Legislature(2009 - 2010)BARNES 124

01/21/2010 01:00 PM House TRANSPORTATION


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01:02:42 PM Start
01:02:52 PM Department of Transportation and Public Facilities Update
02:33:58 PM Governor's Coordinated Transportation Task Force
03:15:01 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Joint with Senate Transportation
+ - Presentation on Port of Anchorage by TELECONFERENCED
Governor Sheffield
<Above Item Removed from Agenda>
- DOT Update by Frank Richards,
Deputy Commissioner
- Draft report from the Governor's
Community Transportation Task Force
                    ALASKA STATE LEGISLATURE                                                                                  
                         JOINT MEETING                                                                                        
            HOUSE TRANSPORTATION STANDING COMMITTEE                                                                           
            SENATE TRANSPORTATION STANDING COMMITTEE                                                                          
                        January 21, 2010                                                                                        
                           1:02 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
HOUSE TRANSPORTATION                                                                                                            
                                                                                                                                
 Representative Peggy Wilson, Chair                                                                                             
 Representative Craig Johnson, Vice Chair                                                                                       
 Representative Kyle Johansen                                                                                                   
 Representative Cathy Engstrom Munoz                                                                                            
 Representative Tammie Wilson                                                                                                   
 Representative Max Gruenberg                                                                                                   
 Representative Pete Petersen                                                                                                   
                                                                                                                                
SENATE TRANSPORTATION                                                                                                           
                                                                                                                                
 Senator Albert Kookesh, Chair                                                                                                  
 Senator Linda Menard, Vice Chair                                                                                               
 Senator Bettye Davis                                                                                                           
 Senator Kevin Meyer                                                                                                            
 Senator Joe Paskvan                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
HOUSE TRANSPORTATION                                                                                                            
                                                                                                                                
 All members present                                                                                                            
                                                                                                                                
SENATE TRANSPORTATION                                                                                                           
                                                                                                                                
 All members present                                                                                                            
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES UPDATE                                                                       
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
GOVERNOR'S COORDINATED TRANSPORTATION TASK FORCE                                                                                
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No Previous Action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
FRANK RICHARDS, Deputy Commissioner                                                                                             
Office of the Commissioner                                                                                                      
Department of Transportation & Public Facilities (DOT&PF)                                                                       
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Presented  an update  on the  Department of                                                             
Transportation   and  Public   Facility  (DOT&PF)   and  answered                                                               
questions.                                                                                                                      
                                                                                                                                
JEFF OTTESEN, Director                                                                                                          
Division of Program Development                                                                                                 
Department of Transportation & Public Facilities (DOT&PF);                                                                      
Chair, Governor's Coordinated Transportation Task Force (CTTF)                                                                  
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified and  answered questions during the                                                             
discussion  of federal  and state  DOT&PF  projects and  answered                                                               
questions as  Chair of the Governor's  Coordinated Transportation                                                               
Task Force (CTTF)                                                                                                               
                                                                                                                                
JIM BEEDLE, Deputy Commissioner of Marine Operations                                                                            
Marine Highway System (AMHS)                                                                                                    
Department of Transportation & Public Facilities (DOT&PF)                                                                       
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Provided  testimony and  answered questions                                                             
during an update  on the Department of  Transportation and Public                                                               
Facility (DOT&PF) update on the AMHS.                                                                                           
                                                                                                                                
CAMILLE FERGUSON, Economic Development Director                                                                                 
Sitka Tribe of Alaska                                                                                                           
Sitka, Alaska                                                                                                                   
POSITION  STATEMENT:     Presented  the   Governor's  Coordinated                                                             
Transportation Task Force draft report.                                                                                         
                                                                                                                                
ANDRA NATIONS                                                                                                                   
Executive Director                                                                                                              
Statewide Independent Living Council;                                                                                           
Representative, People with Disabilities                                                                                        
Governor's Coordinated Transportation Task Force (CTTF)                                                                         
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions  during the discussion of                                                             
Governor's Coordinated Transportation Task Force (CTTF).                                                                        
                                                                                                                                
DAVID LEVY, Executive Director                                                                                                  
Alaska Mobility Coalition                                                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified and  answered questions during the                                                             
discussion  of  the  Governor's Coordinated  Transportation  Task                                                               
Force (CTTF).                                                                                                                   
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:02:42 PM                                                                                                                    
                                                                                                                                
CHAIR  PEGGY WILSON  called the  joint meeting  of the  House and                                                             
Senate Transportation Standing Committees to order at 1:02 p.m.                                                                 
                                                                                                                                
Representatives Gruenberg,  Johnson, Munoz, T.  Wilson, Petersen,                                                               
and P.  Wilson, and Senators  Paskvan, Meyer, Davis,  Menard, and                                                               
Kookesh  were  present at  the  call  to order.    Representative                                                               
Johansen arrived as the meeting was in progress.                                                                                
                                                                                                                                
1:02:52 PM                                                                                                                    
                                                                                                                                
CHAIR P. WILSON introduced  new committee members, Representative                                                               
T.  Wilson, and  Petersen.   She stated  that she  has asked  the                                                               
Department  of Transportation  &  Public  Facilities (DOT&PF)  to                                                               
provide  an  update  to  the committees  on  major  projects  and                                                               
funding issues.                                                                                                                 
                                                                                                                                
^Department of Transportation and Public Facilities update                                                                  
   Department of Transportation and Public Facilities update                                                                
                                                                                                                                
1:04:28 PM                                                                                                                    
                                                                                                                                
CHAIR  P. WILSON  announced the  first item  on the  agenda is  a                                                               
Department of Transportation &  Public Facilities (DOT&PF) update                                                               
by DOT&PF, Deputy Commissioner Frank Richards.                                                                                  
                                                                                                                                
1:06:11 PM                                                                                                                    
                                                                                                                                
FRANK RICHARDS, Deputy Commissioner,  Office of the Commissioner,                                                               
Department  of  Transportation   &  Public  Facilities  (DOT&PF),                                                               
introduced his  staff members present  and handed  out reflectors                                                               
for  the DOT&PF  Safe Routes  to  School program,  funded by  the                                                               
Federal  Highway  Administration  (FHWA).     He  said  that  the                                                               
reflectors are distributed  at schools so school  children can be                                                               
seen walking to and from school.                                                                                                
                                                                                                                                
1:09:02 PM                                                                                                                    
                                                                                                                                
MR. RICHARDS reviewed  the overview items he planned  to cover in                                                               
his update on the American  Recovery and Reinvestment Act of 2009                                                               
(ARRA) and  the Jobs for  Main Street Program.   Additionally, he                                                               
will  discuss   the  comments  by  the   Reason  Foundation,  the                                                               
Governor's  Initiatives, the  FY  2011 Budget,  and the  DOT&PF's                                                               
accomplishments, emergencies, and successes.                                                                                    
                                                                                                                                
1:10:44 PM                                                                                                                    
                                                                                                                                
MR. RICHARDS  provided an  ARRA update [slide  3].   He explained                                                               
that of  the $264  million designated  to Alaska,  $131.5 million                                                               
was designated  for highway  transportation, $73.4  for aviation,                                                               
and  about $9.1  million  for  transit.   The  goal  of the  ARRA                                                               
funding  was  to  initiate project  construction  as  quickly  as                                                               
possible.   The state  only has until  February 2010  to obligate                                                               
funds and to  date has obligated about 75 percent  of the federal                                                               
ARRA funds.  He reported that  the DOT&PF has about five projects                                                               
left to obligate.  He applauded  the DOT&PF's efforts to meet the                                                               
federal guidelines.   Thus far, the DOT&PF has  expended about 25                                                               
percent of the  federal ARRA funds placing it in  the top half of                                                               
states nationwide.   In  an effort to  keep the  public informed,                                                               
the    DOT&PF   created    and    launched    a   new    website,                                                               
www.dot.state.ak.us/econstim   that  provides   project  specific                                                               
details on the federal funding.                                                                                                 
                                                                                                                                
1:12:25 PM                                                                                                                    
                                                                                                                                
MR.  RICHARDS offered  an  update on  the  Gustavus Dock  Project                                                               
[slide 4].  The overall project  is to provide bridge and trestle                                                               
work, as well  as construction of the pad that  will allow "roll-                                                               
on roll-off"  freight transport.   This project replaced  a 1960s                                                               
bridge and  the federal ARRA funds  came at just the  right time.                                                               
The project will be completed at the end of the summer.                                                                         
                                                                                                                                
