Legislature(2007 - 2008)CAPITOL 120
02/07/2008 01:00 PM House TRANSPORTATION
| Audio | Topic |
|---|---|
| Start | |
| Overview: State Aviation | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE TRANSPORTATION STANDING COMMITTEE
February 7, 2008
1:11 p.m.
MEMBERS PRESENT
Representative Kyle Johansen, Chair
Representative Mark Neuman, Vice Chair
Representative Anna Fairclough
Representative Craig Johnson
Representative Wes Keller
Representative Mike Doogan
Representative Woodie Salmon
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
OVERVIEW: STATE AVIATION
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to report
WITNESS REGISTER
FRANK RICHARDS, Deputy Commissioner
of Highways & Public Facilities
Office of the Commissioner
Department of Transportation & Public Facilities (DOT&PF)
Juneau, Alaska
POSITION STATEMENT: Provided an overview of statewide aviation.
JESSE VANDERZANDEN, Manager
Fairbanks International Airport (FIA)
Department of Transportation & Public Facilities
Fairbanks, Alaska
POSITION STATEMENT: Provided a PowerPoint presentation titled
"FAIRBANKS INTERNATIONAL AIRPORT."
JOHN PARROTT, Deputy Director
Ted Stevens Anchorage International Airport (TSAIA)
Department of Transportation & Public Facilities
Anchorage, Alaska
POSITION STATEMENT: Provided a PowerPoint presentation titled
"Ted Stevens Anchorage International Airport."
CHRISTINE KLEIN, Deputy Commissioner of Aviation
Office of the Commissioner
Department of Transportation & Public Facilities
Anchorage, Alaska
POSITION STATEMENT: Answered questions.
ACTION NARRATIVE
CHAIR KYLE JOHANSEN called the House Transportation Standing
Committee meeting to order at 1:11:01 PM. Representatives
Neuman, Johnson, Keller, Salmon, Doogan, and Johansen were
present at the call to order. Representative Fairclough arrived
as the meeting was in progress.
^Overview: State Aviation
1:11:11 PM
CHAIR JOHANSEN announced that the only order of business would
be an overview of state aviation.
1:11:21 PM
FRANK RICHARDS, Deputy Commissioner of Highways & Public
Facilities, Office of the Commissioner, Department of
Transportation & Public Facilities (DOT&PF), directed the
committee's attention to the PowerPoint titled "Department of
Transportation & Public Facilities Rural Airports Update." He
began by informing the committee that DOT&PF is the largest
owner of publicly owned airports within the state. There are
approximately 30 airports owned by cities, villages, and other
agencies, such as the Department of Natural Resources (DNR).
Practically every village in the state has an airport, although
many have substandard runway length. Therefore, the department
is trying to address those airports with substandard runway
lengths by lengthening them to the minimum standard of 3,300
feet. The department's annual operating budget for rural
airports is $28 million and its capital budget is $173 million.
The primary source of the capital funds is the Federal Aviation
Administration (FAA). Referring to page 4 of the presentation,
Mr. Richards highlighted that Alaska's rural airports have very
unique operations. The department is the largest airport
operator in the U.S. Furthermore, there are sometimes very
challenging wildlife conditions as depicted by the photo of the
polar bear on the tarmac in Barrow. In a rural system, most of
the communities are maintained under contract with a local
individual. Those contracts are for the individual to utilize
state equipment to keep the runway free of snow and ice and to
grade the runway in the summer. Those contracts, on average,
amount to about $12,000 per year per individual.
1:15:11 PM
CHAIR JOHANSEN asked if those individuals make their own capital
investments in equipment.
MR. RICHARDS clarified that the state, utilizing the FAA funds,
purchases the equipment and the equipment storage building.
Therefore, the individual is hired just to operate the state-
owned equipment. Furthermore, the state provides the lights,
the lighting parts, and the electricity to operate the lights.
1:15:48 PM
REPRESENTATIVE NEUMAN asked if maintenance and plowing for these
rural airports is subcontracted out to an individual or company.
MR. RICHARDS specified that it's a one-year bid with four years
of annual renewal. He referred to them as low-bid contracts to
private contractors for most of the rural airports. In total
there are about 170 private contracts. He related that if no
individual comes forward, then DOT&PF works with the community
to maintain the local airport.
1:16:51 PM
MR. RICHARDS, returning to his presentation, informed the
committee that in the rural system there are also certificated
airports. Those are airports that receive aircraft with more
than 30 passenger seats, which is essentially Alaska Airlines
and ERA Aviation. Mr. Richards related that since Southwest
Airlines went long at Midway Airport in Chicago due to breaking
action, the FAA has required that turbine-driven aircraft only
land when there is fair breaking conditions on paved surfaces.
Therefore, it requires more effort at the state-owned airports
receiving jet traffic to clear snow and ice advance of the
landing. The aforementioned is proving to be more of a
challenge as it just went into play in the last year. He then
noted that [the department] is providing increased levels of
service at some of the busier airports, such as Nome, Bethel,
Dillingham, Petersburg, and Wrangell. With the help of the
legislature, the department was able to obtain additional
operating funds for those airports over the last couple of
years.
1:18:08 PM
MR. RICHARDS, referring to page 5 of the PowerPoint, highlighted
the regional boundaries of the airports in the state. As
related on page 6 of the presentation, DOT&PF faces the
following operational challenges: increasing federal
regulations and requirements, escalating construction and
operating costs, and environmental issues. Page 6 includes a
photo of the Sitka Airport, for which DOT&PF is currently
working through an environmental impact statement (EIS) so that
Sitka can build out a runway safety area. He explained that a
runway safety area is an area about 250 feet off the center line
[of the runway] and about 1,000 feet off each end. To build out
1,000 feet of material is going to cost hundreds of millions of
dollars. The aforementioned won't occur because the FAA has
capped [what it will provide] for runway safety area
improvements to about $35 million.
