Legislature(2009 - 2010)

02/18/2010 01:03 AM House TRA


Download Mp3. <- Right click and save file as

Audio Topic
01:03:10 PM Start
01:03:41 PM Marine Transportation Advisory Board
01:24:22 PM Amhs Update
02:18:20 PM HB329
03:11:39 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
                         JOINT MEETING                                                                                        
            HOUSE TRANSPORTATION STANDING COMMITTEE                                                                           
            SENATE TRANSPORTATION STANDING COMMITTEE                                                                          
                       February 18, 2010                                                                                        
                           1:03 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
HOUSE TRANSPORTATION                                                                                                            
                                                                                                                                
 Representative Peggy Wilson, Chair                                                                                             
 Representative Kyle Johansen                                                                                                   
 Representative Cathy Engstrom Munoz                                                                                            
 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                                                                                                            
                                                                                                                                
 Representative Craig Johnson, Vice Chair                                                                                       
 Representative Tammie Wilson                                                                                                   
                                                                                                                                
SENATE TRANSPORTATION                                                                                                           
                                                                                                                                
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
MARINE TRANSPORTATION ADVISORY BOARD                                                                                            
     - HEARD                                                                                                                    
                                                                                                                                
AMHS UPDATE                                                                                                                     
     - HEARD                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 329                                                                                                              
"An Act relating to the transportation infrastructure fund, to                                                                  
local public transportation, to motor fuel taxes, and to the                                                                    
motor vehicle registration fee; and providing for an effective                                                                  
date."                                                                                                                          
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 329                                                                                                                  
SHORT TITLE: DEDICATED TRANSPORT FUND/PUB TRANSPORT                                                                             
SPONSOR(s): TRANSPORTATION                                                                                                      
                                                                                                                                
02/05/10       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/05/10       (H)       TRA, FIN                                                                                               
02/09/10       (H)       TRA AT 1:00 PM CAPITOL 17                                                                              
02/09/10       (H)       Heard & Held                                                                                           
02/09/10       (H)       MINUTE(TRA)                                                                                            
02/11/10       (H)       TRA AT 1:00 PM CAPITOL 17                                                                              
02/11/10       (H)       Heard & Held                                                                                           
02/11/10       (H)       MINUTE(TRA)                                                                                            
02/18/10       (H)       TRA AT 1:00 PM BUTROVICH 205                                                                           
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
ROBERT VENABLES, Member                                                                                                         
Marine Transportation Advisory Board (MTAB)                                                                                     
Haines, Alaska                                                                                                                  
POSITION STATEMENT:  Presented an overview of the Marine                                                                      
Transportation Advisory Board (MTAB).                                                                                           
                                                                                                                                
JIM BEEDLE, Deputy Commissioner of Marine Operations                                                                            
Marine Highway System (AMHS)                                                                                                    
Department of Transportation & Public Facilities (DOT/PF)                                                                       
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Provided an update on the Alaska Marine                                                                  
Highway System (AMHS).                                                                                                          
                                                                                                                                
JAMES CANTOR, Chief Assistant Attorney General - Statewide                                                                      
Section Supervisor                                                                                                              
Transportation Section                                                                                                          
Department of Law (DOL)                                                                                                         
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions during the discussion of                                                              
the AMHS Update.                                                                                                                
                                                                                                                                
REBECCA ROONEY, Staff                                                                                                           
Representative P. Wilson                                                                                                        
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   Presented  the  changes  contained in  the                                                             
proposed committee  substitute, on  behalf of the  prime sponsor,                                                               
the House Transportation Committee,  chaired by Representative P.                                                               
Wilson.                                                                                                                         
                                                                                                                                
BRIAN KANE, Attorney                                                                                                            
Legislative Legal Counsel                                                                                                       
Legislative Legal and Research Services                                                                                         
Legislative Affairs Agency                                                                                                      
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions  during the discussion of                                                             
HB 329.                                                                                                                         
                                                                                                                                
FRANK RICHARDS, Deputy Commissioner                                                                                             
Office of the Commissioner                                                                                                      
Department of Transportation & Public Facilities (DOT/PF)                                                                       
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions  during the discussion of                                                             
HB 329.                                                                                                                         
                                                                                                                                
CAPTAIN JOHN FALVEY, General Manager                                                                                            
Ketchikan Office                                                                                                                
Marine Highway System (AMHS)                                                                                                    
Ketchikan, Alaska                                                                                                               
POSITION STATEMENT:   Presented a PowerPoint  overview during the                                                             
AMHS Update.                                                                                                                    
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:03:10 PM                                                                                                                    
                                                                                                                                
CHAIR  PEGGY WILSON  called the  joint meeting  of the  House and                                                             
Senate Transportation Standing Committees to order at 1:03 p.m.                                                                 
                                                                                                                                
1:03:41 PM                                                                                                                    
                                                                                                                                
Senators Menard, Meyer, and  Kookesh and Representatives Petersen                                                               
and  P. Wilson  were  present at  the call  to  order.   Senators                                                               
Paskvan  and  Davis  and  Representatives  Johansen,  Munoz,  and                                                               
Gruenberg arrived as the meeting was in progress.                                                                               
                                                                                                                                
1:03:51 PM                                                                                                                    
                                                                                                                                
^Marine Transportation Advisory Board                                                                                         
              Marine Transportation Advisory Board                                                                          
                                                                                                                              
1:04:29 PM                                                                                                                    
                                                                                                                                
CHAIR P. WILSON announced that  the first order of business would                                                               
be a presentation by the Marine Transportation Advisory Board.                                                                  
                                                                                                                                
1:05:37 PM                                                                                                                    
                                                                                                                                
ROBERT  VENABLES, Member,  Marine  Transportation Advisory  Board                                                               
(MTAB), related that the MTAB is  a voluntary board.  He remarked                                                               
that he  came to Juneau  to attend  this hearing by  traveling on                                                               
the  Alaska Marine  Highway  System (AMHS).    He introduced  two                                                               
other MTAB members:    Maxine Thompson, Angoon; and Patrick Owen,                                                               
Juneau.  He  commented that the MTAB members are  saddened at the                                                               
loss of J.C.  Conley, who was a strong advocate  for the AMHS and                                                               
recently died.   He characterized  the MTAB as a  committed group                                                               
focused on marine transportation issues.                                                                                        
                                                                                                                                
1:07:48 PM                                                                                                                    
                                                                                                                                
MR. VENABLES  paraphrased from a  prepared statement,  as follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
          Our board appreciates the opportunity to stand                                                                        
     before you today  and give an overview  of its efforts.                                                                    
     MTAB was  established in  2003 by  Administrative Order                                                                    
     and  put into  Alaska State  Statute in  2008 under  AS                                                                    
     01.10.070(c).   Our board has  been focused  on meeting                                                                    
     the    many   challenges    of   our    unique   marine                                                                    
     transportation system.  With  AMHS staff we have worked                                                                    
     to  identify  tools  in order  to  improve  scheduling,                                                                    
     system  efficiency and  mobility  in Southeast,  Prince                                                                    
     William Sound, and Southwest Alaska.                                                                                       
                                                                                                                                
          It is proven that dependable and sustainable                                                                          
     transportation  systems are  vital  to economic  growth                                                                    
     and  stability in  rural Alaska.   We  strongly support                                                                    
     the  mission of  the  Alaska Marine  Highway System  to                                                                    
     provide  safe,  reliable,  and  cost  effective  marine                                                                    
     transportation  throughout the  coastal regions  of our                                                                    
     state.  The economic,  cultural, educational and health                                                                    
     benefits  to   our  communities  served  by   AMHS  are                                                                    
     extremely  important  to our  quality  of  life.   MTAB                                                                    
     worked closely with AMHS staff  to establish long range                                                                    
     scheduling  and the  past two  years  have proven  that                                                                    
     this approach  is working  as the  anticipated increase                                                                    
     in ridership by Alaska users became a reality.                                                                             
                                                                                                                                
MR. VENABLES added that more  importantly, the reliability of the                                                               
schedules  and predictability  of the  system has  improved, with                                                               
the exception of the old vessels  that still break down and cause                                                               
unforeseen problems.   Customer satisfaction is  up significantly                                                               
and ridership has followed.                                                                                                     
                                                                                                                                