MR.  RICHARDS discussed  the Glenn  Highway  Repaving Project  to                                                               
repair severe ruts  [slide 5].  The work from  Hiland Road to the                                                               
Eklutna Interchange  began June  12, 2009,  and was  completed on                                                               
Oct 21, 2009.  The scope  of the project included milling off the                                                               
existing surface, repaving, marking,  and replacing any deficient                                                               
guardrails.   The  next  phases of  resurfacing  along the  Glenn                                                               
Highway will  be from  Airport Heights Drive  to Hiland  Road and                                                               
the  Eklutna Interchange  to the  Parks  Highway Interchange,  he                                                               
stated.                                                                                                                         
                                                                                                                                
1:13:56 PM                                                                                                                    
                                                                                                                                
MR. RICHARDS  briefed the committee  on the Jobs for  Main Street                                                               
Act  [slide 6].    On  December 16th,  2009,  the  U.S. House  of                                                               
Representatives passed the Jobs for  Main Street Act to create or                                                               
save jobs  in the U.S.   The targeted investments of  $75 billion                                                               
is  designated  for  highways  and  transit,  school  renovation,                                                               
hiring teachers,  police, and  firefighters, small  business, job                                                               
training  and affordable  housing;  the key  drivers of  economic                                                               
growth.  He recapped that this  bill has passed the U.S. House of                                                               
Representatives, and  will now  be taken up  by the  U.S. Senate.                                                               
The  DOT&PF   anticipates  that   this  new  bill   will  provide                                                               
transportation highway funding at or  about the same level as the                                                               
last ARRA funding.  Under the  bill, fifty percent of the funding                                                               
must be under  contract by states within 90 days,  instead of the                                                               
requirement  under the  ARRA  to obligate  the  funds within  120                                                               
days.   The deadline is  much tighter  for the DOT&PF  to capture                                                               
the funds for Alaska.                                                                                                           
                                                                                                                                
1:15:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON asked  how  this  potential funding  will                                                               
mesh with the state's procurement  process.  He asked whether the                                                               
state will be able to meet  the 90 days deadline or if additional                                                               
legislation will be needed to accept the federal funding.                                                                       
                                                                                                                                
MR. RICHARDS  offered to cover  the timeline later in  the DOT&PF                                                               
presentation.   He discussed the  Jobs for Main Street  Act (Jobs                                                               
Bill  2010) process  [slide  7].   Based on  the  input from  the                                                               
Congress  on the  timeline, the  DOT&PF  requested projects  from                                                               
community and  tribal governments.   The  DOT&PF must  follow all                                                               
the federal  processes.  Thus,  the department has put  a Surface                                                               
Transportation  Project on  the street  that the  DOT&PF believes                                                               
can be  accomplished under the  federal Title 23 processes.   The                                                               
DOT&PF has  already received comments  back from  communities and                                                               
is currently reviewing these projects  and looks towards a future                                                               
STIP amendment to capture the funding for them.                                                                                 
                                                                                                                                
1:17:17 PM                                                                                                                    
                                                                                                                                
CHAIR  P. WILSON  asked whether  some  communities thought  their                                                               
projects  were  ready,  but  when  the  department  reviewed  the                                                               
projects they  discovered that  the communities  had not  met all                                                               
the federal requirements.                                                                                                       
                                                                                                                                
MR. RICHARDS  answered yes.   Some communities thought  they were                                                               
ready  but   had  not   performed  the   necessary  environmental                                                               
documentation,  the right-of-way  certification,  or the  utility                                                               
relocation.   In some  cases additional work  needed to  be done,                                                               
which  sometimes surfaced  when  the department  worked with  the                                                               
federal agencies.                                                                                                               
                                                                                                                                
MR. RICHARDS compared  the ARRA timeline with the  Jobs Bill 2010                                                               
timeline  [slide 8].    The  ARRA timeline  allowed  120 days  to                                                               
obligate funds, which is the point  at which the DOT&PF files any                                                               
contractual documents  with the FWHA to  essentially confirm that                                                               
the state  has met all  the requirements under the  federal Title                                                               
23 regulations.  The Jobs Bill  2010 allows 90 days for states to                                                               
contract - which is the point at  which the DOT&PF puts out a bid                                                               
on  the street,  the contractors  have bid,  and the  procurement                                                               
process  is  initiated   to  certify  the  bids,   prior  to  the                                                               
construction  phase.   He  offered  the  provisions tied  to  the                                                               
transportation  funding  contain  the most  aggressive  timeline,                                                               
which all the  states must meet, but the reason  for this is that                                                               
the Congress wants jobs on the  street.  At this point, the DOTPF                                                               
believes the process  can meet the timeline, but  it will require                                                               
all DOT&PF staff  to do so.  The Office  of Management and Budget                                                               
also  believes  it   has  the  authority  to   work  through  the                                                               
Legislative Budget and Audit process to capture funds.                                                                          
                                                                                                                                
1:20:01 PM                                                                                                                    
                                                                                                                                
MR. RICHARDS, in response to  Representative Johnson, stated that                                                               
the federal government  specifically did not want  the ARRA funds                                                               
to displace state-funded  projects.  He assured  members that the                                                               
DOTPF will  fund projects that  used the federal process  and had                                                               
not followed the general fund process.                                                                                          
                                                                                                                                
1:21:17 PM                                                                                                                    
                                                                                                                                
JEFF   OTTESEN,  Director,   Division  of   Program  Development,                                                               
Department  of  Transportation   &  Public  Facilities  (DOT&PF),                                                               
explained that  initially the  DOT&PF thought  projects currently                                                               
in  the design  project  that were  designated  for ARRA  funding                                                               
could not  be removed  from the  process to  allow the  DOT&PF to                                                               
substitute other  projects.  However,  in the end, it  turned out                                                               
that shuffling was  permissible, and most states needed  to do so                                                               
in order to  meet the federal deadlines.  The  DOTPF will need to                                                               
use all available projects to  meet the federal deadline since 45                                                               
days  is a  remarkably short  deadline.   He  estimated that  the                                                               
average federal aid  project takes 7 - 9 years  to go through the                                                               
entire process to construction completion.                                                                                      
                                                                                                                                
1:22:13 PM                                                                                                                    
                                                                                                                                
SENATOR PASKVAN asked  for the number of  projects throughout the                                                               
state that the  DOT&PF can use to meet the  deadline, in terms of                                                               
dollars and the number of projects.                                                                                             
                                                                                                                                
MR. OTTESEN  answered that  $166 million  of DOT&PF  projects has                                                               
already  been identified,  which is  well over  half of  the $175                                                               
million  in the  anticipated  projects.   Many  are projects  are                                                               
already   underway  and   have   had  some   design  work   done.                                                               
Additionally,  one  class of  work  that  can be  performed  very                                                               
quickly  is  the  re-pavement  project  work  since  very  little                                                               
environmental or  permit work  is required.   The DOTPF  also has                                                               
projects  in progress  that would  be included  its regular  2010                                                               
project list.                                                                                                                   
                                                                                                                                
SENATOR PASKVAN  asked for  the distribution  of projects  in the                                                               
state.                                                                                                                          
                                                                                                                                
MR. RICHARDS explained that 16  projects have been identified and                                                               
are spread  throughout the state, ranging  from Southeast Alaska,                                                               
Kenai, Anchorage,  Fairbanks, and  along the  Richardson Highway.                                                               
He  described these  projects as  basically "mainline  projects,"                                                               
including roads and highways that  provide transportation for the                                                               
greatest  amount of  traffic.    He restated  that  the mill  and                                                               
overlay  projects  can be  quickly  certified  and be  ready  for                                                               
construction, including the Glenn Highway resurfacing projects.                                                                 
                                                                                                                                
1:24:29 PM                                                                                                                    
                                                                                                                                
MR. RICHARDS,  in response to Representative  Johansen, explained                                                               
that the  federal funding for  the Jobs  Bill 2010 is  subject to                                                               
the  Title  23  federal  process,  including  the  environmental,                                                               
right-of-way  certification, utility,  and design  processes just                                                               
like any other federal project.   If an existing project requires                                                               
a  change  in   scope,  it  would  likely   mean  revisiting  the                                                               
environmental document.   Since the federal  timelines must still                                                               
be followed,  the environmental process  could delay  the project                                                               
from  inclusion  in  the  initial  50  percent  obligation  list.                                                               
Again, he emphasized that 50 percent  of the funds must be placed                                                               
under contract  within 90 days.   Thus, considering  inclusion of                                                               
any re-scoped projects in the mix would be difficult, he stated.                                                                
                                                                                                                                
1:26:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON  asked if the  Jobs Bill 2010  funding can                                                               
be  used  to  fund  municipal   projects  such  as  Ketchikan  or                                                               
Fairbanks projects.                                                                                                             
                                                                                                                                