1:19:36 PM
REPRESENTATIVE NEUMAN inquired as to how DOT&PF determines to
which airports the federal funds will go.
MR. RICHARDS informed the committee that the FAA has said that
all certificated airports will meet runway safety area standards
by 2013. The FAA has made efforts to provide additional funds
to Alaska to cover additional expenses, and therefore
discretionary funds beyond the annual entitlement funds have
been provided. He noted that the state has to go through a
practicability analysis utilizing FAA standards, which
determines whether the full-blown safety requirement is expended
or not.
1:20:40 PM
REPRESENTATIVE JOHNSON inquired as to the repercussions for
airports that don't meet the 2013 deadline for runway safety
area standards.
MR. RICHARDS stated that the state is on track to meet the FAA
guidelines by 2013. However, DOT&PF is in discussions with the
FAA regarding two airports on the Dalton highway for which the
traffic doesn't seem to warrant the runway safety area
standards. He related his belief that the FAA would be hard-
pressed to pull the certificate from the state.
1:21:58 PM
REPRESENTATIVE JOHNSON asked then if the department will be
dumping 800 feet of rock 1,000 feet in the water at Sitka.
MR. RICHARDS replied no. He explained that after the
practicability study, the [FAA funds] for the Sitka Airport was
capped at about $35 million. He related his understanding that
there will be a 200-300 feet extension of the runway at Sitka.
In further response to Representative Johnson, Mr. Richards
confirmed that Sitka will be exempted from the 1,000-foot
requirement. So long as the practicability study has shown what
can be reasonably done for the money provided, the [FAA] will
accept that as meeting the standard even if it's less.
1:22:40 PM
REPRESENTATIVE SALMON informed the committee that many of the
communities that aren't on a river system have problems related
to bringing fuel. In fact, it's problematic when fuel barrels
or tanks can't be left on the airport [property] when there
aren't fuel tankers. He emphasized the need for DOT&PF to
address the aforementioned.
MR. RICHARDS acknowledged the challenges related to the
inability of barges transporting fuel to reach certain areas.
However, the challenge with folks leaving fuel tanks and drums
at the airports is that sometimes they start leaking and it
becomes the state's responsibility. Furthermore, those
situations become safety issues for which the FAA, during its
inspections, comes down on the airport operator, DOT&PF, to not
have unregulated tanks stored on airport property.
1:26:24 PM
REPRESENTATIVE SALMON suggested creating a pit area in which the
fuel can be stored so that the leaks can be contained. He
opined that this is a fairly simple problem to resolve, yet no
attempt has been made to solve it.
MR. RICHARDS recalled that the Red Devil Airport had a situation
in which there was a header pipe [at the airport]. The problem
at that particular airport was the flooding and erosion as well
as the potential fuel contamination from the pipeline. He
offered to speak with Representative Salmon regarding this
matter. However, he pointed out that currently the capital
improvements spent on Alaska's rural airports are predominately
FAA funds. He said that to his knowledge the state hasn't built
fuel systems and tanks utilizing FAA funds.
REPRESENTATIVE SALMON remarked then that [communities in such
situations] are faced with breaking the law.
1:28:09 PM
CHAIR JOHANSEN related his observation that the operating budget
includes a couple hundred thousand in general fund dollars to
cleanup some of "this stuff." He then inquired as to DOT&PF's
interaction with the Department of Environmental Conservation
(DEC) and its charge to keep the environment clean.
MR. RICHARDS said that DOT&PF has a good working relationship
with DEC, especially with regard to contamination found on state
lands where there is no known entity that created the
contamination. The aforementioned becomes the state's
responsibility to clean it up. He informed the committee that
DOT&PF has access to some of those DEC funds to address some of
those situations. However, as outlined in DOT&PF's budget, the
cleanup needs far exceed what DEC has available to provide
DOT&PF. He noted that abandoned cars and fuel tanks are left
[on airport property] from parties long gone and the department
is left responsible.
1:29:39 PM
CHAIR JOHANSEN asked if the Wrangell and Ketchikan projects are
similar to the earlier-described Sitka project.
MR. RICHARDS replied yes. In further response to Chair
Johansen, Mr. Richards confirmed that those projects weren't
requested from the communities or DOT&PF. He explained that
DOT&PF has always said that it would rather buildup an airport
with a runway less than 2,000 to 3,000 feet in order to provide
safer access to those communities rather than building to the
safety area requirements of the FAA. The FAA understood that
argument and acquired additional funding in order for the state
to build to the new standards. Mr. Richards pointed out that
the aforementioned is additional funds that came to the state
that may not have otherwise.
1:30:47 PM
MR. RICHARDS, in response to Chair Johansen, explained that when
DOT&PF judges its projects, they are based on need and the
safety improvements that would be achieved. "So, there's no
identification of previous monies put forward to an airport
project that would sway the decision whether or not to go
forward with the project," he said.
1:33:12 PM
MR. RICHARDS, continuing his presentation, related that with the
federal reauthorization of the airport improvement program
DOT&PF is seeking oversight of the EIS for the state.
Currently, the FAA has that responsibility and thus FAA provides
funds to the state to make an improvement on a state asset, but
the oversight of the EIS is directed by the FAA not the state,
as the airport owner. Therefore, the state is seeking that
oversight authority through the reauthorization so that the
state will control its own destiny.
CHAIR JOHANSEN asked if that will be reflected in the operating
budget. He recalled that when the state did primacy with DEC,
it cost a fair amount of money while providing more flexibility.