MR.  VENABLES continued,  paraphrasing from  a written  statement                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
          The first section of the MTAB statute establishes                                                                     
     that DOT&PF,  shall in consultation with  MTAB, prepare                                                                    
     a long  range plan for the  development and improvement                                                                    
     of  the  Alaska Marine  Highway  System.   Each  region                                                                    
     encompassing AMHS  routes has  its own long  range plan                                                                    
     for transportation  and so we  have been  attempting to                                                                    
     work  with DOT&PF  planners  on  these regional  plans.                                                                    
     Currently  the Southeast  [Alaska] Transportation  Plan                                                                    
     (SATP)  is up  for its  5-year review.   Correspondence                                                                    
     with  the commissioner  and DOT&PF  planners have  been                                                                    
     ongoing; however,  to this date  an established  day to                                                                    
     sit down and  work with DOT&PF on a draft  SATP has not                                                                    
     been   determined.      As   per   statute   (and   our                                                                    
     understanding  of legislative  intent), [MTAB]  expects                                                                    
     to be  part of DOT's  work effort concerning  the goals                                                                    
     of marine  transportation regional plans, prior  to the                                                                    
     final drafts being sent out to the public.                                                                                 
                                                                                                                                
1:10:04 PM                                                                                                                    
                                                                                                                                
CHAIR P. WILSON  explained that she participated  in the enabling                                                               
legislation for the MTAB.   She recalled the one important aspect                                                               
was for the AMHS to be in consultation with MTAB.                                                                               
                                                                                                                                
MR. VENABLES,  in response  to Chair P.  Wilson, stated  that has                                                               
not  yet happened,  but the  SATP planners  are represented  here                                                               
today.                                                                                                                          
                                                                                                                                
1:10:41 PM                                                                                                                    
                                                                                                                                
MR.  VENABLES continued,  paraphrasing from  a written  statement                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
          Under statute the board may issue reports and                                                                         
     recommendations in consultation  with DOT&PF and submit                                                                    
     to  the department  and the  governor a  strategic plan                                                                    
     which  includes the  mission, core  values, objectives,                                                                    
     initiatives,  and  performance   goals  of  the  Alaska                                                                    
     Marine Highway  System.   Strong and  consistent public                                                                    
     input from multiple  teleconferences from organizations                                                                    
     such as  Southeast Conference, the  Southwest Municipal                                                                    
     Conference,  the Alaska  Municipal  League  as well  as                                                                    
     several  Native  organizations  have  helped  give  our                                                                    
     board a  clear direction  to follow.   From  this input                                                                    
     and  MTAB  meetings  the  past   three  years  we  have                                                                    
     established  short term  and long  term  goals.   These                                                                    
     recommendations  have  been presented  to  Commissioner                                                                    
     von Scheben and Governor Parnell.                                                                                          
                                                                                                                                
1:10:58 PM                                                                                                                    
                                                                                                                                
MR. VENABLES continued, paraphrasing from a written statement                                                                   
[original punctuation provided]:                                                                                                
                                                                                                                                
     SHORT TERM GOALS                                                                                                           
     1)  Operating the  M/V Kennicott  on full  schedule May                                                                    
     through September.   The current  schedule has  the M/V                                                                    
     Kennicott  operating Cross  Gulf 2-weeks-on-2-weeks-off                                                                    
     in the summer.   This only allows for one  trip a month                                                                    
     out the  Aleutian Chain  by the  M/V Tustumena.   There                                                                    
     has  been  a  public  outcry from  the  seven  Aleutian                                                                    
     Island communities  that the current schedule  does not                                                                    
     come  close  to  serving   their  needs  (see  attached                                                                    
     letters).  Additional  service to the Chain  has been a                                                                    
     top priority for MTAB for  the past 3 years.  Following                                                                    
     are the costs associated  with this recommendation both                                                                    
     for FY  2011 and what  would be a  FY2010 Supplemental.                                                                    
     The  administration  has  committed  to  an  additional                                                                    
     spring run  for the  Kennicott and the  following costs                                                                    
     do not take that run into account.                                                                                         
                                                                                                                                
     FY  10  MTAB   Requested  Supplemental   for  Kennicott                                                                  
     Service                                                                                                                  
            $1,385,000-Total Supplemental Authority                                                                             
                      $800,000-General Fund                                                                                     
                      $585,000-Alaska Marine Highway Fund                                                                       
                                                                                                                                
     FY 11  MTAB Requested Service Enhancements  to Governor                                                                  
     Budget                                                                                                                   
                     $2,122,500-TOTAL Additional Authority                                                                      
                     $1,600,000-Alaska Marine Highway Fund                                                                      
                       $522,500-General Fund                                                                                    
                                                                                                                                
                                                                                                                                
1:13:11 PM                                                                                                                    
                                                                                                                                
MR. VENABLES  reported the anticipated  return from  the $500,000                                                               
in General  Funds (GF) is  a good  return for vital  services for                                                               
the transportation  needs of communities  in the  Aleutian Chain.                                                               
He  continued, paraphrasing  from a  written statement,  relating                                                               
the   MTAB's   second    recommendation   [original   punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     2) Additional  funding allowing the fast  vehicle ferry                                                                    
     (M/V)  Fairweather to  operate on  a full  seven day  a                                                                    
     week  schedule during  the spring  (May/June) of  2010.                                                                    
     Unforeseen mechanical issues  with the Fairweather have                                                                    
     caused  funding  shortfalls  to allow  for  this  much-                                                                    
     needed service.   This service  was established  with a                                                                    
     commitment to long-range scheduling  3 years ago and is                                                                    
     very  important to  the  Northern Panhandle  (including                                                                    
     Sitka  and  outlying  villages).    There  is  a  major                                                                    
     concern  about   the  engines  problems  on   both  the                                                                    
     Fairweather  and  the M/V  Chenega.    At its  December                                                                    
     meeting  the [MTAB]  Board voted  to  request that  the                                                                    
     legislature  and  commissioner  of  the  Department  of                                                                    
     Transportation  consider a  vehicle  for  the state  to                                                                    
     order replacement  engines for the Fairweather  and the                                                                    
     Chenega.   The engine problems  are being worked  on by                                                                    
     AMHS,  the Administration  and the  Department of  Law.                                                                    
     The fast  ferries are an  integral part of  the current                                                                    
     and future operations of AMHS.   The public, especially                                                                    
     in  Prince William  Sound and  the Northern  Panhandle,                                                                    
     has a unique and  strong appreciation for these vessels                                                                    
     and their ability  to transport cars and  people over a                                                                    
     long distance in a short  period of time. It looks like                                                                    
     costs  associated  with  operating the  Fairweather  in                                                                    
     2010 for  May/June are being  resolved by AMHS  and the                                                                    
     Administration.                                                                                                            
                                                                                                                                
1:15:11 PM                                                                                                                    
                                                                                                                                
MR. VENABLES  continued, paraphrasing  from a  written statement,                                                               
relating   the   third    short-term   recommendation   [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     3)  MTAB   has  requested   that  an   additional  $60M                                                                    
     [million]  be  added  to the  AMHS  Vessel  Replacement                                                                    
     Fund.    AMHS  has  embarked on  a  much-needed  vessel                                                                    
     replacement project  (Alaska Class Ferry  Project) that                                                                    
     has  very  strong  public  support.    The  project  is                                                                    
     critical to insure long rang[e]  operations of AMHS and                                                                    
     to fulfill  the mission of  AMHS itself.   This process                                                                    
     can be easily  followed by looking it up  on the Alaska                                                                    
     Class  Ferry  information on  the  AMHS  website.   The                                                                    
     vessel replacement  fund currently  has $60  million in                                                                    
     it  -  thanks to  your  efforts,  and it  is  extremely                                                                    
     important  that we  continue  to  put additional  money                                                                    
     into this fund  as we replace our  aging marine highway                                                                    
     fleet.  The administration  has taken steps through the                                                                    
     STIP process  to insure that  adequate funding  will be                                                                    
     available  to   begin  the  process  of   building  new                                                                    
     vessels.                                                                                                                   
                                                                                                                                
1:16:10 PM                                                                                                                    
                                                                                                                                
MR. VENABLES continued, paraphrasing from a written statement,                                                                  
relating the long-term goals [original punctuation provided]:                                                                   
                                                                                                                                
     LONG TERM GOALS                                                                                                            
     1)  Forward funding  of AMHS  operations  to allow  for                                                                    
     continued    schedule   consistency    and   successful                                                                    
     marketing strategy.                                                                                                        
                                                                                                                                
MR. VENABLES remarked that this has been an effective effort for                                                                
the system over the past two years.                                                                                             
                                                                                                                                