MR.  OTTESEN  related  that Anchorage  will  receive  a  specific                                                               
fraction of  the anticipated $175  million or about  $19 million.                                                               
The Municipality  of Anchorage  uses the  AMATS Board  process to                                                               
obtain its  funding, which contains the  same accelerated federal                                                               
timeline.    Communities with  projects  that  have followed  the                                                               
federal   process  are   eligible   for   inclusion.     However,                                                               
communities do  not typically follow the  more burdensome federal                                                               
process, so their  projects are usually not  eligible for federal                                                               
funding, he stated.                                                                                                             
                                                                                                                                
REPRESENTATIVE JOHNSON  asked for  copy of the  DOT&PF's proposed                                                               
project list.                                                                                                                   
                                                                                                                                
MR.  OTTESEN  related that  last  year,  Fairbanks ended  up  not                                                               
receiving funding based  on specifics in the  federal formula, so                                                               
the  DOT&PF funded  Fairbanks projects  from its  regular program                                                               
funds.  It may well happen  again this year, although efforts are                                                               
being made  to amend  the federal formula  to address  the issue.                                                               
In  further response  to Representative  Johnson, he  agreed that                                                               
Anchorage and Fairbanks  are the only communities  in Alaska that                                                               
follow  the  Metropolitan  Area Transportation  Solutions  (MATS)                                                               
process.                                                                                                                        
                                                                                                                                
1:29:45 PM                                                                                                                    
                                                                                                                                
MR. OTTESEN  clarified that Alaska's federal  funding is received                                                               
by the  state in four  categories.  The categories  include MATS,                                                               
transportation  enhancements,   and  smaller  communities.     He                                                               
detailed that  about 3 percent  of the funding is  designated for                                                               
transportation enhancements  to fund items such  as sidewalks and                                                               
trails, and about  30 percent is designated  for communities with                                                               
populations  under 5,000.   An  overarching  requirement for  the                                                               
federal transportation ARRA funding has  been to give priority to                                                               
communities  in economic  distress.   Last year,  the goal  was a                                                               
soft goal  but this  year the DOT&PF  anticipates that  this goal                                                               
will be a  firmer goal.  States must use  the federal criteria to                                                               
determine which  communities are  designated as ones  in economic                                                               
distress, he offered.                                                                                                           
                                                                                                                                
1:30:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON expressed  interest in  providing funding                                                               
for specific communities  are under economic distress.   He asked                                                               
whether communities that have already  been declared as emergency                                                               
situations will  be eligible  for funding.   He also  requested a                                                               
list  of the  applicable  federal statutes  and regulations  that                                                               
apply.                                                                                                                          
                                                                                                                                
1:31:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  T.  WILSON  asked  whether  a  borough  that  has                                                               
already filed for economic distress  relief would be eligible for                                                               
the Jobs Bill 2010 funding.                                                                                                     
                                                                                                                                
MR. RICHARDS explained that he was  not aware of any provision in                                                               
the  Jobs Bill  2010  that  allows for  a  certain percentage  of                                                               
funding  to be  targeted  for economic  distress.   The  economic                                                               
distress was  a soft target, identified  in last ARRA bill  as an                                                               
emphasis that  the Congress  placed on  states, but  the Congress                                                               
did  not  specify any  dollar  amount.    He was  unsure  whether                                                               
unemployment rates  are defined  in any emergency  provisions and                                                               
deferred to the  state or federal Department of  Labor to provide                                                               
these rates.   He related that  the Jobs Bill 2010  funding is in                                                               
currently before  the U.S. Senate  so changes may still  occur in                                                               
the  bill.   For example,  the  Fairbanks North  Star Borough  is                                                               
actively  pursuing  the   Fairbanks  Metropolitan  Transportation                                                               
System (FMATS) issue be addressed by  the Congress so that it may                                                               
receive  funding.   In  response to  Chair  Wilson, Mr.  Richards                                                               
offered to  seek information  on the  unemployment rates  for the                                                               
committee.                                                                                                                      
                                                                                                                                
1:33:27 PM                                                                                                                    
                                                                                                                                
MR.  OTTESEN related  that last  year the  DOT&PF was  allowed to                                                               
make a  case for a  subset of a  census area  or a borough  as an                                                               
area in  distress.  He suggested  that the state could  also make                                                               
the  case that  pockets of  distress occur  within a  census area                                                               
that has not been identified as a distress area.                                                                                
                                                                                                                                
1:34:24 PM                                                                                                                    
                                                                                                                                
SENATOR  PASKVAN   asked  whether  the  DOT&PF   anticipates  any                                                               
problems  as a  result of  the compressed  schedules, and  if the                                                               
DOT&PF will  have enough shelf-ready  projects later, say  two to                                                               
five  years  from  now,  since all  the  available  projects  may                                                               
already be funded from the federal stimulus funds.                                                                              
                                                                                                                                
MR. RICHARDS agreed that the  extra federal money has funded many                                                               
of the  shelf-ready projects and  has allowed the DOTPF  to build                                                               
projects  a year  or  so in  advance.   The  DOT&PF's design  and                                                               
construction  and the  department's consultants  are striving  to                                                               
re-establish projects  and get them ready  for additional funding                                                               
to avoid that issue.                                                                                                            
                                                                                                                                
1:36:03 PM                                                                                                                    
                                                                                                                                
MR.  RICHARDS  discussed the  performance  of  the State  Highway                                                               
System in Alaska  [slides 8 - 11].  He  offered that many members                                                               
may have  already received a  report from the  Reason Foundation,                                                               
which is  a report on the  nation's highways.  The  report states                                                               
that Alaska's  highways are  the worst  in the  nation.   He said                                                               
that the  DOT&PF takes  exception to that  analysis.   The Reason                                                               
Foundation  did  not  take  into  account  the  extensive  gravel                                                               
highways  or   the  unique  characteristics  of   Alaska's  rural                                                               
interstate  system  as compared  to  interstate  highways in  the                                                               
middle  U.S.  states  or  along  the  Lower  48  coastal  states.                                                               
Alaska's interstate  system is not a  controlled access four-lane                                                               
highway, but  is a  two-lane rural road  with driveways  and side                                                               
streets  directly accessing  the  highway.   Thus, traffic  pulls                                                               
gravel on the roadway, he  explained.  The Reason Foundation made                                                               
its  determination  on the  roughness  index.   He  recalled  the                                                               
committee's recent  tour of Alaska's  roads in the DOT&PF  van so                                                               
members  have  an  idea  of  the road  conditions.    The  Reason                                                               
Foundation   concluded  that   Alaska's   highways  were   rough,                                                               
including  the  gravel  roads.   He  suggested  that  one  cannot                                                               
compare  a  four-lane  interstate  95  highway  with  the  Dalton                                                               
Highway with  areas of discontinuous permafrost  and the specific                                                               
challenges of that  road.  The report also took  into account the                                                               
per  mile   funding  that  penalized  the   state's  capital  and                                                               
operating  costs  since the  funding  included  the AMHS  capital                                                               
costs into the per mile calculation,  but did not include the run                                                               
length of  the marine highway.   Thus, it tipped Alaska  over and                                                               
dropped it down considerably from where  it should have been.  He                                                               
concluded that the Reason Foundation's reasoning was flawed.                                                                    
                                                                                                                                
1:38:42 PM                                                                                                                    
                                                                                                                                
MR. RICHARDS  acknowledged he has  tried to work with  the Reason                                                               
Foundation to  address the  DOT&PF's specific  disagreements with                                                               
their report.   He said, "We're  proud of our highway  system and                                                               
the people  that work on  it, the  Marine Highway System  that we                                                               
have, and  the services  we provide  to all  Alaskans so  we took                                                               
offense at this report."                                                                                                        
                                                                                                                                
MR.  RICHARDS,  in response  to  Chair  Wilson, agreed  that  the                                                               
DOT&PF will not report on gravel road roughness.                                                                                
                                                                                                                                
MR. RICHARDS reviewed the Governor's  Initiatives [slide 12].  He                                                               
pointed  out that  DOT&PF  has nearly  $775  million in  deferred                                                               
maintenance across the modes,  for highway, aviation, facilities,                                                               
AMHS, ports, and  harbors.  The DOT&PF continues its  work on the                                                               
designated  Alaska Highway  Safety  Corridors (HSC)  to make  the                                                               
roads safer, and the DOT&PF has  also advanced its efforts on the                                                               
road to Umiat  and Nome, as well as improving  the crime lab with                                                               
$75 million  to take that  building to construction.   Again, the                                                               
state is  improving the Dalton  Highway due to its  importance to                                                               
the state.                                                                                                                      
                                                                                                                                