MR. RICHARDS said that it'll be similar to what occurred with
the Federal Highway Administration (FHWA), for which one staff
position was added. He noted that Alaska was one of five states
with that ability due to the reauthorization of the highway
bill. Therefore, the department is moving forward with that one
additional staff member. In further response to Chair Johansen,
Mr. Richards confirmed that the aforementioned staff position is
a [position control number] PCN within DOT&PF.
1:34:40 PM
CHAIR JOHANSEN asked if the aforementioned position will be a
permanent full-time position once the state has received EIS
oversight.
MR. RICHARDS said that his goal would be that the existing staff
at DOT&PF who had gone through the process with the FHWA would
essentially be able to do the same thing with the FAA.
1:35:20 PM
MR. RICHARDS then informed the committee that the other
regulator DOT&PF deals with on a daily basis is the
Transportation Security Administration (TSA). One of the
challenges with TSA is that it doesn't bring money to the table
when it imposes security requirements through regulations.
Another difficulty with regard to airport security is that the
state has three federal security directors, and therefore
there's the potential for three different perspectives on the
security regulations that must be followed. Moreover, the
requirements continue to expand. Referring to page 8, Mr.
Richards highlighted the increased cost of construction in
Alaska.
MR. RICHARDS then turned to page 9 regarding rural dust. The
problem is that the airports and roads in villages are sources
of dust so severely that several villages in the Northwest have
complained about the dust levels to the Environmental Protection
Agency (EPA) and DEC. There have been instances in which air
quality standards have been exceeded due to dust. If the EPA
identifies that the dust levels and air quality standards are
continually being exceeded, rural Alaska could be designated as
a non-attainment area. The aforementioned means that federal
transportation funds could ultimately result in the EPA
directing how those funds are spent. Therefore, the state would
have to take care of dust control in the rural communities,
which would require the paving of the airports, roads, and even
four-wheeler trails. He characterized the aforementioned as a
looming threat. Therefore, DOT&PF is working with DEC. In this
year's capital budget DOT&PF has a request for some small
equipment and dust palliative to apply to the rural airports and
roads in the communities in the Northwest. This could
potentially avoid federal oversight and retain the ability to
spread the money where [DOT&PF] feels it's most needed.
1:38:48 PM
CHAIR JOHANSEN remarked that he was glad to hear that when the
department takes care of the airports it does so for the roads
as well. He then inquired as to the cost of bringing equipment
to perform these tasks in rural Alaska.
MR. RICHARDS answered that DOT&PF intends to model a Nome
nonprofit organization, Kawerak, Inc. That nonprofit has
received money over the years through the Safe, Accountable,
Flexible, Efficient Transportation Equity Act: A Legacy for
Users (SAFETEA-LU) to address issues of road transportation in
the villages. The nonprofit purchased a six-wheeler and
constructed a trailer with an applicator bar that is 10 feet [in
length]. The aforementioned is air transportable in a CASA
aircraft and thus it as well as the dust palliative can be
shipped to communities. [The dust palliative] was applied in
approximately 19 communities in the region. If funds are
received, the department would give funds to [Kawerak, Inc.] to
[apply the dust palliative with the six-wheeler] to more
communities and have more of the same equipment to utilize in
more communities.
1:40:41 PM
CHAIR JOHANSEN asked if this six-wheeler can be placed in any
plane that can land at these airports.
MR. RICHARDS explained that a CASA aircraft has a rear tail that
opens and on which the six-wheeler can be driven. He said that
it's similar to the aircraft being used by the Air National
Guard. In further response to Chair Johansen, Mr. Richards said
that the CASA aircraft can be utilized at airports with 2,500-
2,800 foot runways. Therefore, there will be a small number of
communities in which the CASA aircraft can't land. He related
his understanding that those runways in the Northwest Arctic
Borough are large enough to handle a CASA aircraft.
1:41:36 PM
REPRESENTATIVE SALMON inquired as to how long the new dust
application lasts.
MR. RICHARDS answered that Kawerak, Inc., started its dust
applications two years ago and hopes it will last three to four
years.
1:42:13 PM
REPRESENTATIVE SALMON recalled the product that was used 10-15
years ago. When it was applied to the runway, dust from the
surrounding area would settle on it and dust would continue to
be a problem.
MR. RICHARDS informed the committee that the product called
EnviroClean is being used now. Several different dust
palliatives are being tried as the makeup of the gravel
determines how the dust palliative works.
1:43:00 PM
REPRESENTATIVE KELLER surmised that the department has done
comparisons regarding the cost of asphalt as opposed to the use
of EnviroClean. He then asked if there are any FAA requirements
for a hard surface in a particular sized runway. He asked if
[dust palliative] could be used on some of the state's larger
runways instead of asphalt.
MR. RICHARDS confirmed that DOT&PF does a lifecycle cost on the
dust palliative compared to pavement. The dust palliative is
very beneficial. The FAA doesn't have a preference for the use
of dust palliative or asphalt, and the department has left it up
to the airport operator to make that decision.
1:44:30 PM
MR. RICHARDS, returning to his presentation, explained that the
chart on page 10 illustrates the department's general fund
operating budget. The white line shows the operating budgets
for both highways and airports. The budget stayed fairly
constant in the 1980s and 1990s, but started to increase in
2004. The legislature provided funds for [those increases],
which he attributed primarily to the high cost of fuel and
materials. Mr. Richards said that this chart also illustrates
that even with the loss of buying power since 1983, larger,
brighter, and wider airports have been constructed as well as
more amenities and facilities with the highways. Therefore,
DOT&PF is doing more with less, he opined.
MR. RICHARDS, referring to page 11 titled "DOT&PF Rural Airport
Challenges," highlighted that DOT&PF faces challenges related to
coastal storms and the impacts of flooding and erosion. The
communities of Shishmaref, Kivalina, and Newtok are being
severely impacted by coastal erosion. In fact, Newtok is
looking to relocate to a new village site. The department is
working with the Denali Commission and DCCED to help Newtok with
that relocation effort.
