                                                               
on DOT&PF's involvement in that project.                                                                                        
                                                                                                                                
COMMISSIONER  VON SCHEBEN  said  he has  a  conflict of  interest                                                               
because his  former company,  USKH, has  submitted a  proposal on                                                               
the project.  He asked Mr. Richards to respond.                                                                                 
                                                                                                                                
MR. RICHARDS recognized that  Andrew Niemiec, Executive Director,                                                               
KABATA was  present.  He told  members that DOT&PF is  one of two                                                               
representatives  of  the  state's executive  branch  on  KABATA's                                                               
board.     Two  legislators   are  also  on   the  board.     The                                                               
organization's  establishing  legislation  created  KABATA  as  a                                                               
separate entity  that falls  under DOT&PF's  umbrella.   He noted                                                               
that DOT&PF  is intimately  involved with  KABATA on  the project                                                               
and  in   identifying  technical  and   coordination  challenges,                                                               
meaning the state's responsibilities  to connecting road systems.                                                               
DOT&PF has  that linkage  with KABATA and  oversight duties  as a                                                               
board member.                                                                                                                   
                                                                                                                                
3:09:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN commented:                                                                                                
                                                                                                                                
     ...  This is  a unique  situation for  Alaska where  we                                                                    
     have a  private public  partnership on a  toll project.                                                                    
     And  again, with  reduction of  federal funds  that are                                                                    
     coming  in, I  think  that  maybe we  need  to look  at                                                                    
     projects like  this a little  bit more so  I'm assuming                                                                    
     that you support  the use of public and  private ... or                                                                    
     checking into public-private?                                                                                              
                                                                                                                                
MR. VON  SCHEBEN said public  private partnerships seem to  be an                                                               
industry trend.   The State  of Texas is actually  selling assets                                                               
to private  industry.   The viability of  partnerships has  to do                                                               
with numbers  regarding traffic flow  and toll generations.   The                                                               
private sector  must be  reimbursed for  its investment.   Alaska                                                               
does not  have the volume  to generate that  kind of income.   He                                                               
acknowledged that DOT&PF  has not looked at  other private public                                                               
partnerships for projects at this time.                                                                                         
                                                                                                                                
3:10:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN  asked the commissioner if  he believes the                                                               
Knik Arm Bridge can be built without private investment.                                                                        
                                                                                                                                
MR. RICHARDS  pointed out  the current  financial plan  calls for                                                               
public money to be used as match funds to complete the bridge.                                                                  
                                                                                                                                
REPRESENTATIVE  NEUMAN  said he  assumes  private  funds will  be                                                               
necessary.                                                                                                                      
                                                                                                                                
MR. RICHARDS said that is correct.                                                                                              
                                                                                                                                
3:10:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN asked  what  DOT&PF's  major concerns  are                                                               
with the bridge.                                                                                                                
                                                                                                                                
MR. RICHARDS  said he is just  now getting up to  speed on KABATA                                                               
as he has  only been on the  board for two weeks.   He noted that                                                               
Gordon Keith, Director,  Central Region, has been  sitting on the                                                               
board and Mr.  Keith's project manager has  day-to-day linkage to                                                               
KABATA.                                                                                                                         
                                                                                                                                
3:12:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN  referred to competing  investor proposals,                                                               
and said a time issue is involved.   He said the state can reject                                                               
any proposals that  are not in its best interests.   He asked the                                                               
deputy commissioner  if he can  speak to the  competing proposals                                                               
and the schedule date for releasing the request for proposals.                                                                  
                                                                                                                                
MR.  RICHARDS  said KABATA  developed  a  tight schedule  at  the                                                               
outset of the project.   The final environmental impact statement                                                               
has  been provided  by the  federal  highway agency.   KABATA  is                                                               
awaiting  the record  decision.   That can  take 30  to 90  days.                                                               
DOT&PF and Department  of Law staffs are  reviewing the technical                                                               
and  financial  packages  drawn  up  by KABATA  for  the  RFP  to                                                               
determine  potential obligations  or  liabilities  to the  state.                                                               
When that review  is complete, those staff  members will converse                                                               
with KABATA and the Administration to address those issues.                                                                     
                                                                                                                                