1:40:43 PM                                                                                                                    
                                                                                                                                
SENATOR  MEYER  expressed  concern  with state  roads  not  being                                                               
maintained.    He  inquired  as   to  whether  the  problem  with                                                               
contractor  providing  street  cleaning  in  Anchorage  has  been                                                               
rectified.                                                                                                                      
                                                                                                                                
MR.  RICHARDS  responded   that  he  would  cover   that  in  his                                                               
presentation.  In further response  to Senator Meyer, he answered                                                               
that  he  would  cover  fatalities on  the  Seward  Highway  from                                                               
Anchorage  to   Seward  and  the   Kenai  Peninsula   during  his                                                               
discussion of the designated Highway Safety Corridors (HSC).                                                                    
                                                                                                                                
1:41:54 PM                                                                                                                    
                                                                                                                                
MR.  RICHARDS  discussed  the  FY  11  budget  [slide  13].    He                                                               
explained that  the operating  budget is  about $542  million, of                                                               
which $236  million is general  fund monies, and $306  million is                                                               
federal funding.                                                                                                                
                                                                                                                                
1:42:40 PM                                                                                                                    
                                                                                                                                
MR. RICHARDS,  in response  to Senator  Menard, related  that the                                                               
department currently has 3,400  employees, including its in-house                                                               
surveyors and one architect.                                                                                                    
                                                                                                                                
SENATOR MENARD  expressed concern about  outsourcing professional                                                               
services,  which could  be  held for  another  discussion.   Some                                                               
constituents  have  complained  that  some  of  the  professional                                                               
services could be performed by the private sector.                                                                              
                                                                                                                                
MR. RICHARDS  suggested that the  DOT&PF outsources  a tremendous                                                               
amount  of  work.   He  recalled  that  over  70 percent  of  the                                                               
DOT&PF's design  work in the  Central Region is performed  by its                                                               
consultants.    The  department  is  expanding  its  construction                                                               
management  and oversight  services so  that over  40 percent  is                                                               
performed by  consultants.  Members  of the  consulting community                                                               
provide  important   services  to  the  DOT&PF.     He  expressed                                                               
confidence that  the DOT&PF is  working with its partners  in the                                                               
consulting community.  In further  response to Senator Menard, he                                                               
agreed that the programs have  rapidly expanded, but the employee                                                               
level for design  and construction has not grown.   He offered to                                                               
discuss this matter further.                                                                                                    
                                                                                                                                
1:45:31 PM                                                                                                                    
                                                                                                                                
MR. RICHARDS,  in response to Representative  Johansen, explained                                                               
that  the   DOT&PF  requests  general  fund   matching  funds  in                                                               
different  proportions for  its  highway,  aviation, and  transit                                                               
programs.   He reported $8.6  in matching funds for  aviation and                                                               
$36 million  in matching funds  for highways  for a total  of $45                                                               
million, although  he might  have missed  some matching  funds in                                                               
his quick analysis today.                                                                                                       
                                                                                                                                
1:47:00 PM                                                                                                                    
                                                                                                                                
MR. RICHARDS,  in response to  Representative Munoz,  stated that                                                               
the Congress  has delayed action  on the  highway reauthorization                                                               
bill  due to  its efforts  on  health care,  climate change,  and                                                               
federal stimulus  funding.  He  estimated that the FY  10 federal                                                               
funding would be  similar to FY 09 federal receipts.   In further                                                               
response to  Representative Munoz, he explained  that the initial                                                               
continuation was a  month, but was then extended to  six to eight                                                               
weeks.                                                                                                                          
                                                                                                                                
MR. OTTESEN answered  that the Congress has  had three extensions                                                               
on the  SAFETEA-LU, and recently  extended it to end  of January.                                                               
The state anticipates  a fourth extension soon.   Additionally, a                                                               
year-long  extension is  contained  in the  Jobs  Bill 2010  that                                                               
would extend SAFETEA-LU through 2010.                                                                                           
                                                                                                                                
1:48:47 PM                                                                                                                    
                                                                                                                                
MR.  RICHARDS turned  to accomplishments  [slides 14  - 17].   He                                                               
provided an  updates on the  A and  B concourses projects  at the                                                               
Ted  Stevens  International  airport,  which  were  performed  on                                                               
schedule  and  under  budget.    He  noted  the  single  security                                                               
checkpoint [slide 16].                                                                                                          
                                                                                                                                
MR.   RICHARDS  explained   the   Fairbanks  Passenger   Terminal                                                               
enhancements also  came in  on schedule  and under  budget [slide                                                               
18].   This project also won  the 2009 design award  by the local                                                               
chapter of the American Institute  of Architects.  He highlighted                                                               
the Fairbanks Runway Reconstruction  and Cargo Stand Construction                                                               
[slide 19].   The project was completed for  $43 million, without                                                               
incident.   The heavy cargo  apron also allows heavier  planes to                                                               
land and provides service to  trans-Pacific carriers in the event                                                               
flights need to be diverted to the airport.                                                                                     
                                                                                                                                
1:51:51 PM                                                                                                                    
                                                                                                                                
MR.  RICHARDS discussed  the Dowling  Road Extension  [slide 20].                                                               
He explained that  this was a general fund  project that connects                                                               
Abbott Road  and Dowling  Road and  provides a  new east  to west                                                               
corridor to shift  traffic away from the congested  Lake Otis and                                                               
Tudor  intersection.   The  project  was  completed within  three                                                               
years, which shows the benefits of state-funded projects.                                                                       
                                                                                                                                
1:52:24 PM                                                                                                                    
                                                                                                                                
SENATOR  MEYER offered  his appreciation  for  completion of  the                                                               
Dowling Road Extension between Lake  Otis Parkway and Elmore Road                                                               
since it  helps move  traffic east  to west.   He inquired  as to                                                               
whether the  next phase  of the  project, extending  Dowling Road                                                               
from Arctic Boulevard to Minnesota Road is still in the plans.                                                                  
                                                                                                                                
MR.  RICHARDS  provided  an  update  on  the  Dowling  Road  West                                                               
Project, which  is the next planned  phase.  He explained  that a                                                               
portion of the  proposed roadway will traverse  wetlands and will                                                               
require an  extensive environmental  impact statement (EIS).   He                                                               
related that the  next phase is the environmental  portion of the                                                               
work.   He explained  that this  project is  part of  the Connect                                                               
Anchorage  Initiative,  which  provided nearly  $800  million  in                                                               
roadwork to  help address congestion  in Anchorage and  allow for                                                               
better  traffic  flow  to  bypass  some  of  the  more  congested                                                               
intersections.   The next phase  of Dowling  Road West is  in the                                                               
environmental  phase   and  will  require  the   DOT&PF  to  seek                                                               
appropriation for  construction once  the estimates are  firm for                                                               
environmental costs.                                                                                                            
                                                                                                                                
SENATOR MEYER  also expressed his  appreciation for  the DOT&PF's                                                               
public meetings with  the Community Councils.   He suggested that                                                               
the   completed  project   will  further   relieve  the   traffic                                                               
congestion at the Tudor Road and Lake Otis Parkway intersection.                                                                
                                                                                                                                
MR.  RICHARDS   anticipated  that  the  Dowling   Road  Extension                                                               
projects will reduce traffic by 15,000 vehicles per day.                                                                        
                                                                                                                                
1:55:22 PM                                                                                                                    
                                                                                                                                
MR. RICHARDS,  in response  to Representative  Johansen, answered                                                               
that general  fund monies can  be used for  deferred maintenance,                                                               
the AMHS vessel, and terminal  overhaul, and for highway facility                                                               
projects, including  $5 million  for the Highway  Safety Corridor                                                               
(HSC).  Additionally,  a variety of other projects  can be funded                                                               
from general  fund, such  as the  Roads to  Resources Initiatives                                                               
and  Americans  with  Disabilities  Act  compliance,  bunk  house                                                               
replacement,  and anti-icing  programs.   In further  response to                                                               
Representative Johansen,  he answered that these  projects appear                                                               
on the appropriations list.                                                                                                     
                                                                                                                                
REPRESENTATIVE JOHANSEN  asked for  the criteria that  the DOT&PF                                                               
uses  to  determine which  projects  will  be general  fund  only                                                               
projects.                                                                                                                       
                                                                                                                                
MR. RICHARDS  answered that project work  previously described is                                                               
built  into  the  DOT&PF  program   with  a  timeline,  including                                                               
initiatives  such as  the Connect  Anchorage Initiative,  the EIS                                                               
for Dowling Road West, or the  Seward Highway Expansion.  Much of                                                               
the  funding  is  used  for  initiatives such  as  the  Roads  to                                                               
Resource that  will help create  jobs.  The DOT&PF  works through                                                               
the process  and presents its  recommendations to  the Governor's                                                               
office,   and  then   awaits  authorization   for  general   fund                                                               
expenditures in the fiscal year.                                                                                                
                                                                                                                                