1:46:18 PM
MR. RICHARDS moved on to page 12 titled "DOT&PF Rural Airports
Needs for Future Funding." He informed the committee that the
needs list for rural airports, primary and non-primary airports,
totals $955 million. He explained that primary airports are
those with 10,000 or more enplanements while non-primary
airports are those airports with less than 10,000 enplanements.
The needs include runway improvements, buildings, and equipment.
The total amount of $995 million is staggering, he said. As
mentioned earlier, the funding predominantly comes from the FAA,
which provides approximately 95 percent for eligible public
airport development costs. The airport sponsor, the state,
contributes the 5 percent match. However, all the operating
costs are borne by the general fund. As related by page 14
titled "FFY'07 & '08 AIP Allocation," the State of Alaska has
received in total about $210 million of which $173 million went
to DOT&PF airports, including the Alaska International Airport
System. Approximately $123 million went to DOT&PF's Rural
Airport System and $50 million to DOT&PF's Alaska International
Airport System. Although the fiscal year (FY) 2008 numbers will
be very similar to the 2007 allocation, page 15 provides a
comparison between the Anchorage International Airport System
(AIAS) and DOT&PF's Rural System. Mr. Richards then directed
attention to pages 16 and 17 titled "Recent Primary Airport
Projects," which provides examples of where the funds are being
spent. For example, $34.6 million has been spent on the runway
safety area and overlay. He then moved on to pages 18-21 titled
"Recent Non-Primary Airport Projects" and noted that what were
normally $3-$5 million relocation or reconstruction projects are
now ranging $10-$15 million.
1:49:17 PM
REPRESENTATIVE SALMON drew attention to the Angoon Airport
construction budget of $30 million, and inquired as to the
status of that project.
MR. RICHARDS responded that DOT&PF is starting the EIS for
Angoon. The challenge is that Angoon Airport is surrounded by
federal wilderness. Therefore, the department will have to work
with the federal government to carve out space for the airport
and construct connecting roads from the community to the
airport. He said he anticipated that the EIS will take the
normal three to four years to complete. Mr. Richards pointed
out that the costs are quite large for the Yukon Kuskokwim Delta
airports because everything must be imported. As the project
list indicates, DOT&PF is accomplishing a lot in terms of
upgrading airports to be safer facilities.
1:51:11 PM
MR. RICHARDS, returning to his presentation, continued with page
22 titled "The Future." In the future, Alaska's aircraft fleet
will likely change and thus the department is trying to
anticipate those changes in order to provide the necessary
airports in the future. Currently, DOT&PF has a proposal before
it from the U.S. Postal Service to create more by-pass mail
hubs. Therefore, additional hubs would be put into place, which
would allow the mainline air carriers to fly directly from
Anchorage to those new hubs to distribute the mail to those
communities as well as surrounding communities. However, the
challenge is that many of those airports are insufficient to
accommodate those aircraft. The goal of the U.S. Postal Service
to save several millions by creating these hubs would require
the airport operator, DOT&PF, to expend tens of millions of
dollars to upgrade the facilities to accommodate the airport as
well as the cost to individual private carriers for
infrastructure necessary to take the mail from the new hubs to
other locations.
1:52:36 PM
MR. RICHARDS, in response to Representative Neuman, confirmed
that the [cost] of by-pass mail could be shifted to the state.
Therefore, DOT&PF has identified the cost to upgrade the
specific airports to meet the needs of by-pass mail. The DOT&PF
has also identified [to the federal government] that it has
began a statewide aviation plan update, and thus it would
behoove the U.S. Postal Service to talk to the airport operator
in order to determine what funding mechanisms would be required
to accomplish the goals of the U.S. Postal Service. He noted
that there is great opposition by the air carriers to this by-
pass hub system.
1:53:45 PM
MR. RICHARDS, concluding his presentation, pointed out that the
air cargo security regulations are ever expanding, and thus in
the rural systems there have to be designated security areas
specific to each air carrier. The aforementioned is mainly a
burden on the air carriers due to the special provisions
required for those who handle freight.
1:54:58 PM
REPRESENTATIVE DOOGAN inquired as to what types of aircraft can
utilize rural airports with runways 3,300 feet in length.
MR. RICHARDS answered that the following aircraft: Navajo,
Cherokee, 207s, 208s, new Caravans, and small twins can utilize
such airports. He characterized them as small six- to nine-
passenger seat aircraft. In further response to Representative
Doogan, Mr. Richards confirmed that with the addition of a
runway, taxiway, and apron, DOT&PF provides equipment to
maintain that infrastructure and constructs an equipment storage
building. Primarily, a small grader, loader with a bucket, and
a push plow are provided.
1:56:28 PM
REPRESENTATIVE DOOGAN surmised then that there won't necessarily
be any other building or general use fuel storage facilities.
Representative Doogan questioned what makes this an airport
rather than a runway.
MR. RICHARDS clarified that although terminals aren't being
created, there will be runway lights. Furthermore, depending
upon the traffic loads there will possibly be visual aides. Mr.
Richards informed the committee that a large number of global
positioning system (GPS) approaches have been put in place.
Therefore, there isn't the same ground-based infrastructure
necessary as in the past.
1:57:32 PM
REPRESENTATIVE DOOGAN related his understanding then that an
individual landing at one of these airports wouldn't be able to
refuel because there is no facility to do so. Therefore, he
surmised that in such cases, the individual would have to land
at a regional hub airport that has fueling capabilities.