3:14:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN asked about the timeline for the review.                                                                  
                                                                                                                                
MR.  RICHARDS  replied  the  legal  team  just  received  another                                                               
amendment so it  has to review fresh documents.   DOT&PF hopes to                                                               
have  its  review of  the  technical  specifications complete  in                                                               
early February.                                                                                                                 
                                                                                                                                
3:14:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN stated:                                                                                                   
                                                                                                                                
     It's just so critical because, you know, there's been an                                                                   
     indication from KABATA that receiving those proposals from                                                                 
     the interested developers [is] key  in determining the value                                                               
     of the  project and  so, again,  it's something  that's very                                                               
     important to  me, so if  you could maybe address  that again                                                               
     in writing  or get us  a little  bit more information.   But                                                               
     that competition  is important.   I think  competition makes                                                               
     all of these  stronger and, again, this  is something unique                                                               
     to Alaska where we've got  a public and private partnership.                                                               
     We've  got some  competing proposals.   I  hope to  see some                                                               
     movement  from DOT  or some  assistance on  that, if  we can                                                               
     move forward on  that or at least some answers  to when this                                                               
     can be moved up.                                                                                                           
                                                                                                                                
MR. RICHARDS  agreed that competition  will be beneficial  to the                                                               
state and that two companies want to be part of the process.                                                                    
                                                                                                                                
3:15:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH   asked  whether  the   KABATA  record                                                               
decision was handed down today.                                                                                                 
                                                                                                                                
MR. RICHARDS replied the record  decision has not been decided to                                                               
his knowledge.   He understood  the federal process would  take a                                                               
minimum of 30 days.                                                                                                             
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH said  her  staff was  told the  record                                                               
decision  was coming  today  and the  comment  period would  then                                                               
open.                                                                                                                           
                                                                                                                                
ANDREW  NIEMIEC, Executive  Director,  Knik Arm  Bridge and  Toll                                                               
Authority (KABATA),  told members the final  environmental impact                                                               
statement  submitted  by  KABATA  was  released  by  the  Federal                                                               
Highway  Administration  and  will  be in  the  federal  register                                                               
tomorrow.  The record of decision  will follow in a minimum of 30                                                               
days; however the decision is more likely  to be made in 60 to 90                                                               
days.                                                                                                                           
                                                                                                                                
3:16:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH  asked if  the state has  the authority                                                               
to reject the proposal.                                                                                                         
                                                                                                                                
MR. RICHARDS asked for clarification.                                                                                           
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH replied:                                                                                              
                                                                                                                                
     I'm asking  DOT whether we  really do have  authority versus                                                               
     KABATA,  to reject  a proposal.    If KABATA  itself, as  an                                                               
     entity, receives a bid or  a financial arrangement, does the                                                               
     state, since  the state is  the parent company per  se, have                                                               
     the authority to  reject or is it KABATA  and KABATA's board                                                               
     of directors that the power is vested in?                                                                                  
                                                                                                                                
MR.  RICHARDS  explained  the  proposals  will  be  submitted  to                                                               
KABATA.    KABATA  will  determine   the  qualifications  of  the                                                               
proposals  and through  internal and  board consultations  make a                                                               
determination.   So the state  voices would be heard  through the                                                               
board consultation.                                                                                                             
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH  said  she   is  trying  to  determine                                                               
whether  the legislature  will  have  any say  in  the matter  or                                                               
whether it  has vested all of  its power in KABATA  and its board                                                               
of  directors, even  though the  state is  providing funds.   She                                                               
said a written response would be acceptable.                                                                                    
                                                                                                                                
3:19:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN clarified  that his  question was  whether                                                               
the state  can reject an  investor proposal if  it is not  in the                                                               
best interest of the state.                                                                                                     
                                                                                                                                
MR. RICHARDS said he would  best serve the committee by providing                                                               
a written response after an in-depth analysis.                                                                                  
                                                                                                                                
3:19:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   FAIRCLOUGH   asked   about  the   state's   risk                                                               
associated with  the continued  payment of  KABATA in  its budget                                                               
cycle.   She also asked how  long the state will  carry that cost                                                               
forward.   She  then asked  if that  cost will  be repaid  to the                                                               
state when  the investment goes  forward into the  private sector                                                               
partnership.                                                                                                                    
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH further explained:                                                                                    
                                                                                                                                
