Legislature(1993 - 1994)
02/26/1994 03:00 PM House TRA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE TRANSPORTATION STANDING COMMITTEE
February 26, 1994
3:00 p.m.
MEMBERS PRESENT
Representative Richard Foster, Chair
Representative Gary Davis, Vice-Chair
Representative Bill Hudson
Representative Al Vezey
MEMBERS ABSENT
Representative Curt Menard
Representative Jerry Mackie
Representative Eldon Mulder
COMMITTEE CALENDAR
Public Hearing, Ketchikan, Marine Highway/Transportation
Issues
WITNESS REGISTER
MICHAEL P. DIXON, Regional Director
Inland Boatmen's Union
P.O. Box 240804
Douglas, Alaska 99824
586-8200
POSITION STATEMENT: Testified in transportation issues.
CHERI DAVIS
Box 5723
Ketchikan, Alaska 99907
225-6304
POSITION STATEMENT: Testified on transportation issues
CAPTAIN ED WILLIAMS
P.O. Box 6475
Ketchikan, Alaska 99907
225-2627
POSITION STATEMENT: Testified on transportation issues
KENT MILLER
Consulting Industrial Economist
500 Front Street
Ketchikan, Alaska 99907
225-3992
POSITION STATEMENT: Testified on transportation issues
GREGORY A. DRONKERT, Director
Alaska Marine Highway System
Department of Transportation
and Public Facilities
1591 Glacier Avenue
Juneau, Alaska 99801
465-8827
POSITION STATEMENT: Answered questions regarding the
Alaska Marine Highway System
MEREDITH MARSHALL
P.O. Box 7418
Ketchikan, Alaska 99901
225-2134
POSITION STATEMENT: Testified on transportation issues
LEIF JENKINSON
Box 5342
Ketchikan, Alaska 99901
225-5839
POSITION STATEMENT: Testified on transportation issues
PHYLLIS YETKA
Box 958
Ward Cove, Alaska 99901
247-2449
POSITION STATEMENT: Testified on transportation issues
WILLIAM SHERMAN
2433 3rd Avenue
Ketchikan, Alaska 99901
225-5042
POSITION STATEMENT: Testified on transportation issues
C. L. CHESHIRE, Manager
Economic Development Center
512 Lower Pine Street
Ketchikan, Alaska 99901
247-5499
POSITION STATEMENT: Testified on transportation issues
BRUCE CHAPMAN
P.O. Box 6693
Ketchikan, Alaska 99901
225-6745
POSITION STATEMENT: Testified on transportation issues
JOHN PETERSON, President
Ketchikan Chamber of Commerce
661 S. Pt. Higgins
Ketchikan, Alaska 99901
247-2686
POSITION STATEMENT: Testified on transportation issues
ERIK NELSON
1173 Black Bear Road
Ketchikan, Alaska 99901
225-6371
POSITION STATEMENT: Testified on transportation issues
ROLLO E. BRAY
2729 Tongass Avenue
Ketchikan, Alaska 99901
225-3505
POSITION STATEMENT: Testified on transportation issues
JUDITH JENKINSON
Box 5342
Ketchikan, Alaska 99901
225-5839
POSITION STATEMENT: Testified on transportation issues
HANK NEWHOUSE
P.O. Box 9508
Ketchikan, Alaska 99901
225-1290
POSITION STATEMENT: Testified on transportation issues
JOHN RITTERBACH, Purser
Alaska Marine Highway System
Department of Transportation
and Public Facilities
P.O. Box 9420
Ketchikan, Alaska 99901
225-9459
POSITION STATEMENT: Testified on transportation issues
MAYOR JIM CARLTON
1043 Woodland
Ketchikan, Alaska 99901
225-4261
POSITION STATEMENT: Testified on transportation issues
ACTION NARRATIVE
TAPE 94-6, SIDE A
Number 028
CHAIR FOSTER called the meeting to order at 3:10 p.m. He
thanked the committee members for attending, and thanked
Representative Bill Williams for inviting the committee. He
stated that hopefully the committee could give Ketchikan a
hand in effecting some changes where they are needed. Chair
Foster acknowledged the presence of Gregory Dronkert,
Director, Alaska Marine Highway System (AMHS), Department of
Transportation and Public Facilities (DOT/PF), whom the
committee members had asked to accompany them on the trip as
a representative of DOT/PF. He also acknowledged the
presence of staffer Denise Behnke and Elizabeth Bellinghiri,
Aide, House Transportation Committee.