MR. RICHARDS replied yes. He then pointed out that many of the
rural airports don't have any aircraft that reside there. The
rural airports are primarily the access and egress points for
community members to receive food stuffs, reach medical
facilities, and commute between the villages.
REPRESENTATIVE DOOGAN surmised then that some sort of air
service will be using these runways, and thus the ability to
refuel isn't as important as a situation in which there is a
fleet of private aircraft.
MR. RICHARDS replied yes, adding that he understood
Representative Salmon to be referring to the ability to receive
fuel for heating oil as well as for snow machines, not
necessarily aviation fuel.
REPRESENTATIVE SALMON confirmed that to be the case.
1:59:36 PM
MR. RICHARDS, in further response to Representative Doogan,
reiterated that reconstruction/relocation to bring these
airports up to the standard desired by DOT&PF would cost $10-$15
million. However, some airports cost less and others
considerably more. For example, the airport in Lime Village is
estimated to cost in excess of $24 million.
The committee took an at-ease from 2:00:28 PM to 2:04:11 PM
2:04:15 PM
JESSE VANDERZANDEN, Manager, Fairbanks International Airport
(FIA), Department of Transportation & Public Facilities,
directed attention to the PowerPoint presentation titled
"FAIRBANKS INTERNATIONAL AIRPORT." He then turned to the slide
titled "Capital Improvements," which relates what has been done
at the Fairbanks International Airport (FIA) over the past six
years. On the general aviation side of the airport the runway
was extended to 6,500 feet, a ski strip was installed, and the
float pond was expanded. In fact, the gravel taken from the
float pond was used to build the aforementioned two runways. In
2004-2006, the taxiway was rebuilt and it included de-icing
pads. The de-icing pads provide the ability to isolate the
glycol use to either end of the runway and in doing so cause
remediation to be much less expensive. The cargo apron project
should be completed this summer, and as with the old cargo apron
it will have four positions. With regard to the airfield, the
last project this summer is the main runway. This summer the
existing taxiway will be readied to become an alternate runway
on which planes can land in 2009. The aforementioned allows the
rebuilding of the main runway.
2:07:07 PM
MR. VANDERZANDEN then addressed the terminal referring to the
page titled "Terminal: Summary." The old terminal was
approximately 143,000 square feet and the new one will be
152,000 feet. Furthermore, the new terminal will have a much
better layout so there will be much more useable space.
Although the initial budget was $99.2 million, the current
forecast is a budget of approximately $93 million with a
completion date of October 1, 2009. He then announced that the
terminal rebuild is ahead of schedule. The official opening
date of the new terminal is May 7, 2008. The existing terminal
will remain open as the baggage claim area is scheduled for
demolition in the summer of 2008. The terminal will be
completed in the spring of 2009 and then in the summer of 2009
the 1952 portion of the building will be demolished.
2:08:58 PM
MR. VANDERZANDEN, in response to Chair Johansen, confirmed that
the FIA project is under budget and ahead of schedule. He then
continued with his presentation, and directed the committee's
attention to pages 31-32, which are renderings of the front view
of the existing terminal and what it will look like upon
completion of the rebuild.
2:09:34 PM
MR. VANDERZANDEN moved on to the page titled "Passenger Service
- Domestic" and informed the committee that domestic passenger
service has experienced steady growth over the past several
years. He attributed the small dip in growth to [the terrorist
attacks of September 11, 2001]. With regard to new service, he
related that Delta Airlines came to the FIA in 2004 and is
slated to expand service this year. Alaska Airlines expanded
its service in 2007 when it added a couple of additional
flights. In 2007 ERA Aviation, Inc., is new and provides three
flights per day to Anchorage. In total, FIA has 15 flights per
day to Anchorage. He then informed the committee that FIA was
fortunate to obtain a small community air service development
grant (SCASD) for approximately $.5 million in order to attract
additional airline service. In this case, it's direct service
to Denver, Colorado.
MR. VANDERZANDEN, referring to the page titled "Passenger
Service - International," said that international service has
been successful for FIA, both in frequency and passenger
numbers. He related that a [Japan Airlines] 747 deplaned the
most passengers at once at Fairbanks, 392 passengers. Although
the direct service to Frankfurt, Germany, by Condor/Thomas Cook
hasn't experienced the meteoric growth of [Japan Airlines], it
has provided steady growth.
2:11:31 PM
MR. VANDERZANDEN moved on to the page titled "Cargo," and opined
that from the cargo standpoint it's not as good news. Fairbanks
International Airport lost its Europe to Asia traffic,
predominantly because of the opening of the Russian airspace.
From an economic standpoint it's difficult to impossible to
compete with that. However, he noted that FIA serves as the
primary diversion for Ted Stevens Anchorage International
Airport (TSAIA). Mr. VanderZanden further opined that as a
result of some of the cargo leaving FIA and the opening of the
Russian airspace, there is room for growth as the airfield is
currently underutilized. He likened FIA to TSAIA in that both
have cargo transfer authority. Furthermore, Fairbanks is 9.5
hours from 90 percent of the northern industrialized hemisphere.
Although as mentioned earlier FIA lost Europe to Asia traffic,
some was picked up in 2006 with Volga-Dnepr Charters. He then
informed the committee that two non-airfield revenue sources for
airports are land revenue and concession revenue, both of which
have increased.
2:13:10 PM
REPRESENTATIVE SALMON inquired as to why restaurants are placed
inside the secure area.
MR. VANDERZANDEN explained that in the new terminal that will
change.
2:13:35 PM
MR. VANDERZANDEN moved on to the page titled "General Aviation."
He informed the committee that FIA has 2 runways, 185 spaces in
the float pond, and 365 tie downs of which 150 are electrified.
There is also a pilots lounge and an airpark.
2:14:08 PM
REPRESENTATIVE FAIRCLOUGH inquired as to whether the revenue of
FIA meets its expenses.