1:58:20 PM                                                                                                                    
                                                                                                                                
MR.  RICHARDS, in  further response  to Representative  Johansen,                                                               
explained that the  DOT&PF has developed plans  in multiple areas                                                               
of  the  state,  including Southeast  Alaska,  Northwest  Alaska,                                                               
Southwest Alaska,  and the 2030  plan.  The DOT&PF  obtains input                                                               
during  the  project   development  process,  identifies  issues,                                                               
receives  input  from  the regions,  and  then  determines  which                                                               
projects to include in the capital plan.                                                                                        
                                                                                                                                
1:59:40 PM                                                                                                                    
                                                                                                                                
MR.  RICHARDS highlighted  the  Sitka  Roundabout Project  [slide                                                               
21].   He  explained  that this  project  reduced congestion  and                                                               
accident  rates  at  the  intersection  of  Sawmill  Creek  Road,                                                               
Halibut Point  Road, and  Lake Street.   The  intersection serves                                                               
11,000  vehicles  per day  and  the  roundabout should  make  the                                                               
intersection   much  safer.     He   discussed  the   North  Pole                                                               
Interchange [slide  22].  This project  addressed a long-standing                                                               
need at  the intersection  of the  Richardson Highway  and Dawson                                                               
Road.   This project  provided a  bridge over  Dawson Road  and a                                                               
safer  intersection.    The  project   was  completed  for  $19.7                                                               
million, at about 9 percent below the contractor's bid amount.                                                                  
                                                                                                                                
2:00:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE T.  WILSON asked  whether the DOT&PF  examines the                                                               
effect construction  projects will have  on businesses or  if the                                                               
community must review the impact.                                                                                               
                                                                                                                                
MR. RICHARDS explained that the  DOT&PF uses an extensive process                                                               
to  involve the  communities  and provide  community  input.   In                                                               
further response  to Representative  T. Wilson, he  explained the                                                               
process the department uses to  notify the public, including that                                                               
the  DOT&PF mail  notices, publishes  notices in  the newspapers,                                                               
and also assists people who  are interested in a specific project                                                               
to sign up to receive e-mail notifications.                                                                                     
                                                                                                                                
2:02:40 PM                                                                                                                    
                                                                                                                                
SENATOR   PASKVAN   asked   whether  the   department   currently                                                               
experiences  projects  being   uniformly  consistently  underbid,                                                               
requested  the per  lane mile  costs, and  if the  DOT&PF expects                                                               
stability in construction costs.                                                                                                
                                                                                                                                
MR. RICHARDS responded  that in mid 1990s  the DOT&PF experienced                                                               
a high inflationary  period, but in 2008  experienced the effects                                                               
of worldwide impacts.   Last year the bid  amounts generally came                                                               
in  lower  than  the  engineers  projected  estimates,  which  is                                                               
unusual in  a competitive market.   He related that the  cost per                                                               
mile is  not standardized, that  each project is  different since                                                               
the  specific  requirements  in  projects  may  include  culvert,                                                               
guardrail,  or embankment  needs  which will  affect the  overall                                                               
project cost.  Additionally, the  costs are not consistent around                                                               
the  state,  since  some regions  have  discontinuous  permafrost                                                               
while other regions do not have permafrost considerations.                                                                      
                                                                                                                                
2:05:05 PM                                                                                                                    
                                                                                                                                
SENATOR  PASKVAN   clarified  that  he  is   more  interested  in                                                               
stabilization than  in the  overall costs  and asked  whether the                                                               
DOT&PF  anticipates   stability  or   instability  in   the  cost                                                               
analysis, not for the overall lane mile costs.                                                                                  
                                                                                                                                
MR. RICHARDS responded  that asphalt costs pose  challenges.  The                                                               
costs of asphalt  are much higher than in the  Lower 48, which is                                                               
a  variable that  cannot be  projected.   The DOT&PF  attempts to                                                               
contain  costs  to  maximize  the   number  of  projects  it  can                                                               
undertake.                                                                                                                      
                                                                                                                                
2:06:48 PM                                                                                                                    
                                                                                                                                
CHAIR P.  WILSON asked  what happens to  any excess  funding when                                                               
the project costs come in lower than expected.                                                                                  
                                                                                                                                
MR.  RICHARDS  answered  that  the   process  for  stimulus  fund                                                               
authorization  provides a  good  example.   As  projects came  in                                                               
under budget, the DOT&PF was  able to present additional projects                                                               
to the Legislative Budget and Audit committee for approval.                                                                     
                                                                                                                                
2:08:00 PM                                                                                                                    
                                                                                                                                
MR. RICHARDS,  in response  to Representative  Johansen, answered                                                               
that the FHWA  policy requires annual financial  reporting on all                                                               
projects over  $100 million.  Additionally,  the DOT&PF engineers                                                               
adjust their  estimates in the  regular program, for  example, to                                                               
adjust  for  actual  asphalt  costs.    In  further  response  to                                                               
Representative  Johansen,  he  related  that  the  DOT&PF  has  a                                                               
significant number of projects over $100 million.                                                                               
                                                                                                                                
2:10:38 PM                                                                                                                    
                                                                                                                                
MR.  RICHARDS  described the  successes  of  the AMHS,  including                                                               
vessel fuel savings  [slide 23].  He explained that  the AMHS has                                                               
had  92  percent of  on-time  departures,  and has  released  its                                                               
winter  and  spring  schedules  ahead  of time.    The  AMHS  has                                                               
instituted power  management and  fuel savings systems  that have                                                               
resulted in  10 to 14 percent  fuel savings.  The  systems are on                                                               
the  M/V Aurora,  the M/V  Tustumena, and  the M/V  Matanuska and                                                               
will soon be installed on the  M/V Kennicott and the M/V Columbia                                                               
during  major   refurbishments.    He  remarked   that  the  AMHS                                                               
anticipates it will provide wireless service on the vessels.                                                                    
                                                                                                                                
CHAIR P. WILSON recalled the AMHS  anticipated it would have a 10                                                               
to 20 percent cost savings due to limiting the vessel speeds.                                                                   
                                                                                                                                
2:12:19 PM                                                                                                                    
                                                                                                                                
JIM  BEEDLE, Deputy  Commissioner  of  Marine Operations,  Marine                                                               
Highway  System (AMHS),  Department  of  Transportation &  Public                                                               
Facilities  (DOT&PF),  recalled  that   the  AMHS  has  the  most                                                               
experience with the Power Management  and Fuel Savings Systems on                                                               
the M/V Aurora  in Prince William Sound.  The  process involves a                                                               
cooperative  effort between  the engineers  and the  deck and  is                                                               
most effective  on the  longer ferry  routes.   Initially, system                                                               
installations  on  the M/V  Matanuska  caused  problems, but  the                                                               
addition  of a  controllable  pitch prop  system  on this  vessel                                                               
should make the  system work well.  Thus, the  AMHS does not have                                                               
hard figures  yet, but  hopes to  see better  results on  the M/V                                                               
Kennicott  and the  M/V Columbia,  especially due  to the  longer                                                               
runs.                                                                                                                           
                                                                                                                                
2:13:59 PM                                                                                                                    
                                                                                                                                
SENATOR MEYER referred to the M/V  Susitna that is being built in                                                               
Ketchikan.   He  inquired as  to  whether more  projects will  be                                                               
performed in state.                                                                                                             
                                                                                                                                
MR. BEEDLE  referred to the  Alaska Class Ferry Update  to answer                                                               
part of  the question.   The AMHS  has completed  the preliminary                                                               
design  process, but  has held  conversations  with the  attorney                                                               
general's  office, who  have  urged  the AMHS  to  work with  the                                                               
shipbuilder on  the final  design to avoid  problems such  as the                                                               
ones the  state had with  the M/V  Kennicott, and to  help insure                                                               
bonding.  Thus,  the shipyard will review the  process in advance                                                               
to be sure it can comply  with the specifications to reduce risk.                                                               
He related  that the  AMHS is completing  a Request  for Proposal                                                               
(RFP),  which he  believed  will  be let  in  mid-February.   The                                                               
Ketchikan  shipyard,  Alaska Ship  and  Drydock,  Inc. (ASD),  is                                                               
aware that the  bid will be competitive, but ASD  believes it can                                                               
offer a competitive bid in that process.                                                                                        
                                                                                                                                
SENATOR  MEYER asked  whether Alaskan  companies would  receive a                                                               
five percent preference on any bids.                                                                                            
                                                                                                                                