     2) A  long term strategy  to mitigate high  fuel prices                                                                    
     that negatively affect the  system's ability to provide                                                                    
     reliable service.                                                                                                          
                                                                                                                                
     3)  Maintenance  and   operational  costs  continue  to                                                                    
     increase system  wide, and need  addressed in  order to                                                                    
     meet the mission of AMHS, now and in the future.                                                                           
                                                                                                                                
     4) The  vessel replacement fund  should be funded  at a                                                                    
     level that allows  for DOT&PF to move  forward with the                                                                    
     design   and  construction   of  new,   fuel  efficient                                                                    
     vessels.  As an  added  value these  vessels should  be                                                                    
     designed to  require less crew  to operate  which could                                                                    
     bring future labor costs down.                                                                                             
                                                                                                                                
          In closing, Marine Transportation Advisory Board                                                                      
     members  acknowledge the  complexities  of providing  a                                                                    
     safe,  reliable  and  efficient  marine  transportation                                                                    
     system and we cannot expect  to be able to satisfy each                                                                    
     coastal community's wants and needs.   We thank you for                                                                    
     your  leadership and  guidance, and  believe that  with                                                                    
     your continued direction and the expertise of the AMHS                                                                     
    management,   MTAB   can   continue   to   help   guide                                                                     
     improvements that will benefit Alaskans.                                                                                   
                                                                                                                                
1:17:57 PM                                                                                                                    
                                                                                                                                
MR.  VENABLES  referred  to handouts  in  members'  packets  that                                                               
identify the AMHS's staff who  participated in rescue activities,                                                               
well  beyond their  duties  to  provide transportation  services.                                                               
Often the AMHS's staff efforts  represent the last line of public                                                               
safety  support,  he  stated.    He applauded  their  work.    He                                                               
commented that the  next MTAB meeting will be in  Juneau on March                                                               
9, 2010.   He concluded  by thanking members for  the opportunity                                                               
to present.                                                                                                                     
                                                                                                                                
1:18:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  recalled   engine  problems  with  two                                                               
ferries, the M/V Chenega and  M/V Fairweather.  He understood the                                                               
engine problems are  being addressed by the AMHS  and the DOT&PF.                                                               
He asked whether the engines have ever worked.                                                                                  
                                                                                                                                
MR. VENABLES deferred  to the DOT&PF commissioner  to discuss the                                                               
issue.                                                                                                                          
                                                                                                                                
REPRESENTATIVE GRUENBERG stated that he  wants to be certain this                                                               
matter is addressed.                                                                                                            
                                                                                                                                
1:20:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MUNOZ  asked  whether  the  MTAB  has  given  any                                                               
consideration  to  the efficiencies  and  impact  the Lynn  Canal                                                               
Highway would give  to the rural operation  of the transportation                                                               
system.                                                                                                                         
                                                                                                                                
MR. VENABLES  responded that the Southeast  Alaska Transportation                                                               
Plan  (SATP) is  the appropriate  vehicle for  the discussion  to                                                               
occur.   He clarified  that the MTAB  focuses on  the operational                                                               
aspects of the  Alaska Marine Highway System (AMHS)  and what the                                                               
system needs  as a whole.   He expressed  that there may  be road                                                               
lengths  interspersed   within  the   system,  but   the  primary                                                               
attention  must be  given to  the aging  fleet.   He acknowledged                                                               
that the MTAB  has not yet held extensive  discussions on issues,                                                               
but he  believed those would occur  during the SATP process.   In                                                               
response to Chair P. Wilson, he  reported that the SATP is one of                                                               
three regional plans in the state.                                                                                              
                                                                                                                                
1:21:38 PM                                                                                                                    
                                                                                                                                
SENATOR KOOKESH  asked for  him to identify  members of  the MTAB                                                               
and the relationship between the MTAB board and DOT&PF's staff.                                                                 
                                                                                                                                
MR.  VENABLES named  other members  of  the MTAB:   Mike  Korsmo,                                                               
Skagway,  Board Chair;  Shirley Marquardt,  Unalaska, Vice-Chair;                                                               
Cathie Roemmich,  Juneau, at-large member; Clay  Koplin, Cordova,                                                               
representing  Prince William  Sound and  Kenai Peninsula;  vacant                                                               
seat in Ketchikan, formerly held  by Mr. Conley; Maxine Thompson,                                                               
Angoon, representing  Southeast Alaska; Gerry  Hope, representing                                                               
Sitka,  Petersburg,  and  Wrangell;  Patrick  Owen,  representing                                                               
labor   unions  of   the  AMHS;   himself   -  Robert   Venables,                                                               
representing  the  Northern   Southeast  communities  of  Haines,                                                               
Juneau,  and Skagway;  Seth  Church, Fairbanks,  member-at-large;                                                               
and  Mark  Eliason,  Anchorage,  who  is  a  travel  and  tourism                                                               
specialist.   The MTAB's chief  interaction is with  the DOT&PF's                                                               
deputy  commissioner, who  also provides  a staff  person to  the                                                               
MTAB.                                                                                                                         
                                                                                                                                
1:23:37 PM                                                                                                                    
                                                                                                                                
MR.  VENABLES characterized  the  information flow  as very  good                                                               
between Captain  Falvey and the MTAB.   He thought that  the MTAB                                                               
forces the opportunity  for disclosure, with respect  to the AMHS                                                               
happenings,  and  the MTAB  acts  as  a conduit  for  information                                                               
to/from the public.   The MTAB can also  make recommendations and                                                               
pass  them  on  to  the legislature  or  the  administration,  as                                                               
appropriate, he stated.                                                                                                         
                                                                                                                                
^AMHS Update                                                                                                                    
                          AMHS Update                                                                                       
                                                                                                                              
1:24:22 PM                                                                                                                    
                                                                                                                                
CHAIR P. WILSON announced that  the final order of business would                                                               
be to have an update by the AMHS.                                                                                               
                                                                                                                                
1:24:57 PM                                                                                                                    
                                                                                                                                
JIM  BEEDLE, Deputy  Commissioner  of  Marine Operations,  Marine                                                               
Highway  System (AMHS),  Department  of  Transportation &  Public                                                               
Facilities  (DOT/PF), introduced  Captain Falvey.   He  applauded                                                               
Captain Falvey's management of the system.                                                                                      
                                                                                                                                
MR.   BEEDLE  discussed   the  AMHS's   three  C's:   Commitment,                                                               
Consistency, and Customer Service within  the AMHS [slide 2].  He                                                               
pointed out that the summer  schedule was published last October,                                                               
although this  is risky since the  AMHS will not know  the amount                                                               
budgeted for the  AMHS until July 1, 2010.   The early publishing                                                               
significantly helps  the public plan  their travel to  Alaska and                                                               
within Alaska.                                                                                                                  
                                                                                                                                
1:26:55 PM                                                                                                                    
                                                                                                                                
MR. BEEDLE  explained that FY  2011 will  be the third  year that                                                               
the AMHS has provided a  consistent schedule.  He elaborated that                                                               
developing  the  schedule is  a  complicated  process since  some                                                               
vessels are  upgraded by capital  improvement projects  (CIBs) so                                                               
it is difficult to  plan and varies year to year.   This year the                                                               
AMHS will  have additional rules for  FY 2010, Safety of  life at                                                               
sea  (SOLAS) regulations  to implement,  which  are required  for                                                               
international travel.   The M/V Kennicott will be on  layup for a                                                               
Capital Improvement  project to meet  the SOLAS regulations.   He                                                               
indicated that  customer service is  very important to  the AMHS,                                                               
which  has maintained  a 96  percent  customer satisfaction  rate                                                               
since 2006.                                                                                                                     
                                                                                                                                
1:28:52 PM                                                                                                                    
                                                                                                                                
MR. BEEDLE  discussed the vessel  operation costs by  fiscal year                                                               
and detailed  the changes  in vessels  [slide 3].   In  2004, the                                                               
AMHS added the M/V Lituya and  M/V Fairweather.  In 2005, the M/V                                                               
Chenega was added.  Factors  that affected costs include contract                                                               
negotiations and  fuel costs, which  went up  drastically between                                                               
2004 and 2006.   From 2006 to 2007, three  new vessels were added                                                               
but the  AMHS's budget also was  out of control so  measures were                                                               
taken  to remedy  the issue.   In  2008, the  AMHS decreased  its                                                               
service and the M/V Columbia did  not run to Bellingham all year.                                                               
Currently, the M/V Columbia is laid  up four months a year in the                                                               
winter due  to decreased traffic.   The AMHS runs one  fast ferry                                                               
four days a week in the winter.   The M/V LeConte was turned into                                                               
a day  ferry to serve Juneau.   The AMHS made  additional cuts to                                                               
expenses and  took the  second summer  vessel off  the Bellingham                                                               
run, which is working well, he stated.                                                                                          
                                                                                                                                