MR. VANDERZANDEN replied no. In further response to
Representative Fairclough, Mr. VanderZanden stated that for FIA
the current deficit with depreciation is approximately $9
million and without deprecation it's approximately $4 million.
REPRESENTATIVE FAIRCLOUGH asked if the aforementioned includes
the contribution from TSAIA.
MR. VANDERZANDEN explained that all of the revenue from FIA and
TSAIA go into the same pot, which he referred to as the
enterprise fund, and all of the expenses come out of the same
pot. No general funds are received from the legislature, he
noted. Mr. VanderZanden specified that FIA puts more into the
[enterprise fund] than it takes out and TSAIA takes out more
than it puts into the [enterprise fund].
2:15:37 PM
CHAIR JOHANSEN inquired as to any ideas being considered to
address the reduced cargo due to the opening of the Russian
airspace.
MR. VANDERZANDEN explained that there are the following two
distinct markets: U.S. to Asia and vice versa, Europe to Asia.
Much of the Europe to Asia market has left Alaska, predominately
because Asia can be reached quicker using the Russian airspace.
The economics of Europe to Asia [via Russian airspace] is
difficult with which to compete. However, the U.S. to Asia
traffic is the predominant market share [in terms of cargo].
Absent some geopolitical event, the economics are superior for
the existing routes [utilizing Russian airspace].
2:17:47 PM
REPRESENTATIVE SALMON referred to the east ramp and related that
there is a bottleneck where Arctic Aviation is located. There
was an incident there after a heavy snow. He opined that the
hangar is too close to the ramp way, which is the only area for
[Arctic Aviation] to pull planes in and out of the hangar. He
suggested reviewing the police report and the airport manager's
report of that incident.
MR. VANDERZANDEN said that he could look into it.
The committee took an at-ease from 2:20:46 PM to 2:21:20 PM.
2:21:20 PM
JOHN PARROTT, Deputy Director, Ted Stevens Anchorage
International Airport, Department of Transportation & Public
Facilities, referring to the first few pages of the presentation
titled "Ted Stevens Anchorage International Airport," noted that
although the Ted Stevens Anchorage International Airport (TSAIA)
had rather humble beginnings, over the last 50 years it has
developed into a world class facility. Mr. Parrott informed the
committee that the goals of TSAIA are to provide more value to
its customers and reduce costs while increasing productivity.
He noted that there are also sub goals, which include
safety/security, customer satisfaction, management of the funds,
quality service, and environmental stewardship.
MR. PARROTT echoed Mr. VanderZanden's earlier testimony
regarding the fact that cargo is a primary function of the
airport. In fact, TSAIA is the number one airport in the U.S.
for landed cargo weight and the number three airport in the
world for cargo throughput. By virtue of TSAIA's location in
the state's largest city, TSAIA is a busy passenger airport that
serves as a gateway for those traveling into and out of the
state. The passenger traffic at TSAIA is rather seasonal with
approximately 50 percent of the traffic occurring in the four
months of summer. Moreover, TSAIA has the busiest float plane
base in the world.
2:23:16 PM
MR. PARROTT reiterated that TSAIA considers itself a world class
international cargo airport. He highlighted that TSAIA, like
FIA, is 9.5 hours from 90 percent of the industrialized world.
On the page titled "Strategic Location," the list of cities and
their distance from Anchorage includes many cities that are
market centers, shipping centers, and manufacturing centers.
The TSAIA is beneficially located between those. With regard to
economics, Mr. Parrott pointed out that there are aircraft that
can fly directly from Asia to the Lower 48. For example, the
MD-11 can do the aforementioned. In fact, it has a range of
6,000 miles and can carry 65,000 kilograms of cargo. If that
same aircraft stops in Anchorage, it flies an extra hundred
miles and spends two hours on the ground to be refueled and it
can carry an additional 45,000 kilos of cargo, which amounts to
an extra $90,000 at a nominal rate of $2 per kilo. Doing the
aforementioned with up to five airplanes a day amounts to
$450,000 a day, $2.25 million a week or $117 million in a year.
Those economics and the ability to carry that additional cargo,
he opined, is what drives the traffic through Alaska between
Asia and the U.S. Therefore, the 15 landings per week serving
the China-U.S. market in 2000 have increased to 260 landings per
week in 2007. Nearly 35 percent of the total international
cargo traffic going through Anchorage serves the China market.
He then directed attention to the page titled "China Carriers
serving ANC," adding that every carrier that serves the Asia-
U.S. market lands at least some of their flights in Anchorage in
order to take advantage of the aforementioned payload range
equation. He informed the committee that from 1995 to 2005, the
cargo aircraft landed weight has doubled. Mr. Parrott then
highlighted the pages titled "2005 Cargo Landed Weight" and
"2006 ACI Cargo Traffic Stats" both of which illustrate that
TSAIA is a significant cargo airport.
2:26:09 PM
MR. PARROTT pointed out that according to the most recent
Institute of Social and Economic Research (ISER) study, TSAIA
directly and indirectly provides one in eight jobs in the
Anchorage area. Furthermore, those amount to about $562 million
in direct annual payroll with another $288 million in annual
payroll for community jobs. He then related that TSAIA's total
annual economic impact to [Anchorage] is about $2.36 billion.
The bulk of that is the $1.4 billion in fuel, $83 million in
construction, $30 million in hotels for air crews, and the
already mentioned $850 million in payroll. In order to continue
meeting the needs of the airport passengers, more infrastructure
development is required. Mr. Parrott echoed Mr. VanderZanden's
testimony that no state general funds are used at the airport.
