Legislature(2009 - 2010)BUTROVICH 205
01/29/2009 01:00 PM House TRANSPORTATION
| Audio | Topic |
|---|---|
| Start | |
| Overview: Alaska Marine Highway | |
| Alaska Class Ferry Project | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
JOINT MEETING
HOUSE TRANSPORTATION STANDING COMMITTEE
SENATE TRANSPORTATION STANDING COMMITTEE
January 29, 2009
1:04 p.m.
MEMBERS PRESENT
HOUSE TRANSPORTATION
Representative Peggy Wilson, Chair
Representative Kyle Johansen
Representative Cathy Engstrom Munoz
Representative Mike Doogan
SENATE TRANSPORTATION
Senator Albert Kookesh, Chair
Senator Linda Menard, Vice Chair
Senator Bettye Davis
Senator Kevin Meyer
Senator Joe Paskvan
MEMBERS ABSENT
HOUSE TRANSPORTATION
Representative Craig Johnson, Vice Chair
Representative John Harris
Representative Max Gruenberg
SENATE TRANSPORTATION
All members present
OTHER LEGISLATORS PRESENT
Representative Paul Seaton
COMMITTEE CALENDAR
OVERVIEWS: ALASKA MARINE HIGHWAY; ALASKA CLASS FERRY PROJECT
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action
WITNESS REGISTER
JIM BEEDLE, Deputy Commissioner of Marine Operations
Marine Highway System, Department of Transportation & Public
Facilities (DOT&PF), Juneau, Alaska
POSITION STATEMENT: Provided a PowerPoint overview of the
Alaska Marine Highway System (AMHS) and the Alaska Class Ferry
(ACF).
ACTION NARRATIVE
1:04:31 PM
CHAIR PEGGY WILSON called the joint meeting of the House and
Senate Transportation Standing Committees to order at 1:04 p.m.
Senators Kookesh, Menard, Meyer, and Paskvan were present at the
call to order. Senator Davis arrived as the meeting was in
progress. Representatives Munoz and Wilson were present at the
call to order. Representatives Doogan and Johansen arrived as
the meeting was in progress.
^Overview: Alaska Marine Highway
1:04:38 PM
CHAIR WILSON announced that the first order of business would be
to hear an overview of the Alaska Marine Highway System.
1:07:59 PM
JIM BEEDLE, Deputy Commissioner of Marine Operations, Marine
Highway System, Department of Transportation & Public Facilities
(DOT&PF), began his presentation by referring to slide 1,
labeled "Combined Senate/House Transportation Committee
Meeting". He thanked the legislature for appropriating funds
for marketing. He commented that the AMHS has contracted with
an advertising company, Bradley Reid Communications, Inc., which
developed the logo "Let's Go, See Alaska" as well as producing
superb advertisements. He gave an overview of his job history,
describing his long history with the AMHS, including his service
as Chief Purser on the Malaspina ferry. He opined the AMHS
vessels are safe and well maintained, offering that safety is
the most important mission of the AMHS.
1:10:25 PM
MR. BEEDLE referred to slide 3, titled "Service Timeline". He
highlighted the age of the vessel fleet beginning with the M/V
Chilkoot, which began operating in 1949, but the service was
transferred to the Alaska Territorial Government in 1952. At
that time, repairs and maintenance caused a deficit of $43,000
per year, he stated, which illustrates the high cost of ferry
maintenance.
1:11:24 PM
MR. BEEDLE explained that the State of Alaska (SOA) purchased
ferries via bond issues until 1998, with the purchase of the M/V
Kennicott. He reiterated that voters approved bond issues for
ferries to provide services to their communities. He related a
history of the ferry rotation within the system and pointed out
the M/V Chilkat became a spare when the SOA built the next three
vessels. Thus, the M/V Chilkat was sent to Prince William Sound
(PWS). At the time the M/V Bartlett began service in PWS, the
M/V Chilkat began service to Hoonah. When the SOA purchased the
M/V LeConte, it took over Hoonah run and the M/V Bartlett then
served Metlakatla.
MR. BEEDLE referred to slide 4, titled "Logistics". He opined
that the biggest challenge for the AMHS is logistics. He
described the service route as 3,500 miles in length, and noted
it serves 340,000 passengers during some tough weather
conditions. He compared that to the British Columbia (BC)
ferries' route of 755 miles and Washington State Ferry's route
of 200 miles.