1:31:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG recalled  engine  problems  on the  M/V                                                               
Fairweather and the M/V Chenega.   He understood the engines have                                                               
never worked right.  He asked for a status report.                                                                              
                                                                                                                                
MR. BEEDLE responded that that  the legal issues are ongoing, but                                                               
the  lawsuit will  not progress  until  appropriations for  legal                                                               
fees are made.                                                                                                                  
                                                                                                                                
REPRESENTATIVE   GRUENBERG  recalled   that  the   House  Finance                                                               
Subcommittee  for  the Department  of  Law  is currently  holding                                                               
briefings, but  has not yet had  a request for funding  the legal                                                               
issues mentioned.                                                                                                               
                                                                                                                                
MR. BEEDLE,  in response to Representative  Gruenberg, understood                                                               
the issue and  assured him requests are forthcoming.   He related                                                               
that the warranties  on M/V Fairweather expire at the  end of May                                                               
so any action will happen prior to then.                                                                                        
                                                                                                                                
REPRESENTATIVE  GRUENBERG  asked  to  be  briefed  on  the  issue                                                               
outside  the  committee  meeting   and  welcomed  legislators  to                                                               
participate.                                                                                                                    
                                                                                                                                
1:34:16 PM                                                                                                                    
                                                                                                                                
JAMES  CANTOR,  Chief  Assistant  Attorney  General  -  Statewide                                                               
Section  Supervisor, Transportation  Section,  Department of  Law                                                               
(DOL),  reported  that   the  Department  of  Law   has  been  in                                                               
negotiations  with  the  manufacturers  of  the  engines  in  the                                                               
shipyards and they have attempted  some repairs.  He related that                                                               
there is a  high likelihood the state will  file litigation prior                                                               
to the statute of limitations deadline.                                                                                         
                                                                                                                                
MR.  CANTOR, in  response to  Representative Gruenberg,  answered                                                               
that he was  not prepared to provide the potential  the amount of                                                               
damages.   He  stated  that the  state is  continuing  to try  to                                                               
negotiate the  matter and  he remains  hopeful for  resolution of                                                               
the matter.   However, he reported  that the state may  end up in                                                               
litigation on the issue.                                                                                                        
                                                                                                                                
1:35:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   GRUENBERG   expressed    interest   in   holding                                                               
additional  discussions with  Mr. Cantor  and Mr.  Beedle outside                                                               
the meeting so as to not take up committee time on this issue.                                                                  
                                                                                                                                
1:35:43 PM                                                                                                                    
                                                                                                                                
MR.  BEEDLE  continued  his  update.   Only  one  vessel  on  the                                                               
Bellingham route  has worked well  so the second vessel,  the M/V                                                               
Malaspina, was moved to serve Lynn  Canal.  He remarked that even                                                               
though  Juneau  residents loved  the  fast  ferry to  Haines  and                                                               
Skagway,  the  fast  ferry  could  not  make  the  connection  to                                                               
Skagway,  which indicated  to the  AMHS that  freight required  a                                                               
larger vessel for that run.   Thus, the M/V Malaspina serves Lynn                                                               
Canal and  the fast  ferry now  serves Sitka.   He  remarked that                                                               
local people  have come rely on  the fast ferries.   He applauded                                                               
Captain  Falvey's  efforts  to keep  the  ships  running  despite                                                               
persistent  engine  problems.   He  reported  that the  AMHS  has                                                               
provided  consistent   service  levels  and  more   Alaskans  are                                                               
traveling on the ferries.                                                                                                       
                                                                                                                                
1:38:27 PM                                                                                                                    
                                                                                                                                
CAPTAIN JOHN  FALVEY, General  Manager, Ketchikan  Office, Marine                                                               
Highway  System (AMHS),  began  his update  by  pointing out  the                                                               
improvements  to AMHS  [slide  4].   He  applauded his  dedicated                                                               
reservation staff and related that  customer satisfaction is at a                                                               
ten  year  high   per  a  recent  survey.     He  summarized  the                                                               
improvements to  the AMHS,  including installing  fuel efficiency                                                               
systems  to   the  ferries,  efficiency   improvements,  customer                                                               
service improvements, and new vessel construction.                                                                              
                                                                                                                                
1:40:17 PM                                                                                                                    
                                                                                                                                
CAPTAIN  FALVEY   elaborated  on  the  fuel   efficiency  systems                                                               
currently installed  on the  M/V Aurora,  the M/V  Tustumena, and                                                               
the M/V  Matanuska [slide 5].   He explained the  system provides                                                               
10 - 14 percent fuel savings.   Fuel is costly and he likened the                                                               
power-management  system fuel-savings  system as  similar to  the                                                               
airline  technology.    The  sophisticated  system  is  satellite                                                               
based, and  synchronizes the engines  to manage the power  of the                                                               
ship,  which saves  10 -  14  percent in  fuel costs.   The  AMHS                                                               
receives live  data and readouts  from the system, which  is very                                                               
accurate.                                                                                                                       
                                                                                                                                
1:41:59 PM                                                                                                                    
                                                                                                                                
CAPTAIN FALVEY  anticipated adding the efficiency  systems to the                                                               
M/V  Kennicott, the  M/V  Columbia,  the M/V  Taku,  and the  M/V                                                               
LeConte  by next  winter.   The project  is federally  funded, he                                                               
added.                                                                                                                          
                                                                                                                                
1:42:35 PM                                                                                                                    
                                                                                                                                
CAPTAIN  FALVEY related  that  Phase I  of  the project  provides                                                               
satellite communications to vessels  and internet connections for                                                               
shipboard passengers using  laptops and smart phones  in Phase II                                                               
[slide  6].   However, marine  broadband is  complex, he  stated.                                                               
Thus far,  the initial provider  did not  work well enough  as it                                                               
did  not  provide  a  high   enough  quality.    In  response  to                                                               
Representative  Gruenberg, he  answered that  the initial  system                                                               
was in place  for about two to three years  and the services were                                                               
rented.   He said  the AMHS  let the contract  run out,  then let                                                               
another request for  proposal (RFP) and selected  a new provider.                                                               
He  anticipated the  AMHS will  be  happy with  the new  provider                                                               
since the contract is with a well-known broadband provider.                                                                     
                                                                                                                                
1:44:57 PM                                                                                                                    
                                                                                                                                
CAPTAIN FALVEY  detailed the  satellite hardware  [slide 6].   He                                                               
stated that currently  the hardware is installed  on seven ships:                                                               
the M/V  Malaspina, M/V Matanuska,  M/V Columbia,  M/V Kennicott,                                                               
M/V Aurora, M/V  Tustumena, and M/V Lituya.   He anticipated that                                                               
the satellite  hardware will be  installed in the coming  year on                                                               
the M/V  LeConte and the  M/V Taku.   The project  will establish                                                               
communications  in two  phases,  initially for  the officers  and                                                               
crew for ship  to shore communications.  One  initial mistake was                                                               
attempting  to  provide  broadband  service  for  both  the  ship                                                               
business and customers.   Next year customers will  be added, but                                                               
the AMHS  will not charge  for the  service and will  provide the                                                               
service as a marketing tool.                                                                                                    
                                                                                                                                
1:46:52 PM                                                                                                                    
                                                                                                                                
CAPTAIN FALVEY  outlined the new  AMHS reservation  system [slide                                                               
7].  He  reported that the AMHS  is in the process  of building a                                                               
new reservation  system.   The old system  was an  in-house home-                                                               
built system.   Currently, about  30 percent of  the reservations                                                               
are conducted on-line.   He anticipated that the  new system will                                                               
be  more "user  friendly."   The  AMHS hired  a subcontractor  to                                                               
examine  the system  in order  to identify  technology gaps  that                                                               
need to  be addressed before  moving forward.  He  indicated that                                                               
the  AMHS needs  service 24  hours a  day, and  in doing  so, can                                                               
enhance operations,  such as  to coordinate  which cabins  can be                                                               
presold or sold on the ships.                                                                                                   
                                                                                                                                