MR. BEEDLE explained that the  preference is not specifically for                                                               
Alaskan   companies,  but   is  considered   an  inter-port   bid                                                               
differential.   In instances in  which a ship  needs refurbishing                                                               
or is  built out-of-state, for  example, if a company  in Florida                                                               
or Washington was awarded a bid,  the cost for shipping from that                                                               
state to Alaska would  be added to the bid cost.   Thus, when the                                                               
work is performed  in state, such as in Seward  or Ketchikan, the                                                               
additional shipping costs are not added  in so it works to the in                                                               
state shipper's advantage.                                                                                                      
                                                                                                                                
MR.  BEEDLE   discussed  the  vessel  overhaul   or  refurbishing                                                               
process.   The state  provides Capital Budget  funds to  AMHS for                                                               
safety  certification  of  vessels,   which  covers  the  routine                                                               
maintenance  to insure  passenger safety.   In  Southeast Alaska,                                                               
most of  the vessels  are serviced for  the general  overhauls at                                                               
the ASD in Ketchikan.   However, if a Capital Improvement Project                                                               
(CIP)  is  awarded  to  an  out of  state  shipyard,  the  vessel                                                               
receives its overhaul  at the same time since the  CIP process is                                                               
a federal fund process and bids  are awarded to the lowest bidder                                                               
without  any  preference  offered.    However,  the  state  still                                                               
accrues cost savings in the process.   Thus, the M/V Kennicott is                                                               
currently  in Bellingham  for a  CIP, but  will also  receive its                                                               
overhaul, which takes about six week to complete.                                                                               
                                                                                                                                
2:19:33 PM                                                                                                                    
                                                                                                                                
CHAIR  P. WILSON  recalled some  complaints from  constituents on                                                               
bid awards  and remarked that it  is helpful for her  to know the                                                               
process the AMHS uses.                                                                                                          
                                                                                                                                
MR.  BEEDLE  commented  that  the   AMHS  has  already  developed                                                               
negotiated prices  with the  ASD on  specific costs  of services,                                                               
which helps when the AMHS  develop its Capital Improvement Budget                                                               
(CIB).    He characterized  the  Alaska  Marine Highway  System's                                                               
relationship with  the ASD  as a good  working relationship.   In                                                               
response to  Representative Johansen, he  agreed that the  ASD is                                                               
owned  by  AIDEA,  but  is  operated  by  a  private  company  in                                                               
Ketchikan.                                                                                                                      
                                                                                                                                
2:21:18 PM                                                                                                                    
                                                                                                                                
MR. RICHARDS discussed the Highway  Safety Corridors (HSC) [slide                                                               
24].  He  explained that the DOT&PF and the  Department of Public                                                               
Safety (DPS)  uses the "3  Es" approach consisting  of education,                                                               
engineering,  and enforcement  on the  HSC.   The Alaska  Highway                                                               
Safety   Office   (AHSO)  has   also   developed   a  series   of                                                               
advertisements to help  educate to consumers, such  as the "Click                                                               
It or  Ticket" campaign.  The  DPS created the Bureau  of Highway                                                               
Patrol  (BHP),  which   is  currently  in  its   second  year  of                                                               
operation, with  28 officers assigned  to the HSC  whose specific                                                               
task  is to  conduct patrols  for safety  issues.   This specific                                                               
enforcement is  funded by the  AHSO, and the $4.8  million effort                                                               
has  resulted in  reductions in  major accidents.   Additionally,                                                               
fatalities are  down 40 percent  on the Seward Highway  and Parks                                                               
Highway Safety Corridors.                                                                                                       
                                                                                                                                
2:23:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON recalled 12  fatalities happened this year                                                               
on  the Seward  Highway between  Anchorage and  Seward or  on the                                                               
stretch of  the Seward  Highway enroute  to the  Kenai Peninsula.                                                               
He  remarked  that  this  was an  extraordinary  high  number  of                                                               
accidents and asked how the  department statistics could possibly                                                               
reflect a reduction in accidents.                                                                                               
                                                                                                                                
MR. RICHARDS  responded that the  Seward Highway  Safety Corridor                                                               
does not  encompass the entire  Seward Highway, just  the portion                                                               
of the highway from Potter Marsh to the Turnagain Pass.                                                                         
                                                                                                                                
2:26:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   JOHNSON  recalled   that   the   DPS  has   been                                                               
encouraging drivers to phone in  any drivers engaging in reckless                                                               
or hazardous  behavior.   He asked for  the DOT&PF's  position on                                                               
pending legislation for  the "zero tolerance" bill or  the ban on                                                               
cell phones while driving bill.                                                                                                 
                                                                                                                                
MR.  RICHARDS responded  that he  has  not yet  read the  pending                                                               
bills,  but offered  to  do  so and  to  report the  department's                                                               
position to the committee.                                                                                                      
                                                                                                                                
2:27:49 PM                                                                                                                    
                                                                                                                                
SENATOR  MENARD   remarked  that   the  DOT&PF  is   the  largest                                                               
department  that  the  committee  never  seems  to  complete  any                                                               
overviews  in one  session.   She  suggested  that the  committee                                                               
might consider breaking up future overviews into segments.                                                                      
                                                                                                                                
2:28:22 PM                                                                                                                    
                                                                                                                                
MR. RICHARDS  asked to address Senator  Meyer's earlier question.                                                               
He then  referred members  to slide 37,  and to  Anchorage Street                                                               
Sweeping.     He   explained  that   the  federal   Environmental                                                               
Protection  Agency  (EPA)  issued  new  requirements  for  street                                                               
sweeping  and storm  sewer management  in an  effort to  keep the                                                               
streams  clean to  meet  the  Clean Water  Act  guidelines.   The                                                               
DOT&PF and  the Municipality  of Anchorage  must comply  with the                                                               
multi-sector  general permitting.    The DOT&PF  must sweep  main                                                               
highways two times by June 1,  2010 and two more times by October                                                               
1, 2010.   Secondary  roads must  also be swept  once by  June 1,                                                               
2010, and twice  by October 1, 2010.  The  DOT&PF will promulgate                                                               
regulations and has developed new  contracts but anticipates that                                                               
it will  need an  additional $2.2 million  in operating  funds to                                                               
comply  with the  federal unfunded  mandate.   In  response to  a                                                               
question, Mr. Richards explained  that the federal government can                                                               
impose  a $32,000  per day  penalty for  non-compliance, although                                                               
the EPA  has not specifically set  out a penalty for  not meeting                                                               
the street sweeping multi-sector permit requirements.                                                                           
                                                                                                                                
2:30:46 PM                                                                                                                    
                                                                                                                                
SENATOR  MEYER asked  what efforts  can  be taken  to reduce  the                                                               
deaths  on  Seward  Highway.    He  expressed  concern  that  the                                                               
department is only tracking fatalities on certain sections.                                                                     
                                                                                                                                
MR.  RICHARDS responded  that the  DOT&PF  tracks all  fatalities                                                               
statewide.   He explained that  the statewide  fatalities dropped                                                               
24 percent, which is the highest in the nation.                                                                                 
                                                                                                                                
2:32:04 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 2:32 p.m. to 2:33 p.m.                                                                       
                                                                                                                                
2:33:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG related  his understanding that $110,000                                                               
worth of  wire that was  being shipped  on the M/V  Matanuska was                                                               
recently stolen.   He asked  what process or procedures  the AMHS                                                               
uses, noting that he did not need an immediate response.                                                                        
                                                                                                                                
2:33:44 PM                                                                                                                    
                                                                                                                                
^Governor's Coordinated Transportation Task Force                                                                             
        Governor's Coordinated Transportation Task Force                                                                    
                                                                                                                              
2:33:58 PM                                                                                                                    
                                                                                                                                
CHAIR  WILSON announced  the next  item  on the  agenda, a  draft                                                               
report on the Governor's Coordinated Transportation Task Force.                                                                 
                                                                                                                                
2:34:11 PM                                                                                                                    
                                                                                                                                
CAMILLE FERGUSON,  Economic Development Director, Sitka  Tribe of                                                               
Alaska, explained  that the Governor signed  Administrative Order                                                               
243  on  October 14,  2008  creating  the Governor's  Coordinated                                                               
Transportation   Task   Force   (CTTF)    to   study   and   make                                                               
recommendations on  how the state can  coordinate cost-effective,                                                               
community-based transportation  services to persons  with special                                                               
needs.                                                                                                                          
                                                                                                                                
2:34:52 PM                                                                                                                    
                                                                                                                                
MS. FERGUSON related a personal  scenario in which she suffered a                                                               
travel delay  to attend this  hearing.  Several  wheelchair bound                                                               
people were  also on her  airline flight.   She offered  that her                                                               
comparison of her  own needs as compared to  those in wheelchairs                                                               
highlighted  for  her  the  need   for  coordinated  efforts  for                                                               
transportation.                                                                                                                 
                                                                                                                                