1:14:53 PM
MR. BEEDLE referred to slide 5, titled "Fleet Profile." He
explained that in 1991, the AMHS commissioned Glosten Associates
to study vessel life and replacement dates. He reviewed vessel
replacement dates, noting that the M/V Malaspina's replacement
date is earlier than other mainliners, and is scheduled to
retire in 2016 since its original engines were never replaced.
He added that similar ferries such as the M/V Matanuska and the
M/V Taku have had their engines replaced. He opined that the
decision whether to replace engines or to replace the ferry
hinges on maintenance costs.
MR. BEEDLE referred to slide 6, titled "Recent Passenger Traffic
Comparison". He recalled Representative Johansen's prior
comments with respect to the AMHS serving more than Southeast
Alaska. He referred to the graph, noting that Southwest Alaska
has had a 42 percent increases in ridership since 2005, perhaps
due to purchasing the M/V Kennicott when the M/V Tustumena began
providing its service to the Aleutian Chain. Prince William
Sound increased ridership by 53 percent between 2005 and 2008,
he noted. He elaborated that the increase in PWS ridership
resulted from changes such as the rebuilt Cordova/Whittier dock
and providing fast ferry service with the Fast Vessel Ferry
(FVF) Chenega. He noted that the M/V Aurora provides service
year round to Cordova, but in order to accommodate any
additional increase in ridership, the community must provide
additional infrastructure in hotels and services. He further
noted a 15 percent overall increase in ridership in Southeast
Alaska. He pointed out that the AMHS has focused more on local
ridership. He clarified for Chair Wilson that 1992 represented
the largest traffic year ever for the AMHS with transportation
provided to 420,000 people, and accommodated their vehicle
traffic. He explained that ridership is up, particularly in
light of the fact that Alaska's Inter-island Ferry Authority
(IFA) currently provides service from Ketchikan to Hollis.
Thus, if the IFA ridership figures were also included, the
AMHS's increase in ridership would be much higher.
1:19:44 PM
MR. BEEDLE referred to slide 7, titled "Recent Vehicle Traffic
Comparison". He offered that the graphs on this slide
illustrate an increased number of vehicles transported by the
AMHS. He related that vehicle traffic increased 29 percent in
Southwest Alaska, 69 percent increase in Prince William Sound,
and 21 percent increase in Southeast. Thus, the vehicle traffic
overall increased 27 percent, he stated. He pointed out that
the AMHS focuses on the "car deck," which means that if someone
transports a vehicle, the driver's fare is free. He explained
that the AMHS wants to fill the car decks since the ferries
represent a highway for Alaskans. He said the AMHS is very
happy with its results.
1:20:36 PM
MR. BEEDLE referred to slide 8, titled "On Time
Departures/Customer Satisfaction." He offered the results of
on-time departures and customer satisfaction from the period
2001 to 2008. Currently, on-time departures and customer
satisfaction is at 93 percent for on-time departures, and at 96
percent for customer satisfaction. He noted that the number of
highly satisfied customers has also risen.
1:21:01 PM
MR. BEEDLE referred to slide 9 titled "Traffic Utilization". He
stated that the AMHS's mission measurement is the growth in
passenger traffic. He explained that AMHS's passenger traffic
went down from 2001 to 2006, but traffic has been steadily
increasing the past few years. He explained that the system
experienced 56 percent utilization in vehicle traffic year round
from 2006 to 2008. He opined that the high overall percentage
means that many of its vessels are running at 80 to 90 percent
capacity in the summer months.
MR. BEEDLE referred to slide 10, titled "Vessel Operation Cost
By Fiscal Year". He explained that costs have increased from
2005 to 2006, largely due to the personnel pay increases, he
surmised. He explained that in 2006, when the AMHS vessels were
in full operation, the AMHS ran all its vessels continuously.
He referred members to a red line on the graph that projects
vessel costs if the AMHS had continued to utilize all ferries.
He opined that fuel costs would have spiked last year. He
asserted that the AMHS has kept its spending under control due
to policy changes, such as tying up some vessels and using the
M/V LeConte as a day boat rather than running it 24 hours a day,
7 days a week. Thus, the AMHS has accrued savings in crew and
fuel costs. Additionally, fast ferry services were reduced from
operating two vessels to one vessel in the winter, and by
reducing service to only four days a week.
1:23:20 PM
CHAIR WILSON asked for clarification on the required state
contribution listed in the graph on slide 10.