     The state is  floating a loan basically, saying  a bridge is                                                               
     a viable source.  And let's  get on the record I support the                                                               
     Knik  crossing.    I  believe  that  it  opens  an  economic                                                               
     opportunity  for housing  and  commercial development  where                                                               
     Anchorage  is  somewhat landlocked  now.    So I  support  a                                                               
     bridge crossing but I believe that  the state is on the hook                                                               
     and  I  just  want  to  make  sure  that  we  are  protected                                                               
     appropriately in  the agreement forward  and so we  are part                                                               
     of a  budgeting picture right  now for KABATA  in sustaining                                                               
     it so when  we present the financial package  to the market,                                                               
     does that package include reimbursing Alaskans for that                                                                    
     project or is it sort of as we go forward from here that                                                                   
     the project takes over its costs?                                                                                          
                                                                                                                                
MR.  RICHARDS  replied  the  executive branch  is  doing  a  risk                                                               
analysis right now through its  legal and technical review of the                                                               
project.   He deferred  to Mr. Niemiec  to discuss  the financial                                                               
package.   He offered to  provide Representative  Fairclough with                                                               
answers now or in writing.                                                                                                      
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH said  she would  prefer the  committee                                                               
receive the answers in writing.                                                                                                 
                                                                                                                                
3:21:52 PM                                                                                                                    
                                                                                                                                
CHAIR JOHANSEN said he would like  to shift to the statewide long                                                               
range  transportation plan.   He  referred to  the 2030  plan and                                                               
asked:                                                                                                                          
                                                                                                                                
     Frankly  I,  and a  lot  of  people around  the  state,                                                                    
     hadn't really heard  a whole lot about  that plan going                                                                    
     forward.   So  I'm  wondering, first  of all,  briefly,                                                                    
     what  is it  and  what  effect does  it  have on  going                                                                    
     through to  get the  STIP rewritten?   Is  it something                                                                    
     that has to  be done?  Is that why  it's - basically by                                                                    
     the end of  the week there's a deadline to  cut off any                                                                    
     comment on  it. ...  First of all,  in the  document it                                                                    
     mentions  -  the  collaborative process  at  the  state                                                                    
     level   provides  a   framework  for   making  publicly                                                                    
     transparent  decisions -  also a  robust open  planning                                                                    
     process through which regional  and community plans are                                                                    
     developed.    This  public  process  began  just  after                                                                    
     Thanksgiving,  I   believe,  and  lasted   through  the                                                                    
     Christmas  and New  Year's  holidays  and the  deadline                                                                    
     was,  I   believe,  prior   to  the   legislature  even                                                                    
     convening  this  year   and  we  have  had   a  10  day                                                                    
     extension, which  I believe  is up at  the end  of this                                                                    
     week.                                                                                                                      
                                                                                                                                
     First of  all, it  is my understanding  this is  a plan                                                                    
     out to 2030,  which is quite a big plan  for the future                                                                    
     of  transportation needs  in  Alaska.   I'm  wondering,                                                                    
     timing wise, I'd  sure like to have been  able to spend                                                                    
     quite a  bit of time  before the public  comment period                                                                    
     is  closed with  not  only this  committee  but all  50                                                                    
     legislators having  a chance to understand  and go over                                                                    
     it, you  know, when  I'm not  wrapping presents  for my                                                                    
     kids.   It seems  like the  timing was  unfortunate and                                                                    
     I'm wondering why that process  didn't start earlier to                                                                    
     give  -  in  the  document itself  I  don't  see  three                                                                    
     meetings  over  the holiday  season  as  a robust  open                                                                    
     planning process  and I'm just  wondering is  there any                                                                    
     chance, whatsoever, of a further  extension so that the                                                                    
     legislature would  have the time  to discuss this?   We                                                                    
     haven't even  gone through the  plan.  I would  love to                                                                    
     have it  here before the  comment period is  closed and                                                                    
     have all of  us be able to  read it and look  at it and                                                                    
     comment  on it  and talk  about it.   And  what is  its                                                                    
     relationship to  reopening the  STIP, which  allows the                                                                    
     department to reprioritize and  shift money before it's                                                                    
     bounced back  out of Federal  Highways before  the STIP                                                                    
     is finalized.  How is the whole process working there?                                                                     
                                                                                                                                