He then moved on to the page titled "Public Infrastructure
Investment 2007-2009," which relates the list of such and the
cost of each. For instance, the Concourse A & B remodel will
continue through the fall of 2009. Another item is the
Operations & Facilities Center, which is a building that will
connect the north and south terminals. The aforementioned
building will house a communications center, an emergency
operations center, the facilities section, operations, and
police as well as providing a covered, enclosed pedestrian
walkway between the two terminals.
MR. PARROTT opined that TSAIA does all of the aforementioned
while keeping landing fees and rental rates for terminal space
very reasonable. The landing fees were predicted, forecast, and
bonds were sold in 1999. As illustrated by the chart on the
page titled "ANC Landing Fees Actual vs. Forecast," Anchorage
has been very near or slightly to greatly under the forecasted
landing fee, with one exception. The aforementioned in
conjunction with the strength of the traffic has resulted in
TSAIA receiving bond rating upgrades from each of the three
rating agencies.
2:28:57 PM
MR. PARROTT informed the committee that TSAIA has a staff of 380
airport employees and an operating budget of approximately $55
million. He explained that TSAIA budgets on a monthly basis
knowing there will be seasonal variances in relation to
expenditures. Last year, TSAIA watched its expenditures and was
able to return approximately $1.5 million to the airlines. In
fiscal year 2008, TSAIA is on track and hopes to stay under
budget.
MR. PARROTT returned to the goal of customer service, which
includes customer service to tenants as well as customer service
from the tenants to the passengers. There is a mystery shopper
program during which people purchase items at the various
vendors in the airport and the outstanding customer service
winners are rewarded. Additionally, TSAIA has been recognized
through a couple of publications for its service to its tenants.
Mr. Parrott related that TSAIA is most proud that it's a four-
time recipient of the Balchen Post Award. The Balchen Post
Award is a national award given for outstanding airport snow and
ice control. With regard to environmental stewardship, TSAIA
recycles cardboard and paper. Furthermore, [glycol recovery
operations] have significantly improved the water quality in
Lakes Hood and Spenard. The TSAIA also has a residential sound
insulation program that helps mitigate the noise of the airport.
MR. PARROTT turned to current issues for TSAIA, which include
keeping an eye on the FAA reauthorization bill in Congress.
Also, the property of the Kulis Air National Guard Base will
come back into the airport inventory. Furthermore, TSAIA is
negotiating a new operating agreement with the airlines and is
about halfway through the development of a master plan. Looking
forward, there are several organizations interested in building
a hotel at TSAIA. The TSAIA is also reviewing the development
of West Airpark, which is one of the last large areas available
at the airport. However, development of that area may require a
tunnel under runways. The master plan for TSAIA is considering
the potential need for an additional north-south runway.
Additionally, the existing air traffic control tower is located
on a prime piece of real estate and TSAIA will review the
potential relocation of it.
2:32:55 PM
REPRESENTATIVE FAIRCLOUGH inquired as to TSAIA's operating
budget versus its revenue.
MR. PARROTT explained that airport system utilizes a residual
arrangement, which means that the airlines have agreed to pay
the bills at the end of the year. Therefore, TSAIA's revenues
and expenses can't be very far off. Whatever it costs to
operate the airport, the airlines have agreed to fund. As Mr.
VanderZanden mentioned, the revenue from landing fees, terminal
rent, and airport parking is used to pay for plowing the snow,
utilities, and employees. In further response to Representative
Fairclough, Mr. Parrott confirmed that his earlier comment
regarding the airlines returning funds to the airlines is
related to the aforementioned agreement. The agreement
specifies that the airlines agree to pay the bills at the same
time the airport can't make a profit. Therefore, if excess
revenue is collected through landing fees, that revenue may not
actually be returned to the airlines but rather is credited to
them in relation to their bills in the next period.
2:34:27 PM
REPRESENTATIVE FAIRCLOUGH surmised then that the contract limits
TSAIA's profitability.
MR. PARROTT replied yes. In further response to Representative
Fairclough, Mr. Parrott said he wasn't sure whether that
limitation was per state statute or FAA grant assurances.
REPRESENTATIVE FAIRCLOUGH inquired as to why TSAIA has some of
the lowest landing fees and terminal rental rates.
MR. PARROTT pointed out that one of the limitations on the
profitability of the airport system is that the FAA assurances
require those funds be spent on the airports. The revenue can't
divert that revenue to other areas on which the state might want
to spend.
2:35:50 PM
REPRESENTATIVE FAIRCLOUGH asked if other airports in the U.S.
operate at a profit.
MR. PARROTT related that there may be private airports that can
operate at a profit. However, to the best of his knowledge, he
related that any airport that receives federal funds isn't
allowed to divert profit outside of the airport. In fact, Los
Angeles had to pay back several million dollars that the FAA
determined it had diverted from the airport.
2:37:04 PM
CHRISTINE KLEIN, Deputy Commissioner of Aviation, Office of the
Commissioner, Department of Transportation & Public Facilities,
explained that federal regulations prohibit airports, as federal
public facilities, from garnering a profit from the airlines.
However, airports have different agreements. Some airports have
residual agreements while others have compensatory agreements.
Because the infrastructure of the airport has been provided
through the FAA, the airports aren't allowed to take money back
that can used for the local community. Most airports in the
nation, she noted, are community airports rather than state
airports. The aforementioned prevents revenue from being
diverted to other community needs. She offered to provide the
committee with this federal regulation.
2:38:20 PM
REPRESENTATIVE FAIRCLOUGH asked if the state contributes
anything to the airport besides the enterprise agency itself.
MS. KLEIN said that the Alaska DOT&PF does provide services
through aviation design, planning, and engineering. Therefore,
there are services that the international airports utilize to
carry out engineering, design, and construction. There are also
accounting and human resource functions that are provided [by
the state] and typically paid for through an "ICAP" on all
projects.