1:49:22 PM                                                                                                                    
                                                                                                                                
CAPTAIN FALVERY detailed  the Phase II:  Review  of AMHS Customer                                                               
Service [slide  7].  Phase  II will  be completed in  April 2010.                                                               
He explained that  the AMHS reservation system  and the terminals                                                               
have been  reorganized since they  are related.   The AMHS  is in                                                               
the  process  of  finishing writing  the  traffic  manual,  which                                                               
needed to  be updated.   The new  policy and procedure  manual is                                                               
updated  and is  ready  to  enter Phase  III,  which entails  the                                                               
actual purchase of new reservation  system.  The AMHS will likely                                                               
hire  a  professional  to  assist   in  selecting  the  equipment                                                               
designed  to assist  the AMHS,  which will  include a  scheduling                                                               
module.                                                                                                                         
                                                                                                                                
1:52:00 PM                                                                                                                    
                                                                                                                                
CAPTAIN FALVEY  briefed members on AMHS  Terminal Improvements in                                                               
Angoon, Annette Bay,  and Hoonah [slide 8].  He  offered that the                                                               
AMHS will have new dock facilities  in Angoon by December 2010 to                                                               
accommodate  fast  ferries.   In  Annette  Bay, the  new  docking                                                               
facility will  be completed in  the fall of 2010,  to accommodate                                                               
the  M/V Lituya  and  the  Prince of  Wales  class  vessels.   In                                                               
Hoonah,  the  uplands  and  new terminal  will  be  completed  in                                                               
September 2010, and  stimulus funds will provide  for new docking                                                               
structures  to be  completed in  February 2011.   Minor  projects                                                               
include  a  new  warehouse  in  Homer,  as  well  as  the  AMHS's                                                               
consideration of  purchasing the  facility at Prince  Rupert, and                                                               
conducting  right-of-way   work  in   Haines.     He  anticipated                                                               
additional upgrades will follow.                                                                                                
                                                                                                                                
1:54:04 PM                                                                                                                    
                                                                                                                                
CAPTAIN FALVEY  reported the progress  to the Alaska  Class Ferry                                                               
[slide  9].   He related  that  the preliminary  design phase  is                                                               
complete as  of 12/31/09.   The ferries will hold  500 passengers                                                               
and  up to  60  vehicles,  equipped with  a  standard engine  and                                                               
reduced crew quarters, which were  added to avoid the 12-hour day                                                               
schedule restriction  required by  U.S. Coast  Guard regulations.                                                               
It  is possible  the AMHS  may  be able  to complete  one run  to                                                               
Prince  Rupert, overnight  there and  return the  next day.   The                                                               
vessels  will  be  able  to   use  many  of  the  existing  ferry                                                               
terminals.  He offered his belief  that this class of vessels was                                                               
a  product of  the strong  steering committee  and public  input.                                                               
The final design should be completed by late summer.                                                                            
                                                                                                                                
1:56:24 PM                                                                                                                    
                                                                                                                                
CAPTAIN  FALVEY discussed  an  innovative  procurement method  to                                                               
develop a request  for proposal (RFP) to bring in  a shipyard now                                                               
during  the design  phase  to accommodate  the  specifics of  the                                                               
shipyard.   This will help  reduce risk and he  characterized the                                                               
process as "a good way to go."                                                                                                  
                                                                                                                                
CAPTAIN FALVEY  discussed the AMHS Southwest  traffic [slide 10].                                                               
He stated  that the Southwest route  "did not bump as  badly with                                                               
ridership"  and even  had  increases in  Southwest  Alaska.   The                                                               
route ridership was  up 4 percent in passenger traffic  and up 11                                                               
percent for  vehicle traffic.  Prior  to this year, the  AMHS had                                                               
increasing ridership  over three  years, but  due to  the economy                                                               
was reduced to  1981 levels this year.  He  related that targeted                                                               
marketing, accommodating  locals with more  convenient schedules,                                                               
and  round trip  discounts  in winter  months  has increased  the                                                               
ridership.                                                                                                                      
                                                                                                                                
2:00:04 PM                                                                                                                    
                                                                                                                                
CAPTAIN FALVEY emphasized  the AMHS's focus for  2011 [slide 11].                                                               
He  related that  the  AMHS has  been  installing new  evacuation                                                               
systems, including a  slide system, and providing  training.  The                                                               
AMHS's  marketing   staff  promotes  the  AMHS   to  enhance  the                                                               
awareness of the ferry as  a unique Alaskan travel experience for                                                               
residents and  visitors [slide 12].   Staff attends  major travel                                                               
shows and also rebuilt the AMHS's  website last year.  He related                                                               
that 460,000 people have since visited the website.                                                                             
                                                                                                                                
2:01:50 PM                                                                                                                    
                                                                                                                                
SENATOR  KOOKESH  would like  to  know  how passenger  fares  are                                                               
determined.    For   example,  to  stop  in   Chenega  Bay  costs                                                               
significantly  more,   75  percent  more,  than   travel  between                                                               
Whittier and Cordova.                                                                                                           
                                                                                                                                
MR. BEEDLE  reported that  a rate  study has  been posted  to the                                                               
AMHS website.  He related that  the study is comprehensive and he                                                               
hopes to  implement the recommendations  in the study.   The rate                                                               
study indicates which  fares are too high and which  ones are too                                                               
low.                                                                                                                            
                                                                                                                                
2:03:46 PM                                                                                                                    
                                                                                                                                
SENATOR  MEYER  related  that as  a  resident  from  Southcentral                                                               
Alaska he does not  know as much about the AMHS  as he would like                                                               
to  know.   He said  he traveled  to Ketchikan  to see  the ferry                                                               
being built that will serve Anchorage  and the Mat-Su Valley.  He                                                               
asked if the  shipyard has the ability to build  the Alaska Class                                                               
Ferries and whether the state is utilizing its assets.                                                                          
                                                                                                                                
MR.  BEEDLE responded  that  the Alaska  Ship  and Drydock  (ASD)                                                               
facility  believes  that  its  bid can  be  competitive  and  the                                                               
shipyard is aware of the RFP.                                                                                                   
                                                                                                                                
SENATOR MEYER asked  about the 5 percent preference  for in state                                                               
bidders.                                                                                                                        
                                                                                                                                
MR. BEEDLE answered that there is  an in state preference, but in                                                               
this case  the project is set  up as half federal  and half state                                                               
funding, so  the federal rules will  apply.  He related  that the                                                               
in state preference does not apply to this project.                                                                             
                                                                                                                                
2:06:04 PM                                                                                                                    
                                                                                                                                
SENATOR MENARD commented that in May  2010 the World Expo will be                                                               
held  in  Shanghai,  China,  and  Alaska would  like  to  have  a                                                               
presence  beginning  in  May  2010  and  spanning  a  three-month                                                               
period.   She related  that the  U.S. is  building a  $61 million                                                               
pavilion and  this year, exported  $733 million.  She  hoped that                                                               
DOT&PF would participate and 192 countries will be represented.                                                                 
                                                                                                                                
MR.  BEEDLE  offered to  pass  the  information  on to  the  AMHS                                                               
marketing person.                                                                                                               
                                                                                                                                
CAPTAIN  FALVEY  related that  the  marketing  staff has  a  very                                                               
aggressive travel schedule, especially this time of year.                                                                       
                                                                                                                                
SENATOR MENARD remarked that billions  of people will attend this                                                               
expo.                                                                                                                           
                                                                                                                                
2:08:31 PM                                                                                                                    
                                                                                                                                
CHAIR P.  WILSON asked for  a report on the  coordination between                                                               
MTAB and DOT&PF.                                                                                                                
                                                                                                                                
MR. BEEDLE responded that the  two groups work well together, and                                                               
the input from  MTAB is important to the AMHS.   He remarked that                                                               
state agencies sometimes  need to change and the  MTAB knows "how                                                               
to push."                                                                                                                       
                                                                                                                                
CHAIR P. WILSON commented that she is excited about the efforts.                                                                
                                                                                                                                
2:09:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHANSEN  assured members that he  is working hard                                                               
to find  a way to construct  the new AMHS vessel  at the shipyard                                                               
in Alaska, not  only because it is in Ketchikan,  but since it is                                                               
a state-owned asset operated by a local company.                                                                                
                                                                                                                                