3:25:28 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  VON SCHEBEN  said  DOT&PF held  15 public  hearings                                                               
beginning in  July of  2007; one in  Wasilla, five  in Fairbanks,                                                               
five in  Anchorage, one  in Skagway,  two in  Juneau, and  one in                                                               
Craig.  He deferred  to Mr. Ottesen to explain how  it is tied to                                                               
the STIP.  He  said he thought it would be  awkward to extend the                                                               
comment period further.                                                                                                         
                                                                                                                                
MR.  RICHARDS informed  members that  DOT&PF is  required by  the                                                               
federal government  to put  the 2030 report  into play  before it                                                               
can do  its STIP amendment.   The federal  requirements regarding                                                               
the  STIP  changed under  SAFETEA-LU.    Those requirements  make                                                               
modifying the STIP more onerous.  He explained:                                                                                 
                                                                                                                                
     If a project  has any type of  cost overrun, previously                                                                    
     we were able  to address it by working  within the STIP                                                                    
     in that  particular category and utilizing  funding for                                                                    
     projects that  may be slipping.   This requires  a full                                                                    
     blown  STIP  amendment, which  could  be  four to  five                                                                    
     months to make that amendment change.   So for us to be                                                                    
     able to  get projects  out on the  street, it  has tied                                                                    
     our hands considerably in terms  of using those federal                                                                    
     dollars because  of that requirement.   So  the linkage                                                                    
     here is that the  statewide transportation plan has got                                                                    
     to be completed  before we can then go  with that major                                                                    
     STIP amendment so that we  can then have projects going                                                                    
     out  this  summer  and  utilizing  the  federal  fiscal                                                                    
     dollars.                                                                                                                   
                                                                                                                                
3:27:54 PM                                                                                                                    
                                                                                                                                
CHAIR JOHANSEN asked when SAFETEA-LU was adopted.                                                                               
                                                                                                                                
MR. RICHARDS replied in 2003.                                                                                                   
                                                                                                                                
CHAIR JOHANSEN asked:                                                                                                           
                                                                                                                                
     Why did  we not  start this  a long time  ago, if  the rules                                                               
     were  set  in 2003.    Now  we're  up  against the  wall  on                                                               
     rewriting the  STIP, why didn't  we start  a heck of  a long                                                               
     time ago on this whole process?   Were the meetings that you                                                               
     mentioned, the 15  different meetings, I mean  how does that                                                               
     reflect  back on  the timelines  that you're  talking about?                                                               
     Did we  start the clock late?   Is that why  we're bucked up                                                               
     against the tide and we're doing this over Christmas?                                                                      
                                                                                                                                
MR. RICHARDS explained that SAFETEA-LU  was passed by Congress in                                                               
2003, but  then the Federal  Highway Administration  was required                                                               
to  make  regulation changes.    The  regulation changes  take  a                                                               
couple of years  and DOT&PF has to respond to  those changes.  He                                                               
offered  to identify  the  outreach  meetings and  transportation                                                               
stakeholders' group meetings that were  held around the state and                                                               
the timelines.                                                                                                                  
                                                                                                                                
3:29:36 PM                                                                                                                    
                                                                                                                                
CHAIR  JOHANSEN expressed  concern  about the  process of  public                                                               
input into the plan.  He stated:                                                                                                
                                                                                                                                
     You  know it  was passed  in 2003.   You  say it  takes                                                                    
     three  years for  the amendments  to  trickle back  and                                                                    
     that puts  you at  2006.   Commissioner, when  you took                                                                    
     over  DOT,  were  the  ground  rules  set?    Were  the                                                                    
     regulations in  place?   Were you guys  ready to  go on                                                                    
     day  one  to  start  this  process  for  the  statewide                                                                    
     transportation plan?                                                                                                       
                                                                                                                                
COMMISSIONER VON  SCHEBEN said he would  have to get back  to the                                                               
committee with the answers.                                                                                                     
                                                                                                                                