Number 050
CHAIR FOSTER made the point that the six year plan has been
diverted, and that the statewide priority system seems to
have forgotten the needs of small boroughs such as
Ketchikan.
Number 060
REPRESENTATIVE BILL WILLIAMS thanked the committee for
traveling to the community, and thanked community members in
attendance for their concern.
Number 070
REPRESENTATIVE BILL HUDSON stated that he hoped the meeting
would be constructive, and that he was happy to be back in
Ketchikan.
Number 080
REPRESENTATIVE GARY DAVIS stated that his area, Seward, has
concerns similar to Ketchikan's, and that he was looking
forward to hearing the concerns of the people of Ketchikan.
Number 088
REPRESENTATIVE AL VEZEY stated that his area, North Pole,
was slightly different than Ketchikan, and that they were
hoping to eventually get the northern terminus for the AMHS
located on the Cheena River.
Number 097
CHAIR FOSTER asked that the testimony begin with Mike Dixon.
Number 100
MIKE DIXON, Regional Director, Inland Boatmen's Union (IBU)
of the Pacific, Alaska Region, was first to testify. He
read the following statement into the record:
"I would like to thank the House Transportation Committee
for allowing us to address them in this open forum. IBU
members are over 600 strong in the AMHS. We make up 80
percent of the work force. We all change in Alaskan ports
and are all Alaskan workers. This union has done more than
the government can do to support the proposition that all
workers change in Alaska and live in Alaska.
"As the salary of all workers makes up the greater part of
the budget, we have a profound effect upon the system. We
believe it is the job of the workers to look after their
jobs. We don't look after anybody elses job so why should
anyone look after ours? We feel that it is incumbent upon
each worker as well as the leaders to do what they can to
make sure the Alaskan ferries keep running with the best
service possible.
"We believe it would be irresponsible of the workers to say
that it is somebody elses problem whether the ferries give
the best possible performance. A force of 600 workers, how
they feel about their jobs, how they interact with the
system, can have a profound effect upon Southeast Alaska and
all of Alaska. Although there is much concern with the
present financial situation of Alaska, we urge the committee
to keep the ferries running at their former level. Although
Southeast Alaska is charged with the service, the AMHS is
but a pipeline moving one half of its traffic directly from
Prince Rupert and Bellingham to roads leading to Anchorage
and Fairbanks. The AMHS is a pump sending hundreds of
thousands of people, and tens of thousands of vehicles to
the rest of Alaska. Don't shut off the supply that feeds
the main arteries of Alaska. Don't let Alaska go into
cardiac arrest by starving the pump. We can build many
roads in Alaska, but if vehicles can't get to them they
can't use them.
"We are pleased to know that a new vessel is in the planning
and that bids will soon be put out for construction of this
vessel. We appreciate the work the House Transportation
Committee has done to secure this new vessel. However, we
realize that we are faced with an aging fleet. Some of our
vessels are over 30 years old. By some standards, a
passenger vessel is considered over the hill after 20 years.
There may be a chance in the future to secure more federal
funding as we did with the present vessel. Also we workers
should consider what role we will take in securing new
vessels. Possibly there are investments that we can make
that will insure new vessels will be built in the future,
for the fleet and for their future.