MR. BEEDLE  related that he has  asked the same question  and has                                                               
found that  as long  as federal money  is involved  federal rules                                                               
apply.   He stated that in  the event the project  is 100 percent                                                               
state  funded, that  the  legislature can  direct  the DOT&PF  to                                                               
build  the project.   Currently  this  project is  in the  design                                                               
process, but  noted the construction  process is separate  so the                                                               
rules could change.                                                                                                             
                                                                                                                                
CAPTAIN  FALVEY offered  that  the ASD  in  Ketchikan is  excited                                                               
about the  process.  He  reported that Washington State  uses all                                                               
state funds to build their ferries.                                                                                             
                                                                                                                                
2:12:13 PM                                                                                                                    
                                                                                                                                
CHAIR   P.  WILSON   adjourned   the  joint   House  and   Senate                                                               
Transportation  Standing  Committee meeting  at  2:12  p.m.   She                                                               
related  that the  House Transportation  Standing Committee  will                                                               
meet after a short break.                                                                                                       
                                                                                                                                
2:18:09 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON  called the House Transportation  Standing Committee                                                               
to  order  at 2:18  p.m.    Present at  the  call  to order  were                                                               
Representative   Gruenberg,   Petersen,  Wilson   and   Johansen.                                                               
Representative Munoz arrived as the meeting was in progress.                                                                    
                                                                                                                                
         HB 329-DEDICATED TRANSPORT FUND/PUB TRANSPORT                                                                      
                                                                                                                              
CHAIR P. WILSON announced that  the final order of business would                                                               
be HOUSE  BILL NO.  329, "An Act  relating to  the transportation                                                               
infrastructure  fund, to  local public  transportation, to  motor                                                               
fuel  taxes,  and to  the  motor  vehicle registration  fee;  and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
2:18:20 PM                                                                                                                    
                                                                                                                                
CHAIR P.  WILSON explained  that a  new committee  substitute has                                                               
been prepared.                                                                                                                  
                                                                                                                                
REPRESENTATIVE  JOHANSEN  made  a  motion  to  adopt  a  proposed                                                               
committee substitute, labeled 26-LS1207\N,  Kane, 2/18/10, as the                                                               
working document.                                                                                                               
                                                                                                                                
2:19:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG objected for the purpose of discussion.                                                                
                                                                                                                                
2:19:38 PM                                                                                                                    
                                                                                                                                
REBECCA  ROONEY, Staff,  Representative P.  Wilson, Alaska  State                                                               
Legislature, on  behalf of Representative P.  Wilson, stated that                                                               
explained changes  contained in  Version N.   She  explained that                                                               
the first change  removed legislative intent.   Another bill will                                                               
be  vehicle   for  appropriation  of  the   proposed  $1  billion                                                               
endowment  to the  proposed Alaska  Transportation Infrastructure                                                               
Fund (ATIF), she stated.                                                                                                        
                                                                                                                                
2:20:24 PM                                                                                                                    
                                                                                                                                
MS.  ROONEY  referred to  page  2,  line 5  of  Version  N.   She                                                               
reported  that the  committee previously  discussed removing  the                                                               
Watercraft Fuel  Tax Account  (WFTA) from the  bill since  it may                                                               
appear that  the Fisheries  Business Tax  Account (FBTA)  was the                                                               
only revenue source for the  Municipal Harbor Facility Grant Fund                                                               
(MHFGF).  Thus, the WFTA was replaced  with the ATIF.  On page 2,                                                               
lines 19-22, the committee previously  discussed the beginning as                                                               
July  1, 2011  instead of  April 1,  2011, to  coincide with  the                                                               
start of fiscal year.  She  referred to page 3, to the allocation                                                               
of  funds   between  modes,   noting  the   committee  previously                                                               
discussed   the  desire   for   more   flexibility  between   the                                                               
transportation modes.   She  referred to page  3, line  13, which                                                               
was changed  to read..."not to  exceed" to allow  the legislature                                                               
the ability  to increase and decrease  appropriations between the                                                               
transportation mode,  which would allow additional  funding for a                                                               
runway erosion issue  or other issue that  may require additional                                                               
funding to be addressed.                                                                                                        
                                                                                                                                
2:22:36 PM                                                                                                                    
                                                                                                                                
MS. ROONEY  referred to page  4, line  10, to the  composition of                                                               
the Transportation Infrastructure  Fund Advisory Council (ATIFAC)                                                               
which  was  increased to  10  members.   Some  committee  members                                                               
suggested that the  legislature's Transportation Committee Chairs                                                               
might have too large a role.   Thus, paragraphs 4 and 5 added two                                                               
additional legislators to be appointed  by the leadership instead                                                               
of the  Chairs of  the House  and Senate  Transportation Standing                                                               
Committees.  The  bill adds two legislators from  urban and rural                                                               
districts to ensure the representation  of expertise in different                                                               
modes.    The DOT&PF  commissioner's  position  was deleted,  but                                                               
his/her  three deputy  commissioners  were added  since they  are                                                               
responsible for surface transportation, aviation, and the AMHS.                                                                 
                                                                                                                                
2:24:10 PM                                                                                                                    
                                                                                                                                
MS. ROONEY  referred to page  4, lines  24-31, which is  the bill                                                               
drafter's  first attempt  to capture  legislators from  urban and                                                               
rural districts.                                                                                                                
                                                                                                                                
CHAIR  P. WILSON  expressed her  intention  to hold  HB 329  over                                                               
today.                                                                                                                          
                                                                                                                                
2:26:21 PM                                                                                                                    
                                                                                                                                
MS. ROONEY  referred to page  5, line 7 of  Version N.   The date                                                               
was changed to October 15 to  allow the report from the ATIFAC to                                                               
mesh  with  the DOT&PF's  budget  timeframe.   Additionally,  the                                                               
ATIFAC's  report will  be submitted  to governor  as well  as the                                                               
legislature  to help  alleviate the  issue of  the separation  of                                                               
powers.  This disparity comes  into play since having legislators                                                               
on the council basically gives  the legislature both the power to                                                               
affect  the suggested  list of  projects  as well  as choose  the                                                               
actual projects that receive funding.                                                                                           
                                                                                                                                
2:27:04 PM                                                                                                                    
                                                                                                                                
MS. ROONEY  referred to page  9, lines  22 and 29,  and indicated                                                               
the dates  were changed  to reflect the  beginning of  the fiscal                                                               
year.                                                                                                                           
                                                                                                                                
CHAIR P. WILSON  referred to page 9, line 25  of proposed Section                                                               
15 of Version N,  which read, "If, under sec. 13  of this Act, AS                                                               
44.42.020(a)(17), enacted  by sec.  9 of  this Act,  takes effect                                                               
immediately under  AS 01.10.070(c)."   This means that  this bill                                                               
would take  effect only  if the results  if the  joint resolution                                                               
[HJR  42]   passes  and  the   voters  pass   the  constitutional                                                               
amendment, she stated.                                                                                                          
                                                                                                                                
2:28:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  related  a   series  of  concerns  and                                                               
suggestions.   He  referred  to  page 4,  of  Version  N, to  the                                                               
composition  of   the  ATIFAC,   which  would  consist   of  four                                                               
legislators.    He  expressed  concern   that  members  would  be                                                               
majority members and no provision  was made for minority members.                                                               
He  related that  two  legislators  should represent  communities                                                               
with  small  populations and  two  legislative  members were  not                                                               
described.   He asked for  consideration for urban areas  and the                                                               
population that uses the public  transit systems.  He referred to                                                               
page 5, line  3, which refers to AS 39.20.180.   He asked whether                                                               
that  was the  correct  statute or  if the  travel  and per  diem                                                               
should correspond to a statute in  Title 24.  He also referred to                                                               
page  5,  line   page  7,  to  capital   projects  and  suggested                                                               
flexibility  to  cover  items  such   as  higher  fuel  costs  or                                                               
operating expenses instead of  restricting the recommendations to                                                               
capital projects.                                                                                                               
                                                                                                                                
2:32:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG suggested  that the sponsor specifically                                                               
consider  an   alternate  plan   for  a   statute  in   case  the                                                               
constitutional  amendment for  the dedicated  transportation fund                                                               
does not  pass.  If  that happened,  the committee would  need to                                                               
start  a new  process to  develop an  alternate plan  which would                                                               
take  time.   If an  alternate  plan were  incorporated into  the                                                               
bill,  it  would  ensure  that  transportation  issues  could  be                                                               
funded.                                                                                                                         
                                                                                                                                
2:33:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHANSEN  referred  to  page  2,  lines  1-9,  of                                                               
Version  N.   He was  unsure whether  the Fisheries  Business Tax                                                               
should be included.                                                                                                             
                                                                                                                                