MR. BEEDLE answered that the graph on slide 10 depicts the
General Fund (GF) budget amounts for the AMHS. He explained
that what changed for the AMHS's budget process is that the
legislature allows the AMHS to use the earnings from their ferry
operations rather than to deposit the revenues back to the GF.
Thus, revenues generated by fares fund approximately 33 percent
of the AMHS's overall operations. He stated it is crucial for
the AMHS business manager to accurately estimate the AMHS ticket
revenues. Mr. Beedle expressed concern over this year's
estimate since the economy is currently experiencing a downturn
that may well affect passenger and vehicle travel to Alaska.
1:24:33 PM
REPRESENTATIVE JOHANSEN recalled prior discussions with Mr.
Beedle with respect to the AMHS fuel management program. He
asked for an explanation of the conservation methods the AMHS
has taken in an effort to reduce operating costs. He further
inquired as to whether these measures will also be used on all
motor vessels and if so, to estimate the overall cost savings.
MR. BEEDLE answered that the AMHS installed a computer-based
power management system in the M/V Aurora during its last
overhaul period. He noted that the computer estimated that by
reducing the number of vessel operating hours, a fuel efficiency
savings of up to 12 percent could be gained for the M/V Aurora.
He further noted that the more the master and chief engineer
work together to coordinate their efforts, the greater the fuel
efficiency. He said, "The more you get to know the system, the
more you work with it, the better it is." He related that the
AMHS will install the system in the M/V Matanuska and M/V
Tustumena this winter. He said he anticipates that a request
will be made in the Capital Improvement Projects (CIP) to also
fit the M/V Columbia. He highlighted that installing the
computer system requires that all elements of the entire ship be
connected to a computer. Thus, fitting costs are expensive,
running approximately $250,000 for the M/V Aurora, $298,000 for
the M/V Matanuska, and $256,000 for the M/V Tustumena. He
estimated AMHS realizes cost savings of about $120,000 per year
for the M/V Aurora, making it worth installing the system, he
opined.
REPRESENTATIVE JOHANSEN emphasized the importance of knowledge
of mariners, such as Mr. Beedle, about the ships they oversee,
since their knowledge can translate into potential savings of
several million dollars a year in AMHS operations and
maintenance.
1:27:31 PM
MR. BEEDLE related that last summer the M/V Kennicott was on a
two-week on, two-week layoff schedule, which resulted in less
fuel use. The AMHS also reduced its service to Bellingham by
reducing the overall AMHS vessel service. He detailed that the
community of Bellingham is served solely by the M/V Columbia
during the summer, which results in operating and crew cost
savings. He highlighted that AMHS has many challenges, noting
that only 6 of the 11 AMHS ferries are currently operating. He
acknowledged that gearing up for the summer season has been
difficult since it takes years to recruit qualified people.
When vessels are not used year round, it creates hardships for
people to maintain the continuity of their jobs. However,
reducing vessel hours also reduces crew overtime and overall
AMHS costs, he noted. He further highlighted that the U.S.
Coast Guard establishes the necessity for specific staff. Thus,
the AMHS is not authorized to operate its vessels without the
appropriate qualified people. He opined that maintaining staff
remains a huge challenge.
1:29:13 PM
MR. BEEDLE referred to slide 11, titled "AMHS Boarding's by
Alaskan Community." He commented that the AMHS is not limited
to serving only Southeast communities. He pointed out that
Anchorage is ranked fourth highest in ridership in the list of
Alaska communities since many passengers travel via the ferry to
Haines or Skagway, connect to the highway system and continue on
to Anchorage. He also noted that the small community of
Metlakatla, with a population of 1,244, is served by one day
boat, with a crew of five, yet the ferry carries 24,000 people
per year. He related that the M/V Lituya leaves Metlakatla in
the morning and completes two round trips per day to Ketchikan,
which also enables its crew to overnight at home. He recalled
the waitlist for vehicle traffic, noting that some passengers
must wait three days for space on the vessel. He explained that
the community of Metlakatla is working to create efficiencies
and even built a road to shorten the vessel trip. He further
explained that DOT&PF will build new terminals in Metlakatla to
further shorten the overall trip distance. Thus, the end result
is that the AMHS will provide better service by offering more
trips, which will still cost less than the current service. He
characterized Metlakatla as AMHS's model for efficient and fully
utilized service.
1:30:41 PM
SENATOR KOOKESH commented that the M/V Lituya crew also lives in
Metlakatla. He surmised that huge cost savings could also be
had vessels employed local crews in other communities.