2:36:02 PM                                                                                                                    
                                                                                                                                
MS. FERGUSON  named some CTTF  members and support  group present                                                               
at this hearing, including Jeff  Ottesen, Chair of the CTTF, Eric                                                               
Taylor, DOT&PF, and David Levy, Alaska Mobility Coalition.                                                                      
                                                                                                                                
2:36:56 PM                                                                                                                    
                                                                                                                                
MS.  FERGUSON related  that the  CTTF  was asked  to examine  the                                                               
state's coordinated  transportation, and to  make recommendations                                                               
to the  legislature.  The task  force looked at a  broad range of                                                               
special transportation needs for  persons, including persons with                                                               
disabilities, senior  citizens, preschool  children participating                                                               
in  a  head start  program,  public  school students,  low-income                                                               
individuals,  and  those  without access  to  existing,  workable                                                               
transportation  opportunities.   She remarked  that Juneau  has a                                                               
great Care-A-Van service  but none were at the  airport to assist                                                               
the  wheelchair bound  travelers, which  emphasizes the  need for                                                               
better coordination [slide 2].                                                                                                  
                                                                                                                                
2:38:57 PM                                                                                                                    
                                                                                                                                
MS.  FERGUSON discussed  persons  with special  needs [slide  4].                                                               
She explained  that 25  percent, which is  a large  percentage of                                                               
Alaskans, fall  into the category  of persons with  special needs                                                               
asked on  an Alaska census  survey taken in 2008  that identified                                                               
poverty status adults  and children, seniors over the  age of 60,                                                               
civilians  with a  disability, and  veterans  with a  disability.                                                               
Over 44,000  Alaskan homes are  on public assistance.   The state                                                               
is  large,  and more  than  150,000  people  live off  the  state                                                               
highway  system [slide  5].   She described  the extra  efforts a                                                               
disabled  person living  in rural  Alaska must  take to  attend a                                                               
conference.                                                                                                                     
                                                                                                                                
2:40:41 PM                                                                                                                    
                                                                                                                                
MS. FERGUSON  outlined some of Alaska's  transportation providers                                                               
that provide assistance for the  disabled to get to jobs, medical                                                               
appointments, school, and social events [slide 5].                                                                              
                                                                                                                                
2:42:34 PM                                                                                                                    
                                                                                                                                
MS.  FERGUSON  highlighted the  types  of  services that  provide                                                               
human service transportation [slide 6].                                                                                         
                                                                                                                                
MS. FERGUSON  discussed the providers  [slide 7].   This specific                                                               
slide outlines  sources of  funding such  as the  Federal Transit                                                               
Administration, and the National Council  on Disability.  It also                                                               
outlines some of the agencies  that serve people ranging from the                                                               
DOT&PF   to   non-governmental    organizations   or   non-profit                                                               
organizations.   This slide  is in a  graphic format  that better                                                               
helps   to  illustrate   the  populations   for  special   needs.                                                               
Sometimes the  same person is disabled  and is also a  low income                                                               
person, she stated.                                                                                                             
                                                                                                                                
2:44:02 PM                                                                                                                    
                                                                                                                                
CHAIR P. WILSON asked for a  larger copy of slide 7 to distribute                                                               
to members.                                                                                                                     
                                                                                                                                
MS. FERGUSON agreed to do so.                                                                                                   
                                                                                                                                
2:44:20 PM                                                                                                                    
                                                                                                                                
MS.  FERGUSON highlighted  coordination  of  services [slide  8].                                                               
Coordination of  services is the  efficient and effective  use of                                                               
local, state, and federal transportation  resources.  It includes                                                               
working  together   across  sectors  to   broaden  transportation                                                               
options, and helps insure the connectivity between them.                                                                        
                                                                                                                                
MS. FERGUSON explained that roads  are highways, but in Southeast                                                               
Alaska, including  communities such as Sitka,  access is obtained                                                               
by the AMHS [slide 9].                                                                                                          
                                                                                                                                
2:46:43 PM                                                                                                                    
                                                                                                                                
MS.  FERGUSON   identified  CTTF   members  and  the   groups  or                                                               
organizations they  represent [slide 10].   Jennifer Beckman, low                                                               
income  individuals, Patricia  Branson, Senior  citizens, Rebecca                                                               
Hilgendorf, the  Department of Health and  Social Services, Glenn                                                               
Miller,  Municipal   Transportation  departments,   Andra  Nation                                                               
People  With Disabilities,  and Cheryl  Walsh, the  Department of                                                               
Labor & Workforce Development.   She related that she represented                                                               
transportation providers that receive  federal funding for Indian                                                               
Tribes, and  as previously mentioned,  Jeff Ottesen,  chaired the                                                               
task force and  also represented the DOT&PF.   She identified the                                                               
ex   officio  members   as  Marcia   Hoffman-Devoe,  LSCW,   U.S.                                                               
Department of Veterans' Affairs,  Rick Krochalis, U.S. Department                                                               
of Transportation, Federal Transit  Administration, Region X, and                                                               
Christopher  Mandregan, Jr.,  the U.S.  Department of  Health and                                                               
Social Services, Alaska area Native health service.                                                                             
                                                                                                                                
2:48:30 PM                                                                                                                    
                                                                                                                                
MS. FERGUSON outlined Administrative  Order 243 tasks [slide 12]:                                                               
Identify  state,  federal,  and  local  government  agencies  and                                                               
private  entities; identify  barriers to  coordination; recommend                                                               
the  removal   of  barriers;  propose  changes   in  statutes  or                                                               
regulations; develop  mechanisms and incentives  to coordination;                                                               
identify available  financing; and develop a  mechanism to insure                                                               
that services are coordinated.                                                                                                  
                                                                                                                                
2:50:33 PM                                                                                                                    
                                                                                                                                
MS.  FERGUSON reported  the process  used [slide  13].   The CTTF                                                               
completed all seven tasks,  conducted five face-to-face meetings,                                                               
held  six  teleconferences,   shared  resource  information,  and                                                               
conducted public  comment period.   She remarked that  the public                                                               
comment was very important to the CTTF.                                                                                         
                                                                                                                                
2:51:34 PM                                                                                                                    
                                                                                                                                
MS. FERGUSON  reviewed the four CTTF  recommendations, as follows                                                               
[slide 14]:                                                                                                                     
                                                                                                                                
     1.  Enact a statute to institutionalize and require                                                                        
    coordination of community-based transportation services                                                                     
     2.  Make specific state funds available to support                                                                         
     operation expenses.                                                                                                        
     3.  Enrich and enhance the human-service public                                                                            
     transportation coordination planning processes by revising,                                                                
     and updating coordination planning guidance documents and                                                                  
     providing increased technical assistance.                                                                                  
     4.  Fund and conduct a statewide needs assessment of                                                                       
     Alaskans with special needs to clearly identify the scope                                                                  
     of the transportation need.                                                                                                
                                                                                                                                
2:54:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG   related  that  some   proposals  were                                                               
previously given to him during a  meeting.  He referred to number                                                               
4.  He explained that  the Alaska Mobility Coalition provided him                                                               
with draft legislation.                                                                                                         
                                                                                                                                
MS. FERGUSON  agreed that the Alaska  Mobility Coalition prepared                                                               
draft legislation.                                                                                                              
                                                                                                                                
REPRESENTATIVE  GRUENBERG  asked for  the  process  to conduct  a                                                               
statewide    needs   assessment    outlined    in   the    fourth                                                               
recommendation.                                                                                                                 
                                                                                                                                
MS.  FERGUSON responded  that the  process to  provide the  needs                                                               
assessment still needs to be assessed.                                                                                          
                                                                                                                                
2:56:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  suggested  that   if  the  CTTF  wants                                                               
assistance from the legislature that  it would be helpful to have                                                               
the  specifics  outlines,  such  as providing  a  draft  bill  or                                                               
something  specific  the  legislature  can  assist  the  CTTF  to                                                               
accomplish.                                                                                                                     
                                                                                                                                
2:56:58 PM                                                                                                                    
                                                                                                                                
ANDRA NATIONS,  Executive Director, Statewide  Independent Living                                                               
Council;  Representative,  People With  Disabilities,  Governor's                                                               
Coordinated  Transportation Task  Force (CTTF),  pointed out  the                                                               
CTTF's first recommendation  is to enact a  statute to coordinate                                                               
transportation  services.     An  important  component   of  that                                                               
recommendation   is  a   request  to   create  a   semi-permanent                                                               
commission to  continue the  CTTF's mission.   She  related while                                                               
the administrative  order was  signed in  October, that  the full                                                               
CTTF  was initially  formed in  February.   She  stated that  the                                                               
tasks  were complex  and the  CTTF did  not have  enough time  to                                                               
accomplish  its  work,  especially with  respect  to  identifying                                                               
unmet needs.                                                                                                                    
                                                                                                                                