3:30:19 PM                                                                                                                    
                                                                                                                                
CHAIR JOHANSEN expressed the following concern:                                                                                 
                                                                                                                                
     That's  really  my  problem.   We  could  have  started                                                                    
     Tuesday, the first day of  session, and the deadline, I                                                                    
     believe,  is today  or tomorrow.   It  just seems  like                                                                    
     everything is  being rushed right  through to  get that                                                                    
     STIP  pried  open so  you  can  reprioritize and  shift                                                                    
     money around,  which is fine.   But you know,  when the                                                                    
     document itself  says a  robust open  planning process,                                                                    
     you  know,  if  your  meeting  takes  place  in  Craig,                                                                    
     Alaska,  no  offense to  Craig  but  there [are]  2,000                                                                    
     people there.   Once again,  it sure would be  nice for                                                                    
     you guys  to hit  communities like  Ketchikan.   I know                                                                    
     you said  you went to Juneau.   Did you see  them up in                                                                    
     your neck of the woods Representative Salmon?                                                                              
                                                                                                                                
REPRESENTATIVE SALMON said he did not.                                                                                          
                                                                                                                                
3:31:21 PM                                                                                                                    
                                                                                                                                
CHAIR JOHANSEN  said the plan  is a  huge document that  opens up                                                               
the  STIP,  which is  another  huge  document.    He said  he  is                                                               
extremely  disappointed to  hear the  committee will  get answers                                                               
from Mr.  Ottesen next week when  the deadline is this  week.  He                                                               
asked who authorized the 10-day extension.                                                                                      
                                                                                                                                
COMMISSIONER VON SCHEBEN said he did.                                                                                           
                                                                                                                                
CHAIR  JOHANSEN asked  the commissioner  if he  is authorized  to                                                               
offer another extension.                                                                                                        
                                                                                                                                
COMMISSIONER VON  SCHEBEN said  he would need  to check  with Mr.                                                               
Ottesen.                                                                                                                        
                                                                                                                                
3:32:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DOOGAN said he would  appreciate learning the real                                                               
relationship between the 2030 plan and the STIP.  He stated:                                                                    
                                                                                                                                
     That is to  say, are we in the process  of deciding for                                                                    
     the  next 22  years  of Alaska's  history every  single                                                                    
     transportation  project that  can get  built or  are we                                                                    
     simply  jumping  through a  federal  hoop  in the  most                                                                    
     flexible and expeditious way that  we can arrange?  Or,                                                                    
     is  it  somewhere  between  those  two  things  on  the                                                                    
     continuum because  I'm with  the Chairman.   Basically,                                                                    
     if by  the end of  this week  we're going to  close the                                                                    
     door  for everything  that's not  in this  big document                                                                    
     when then we go to  the more specific arrangements as I                                                                    
     understand it, that will be in  the STIP and we do that                                                                    
     in a way that I'm willing  to bet that - what would you                                                                    
     guess?  Zero members of  the legislature have looked at                                                                    
     - five  members of the  legislature have looked at?   I                                                                    
     don't know.  But a  relatively small number have looked                                                                    
     at it.   I think that's going  to be a problem.   So if                                                                    
     you would  just sort  of let  me know  what it  is this                                                                    
     2030 plan  turns out to  be in practice,  I'd certainly                                                                    
     appreciate it.                                                                                                             
                                                                                                                                
3:34:06 PM                                                                                                                    
                                                                                                                                
CHAIR JOHANSEN said the question  of whether this process is just                                                               
a hoop to jump through that allows  DOT&PF to open the STIP up or                                                               
whether the plan is binding is a very important one.                                                                            
                                                                                                                                
COMMISSIONER VON SCHEBEN repeated he would provide an answer.                                                                   
                                                                                                                                
CHAIR  JOHANSEN also  expressed  concern that  the Alaska  Marine                                                               
Highway System is  not mentioned as part of  the national highway                                                               
system  in  the 2030  plan,  although  the document  talks  about                                                               
modernizing  the national  highway system.   He  said that  could                                                               
mean the communities  served by the Alaska  Marine Highway system                                                               
are  out  of  luck for  30  years.    He  repeated the  level  of                                                               
understanding of  the 2030 plan  and how  it affects the  STIP is                                                               
very low and he does not feel that is appropriate.                                                                              
                                                                                                                                