"We would also like to thank the House Transportation
Committee for its support in re-powering the Taku, the new
terminal and ramps, the refurbishments on other vessels, and
elevators being installed for the physically challenged. At
the same time that the AMHS is urged to make as great a
return on its money as possible, the AMHS has been obligated
to sail only where it has been proven that no one can make a
profit. If it so happens that the AMHS develops a
profitable run, then it is often prohibited from operating
there. The AMHS, during the peak season, has been run out
of Glacier Bay, Tracy Arm, and Columbia Glacier. It is hard
to operate a business where it is common knowledge that
nobody can make it pay.
"We know at this time that a corporation called the Maritime
Group out of Seattle has an option to use the YPR terminal
for ferry vessels. The idea, as we understand it, is that a
foreign bottom ship might run between Seattle and Prince
Rupert where vehicles will be picked up by the AMHS ships.
Since the Seattle run comes closest to turning a profit, it
is easy to see why someone would want to take it over.
However, our understanding is that the Maritime Group would
only operate in the summer, leaving the AMHS to pick up the
unprofitable winter period of having no runs south of Prince
Rupert. We urge the House Transportation Committee to help
us keep this run which has the greatest change of turning a
profit. We have developed this run for over 20 years and we
should have a right to operate where a profit can be made.
"Along the same lines, we have four gift shops aboard the
vessels, yet we are allowed to sell only toothbrushes and
postcards, because of fear of competing with shore-side
private businesses. Again, we argue that the AMHS is a
heart pumping almost half a million passengers and tens of
thousands of vehicles to Southeast and the rest of Alaska.
The pump has to be fed or it cannot pump dollars throughout
Alaska. On the same line of thought, we support the policy
of discounting travel to senior citizens, school groups, and
physically challenged individuals. However, could not the
AMHS be given a credit for the free or discounted service it
delivers? Simply because the AMHS interfaces so greatly
with the public in contrast to other agencies, is this alone
reason to allow it to carry the fiscal shortfall? Shouldn't
the cost of supporting school groups, senior citizens, and
the physically challenged be shared among all government?
We urge the committee to consider a credit to be given the
AMHS above and beyond its operating appropriation.
"We would like to thank the Transportation Committee for the
chance to address them in this open forum. We want to
affirm that the IBU is committed to making certain that the
AMHS continues its high level of performance well into the
future. Thank you."
Number 252
CHAIR FOSTER thanked Mr. Dixon for his testimony, and asked
if there were any questions.
REPRESENTATIVE HUDSON questioned Mr. Dixon of the status of
the IBU negotiations.
MR. DIXON responded that they appeared to be close to having
something for the members to vote on.
Number 265
CHAIR FOSTER called Cheri Davis to testify next, and
commented that she was a freshman legislator with him.
Number 270
CHERI DAVIS thanked the committee for the opportunity to
testify, and made the comment that she was there as a
concerned citizen with regard to the ferry system and other
transportation issues. She asserted that Tongass Avenue and
the viaduct repairs were crucial projects needing major
work. She also discussed the desirability of a bypass
route, for emergencies, which could be accomplished by
merely extending a city street. She concluded by commenting
on the AMHS budget, which she stated was only "barebones",
and that it was particularly critical to the AMHS as it is
in a death spiral since it is not only a major
transportation link, it is an economic benefit for the
region.
Number 300
REPRESENTATIVE DAVIS asked if the Third Avenue Bypass was
part of a comprehensive plan.
Number 310
MS. DAVIS responded affirmatively.
Number 325
REPRESENTATIVE DAVIS asked Ms. Davis if there was any
community concern about the implications work on Tongass
Avenue could have regarding destroying the town's historical
character.
Number 332
MS. DAVIS responded that there was some community concern on
that issue, and that a reasonable approach was desired, but
that there was concern with the change in commissioners in
that the current commissioner of DOT/PF had his own ideas.
Number 345
REPRESENTATIVE HUDSON commented on Ms. Davis alluding to the
"death spiral", saying that the Marine Highway fund has
probably done more harm than good because it has given
legislators who know nothing about the AMHS the impression
that it was a fixed, stabilized amount. He asserted that
the Marine Highway fund would need to be revisited, because
there is no way that the AMHS can get the money to operate
the system.