MR. BEEDLE agreed.
1:31:36 PM
MR. BEEDLE referred to slide 12, titled "FY '09 Update". He
referred to the following bullet points, which read [original
punctuation provided]:
· At this time AMHS is tracking with the business plan that
supports the FY2009 Management Plan.
· Currently AMHS has no 2009 supplemental requests due to
operations, and is managing operations by the mantra
"Manage to the Budget, No Supplemental."
· The recent signing of the IBU labor contract will require a
$2.0M general fund supplemental.
1:32:21 PM
CHAIR WILSON asked what the $2.0 million GF supplemental request
encompasses.
MR. BEEDLE answered that the Inland Boatmen's Union (IBU) has
not held a new contract since June 30, 2007, which means its
members have not received any pay increases since 2007. He
explained that the IBU did not accept the 3 percent "rollover"
that the other two maritime unions accepted. He opined this was
due to members' beliefs that the increase was not adequate. He
offered that IBU members will be entitled to receive a lump sum
payment of $2,137 on July 1, 2009, for the 2-year period without
any pay increases, pending legislative approval. Additionally,
IBU members will receive a 5 percent pay raise effective on July
1, 2009, and a 4 percent pay increase effective on July 1, 2010,
provided the legislature approves the funding.
1:32:58 PM
MR. BEEDLE, in response to Chair Wilson, agreed that the pay
raise will total 9 percent over the next 2 years. He advised
that Commissioner Kreitzer, Department of Administration (DOA),
has done a great job in negotiating the IBU contract for the
state. He opined that the end result is that the IBU gave up
some benefits, but also gained some. He further opined it is
important for the state to pay a fair wage.
MR. BEEDLE brought up one area of concern, in that estimates by
the cruise and travel industry predict reductions ranging from
20 to 30 percent for this season. He cautioned that potential
shortfalls may adversely affect AMHS operations and ticket
revenue.
1:35:55 PM
CHAIR WILSON restated her understanding that the AMHS is
currently meeting its budget. However, she cautioned that if
the AMHS incurs a 30 percent reduction in passengers due to the
economic downturn, that the AMHS may need additional funding.
MR. BEEDLE clarified that the AMHS should be fine for FY 09, but
agreed that reductions in tourism could affect the AMHS budget
in 2010.
1:36:37 PM
MR. BEEDLE, in response to Senator Kookesh, explained that the
funding for Alaska's Inter-island Ferry Authority (IFA) cannot
pass through the AMHS budget due to negotiated labor contracts.
SENATOR KOOKESH related his concern that if the IFA cannot
continue to operate due to budget shortfalls, it would adversely
impact the AMHS budget. He inquired as to whether a point
exists in which the state should contribute to the IFA's budget
to ensure its continued operation.
MR. BEEDLE agreed that if the IFA stopped functioning, that the
AMHS could not take over the IFA's route without reducing
service to Metlakatla. He surmised that that the service to
Metlakatla would be reduced to one trip per day, and the M/V
Lituya would be diverted from Metlakatla to provide one trip to
Hollis per day service, unless the AMHS received additional
funding. In further response to Senator Kookesh, Mr. Beedle
agreed to have additional discussions on the matter.
1:39:14 PM
MR. BEEDLE referred to slide 14, titled "Negotiation Updates".
He explained that he previously discussed the IBU, that the
Department of Transportation & Public Facilities (DOT&PF) is
currently negotiating a new contract with the Masters, Mates,
and Pilots (MMP), and the Marine Engineers' Beneficial
Association (MEBA), noting that their current contracts expired
on June 30, 2008.
MR. BEEDLE referred to slide 15, titled "Fast Vehicle Ferries -
Fairweather and Chenega". He read the following concern
[original punctuation provided]:
· FVF Fairweather- Currently undergoing first Federal CIP
project. (Major engine overhaul and other vessel projects)
· Additional corrosion has been discovered in the
Fairweather's engine cylinders.
MR. BEEDLE related that the AMHS used the recommended coolant in
the engine, which caused corrosion. He related that problems
were discovered during routine maintenance of the FVF
Fairweather. Although remedies were taken, the corrosion
problems still exist, he stated. He explained that the
Department of Law (DOL) is currently working with the
manufacturer, who is willing to address the issue. He further
related previous problems with the reduction gears and shaft
vibration have been solved at the manufacturer's expense.