3:35:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN  echoed   Chair  Johansen's  concerns  and                                                               
requested  the commissioner  do  whatever he  can  to extend  the                                                               
public comment  period again.   He said  constituents want  to be                                                               
involved in the plan and stated:                                                                                                
                                                                                                                                
     We  each represent  approximately 16,000  people and  I                                                                    
     think  we'd  like  to  make sure  that  the  people  we                                                                    
     represent and the people who  are watching us all right                                                                    
     now as  the legislature  is just  convening want  to be                                                                    
     involved in part  of this.  You know, when  you look at                                                                    
     some of  these, and  I'm going to  go from  an article,                                                                    
     some other  information that I've  been trying  to get,                                                                    
     some information,  you know.   We talked  about revenue                                                                    
     flowing  into Alaska  and the  piece of  that from  the                                                                    
     federal government.   You  know, how  is that  going to                                                                    
     affect  the  long  range plan?    We're  talking  about                                                                    
     borrowing money so  we can pay for  projects because we                                                                    
     can borrow money  less than we can earn  interest on it                                                                    
     if  we reinvest  in other  areas.   The impact  that is                                                                    
     going to  have on the  construction of the  natural gas                                                                    
     pipeline  -  you  know,  I   mean  it's  [indisc.]  the                                                                    
     appropriate  state  of   developing  our  resources  in                                                                    
     areas.                                                                                                                     
                                                                                                                                
     You  know, we've  got -  there's  mines, there's  other                                                                    
     things that, you know, where  does this long range plan                                                                    
     fit  into  that,  particularly again  in  rural  Alaska                                                                    
     where they  need economic development  opportunities to                                                                    
     do  this and  the  development  of that  infrastructure                                                                    
     that's been lagging  for years?  The  evaluation of the                                                                    
     state's  transportation system  - how  are we  going to                                                                    
     meet  the  demands into  the  future?    I think  as  a                                                                    
     [House]   Transportation   Committee   member,   that's                                                                    
     extremely important  to me to  realize that.   You know                                                                    
     the interplay of air and  water and land transportation                                                                    
     - how  do they all mix  together?  These are  or should                                                                    
     be all  part of your 30-year  plan and what is  the mix                                                                    
     on how those  come together so that we do  have, as you                                                                    
     state  earlier,  the maximum  value  of  trying to  get                                                                    
     Alaska's   resources  developed   and  do   it  in   an                                                                    
     economical way.                                                                                                            
                                                                                                                                
3:37:54 PM                                                                                                                    
                                                                                                                                
COMMISSIONER VON  SCHEBEN asked Chair Johansen  what he considers                                                               
to be a reasonable extension.                                                                                                   
                                                                                                                                
CHAIR JOHANSEN  said he would like  DOT&PF to take the  drop dead                                                               
date required by  the federal agency and back it  out from there.                                                               
He said  the public  needs every minute  available to  review the                                                               
document.                                                                                                                       
                                                                                                                                
COMMISSIONER VON SCHEBEN said he will figure out that date.                                                                     
                                                                                                                                
3:38:37 PM                                                                                                                    
                                                                                                                                
CHAIR  JOHANSEN said  he understands  the plan  is based  on 2006                                                               
revenue projections and asked how  the latest revenue projections                                                               
will affect it.                                                                                                                 
                                                                                                                                
COMMISSIONER VON SCHEBEN deferred to Mr. Ottesen for the answer.                                                                
                                                                                                                                
3:39:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH said  she agrees  with Chair  Johansen                                                               
and committee members but can  draw from personal experience in a                                                               
similar  process.     She  cautioned  the   committee  that  when                                                               
advocating for an extended comment  period, programs can get very                                                               
dysfunctional  if professionals  are not  allowed to  balance all                                                               
needs  and  the  process  is politicized  by  advancing  specific                                                               
transportation  needs in  different ways.   She  said legislators                                                               
need to be careful.  She continued:                                                                                             
                                                                                                                                