2:58:49 PM                                                                                                                    
                                                                                                                                
CHAIR P. WILSON asked for the end date of the CTTF.                                                                             
                                                                                                                                
MS.   NATIONS   explained   that   the   CTTF   will   make   its                                                               
recommendations  to  the  Governor  by January  31,  2010.    She                                                               
related that a commission would  likely be able to accomplish its                                                               
work in 18 months.                                                                                                              
                                                                                                                                
2:59:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG   asked  whether  the   commission  Ms.                                                               
Nations is referring to was contained  in the draft bill that was                                                               
presented to him  by some of the CTTF members  during an informal                                                               
meeting.                                                                                                                        
                                                                                                                                
3:00:00 PM                                                                                                                    
                                                                                                                                
DAVID  LEVY,  Executive   Director,  Alaska  Mobility  Coalition,                                                               
stated that former Governor Palin  signed an administrative order                                                               
creating  the  CTTF,  and asking  for  local  communities,  state                                                               
government, tribes,  and non-profits  around the state  to review                                                               
transportation issues.   The administrative  order was  signed in                                                               
October 2008, and  the CTTF was organized in March  2009.  One of                                                               
the  recommendations acknowledges  that  is hard  to capture  the                                                               
diverse  challenges  in   Alaska  in  nine  months.     The  CTTF                                                               
recommends long-term analysis of  transportation needs, either by                                                               
an additional administrative order to  span another 18 months, or                                                               
to create  a permanent task force  that could take a  longer term                                                               
review  of transportation  in the  state.   In response  to Chair                                                               
Wilson, he  recalled conversations  with the DOT&PF  that funding                                                               
would cost  about $50,000  to cover  the group,  but it  would be                                                               
federal  funding,  with  no additional  amount  of  general  fund                                                               
monies required.                                                                                                                
                                                                                                                                
3:01:50 PM                                                                                                                    
                                                                                                                                
JEFF   OTTESEN,  Director,   Division  of   Program  Development,                                                               
Department  of  Transportation   &  Public  Facilities  (DOT&PF);                                                               
answered  that he  represented the  DOT&PF on  the CTTF,  and was                                                               
also  the chair  of  the CTTF.   He  explained  that the  Federal                                                               
Transit  Administration  requires  the   state  to  proceed  with                                                               
coordinated transportation.  Thus, the  FTA is very supportive of                                                               
the  state's CTTF.   He  recalled that  Rick Krochalis,  Regional                                                               
Administrator, FTA,  Region X, was  an active ex  officio member.                                                               
He participated in CTTF's  teleconferences, read their documents,                                                               
and provided editing  comments to the task force.   He emphasized                                                               
that  the FTA  will fund  this  effort because  the agency  wants                                                               
transportation   needs  coordinated   statewide.     The  federal                                                               
government funds  many programs [listed  on slide 7].   Thus, the                                                               
FTA wants  coordinated efforts to  avoid duplication  and provide                                                               
better service, he said.                                                                                                        
                                                                                                                                
3:03:24 PM                                                                                                                    
                                                                                                                                
MR. OTTESEN,  in response  to Chair Wilson,  agreed that  the FTA                                                               
will fund  a continuation.   Ultimately, the  CTTF would  like to                                                               
provide the  legislature with a  package, which was  not possible                                                               
to produce in  the scope of the CTTF timeframe.   Coordination is                                                               
as good  as two people within  two agencies, and if  one retires,                                                               
the coordination of services may end.                                                                                           
                                                                                                                                
MR.  OTTESEN, in  response to  Representative Gruenberg,  related                                                               
that  he  had not  looked  at  the  draft  bill that  the  Alaska                                                               
Mobility Coalition provided to legislators.                                                                                     
                                                                                                                                
3:04:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON asked for the  reason that the fourth CTTF                                                               
recommendation was  not prioritized  as the  first recommendation                                                               
since it  seemed to him that  the CTTF needs assessment  would be                                                               
required  initially in  order to  clearly identify  the scope  of                                                               
services.                                                                                                                       
                                                                                                                                
MR. OTTESEN pointed  out that the transportation  needs are quite                                                               
large, but  specifically identifying the population  is difficult                                                               
as people  fit into  more than one  category.   Additionally, the                                                               
TCCF does  not know  how well  people are  served.   For example,                                                               
Juneau has excellent Care-a-Van  service but other communities do                                                               
not.                                                                                                                            
                                                                                                                                
3:05:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON  stated  that   due  to  the  overlap  in                                                               
categories,  the 25  percent  figure is  not  likely an  accurate                                                               
number.   He  remarked  that  he does  not  believe  one in  four                                                               
Alaskans fall into the special needs category.                                                                                  
                                                                                                                                
MR. OTTESEN explained that the CTTF discounted the number.                                                                      
                                                                                                                                
REPRESENTATIVE  JOHNSON  asked  to  review the  statistics.    He                                                               
maintained his view  that recommendation four should  be moved to                                                               
the first recommendation.                                                                                                       
                                                                                                                                
3:06:30 PM                                                                                                                    
                                                                                                                                
CHAIR P.  WILSON stated she  attended some  of the meetings.   He                                                               
inquired  as  to  whether  some  of  the  coordination  could  be                                                               
initiated now.                                                                                                                  
                                                                                                                                
MR. OTTESEN  responded that some coordination  has been occurring                                                               
during  the past  ten  years.   He  related  that  his staff  has                                                               
performed some outreach  services, but many parts  of the state's                                                               
special transportation  needs are still  not served.   He thought                                                               
the lack of coordination in  services is because nothing in state                                                               
law requires state agencies to do so.                                                                                           
                                                                                                                                
3:08:01 PM                                                                                                                    
                                                                                                                                
SENATOR  PASKVAN  asked  for  clarification  of  the  slide  that                                                               
defines public school students in  the category of special needs.                                                               
He  believed   that  designation  needs   further  clarification.                                                               
Additionally, he asked whether private  schools also have special                                                               
needs students that should be identified.                                                                                       
                                                                                                                                
SENATOR  KOOKESH  suggested  that   the  state  needs  this  work                                                               
performed.  He  thanked the CTTF for its work.   He remarked that                                                               
disagreeing with the numbers is  not the issue and maintained the                                                               
importance of the CTTF's efforts.                                                                                               
                                                                                                                                
REPRESENTATIVE  T.  WILSON  stated  that she  has  also  attended                                                               
meetings in  Fairbanks.  She agreed  the CTTF needs more  time to                                                               
complete its  work.   She agreed  that the  fourth recommendation                                                               
should be moved up in their list of priorities.                                                                                 
                                                                                                                                
3:10:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  agreed with the CTTF  time constraints.                                                               
He  observed that  the  CTTF seems  to be  part  way through  the                                                               
process and may  not yet be at the point  of providing details to                                                               
the  legislature.    He  recommended the  CTTF  develop  a  plan,                                                               
including a timeline  so the Governor and  legislature can better                                                               
understand the needs and assist them.                                                                                           
                                                                                                                                
CHAIR  P. WILSON  also  agreed with  member's  assessment of  the                                                               
CTTF's recommendations.   She stated  that she would  welcome the                                                               
specifics of what the CTTF needs.                                                                                               
                                                                                                                                
MR.  OTTESEN acknowledged  the suggestions  and  agreed with  the                                                               
remarks.                                                                                                                        
                                                                                                                                
3:13:37 PM                                                                                                                    
                                                                                                                                
MS.  FERGUSON  concluded  her presentation  by  mentioning  other                                                               
draft recommendations [slide  15].  She related  that other draft                                                               
recommendations  at an  operational level  have been  proposed by                                                               
the group  and are  being maintained in  draft form,  pursuant to                                                               
more study and public involvement.   She said she appreciated the                                                               
feedback and committee member suggestions.                                                                                      
                                                                                                                                
3:15:01 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the joint                                                               
House  and Senate  Transportation meeting  was adjourned  at 3:15                                                               
p.m.                                                                                                                            

Document Name Date/Time Subjects
AMHS-0103 CaptFlavey lr1.pdf HTRA 1/21/2010 1:00:00 PM
CTTF PPT 21JAN10.pdf HTRA 1/21/2010 1:00:00 PM
H and S TRA Overview 2010.pdf HTRA 1/21/2010 1:00:00 PM