1:41:37 PM
MR. BEEDLE, in response to Chair Wilson, explained that the
vessel is not under warranty, but since the manufacturer
recommended the coolant the DOL is working to resolve the
matter. However, he highlighted that the FVF Fairweather's
vessel life will be decreased.
MR. BEEDLE referred to slide 16, titled "Ketchikan Lay-Up
Facility". He recalled Representative Johansen's questions on
the Ketchikan Lay-up Facility. He explained that in 2006 the
legislature granted the authority to spend federal funds on a
layup facility in the Ketchikan area. He also recalled Mr.
Ottesen's prior comments before the committee that the federal
funds require that the state must adhere to strict rules and
regulations. He related that adherence translates into the
necessity for a study. He noted that $5 million in GF was
appropriated in May 2007.
1:42:52 PM
MR. BEEDLE continued. He said, "We are really close to having
something down in Ketchikan. We need to assess the property,
that's happening right now. We need to get evaluations on the
property." He cautioned against greed. He elaborated that the
actual study completed by the City of Ketchikan indicates that
the dock needs nearly $6 million in repairs. He acknowledged
the dock is fine to currently use. He opined that the dock is
very valuable, especially since it could allow for potential
expansion in Ward Cove. However, he stressed that the community
must adhere to the federal process. He said he anticipates some
action in March 2009.
1:44:11 PM
MR. BEEDLE referred to slide 17, titled "Bellingham Terminal
Facility." He explained that the 20-year lease expires in
September 2009. He opined that the original lease was very
favorable, with incentives for the State of Alaska (SOA) to
leave Seattle, Washington. However, the City of Bellingham is
now requesting additional funds in the lease renewal. He
related that the SOA is still in negotiations so he cannot
provide any details. In response to Representative Johansen,
Mr. Beedle elaborated that while Seattle is still an option that
the AMHS vessels probably could not run fast enough since
modifications have been made to the vessels and the vessels are
aging. Additionally, he offered that AMHS would only need the
facility for a portion of one day, since it takes about four
hours to unload and load the M/V Columbia. In further response
to Representative Johansen, Mr. Beedle explained that he
believes that Bellingham is the only viable entity. However, he
opined that the SOA could "pull out" of Bellingham if the
financial negotiations don't work out. He reiterated that
current negotiations prevent him from further discussions.
1:47:20 PM
MR. BEEDLE referred to slide 18, titled "Prince Rupert
Facility." He explained that the scope of the project is to
pursue acquisition of the existing infrastructure. He related
that the AMHS has operated out of Prince Rupert since 1963. The
lease requires Prince Rupert to provide dock maintenance, he
advised. However, due to financial constraints the maintenance
has not been performed although Prince Rupert authorities
maintain the dock facility is safe. He acknowledged that Prince
Rupert eventually spent $1 million to repair the dock, but "this
is kind of a band-aid for a three to five year timeline." He
opined that Prince Rupert does not want to be in the dock
business or to finance rebuilding the dock. Thus, AMHS is
investigating whether to request the funds and either purchase
the dock or negotiate a perpetual lease to rebuild the facility.
In response to a question by Representative Johansen, Mr. Beedle
acknowledged that a request to spend federal funds is in the CIP
for a lease agreement. He reiterated that the sooner the SOA
can negotiate a purchase agreement the better, even if it means
spending funds from another project to accomplish. At that time
the environmental assessment and planning process can be
initiated for rebuilding the dock, he noted.
1:49:41 PM
MR. BEEDLE recalled that Representative Munoz also had questions
on the growth of the container ship unloading area in Prince
Rupert from a prior meeting. He explained that the ferry
terminal manager assures him that the railroad is not a problem.
He related he also talked to authorities in Prince Rupert, with
respect to the railroad that passes in front of the AMHS
property. He expressed a concern that while the development of
the container ship may impact the AMHS, that the railroad line
is a spur line used to stage or build trains. He related that
phase two of the container ship project will include building
more tracks near the container terminal. Thus, he surmised the
spur line will probably be used less. He offered to monitor and
follow-up on this matter, but concluded that it doesn't look
like the railroad tracks will negatively impact AMHS operations
at the Port of Prince Rupert.
1:50:44 PM
CHAIR WILSON inquired as to whether enough space exists to allow
Prince Rupert as the southern terminus of the AMHS in the future
instead of the City of Bellingham.