     I am advocating  because I know District  17 very well,                                                                    
     projects inside of District 17,  and depending how loud                                                                    
     my voice carries  and meets the rest of  your voices, I                                                                    
     may get  more for  my community than  another community                                                                    
     with not as  much stroke inside of the system.   I have                                                                    
     less stroke  than others because  I'm a freshman  and I                                                                    
     understand that.   So I just  caution us as we  look at                                                                    
     the plan  to make  sure that  people who  have invested                                                                    
     quite  a bit  of work  and understanding  a balance  in                                                                    
     different  regions  throughout   our  state,  different                                                                    
     venues  for transportation,  air,  ferry, road  system,                                                                    
     that that  has been  taken into consideration  with the                                                                    
     Administration's proposal.                                                                                                 
                                                                                                                                
     That said, I  step back and acknowledge  that I believe                                                                    
     that we  need that time  for the public and  going back                                                                    
     to something we said earlier,  and in what the governor                                                                    
     has  said too,  which I  doubt has  been captured  in a                                                                    
     plan that  has 10 days  extension on it, is  again that                                                                    
     criteria   on    what   we're   making    inside   this                                                                    
     recommendation  for federal  funding  versus how  we're                                                                    
     going  to allocate  state dollars  and the  criteria we                                                                    
     used to put these  particular projects forward, because                                                                    
     my  experience is  if  you have  a  20 year  plan...our                                                                    
     federal  delegation   will  look  and  say   oh,  well,                                                                    
     Unalakleet is  asking for X,  Y, or Z.   Is it  part of                                                                    
     the state  plan?  They look  and they say oh  yea, it's                                                                    
     here  but  it  is  20  years  out.    So  you  know,  I                                                                    
     definitely  hear  that we  need  to  make sure  in  the                                                                    
     smaller communities that all  the projects that need to                                                                    
     qualify at  some point  for funding  in the  future are                                                                    
     there  but that's  sort of  my experience  of what  the                                                                    
     document does.                                                                                                             
                                                                                                                                
     Again, I  don't know that  we fold it in  together with                                                                    
     that, seeing that the governor  has stated in her State                                                                    
     of the  State Address  different criteria  for Alaskans                                                                    
     taking  responsibility  and  wanting to  move  projects                                                                    
     forward  sooner.   I support  you in  your request  for                                                                    
     additional  information  and   just  caution  everyone.                                                                    
     Hawaii actually had Anchorage come  over to try to help                                                                    
     them depoliticize  their process and I  have heard talk                                                                    
     through DOT  and the Administration to  somehow try and                                                                    
     find that balance  and I've heard a  board being thrown                                                                    
     around  from different  regions and,  you know,  taking                                                                    
     some of the politics out of it.                                                                                            
                                                                                                                                
     So  I just  throw that  out for  however you'd  like to                                                                    
     digest  it  today.    When you  get  policy  makers  in                                                                    
     charge, we are  using every ounce of energy  we have to                                                                    
     make sure our  district gets its best share  of the pie                                                                    
     and I do that with  a cautionary note saying that other                                                                    
     people smarter  than I am with  engineering credentials                                                                    
     [and]  a better  statewide  perspective  may see  other                                                                    
     projects that  may need  to go  forward before  I think                                                                    
     they need to go forward.                                                                                                   
                                                                                                                                
3:43:14 PM                                                                                                                    
                                                                                                                                
CHAIR   JOHANSEN   remarked   that  he   somewhat   agrees   with                                                               
Representative Fairclough  but noted  if the department  is going                                                               
to release  reports and  use words  like "robust  open planning,"                                                               
then those  things need to  happen and  he does not  believe they                                                               
have.                                                                                                                           
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH  said  she completely  supports  Chair                                                               
Johansen's analysis.                                                                                                            
                                                                                                                                
COMMISSIONER   VON  SCHEBEN   thanked  the   committee  for   the                                                               
opportunity to  meet and said he  hopes to get the  minutes soon.                                                               
He pledged to  follow up on the committee's concerns  and said he                                                               
looks forward to working together in the future.                                                                                
                                                                                                                                
3:45:01 PM                                                                                                                    
                                                                                                                                
CHAIR JOHANSEN said his staff  would compile the questions in the                                                             
next few days and distribute them to members for accuracy.                                                                      
                                                                                                                              
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Transportation Standing  Committee meeting was adjourned  at 3:45                                                               
p.m.                                                                                                                            

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