CHAIR FOSTER asked if there were any other questions.
Number 365
CAPTAIN ED WILLIAMS commented that he had moved into a new
home on Second Avenue in 1937, and right after that they
began clearing to put in Third Avenue.
KENT MILLER introduced himself as the consulting industrial
economist who prepared the first study of AMHS maintenance
facilities in 1975, in which facility locations in Ketchikan
and Seward were recommended. He read the following
statement:
"The Ketchikan Shipyard opened for business in 1987. During
1988, the shipyard's first full year of operation, gross
revenues were approximately $7 million, of which over $3
million was paid in wages to an average of about 60
employees. Additional goods and services were purchased by
vessels undergoing maintenance by their own crews while
berthed at the shipyard. Still other goods and services
were purchased by crew members, operators, outside repair
specialists and consultants while their vessels were at the
yard. Besides such revenues directly and indirectly from
ship repair, most vessel owners using the shipyard saved the
running costs and additional down time which would have been
required to move their vessels to Washington State or
southern British Columbia for service. Other vessel owners
benefitted from the yard's availability for emergency
repairs.
"About half of the shipyard's 1988 revenues were earned from
repairs to Alaska Marine Highway System vessels, with the
remainder earned from privately owned fishing vessels, tugs
and barges, work boats, and passenger vessels, as well as
U.S. Coast Guard cutters, other government vessels and B.C.
Ferries.
"In 1988, the shipyard's performance exceeded forecasts
prepared during its planning stages. This performance was
achieved while the yard's facilities were substantially
incomplete, and without productive use of the yard's
undeveloped industrial land.
"This track record of the Ketchikan Shipyard corroborates
the community's expectations that the facility would serve
as a significant new source of primary income in Ketchikan's
economy, with widespread benefits to Alaska's maritime
industries.
"Hearing this testimony, you are entitled to ask first, `Can
this be true?' This information is documented by the
shipyard's operator and by the City of Ketchikan. The
second question is `What went wrong?' From my perspective,
the answer to this question is as follows: In 1979, the
consulting group in which I participated projected
development of a minimum maintenance facility at a cost of
approximately $19 million and a fully developed facility for
about $29 million. In 1980, $29 million was appropriated
for the shipyard's development. Following this
appropriation, DOT/PF staff and their consultants prepared a
far more ambitious plan for a $40 million minimum competent
facility and a $56 million optimum ultimate facility. No
additional funding was obtained for the plan, and in 1984,
after the initial $29 million was either spent or committed
to ambitious civil construction and other improvements, the
DOT/PF advised the City of Ketchikan that the project had
run out of money and could not be completed. The City then
proposed an alternative completion program, which was funded
and partly completed in 1987. As a result of this minimum
completion of the shipyard, some of its costly civil works,
such as the caisson wall fronting Tongass Narrows, which
consumed almost half the initial $29 million budget, became
redundant as functional elements of a ship repair yard.
Other completed facilities used project funds for purposes
other than ship repair -- the South Berth was intended for
onboard maintenance, painting, and lay-by for the shipyard -
- it was expensively adapted as an auxiliary ferry terminal.
"At this time, the City of Ketchikan, at the state's
request, leased the shipyard from the state and subleased
its dry dock and other facilities to the first operator.
The city received the state's assurance at this time that
the shipyard physical plant would be completed, but only a
few improvements were ever made.
"In proposing the development of a publicly owned privately
operated shipyard, the Port of Portland's Swan Island
facilities were used as a model. On this basis, it was
planned that the public sector would furnish a complete ship
repair yard with all of its essential buildings and fixed
equipment. The operator was then expected to furnish mobile
and portable equipment and tools. However, in 1987, the
Ketchikan Shipyard was subleased to its operator as an
incomplete shell, it lacked almost every essential operating
equipment item except for $400 thousand in equipment
furnished by the city. Moreover, many of its key facilities
such as the main wharf and yard areas were left in an
unusable state.