CHAIR  P.  WILSON  answered  the Fisheries  Business  Tax  is  an                                                               
existing tax.   She explained that she wanted  the flexibility to                                                               
use the tax for the proposed ATIF.                                                                                              
                                                                                                                                
REPRESENTATIVE JOHANSEN referred again  to proposed Section 2 and                                                               
to  the appropriations  to the  Municipal  Harbor Facility  Grant                                                               
Fund.     This  proposed  section   allows  the   legislature  to                                                               
appropriate to  the proposed ATIF,  deletes the reference  to the                                                               
Watercraft Fuel Tax  Account, and "out of the  blue" states, "and                                                               
from Fisheries  Business Tax collected  under AS  43.75.015 after                                                               
payments to  municipalities are made..."   He suggested  that any                                                               
of a  hundred funds from the  general fund could be  deposited to                                                               
the  Municipal Harbor  Facility Grant  Fund.   He  asked why  the                                                               
Fisheries Business Tax  is singled out since  the legislature may                                                               
make other  appropriations to  the fund.   He also  remarked that                                                               
this tax is  collected under AS 43.75.150, but  payments are made                                                               
to municipalities under AS 43.75.130.                                                                                           
                                                                                                                                
CHAIR P.  WILSON explained that  the state  is in the  process of                                                               
fixing  harbors and  allowing local  municipalities to  take over                                                               
ownership.  She commented that  municipalities will not take over                                                               
harbors until the  repairs are made.  She recalled  that about 29                                                               
harbors  have  not  yet  been   transferred  or  fixed  and  this                                                               
mechanism may provide a method to repair the state's harbors.                                                                   
                                                                                                                                
REPRESENTATIVE JOHANSEN agreed but maintained his concern.                                                                      
                                                                                                                                
CHAIR P.  WILSON offered  to flag areas  of concern  that members                                                               
have on the bill.                                                                                                               
                                                                                                                                
2:37:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHANSEN referred to page  3, lines 6-8 of Version                                                               
N, and read,  "An appropriation from the fund may  not be made to                                                               
a  project for  which federal  money has  been allocated..."   He                                                               
referred  to   page  3,  line   13,  which  read,   "...shall  be                                                               
distributed..."   He asked for  clarification since one  is "may"                                                               
and the other is "shall."                                                                                                       
                                                                                                                                
CHAIR P.  WILSON explained  that she  sought flexibility.   State                                                               
funded projects  can move more  quickly through the  process, yet                                                               
there  might be  times the  legislature may  wish to  use federal                                                               
funds.  She expressed her intent  to limit the amount of the fund                                                               
that could be used for capital projects.                                                                                        
                                                                                                                                
2:38:47 PM                                                                                                                    
                                                                                                                                
BRIAN  KANE,  Attorney,  Legislative Legal  Counsel,  Legislative                                                               
Legal   and  Research   Services,  Legislative   Affairs  Agency,                                                               
explained that "may not" and  "shall not" basically mean the same                                                               
thing.   He referred to  page 3, line  6, and explained  that the                                                               
state is  limited to making  an appropriation for  matching funds                                                               
for a federally funding project.   Additionally, federal matching                                                               
funds  cannot exceed  10 percent  of the  appropriations for  any                                                               
given year.                                                                                                                     
                                                                                                                                
2:40:29 PM                                                                                                                    
                                                                                                                                
CHAIR  P. WILSON  stated she  did  not know  if federal  projects                                                               
always require  matching funds.   She asked  whether it  would be                                                               
clearer if  it read that  an appropriation from the  fund "cannot                                                               
or shall not" be made instead of "may not."                                                                                     
                                                                                                                                
REPRESENTATIVE GRUENBERG agreed that  "cannot" is a clearer term.                                                               
He suggested  the sponsor consider  discussing this  further with                                                               
the bill drafter.  He stated  that "may not" is likely the normal                                                               
term in the drafting manual but in this instance is confusing.                                                                  
                                                                                                                                
2:41:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHANSEN  referred to  page 3, lines  12-13, which                                                               
read,  "Appropriations made  from the  fund for  capital projects                                                               
for transportation  and related  facilities shall  be distributed                                                               
based on amounts not to  exceed the following percentages..."  He                                                               
asked whether the dedicated fund,  which sets specific parameters                                                               
for  allocation  of  funds between  transportation  modes,  would                                                               
challenge the decision-making process of the legislature.                                                                       
                                                                                                                                
MR.  KANE responded  that he  did not  believe the  program would                                                               
challenge   the   appropriation   process.      He   stated   the                                                               
determination   was  the   resolution   would   place  into   the                                                               
constitution a provision for a  dedicated fund for transportation                                                               
and related  facilities.   The proposed language  in HB  329 sets                                                               
the allocation to  ensure money is spread  out for transportation                                                               
needs  such as  roads, ferries,  and  transit.   However, in  any                                                               
given year  the entirety  of the fund  would not  be appropriated                                                               
for only  one project.   The legislature could  still appropriate                                                               
80  percent  of  the  available  funding  for  road  and  surface                                                               
transportation  funding and  not appropriate  any funds  to other                                                               
types of transportation projects.                                                                                               
                                                                                                                                
2:43:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHANSEN  referred  to  page 3,  lines  12-15  of                                                               
Version N  and asked what  would happen if the  legislature chose                                                               
to appropriate  85 percent  instead of 80  percent for  roads and                                                               
surface transportation.                                                                                                         
                                                                                                                                
MR. KANE  answered that  based on the  language that  the statute                                                               
would   not  allow   the  legislature   to  spend   beyond  these                                                               
percentages from the  proposed Transportation Infrastructure Fund                                                               
(ATIF), but  the legislature  could appropriate  additional funds                                                               
from another fund such as the general fund (GF).                                                                                
                                                                                                                                
2:44:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   GRUENBERG   pointed   out  that   this   is   an                                                               
authorization bill and the  legislature cannot appropriate beyond                                                               
the  manner authorized.    He referred  to page  3,  line 25,  of                                                               
Version N.  He expressed  discomfort with the current percentages                                                               
of allocation  from the dedicated transportation  fund.  However,                                                               
he suggested  that the 20  percent referred to in  this paragraph                                                               
is intended  for "public" transportation.   He  further suggested                                                               
that  it should  read,  "...projects related  to local  community                                                               
public transportation  and transit..."  to be certain  the intent                                                               
is crystal  clear.  He  referred to page  3, line 7,  and offered                                                               
that it may  be appropriate to refer to capital  projects in this                                                               
instance.                                                                                                                       
                                                                                                                                
2:45:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MUNOZ referred to page  3, lines 17-18, of Version                                                               
N and asked whether municipal airports  are eligible for up to 25                                                               
percent for aviation projects.                                                                                                  
                                                                                                                                
MS. ROONEY  responded that she  believed that all  airports could                                                               
apply for the funds.                                                                                                            
                                                                                                                                
2:46:20 PM                                                                                                                    
                                                                                                                                
CHAIR P.  WILSON recalled that  the Juneau  International Airport                                                               
is  owned by  the  City and  Borough of  Juneau  and that  Juneau                                                               
receives a portion of the aviation fuel tax.                                                                                    
                                                                                                                                
REPRESENTATIVE  MUNOZ   agreed  that  the   Juneau  International                                                               
Airport  receives 60  percent  of  the aviation  fuel  tax.   She                                                               
referred  to  page  3,  to  paragraph 5,  which  allows  for  the                                                               
inclusion of  other community transportation projects,  and asked                                                               
why municipal airports would be excluded under paragraph 2.                                                                     
                                                                                                                                
CHAIR  P. WILSON  offered her  belief that  public transportation                                                               
could include airports.                                                                                                         
                                                                                                                                
2:47:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MUNOZ asked whether  the 25 percent allocation for                                                               
aviation could include municipal airports.                                                                                      
                                                                                                                                
MR.  KANE answered  he  was  not aware  of  another provision  in                                                               
statute  that would  prohibit municipal  airports from  receiving                                                               
any  type  of appropriations  so  he  assumed airports  would  be                                                               
eligible  for  appropriations under  this  paragraph  as well  as                                                               
under the public transportation provision.                                                                                      
                                                                                                                                
2:48:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MUNOZ referred  to page 3, paragraph  4, and asked                                                               
whether the  20 percent allocation  for harbor projects  would be                                                               
deposited into Municipal Harbor Facility Fund.                                                                                  
                                                                                                                                