MR. BEEDLE advised that in about 1967, Prince Rupert was the
southern terminus of the AMHS system as shown on the timeline.
REPRESENTATIVE JOHANSEN explained that he has many questions
about Price Rupert since last year the schedule shifted and
caused discomfort with many people in Southeast Alaska. In
response to Representative Johansen, Mr. Beedle reiterated that
the AMHS needs to purchase and rebuild the dock at Prince
Rupert.
1:52:13 PM
MR. BEEDLE referred to slide 19, titled "Angoon". He explained
that when the MV LeConte shifted from a 24 hour vessel to a day
vessel, that the connection between Angoon and Sitka was
eliminated. He related that the AMHS is planning on
reconstructing the existing mooring facility to accommodate both
the MV LeConte and the Fast Vessel Ferry (FVF) class vessel. He
opined that the fast ferry passes by Angoon and it will be the
less expensive method to provide service to connect Angoon and
Sitka. He further related that the Angoon mooring facility is
AMHS's number one priority and the project should be completed
in November 2009.
1:53:03 PM
MR. BEEDLE referred to slide 20, titled "Economic Benefits of
AMHS on Alaska". He identified this as the tourist and visitor
industry component. He noted that one-third or 55,000
passengers provided half of the revenue during May 2006 through
April 2007. He opined that $45 million was spent on lodging,
food, in-state transportation, and other expenses by tourists.
He noted that half of the fare revenue is derived from this
segment since the passengers embark in Bellingham and often
spend a month in Alaska.
MR. BEEDLE referred to the next slide, slide 21, titled
"Economic Benefits of AMHS on Alaska." He explained that this
slide captures the AMHS spending impacts for FY 2007. He noted
the total impact of in-state expenditures by the AMHS is
calculated at $113 million. He further noted that the total
economic impact from the AMHS is calculated at 1440 jobs and
$173 million. He related that these figures are limited and do
not account for its infrastructure that supports economic
development throughout Alaska. He offered that the indirect
impact figures are based on a 1.5 percent multiplier used in
developing the economic model for industrial businesses. Much
of its fuel used by the AMHS is purchased in-state, he stated.
1:55:05 PM
MR. BEEDLE referred to his last slide, slide 22, titled "New
AMHS Website". He related that the new AMHS website was
developed by the Ketchikan staff. He explained that when AMHS
staff was relocated from Ketchikan to Juneau several years ago,
that 90 percent of the staff left rather than move. He opined
that the current Ketchikan AMHS staff is great and the AMHS is
managing its system better. One person built the website in-
house on his own, he said. He provided the website address as
ferryalaska.com. The new website has lots of new features
including a scroll bar, headlines section that is updated daily,
and a section on the Alaska Class Ferry (ACF) was added that
answers many questions about the next generation of ferries that
replaces the aging of the AMHS fleet, he stated.
1:57:43 PM
REPRESENTATIVE JOHANSEN referred to slide 20, which he said
identifies that about 55,000 visitors come to Alaska. He
inquired as to whether Mr. Beedle could expand on how many
visitors continue on to the Railbelt.
MR. BEEDLE, in response to REPRESENTATIVE JOHANSEN recalled that
Anchorage is the second most visited place. He also pointed out
that 24,000 people traveled from Metlakatla to Ketchikan. He
related that 68 percent of the people that ride the ferries are
local citizens that travel to other communities to purchase
goods.
^Alaska Class Ferry Project
1:59:20 PM
CHAIR WILSON announced that the final order of business will be
to hear an overview of Alaska Class Ferry Project.
MR. BEEDLE began his presentation on the Alaska Class Ferry
Acquisition Project by explaining that this project is hugely
important to AMHS.
MR. BEEDLE referred to slide 1, titled "Project Mission
Statement". He related that the Elliott Bay Design Group is the
vessel designer. He offered the AMHS's hope that this project
will provide the AMHS with a long-term sustainable system. He
related that the AMHS's goal for vessel design is to consider
the needs of stakeholders in order to optimize usability of the
ferry and maintain a reliable level of service to the public.
He related that the AMHS's mission is to design and construct
the next generation of ferries to begin the replacement of the
aging AMHS fleet. He noted that the new ferries will be
environmentally responsible, fuel efficient and versatile. The
new ferries will enhance the AMHS operations on current and
future routes within inside waters and enable the AMHS to
continue its tradition of providing safe, reliable service. He
explained that when the M/V Lituya goes out of service, that no
replacement vessel exists, and the community of Metlakatla
simply would not receive any AMHS service. He commented that
next winter the M/V Lituya will be out for three months. He
referred to the project as a "design a vessel" project.