"The first and second shipyard operators attempted to invest
sufficient capital in the shipyard to fill the gap left by
the state. They were incapable of doing so, partly because
of the size of the required improvements and partly because
of the difficulty in collateralizing fixed improvements to a
publicly owned subleased property.
"This brings us back to the present and to a third question,
`Will the state fund a useful package of improvements to
enable the shipyard to resume operations?' I believe the
benefits of such additional investment in the yard are well
demonstrated by its past operations, especially during 1988.
"And finally a fourth question, `Can the state organize the
shipyard in a manner which will ensure new investment
actually benefits its ship repair capability and enables the
yard to serve both the Marine Highway and other customers?'
In 1987, city organization of the shipyard, as an enterprise
department, was an attempt to accomplish this. Today, under
AS 29.35.600, passed in 1992, the Port Authority Statute,
the state is capable of organizing the shipyard under an
independent operating authority. Such organization should
be capable of concentrating on the future development and
management of the yard on its intended function, which is
ship repair, and the provision of badly needed industrial
land to ship repair related business.
"I am confident that if it is sensibly completed and
organized, the Ketchikan Shipyard may still fulfill its
great promise to the growth and development of Ketchikan and
Alaska's maritime industries."
Number 480
REPRESENTATIVE DAVIS thanked Mr. Miller for his historical
perspective, and commented that the idea of "past promises"
turns up in all sorts of areas, and that this is what the
current legislature is having to deal with.
Number 500
REPRESENTATIVE HUDSON asked Mr. Dronkert if there has been a
determination of what is needed for completion.
Number 510
MR. DRONKERT responded that in this year's budget, the
figure given is $3.2 million, to bring the facility to the
level that it was understood to have originally been
intended to be at.
Number 525
MEREDITH MARSHALL concurred with the above comments
regarding the shipyard and the AMHS. She commented that she
favored replacement where possible rather than repair of the
viaduct, and that the Third Avenue extension is vital.
TAPE 94-6, SIDE B
Number 049
LEIF JENKINSON thanked the committee for the opportunity to
speak, and stated that he had worked on the ferries for 13
years, and was elected last September (indiscernible). He
stated that forums such as the present one were vital for
people. He stated that he is an IBU member. He also made
the comment the DOT/PF's Commissioner Campbell had made no
assurances of maintenance of the existing fleet. He stated
that there are, in his opinion, serious problems with the
AMHS reservations system, and not due to the equipment, and
that revenue was being lost, particularly in the summer.
Mr. Jenkinson stated that he hoped the new commissioner and
director would listen to the cries from the wilderness. He
said the drug of choice on the ferries is Xantac, which is a
prescription stomach medication, used because of the high
stress on the job. He represented himself as standing ready
to help anyone in repairing the relationship between the IBU
and AMHS administration. He thanked the committee, adding
that the people who work on the ferries believe in the
ferries and want to do their best, contrary, he alleged, to
the perception.
Number 200
REPRESENTATIVE HUDSON stated that there is no legislative
policy which precludes the AMHS from making a profit, and
that, in fact, the legislature would love to see the ferries
make a profit.
Number 230
REPRESENTATIVE VEZEY stated that he does not hold bad
precedents and doesn't believe what he reads in the papers.
Number 235
MR. JENKINSON stated that he felt there should be as few
problems as possible going to arbitration, but that the
grievances they file don't get satisfactorily answered. He
stated that he had over 20 grievances on his desk which
added to at least six that were already there. He said some
of the grievances might be considered minor, but things
can't be solved anymore by phone calls, because he's not
able to call personnel directly; rather, he has to deal with
the state's labor relations analyst -- a third party. He
alleged that the IBU's contract with the state is one of the
most complicated in existence, and contains some very
strange working conditions, which even he, after so much
time in the system, can't understand.
Number 300
REPRESENTATIVE WILLIAMS asked Mr. Jenkinson to explain
Xantac and its use on the AMHS.