MR.  KANE   related  that  these  are   ceiling  percentages  for                                                               
allocation from  the proposed  fund, but  no specific  percent is                                                               
required  to  be deposited  into  the  Municipal Harbor  Facility                                                               
Grant Fund.   There is  also another option for  projects related                                                               
to harbor  facilities and state-owned  marine facilities  as well                                                               
as  the Municipal  Harbor Facility  Grant Fund.   As  much as  20                                                               
percent can  be deposited directly  into the grant fund,  but the                                                               
allocation cannot exceed the 20 percent, he stated.                                                                             
                                                                                                                                
2:49:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MUNOZ  referred to the composition  and make-up of                                                               
the ATIFAC.  She asked how  the creation of another DOT&PF review                                                               
team would impact  the department and whether  this council would                                                               
create  a duplication  of  effort.   She  also expressed  concern                                                               
about  inclusion of  legislators on  that  team since  this is  a                                                               
statewide  project fund.   She  suggested that  legislators would                                                               
naturally  focus  on own  areas.    She  asked the  committee  to                                                               
consider  an amendment  to the  composition of  the ATIFAC.   She                                                               
indicated she would also like the DOT&PF to comment.                                                                            
                                                                                                                                
CHAIR  P.  WILSON  clarified  that this  would  not  represent  a                                                               
duplication  of   efforts  since  the   Statewide  Transportation                                                               
Improvement Program (STIP) relates to federally funded projects.                                                                
                                                                                                                                
REPRESENTATIVE MUNOZ maintained  she would like to  hear from the                                                               
DOT&PF on this matter of creating another panel.                                                                                
                                                                                                                                
CHAIR P.  WILSON remarked that  some constituents do  not believe                                                               
the  public's  concerns are  addressed  in  the current  process.                                                               
This  option   would  have  someone  directly   representing  the                                                               
constituency in the process.                                                                                                    
                                                                                                                                
2:52:21 PM                                                                                                                    
                                                                                                                                
FRANK RICHARDS, Deputy Commissioner,  Office of the Commissioner,                                                               
Department  of  Transportation   &  Public  Facilities  (DOT/PF),                                                               
stated that the DOT&PF provided  a packet for members to identify                                                               
the project  evaluation boards that  the DOT&PF currently  has in                                                               
place for  surface transportation highway, aviation,  and harbors                                                               
projects.    The process  for  each  of  the boards  is  similar,                                                               
although the  criterion differs  slightly.   He related  that the                                                               
DOT&PF  would welcome  another board  to address  state projects.                                                               
The  inclusion of  public members  or legislators  would also  be                                                               
welcome  for  their  viewpoint   and  perspective.    The  DOT&PF                                                               
welcomes  this participation  to ensure  that the  process is  an                                                               
open and transparent process.                                                                                                   
                                                                                                                                
2:53:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PETERSEN recalled prior  committee discussion.  He                                                               
further recalled that  the committee thought having  the Chair of                                                               
the  House and  Senate Transportation  Committees might  have too                                                               
much influence in the process.   He was not certain if that issue                                                               
has been addressed.                                                                                                             
                                                                                                                                
CHAIR P.  WILSON recalled that  the Chairs of  the Transportation                                                               
Standing Committees initially would  appoint legislators to serve                                                               
on the advisory  committee, but a provision has  been expanded in                                                               
Version  N  to allow  the  leadership  of  each body  to  appoint                                                               
legislative members.                                                                                                            
                                                                                                                                
REPRESENTATIVE  PETERSEN  said  he  thought  the  DOT&PF  process                                                               
worked   well,  but   he  expressed   concern  that   having  the                                                               
legislative members  on the advisory committee  might be creating                                                               
another  "committee of  committees."   He  said  he also  thought                                                               
another layer of bureaucracy might slow down the process.                                                                       
                                                                                                                                
2:55:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHANSEN referred  to page 4, line  18, of Version                                                               
N,  and  asked whether  the  commissioner's  designee is  another                                                               
DOT&PF  employee or  if the  commissioner can  appoint anyone  to                                                               
serve.                                                                                                                          
                                                                                                                                
MR.  RICHARDS  responded  that the  commissioner's  designee  has                                                               
always has been a DOT&PF person.                                                                                                
                                                                                                                                
MR.  KANE offered  his  belief  that in  each  instance a  DOT&PF                                                               
designee has  been filling in  for the commissioner  the designee                                                               
has  been  a  DOT&PF  employee.   He  offered  to  research  this                                                               
further.                                                                                                                        
                                                                                                                                
2:57:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHANSEN remarked  that  an appointed  legislator                                                               
could be a minority member of the legislature.                                                                                  
                                                                                                                                
CHAIR P. WILSON commented that it could be transportation chair.                                                                
                                                                                                                                
REPRESENTATIVE  GRUENBERG  stated  that   it  would  be  unlikely                                                               
legislature  leadership  would  appoint  a  minority  legislative                                                               
member to serve.                                                                                                                
                                                                                                                                
MR.  KANE,  in response  to  Chair  P.  Wilson, stated  that  the                                                               
appointment  process to  decide which  legislators will  serve on                                                               
boards and  commissions has usually  been left to  the discretion                                                               
of the leadership  of the legislature.  He offered  to check into                                                               
this further.                                                                                                                   
                                                                                                                                
3:00:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG referred  to  page 3,  to paragraphs  1                                                               
through  5, and  asked  whether  surface transportation  includes                                                               
public transportation.   He  thought that  surface transportation                                                               
would relate  to rolling  stock, which would  be public  and real                                                               
property in the  sense of roads.  He also  thought it might allow                                                               
for projects such  as a bus barn.   He wanted to  be certain that                                                               
the  language  in  paragraph  1   indicates  that  the  dedicated                                                               
transportation fund  could be used  for bus barn or  a roundhouse                                                               
for the  railroad.  He  asked for  clarification and to  flag the                                                               
issue for the sponsor to contemplate.                                                                                           
                                                                                                                                
CHAIR P. WILSON  remarked that all of the state  projects are for                                                               
the public.                                                                                                                     
                                                                                                                                
MR. KANE  suggested that  the legislature  could define  that the                                                               
allocation  for  distribution from  the  proposed  ATIF could  be                                                               
defined as specific or in broad terms.                                                                                          
                                                                                                                                
3:03:16 PM                                                                                                                    
                                                                                                                                
MS. ROONEY related that the  discussions for the allocations were                                                               
limited  to roads  and  the  means of  conveying  vehicles.   The                                                               
reason  for  the  inclusion of  paragraphs  specified  for  local                                                               
community  public transportation  and  transit  is because  these                                                               
items  were   specifically  separate   from  roads   and  surface                                                               
transportation category.                                                                                                        
                                                                                                                                
REPRESENTATIVE  GRUENBERG commented  that  he  could envision  at                                                               
some point the need for a bus barn.                                                                                             
                                                                                                                                
CHAIR P. WILSON offered her belief  that a bus barn project would                                                               
be  covered under  the allocation  in paragraph  5, which  allows                                                               
funds to be  used for projects related to  local community public                                                               
transportation   and   transit.      In   further   response   to                                                               
Representative Gruenberg, she explained  that the Alaska Railroad                                                               
Corporation is  specifically not  listed since  it is  a separate                                                               
entity.    This  fund  is not  for  Alaska  Railroad  Corporation                                                               
projects, she stated.                                                                                                           
                                                                                                                                
REPRESENTATIVE GRUENBERG strongly suggested  that this "be put in                                                               
black and white" as it is not clear in the specific language.                                                                   
                                                                                                                                
REPRESENTATIVE JOHANSEN  suggested that  the sponsor  should also                                                               
consider  how  the  Anchorage  Metropolitan  Area  Transportation                                                               
Solutions   (AMATS)   and   the   Fairbanks   Metropolitan   Area                                                               
Transportation Solutions (FMATS) process fits together.                                                                         
                                                                                                                                
REPRESENTATIVE   GRUENBERG  agreed.      He   remarked  that   as                                                               
Southcentral grows  a rail commuter  system may be needed  and he                                                               
would like the dedicated transportation  fund to be used for that                                                               
purpose.                                                                                                                        
                                                                                                                                
[HB 329 was held over.]                                                                                                         
                                                                                                                                
3:11:39 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Transportation Standing Committee meeting was adjourned at 3:11                                                                 
p.m.                                                                                                                            
                                                                                                                                

Document Name Date/Time Subjects