2:02:16 PM
MR. BEEDLE referred to slide 2, titled "Project Participants".
He related that the manager of the project is the AMHS, but the
project is collaborative. He noted the team consists of a group
of DOT&PF managers, along with selected members of the crew. He
reiterated that Elliott Bay Design Group was hired to facilitate
the project. He explained that Grady and Associates provides
public involvement specialists to ensure public involvement and
participation, which has been beneficial. He offered that the
Marine Transportation Advisory Board is important to the
process, and that public involvement is critical to the process
as the project moves forward.
MR. BEEDLE referred to slide 3, titled "Introduction". He
reiterated that the Alaska class ferry will be the next
generation of ferries. He stated that safety is always first
and the vessels must be able to handle the weather in Alaska.
2:04:45 PM
MR. BEEDLE referred to slide 4, titled "Importance". He noted
that modern safety features will be incorporated into the
vessels. He pointed out that the M/V Taku, the M/V Kennicott,
and the M/V Malaspina are authorized for international travel
and can travel to Prince Rupert. He related that the remaining
vessels in the fleet are not equipped to meet international
requirements. He explained the ease in incorporating new rules
and technologies in building a new ship rather than to retrofit
an older vessel.
2:06:01 PM
MR. BEEDLE referred to slide 5, titled "Mission Background". He
stressed that the Alaska Class Ferry (ACF) is the result of
technical evaluations gleaned from past AMHS shuttle projects
and is aligned with current DOT&PF strategic plans, and the
importance of building a multi-functional vessel rather than a
vessel designed for solely one run.
2:06:43 PM
MR. BEEDLE referred to slide 6, which is a timeline that
outlines the ACF project phases. The project is currently in
Phase 1, conducting a feasibility study, and the AMHS will take
public comment until April 30, 2009. He offered that AMHS's
approach for developing the optimal design of the new ship
consists of three phases. He commented that the AFS project
does not attempt to calculate how many vessels to build, but
instead is structured to identify the type of vessels that are
designed to provide functionality that ultimately will improve
the AMHS system. He further commented that the process for
determining the number of ACF ferries that will be built will be
made during the revision of the Southeast Alaska Transportation
Plan (SATP). The AMHS welcomes public participation during that
process, he noted.
2:08:04 PM
MR. BEEDLE referred to slide 7, titled "In Focus". He
reiterated the ACF's project goal is to acquire multiple new
ferries of a single design that will provide reliable vessels
with the ability to operate within all Alaska inside waters. He
stressed the importance of public input. He related that
someone commented at a meeting that he/she noticed many husbands
assisting their wives to the restroom, which identified the need
for family restrooms on the new ferries.
MR. BEEDLE referred to slide 8, titled "On the Horizon", which
identifies questions subsequent to the vessel design, such as
the number of ferries to build, specific routes they will serve,
sailing schedules, and construction location. He offered that
the construction will undergo a bid process. He reiterated that
the SATP process will identify and answer those questions.
2:09:30 PM
MR. BEEDLE referred to slide 9, titled "Public Involvement", and
once again stressed the importance of public involvement. He
identified four avenues for the public to provide input:
regional public meetings, key stakeholder meetings, the project
website, and filling out a public survey. The survey will be
available on the ACF website on February 16, 2009, he stated.
Additionally, he pointed out the website will have a comment
section, provisions for the public to request email updates,
minutes, and reports. He stressed that the AMHS encourages
people to provide input and follow the progress of the ACF
project.
2:11:21 PM
MR. BEEDLE referred to slide 10, titled "Regional Public
Meetings". He related upcoming meetings are scheduled to be
held in Ketchikan on February 18, 2009, in Juneau in late
February, in Anchorage in mid-March, and in Sitka in early
April. He stated the main purpose of the meetings is to
disseminate information and obtain feedback from the public.
Mr. Beedle stressed the importance to AMHS to have public
involvement in the ACF project. He said, "They will be reaching
out. They'll be talking to community leaders, tribal councils,
people to see. Do you want to talk to us? If you feel it's
important enough for you to get a group of people together to
talk to us about the project. We'll do that."
MR. BEEDLE identified the Uniform Resource Locator (URL) site as
www.dot.state.ak.us/amhs/alaska/class but explained that the new
website can also be reached through the AMHS home page.