Number 305
MR. JENKINSON explained that Xantac is a prescription
medication which reduces stomach acid, and likened it to a
prescription of Rolaids. He stated that he is on the
medication.
Number 315
REPRESENTATIVE HUDSON stated that one of the problems with
the AMHS is that the system has been taken away from the
managers of the system, particularly in labor relations and
grievances, and contract negotiations. He asserted that the
right place for contract negotiations, at least in
preliminary procedures, is with the system itself, which has
the best understanding of the system. He asserted that Mr.
Dronkert would not be the one to initiate any change in
grievance handling, since he works for the DOT/PF, and he
appealed to the committee members, instead, to consider as
legislators, making such a change.
Number 340
REPRESENTATIVE DAVIS stated that the fat needs to be trimmed
from the top, so that the worker's jobs are spared, while
the excess of chiefs is whittled down.
Number 365
PHYLLIS YETKA thanked the committee members for coming down,
and for taking interest in the shipyard facility. She
asserted that it would be a tremendous boost to the
community's economy if the shipyard were operating. She
echoed the previous comments on the essential nature of the
AMHS to Ketchikan, and the importance of maintaining the
system. She concluded by again thanking the committee.
Number 383
CHAIR FOSTER made the point that communities need to
establish a rapport with the various departmental
commissioners, and constantly pressure the bureaucracy to
perform. He stressed the uphill battle involved in trying
to get understanding away from the Anchorage Bowl, as an
example.
Number 403
CAPTAIN ED WILLIAMS identified himself as being retired, in
1993, from the AMHS after 30 years and 30 days of service.
He asserted that more service from Prince of Wales Island is
needed. He also commented that the shipyard won't keep
operating with just AMHS vessels; rather, it needs to be
equipped to handle other vessels, and perhaps be outfitted
with a small store for them to buy their basics, so that
they can work on their own vessels.
Number 440
REPRESENTATIVE HUDSON asked if there would be a conflict
with private enterprise if the state would expand the
shipyard facility in the manner which Captain Williams had
suggested.
Number 451
CAPTAIN WILLIAMS responded that he didn't think there were
any existing businesses which would be affected by something
like this.
Number 457
REPRESENTATIVE HUDSON added that this would be something
worth looking into.
Number 468
REPRESENTATIVE HUDSON asked Captain Williams what he thought
of the suggestions that the Aurora or LeConte be stretched.
Number 471
CAPTAIN WILLIAMS responded that he didn't think the idea was
a very good one, adding that the only one not messed with
was the Taku and it's the best one to handle groups, in
fact, the best one in the fleet.
Number 482
REPRESENTATIVE DAVIS stated that he would like to see these
ideas implemented, but wondered if it shouldn't first be
attempted at the private level. He asserted that the first
question asked should always be, "Can private enterprise
handle it?"
TAPE 94-7, SIDE A
Number 015
REPRESENTATIVE HUDSON commented that Alaska Industrial
Development and Export Association (AIDEA) has looked at the
situation, and is considering whether to use some of their
money to purchase or operate. He asked Mr. Dronkert if he
had a copy of that report.
Number 025
MR. DRONKERT responded that he had prepared the report for
AIDEA as a contractor, and had incorporated the concept in
the report.
Number 033
WILLIAM SHERMAN concurred with the ideas of previous
speakers, and asserted how critical it was that the money
being used for maintenance be guarded.
Number 041
C. L. CHESHIRE identified himself as the manager of the
Economic Development Center. He distributed a 46 page
handout entitled "Ketchikan Gateway Borough Economic
Indicators," published May, 1993, by the University of
Alaska - Southeast, Ketchikan campus, under a grant from the
Ketchikan Overall Economic Development Program (copies may
be obtained by calling 907-225-6171), and asserted that the
shipyard is a critical element in the diversification of the
Ketchikan economy.
Number 138
REPRESENTATIVE DAVIS made the comment that there are
attempts to close things down which are also getting in the
way of diversification of the economy.