2:12:29 PM
REPRESENTATIVE DOOGAN expressed interest in the Alaska Class
Ferry project. He related his understanding that the vessels
that need replacement are the larger ferries, yet the project
seems to be for building medium size ferries.
MR. BEEDLE responded that the ferries would be a minimum of 300
feet but may increase depending on conditions. He highlighted
that the vessels need to be able to withstand 12-foot seas.
Additionally, the vessels need to accommodate the vehicles that
people drive. He acknowledged that Representative Doogan is
correct in his assessment that the ferry project is not for
replacing mainline ferries. He added that while the proposed
vessels will not have staterooms, the ferries will have crew
accommodations. He explained the need for crew accommodations
is related to fuel costs. Mr. Beedle described a scenario for
developing a winter travel schedule. He suggested that the AMHS
would review the 24 hour Juneau to Sitka round trip run.
However, if the AMHS determined that insufficient return traffic
existed, the schedule would be set with the crew spending the
night in Sitka to save fuel costs, with the vessel tied up at
the dock. The vessel would then return to Juneau the next day
instead of completing the round trip at night. Thus, the vessel
would essentially become a day boat and would only operate 14
hours per day, he opined. Therefore, staterooms would not be
necessary, since passengers would not be onboard all night, he
concluded.
REPRESENTATIVE DOOGAN restated his understanding that the larger
AMHS ships are ones most aged so the Alaska Class Ferry project
will still not address the problem.
MR. BEEDLE answered by detailing that the M/V Malaspina is a day
boat in Lynn Canal during the summer, even though it is one of
the most efficient vessels in the Bellingham run. The M/V
Malaspina will retire in 2016 and will be replaced with a day
boat. Thus, the M/V Columbia that is currently scheduled to be
tied up all winter as a cost savings measure will then be moved
to take over the Bellingham run. Therefore, the AMHS system
will gradually change, which will incorporate better ways to
utilize the AMHS fleet. Additionally, he noted that it is not
good to have engines sit idle for long periods of time.
2:17:11 PM
REPRESENTATIVE DOOGAN reiterated that he is trying to determine
how the AMHS will solve the problem of fleet obsolescence since
the fleet is aging. He related his understanding that the ACF
project doesn't seem to solve the problem, although he
acknowledged that the ACF solves a different problem.
MR. BEEDLE answered that AMHS system will "morph" with the ACF
shuttles. He said he anticipates that one shuttle will run from
Juneau to Haines and Skagway, another will run from Ketchikan to
Prince Rupert. He explained that the middle sized vessel that
Representative Doogan is speaking of will not complete two round
trips traversing the whole system. Instead, that ferry will
complete three round trips from Ketchikan to Juneau. He
commented that the vessel still needs to run 24 hours a day, 7
days a week, and the Ketchikan to Juneau run requires a ferry
that is equipped with staterooms. However, under the route
changes, the vessel will provide more service. Thus, the system
will gradually change to accommodate the aging vessels. He
acknowledged a problem will arise when the M/V Tustumena needs
to replaced since the new vessel must be able to withstand the
rough weather conditions in the Aleutian chain. Additionally,
the M/V Columbia needs replacement in 2040. However, the M/V
Kennicott will operate until 2060, he stated. Mr. Beedle opined
that the AMHS does not have to worry about long haul replacement
vessels at this time. However, when the time comes, the vessel
replacement costs will be enormous, estimating vessel
replacement costs could range from half a billion to three-
fourths of a billion dollars, he stated.
2:20:54 PM
REPRESENTATIVE JOHANSEN related his belief that many projects
contained in the STIP never made it to the six-person panel to
determine which projects move forward. He characterized his
comments as editorial in nature. He offered his concern that
the DOT&PF has not been responsive to public input when
prioritizing projects contained in the STIP and his belief that
some projects are being built that are not listed in the plan.
MR. BEEDLE acknowledged Representative Johansen's complaint.
CHAIR WILSON commented that the department provided its scoring
criteria in handouts for members.
2:24:01 PM
ADJOURNMENT
There being no further business before the committees, the joint
meeting of the House Transportation Standing Committee and the
Senate Transportation Standing Committee was adjourned at
2:24 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Alaska~1.pdf |
HTRA 1/29/2009 1:00:00 PM |
|
| AMHSHo~1.pdf |
HTRA 1/29/2009 1:00:00 PM |