Number 149
MR. CHESHIRE stated that, as long as we are separated by
bodies of water, most industries will be dependant on
waterborne freight and trafficking. And if that's a
certainty, so too will marine maintenance be a certainty.
Number 157
BRUCE CHAPMAN identified himself as a 21 year resident of
Alaska and Ketchikan. He welcomed the committee and Mr.
Dronkert, and stated that he had worked on the ferry system
as a deck hand for 14 years. He wished to address the issue
of cutting the operations budget for the AMHS, making the
point that a cut in the DOT/PF budget would go directly to
the AMHS. He added that he concurred with all of the
previous testimony, and asserted that there is the need for
a consistent schedule for Prince of Wales Islands. He
commented that the idea of a "fast ferry" for Prince of
Wales probably wouldn't work, in that it wouldn't be able to
handle the vehicular or passenger traffic, or the weather.
He concluded by stating that maintenance is an issue to be
considered in budget cuts.
Number 300
REPRESENTATIVE WILLIAMS commented that the legislature does
understand the maintenance issue, and that he had mentioned
the concern to the co-chair of the House Finance Committee.
Number 325
MS. DAVIS stated that an "around the island" trip of the
past, on the ferry, was a real morale booster.
Number 331
JOHN PETERSON, President, Ketchikan Chamber of Commerce,
stated that the Ketchikan Chamber of Commerce supports the
effort to get the shipyard on its feet. He mentioned two
difficult issues. The first was the fact that the facility
was developed by state government, without the normal supply
and demand relationship. He asserted that there needs to be
a way to make the place function without unduly subsidizing
it. He also expressed concern that cuts within the AMHS,
especially in operations and maintenance, will start eroding
the passenger base -- the "death spiral" referred to by
previous speakers. He expressed enthusiasm with Mr.
Dronkert's directorship, given Mr. Dronkert's rounded
experience base. Mr. Peterson also discussed the Tongass
Avenue issue.
Number 500
REPRESENTATIVE HUDSON asked Mr. Peterson what the cost
estimate was for the Third Avenue extension.
Number 505
MR. PETERSON estimated it to be between $10-20 million, and
that they were looking for federal highway dollars.
Number 510
REPRESENTATIVE HUDSON asked what the cost estimate was for
the Tongass Avenue project.
Number 512
MR. PETERSON responded that the project was estimated at $70
million back when they were talking about totally replacing
the viaduct.
TAPE 94-7, SIDE B
Number 020
ERIK NELSON stated that he was concerned about the Murphy
Seaplane float facility which was promised in 1992, and
wondered if it was still going to take place.
Number 026
CHAIR FOSTER stated that he did not know, but that he would
find out and contact Mr. Nelson either directly or through
DOT/PF.
Number 054
ROLLO E. BRAY stated that he was 68 years old, and had been
in Ketchikan since the ferries started. He asserted that he
was concerned about older/hostel people from "outside"
getting ferry priorities over old timers like himself who
were born and raised in Alaska and pay taxes here.
Number 200
JUDITH JENKINSON stated that she wouldn't be able to testify
any better than her husband had, but that, as a city council
member, she had a different perspective. She thanked the
committee members for their presence, and asserted that it
may be time to start thinking about other ways to finance
things in Alaska considering that the oil days may be behind
us, and people still need services. She likened the marine
highway to any other highway in the state of Alaska, and
commented that the other highways aren't expected to pay
their own way, so why should the marine highway be expected
to do so? She asked the legislators to please think about
this. She also alleged that the AMHS reservation system is
a real problem.
Number 475
HANK NEWHOUSE concurred with previous testifiers with regard
to the shipyard, emphasizing that it is a key component in
Ketchikan's economy. He also stated that people need a
place where they can take care of their vessels. He
predicted that Air Marine will probably be shut down any day
by the Environmental Protection Agency (EPA), and that it
may even end up as a Superfund site. He asserted that a
cutting-edge facility is necessary to meet EPA's
requirements.
TAPE 94-8, SIDE A
Number 013
MR. NEWHOUSE concluded by stressing the need for the
Ketchikan Shipyard facility to be developed completely.
Number 068
JOHN RITTERBACH introduced himself as a purser for the AMHS,
and stated that he also has to take Xantac for his stomach
problems. He concurred with previous testimony regarding
the shipyard and AMHS funding.
Number 176
MAYOR JIM CARLTON thanked the committee and staff for
traveling to Ketchikan, and expressed appreciation that they
had toured the shipyard. He asserted that Ketchikan is
unique, and has been used by Governor Hickel, as an example,
of a community he wishes many others were like. Mayor
Carlton stated that he intended to do all he could to try
and lift up morale and maintain a positive image. He added
that Ty-Matt, Inc., is a top quality, A-1 outfit, with a
very positive reputation in Southeast Alaska and Washington.
He stated that he felt Commissioner Campbell wasn't much
help, and that he needed help in communicating with the
commissioner.
Number 225
CHAIR FOSTER thanked the mayor for speaking.
Number 239
MIKE DIXON commented that the ferries must be given back to
the people, referencing trips to Misty Fjords.
Number 278
LEIF JENKINSON restated and concurred with previous
testimony.
Number 380
CHAIR FOSTER asked Mr. Dronkert to comment on the day's
testimony.
Number 400
GREGORY DRONKERT, Director, Alaska Marine Highway System,
Department of Transportation and Public Facilities, thanked
Chair Foster and stated that he hadn't come to Ketchikan to
push his agenda, rather, he appreciated the opportunity to
get a feel for the concerns of those involved. He made the
point that many of the issues and concerns were
contradictory, but that some were complementary, and that he
planned to focus on the ones which were complementary. He
asserted that utilization of assets was one of the biggest
issues. He cautioned that he would not make promises which
he couldn't keep, but that he would promise to look at the
issues and prioritize them. He pledged to do everything in
his power to address the issues. He stated that,
conceptually, the new management team was aware of the
concerns of labor, and that the present input and
communication was quite helpful. He concluded by expressing
disappointment at not being at the negotiating table.
Number 450
REPRESENTATIVE WILLIAMS expressed appreciation to Mr.
Dronkert and the committee for attending.
Number 485
CHAIR FOSTER thanked the community for its hospitality, and
recalled being in Ketchikan for the first time six years
ago, when he was stranded there because of bad flying. He
remarked that the people were very friendly then also.
Number 495
REPRESENTATIVE DAVIS stated that it was a pleasure to be in
Ketchikan, and that he was happy to see so many people
testify. He commented that Ketchikan has been well
represented in Juneau, both by Cheri Davis, in the past, and
Representative Williams during the current session. He
added that, as a former mayor, he became well acquainted
with Mayor Stanton. He concluded by stating that Ketchikan
issues are not overlooked at the Capitol, and that the
Ketchikan contingency visits to Juneau are valuable.
Number 525
REPRESENTATIVE VEZEY made the observation that there weren't
too many problems expressed in the meeting that couldn't be
solved with money. One of the problems, as he saw it, was
the generation of new sources of wealth, since there
currently wasn't much money available. He asserted that the
only way to generate new sources of revenue was through the
development of resources.
Number 543
REPRESENTATIVE HUDSON added that he wished to thank the
people of Ketchikan who supported and helped place the Frank
Initiative on the ballot.
Number 549
CHERI DAVIS expressed appreciation to Chair Foster for
allowing her to sit with the committee, and lauded him for
his unfailing support of the AMHS, finding it especially
noteworthy considering his origins in Nome, where there is
no ferry service. She also commented on the restructuring
taking place in the National Guard which seems to be
centered around having more focus on Anchorage. She
suggested that perhaps the Military and Veteran's Affairs
Committee keep their ears open on this issue.
Number 579
CHAIR FOSTER adjourned at 6:30 p.m.
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