2:39:26 PM
REPRESENTATIVE FAIRCLOUGH opined that it's outstanding that [the
state's airports] offer low terminal rates and landing fees.
However, the state's ferry system is collapsing. If air service
can be offered to communities at a lower rate than the state can
subsidize ferries, perhaps the state should build gravel runways
rather than invest in ferries, she suggested. Representative
Fairclough said that if all the funds aren't being recaptured,
then there are costs that the air carriers aren't bearing that
are part of the expenses.
MS. KLEIN said that she would analyze that for the committee.
2:40:55 PM
REPRESENTATIVE DOOGAN questioned whether TSAIA would issue bonds
if it's budget is net zero every year and it wants to build a
new runway.
MR. PARROTT clarified that at this point the master plan is
studying the need and feasibility of a new runway. Should a new
runway be needed, there would first be an attempt to secure
federal funds. The remainder of funds would involve a variety
of funding strategies that may include bonding a portion of it
and paying it back through the landing fee the air carriers are
charged. In further response to Representative Doogan, Mr.
Parrott said that the funding strategies wouldn't include
seeking funds from the state.
2:42:03 PM
REPRESENTATIVE DOOGAN, referring to how TSAIA has a budget of
zero at the end of the year, asked if TSAIA estimates its budget
and structures the rates to hit zero.
MR. PARROTT replied yes, adding that the rates can be adjusted
throughout the year.
2:42:41 PM
REPRESENTATIVE DOOGAN, recalling the substantial growth in the
cargo landings at TSAIA, asked if there has been a reduction in
the amount of money paid by the passenger airlines.
MR. PARROTT said that there is a complicated formula in which
the terminal and airfield costs are factored together.
Currently, the landing fee pays for the airfield and some of the
terminal and the terminal rent pays the remainder of the
passenger portion.
2:43:32 PM
REPRESENTATIVE DOOGAN surmised then that different planes are
paying different landing fees.
MR. PARROTT noted his agreement, specifying that the landing fee
is accessed per thousand pounds of certified max gross takeoff
weight. In further response to Representative Doogan, Mr.
Parrott confirmed that the increase in cargo landings has kept
the overall landing fee lower for all.
2:44:31 PM
REPRESENTATIVE FAIRCLOUGH inquired as to how that works when an
individual city contributes to lower individual carriers' rates.
She related her understanding that the City & Borough of Juneau
contributes to Alaska Airlines in an effort to offer constituent
fares.
MR. PARROTT said that there are certain mechanisms that can be
used to encourage additional service to an airport, such as
waiving landing fees for the first three flights of the week.
In the International Airport System, there aren't any such
mechanisms, other than the grant mentioned by Mr. VanderZanden.
However, he noted that they would entertain such to increase
service. Existing service is generally not eligible for any
such incentives.
2:45:52 PM
REPRESENTATIVE FAIRCLOUGH asked if it would be fair to say that
[the International Airport System] is working somewhat on an LLC
model in which there is a percentage of ownership or shared
expense ratio.
MR. PARROTT explained that in exchange for underwriting the
airport, the airlines are given a vote and opportunity to
provide input on capital projects, which are one of the large
cost drivers. Therefore, the airport can't simply build
whatever it wants.
2:46:37 PM
REPRESENTATIVE FAIRCLOUGH inquired then as to how business is
attracted without having anti-trust violations under that
scenario.
MR. PARROTT clarified that the airlines don't vote for a
particular airline to enter the airport, but rather vote for a
particular project that would benefit the operations of existing
airlines. One of the ways other carriers are attracted is the
low landing fees and keeping the airport open.
2:47:30 PM
REPRESENTATIVE FAIRCLOUGH related her understanding that TSAIA,
under a limited liability company (LLC) model, has greater
revenue than FIA. She recalled that TSAIA allocates about $8
million to FIA, as a secondary landing site. She inquired as to
how the landing fees are grouped together.
MR. PARROTT clarified that for accounting purposes TSAIA and FIA
aren't two separate airports but rather are the Alaska
International Airport System. Therefore, TSAIA doesn't allocate
money to FIA. He explained that the revenue is deposited into
the system and withdrawn as needed. He informed the committee
that it's very unusual for two airports to be linked together
because there are no other airports within about three hours
flying time that can handle large aircraft on a regular basis.
In the Lower 48, there are numerous airports that serve as
divert bases, and therefore two airports don't have to be tied
together in a symbiotic relationship. This is a relatively rare
case of joining two airports and dealing with them as a single
entity. The landing fees are the same at both airports, he
highlighted.
2:49:56 PM
REPRESENTATIVE FAIRCLOUGH inquired as to why a military facility
isn't used as a backup airport.
MR. PARROTT related his understanding that most of the time the
military wouldn't allow civilian aircraft to land on military
facilities for security reasons.
2:50:24 PM
REPRESENTATIVE DOOGAN asked if there's a way to tie all airports
together.
MR. PARROTT answered that he didn't believe [the department] has
been able to find a way to do that.
2:50:49 PM
REPRESENTATIVE FAIRCLOUGH asked if the reason TSAIA and FIA are
allowed to be tied together is because they're international
airports.
MS. KLEIN explained that at one time the two airports were one
and the management and staff support were shared. As the
airports grew, separation occurred although some shared staff
remains. The two airports share resources and the same fees
because they're under the same operating agreement.
Furthermore, both airports have the same airline mix. Also, the
two offer proximity in an emergency.
2:51:55 PM
CHAIR JOHANSEN inquired as to whether it's common for airports
to go into the hotel business. He inquired as to how that would
be accomplished.
MR. PARROTT said that it isn't common. He then clarified that
TSAIA wouldn't be in the hotel business, a hotel would merely be
located at the airport much like the restaurants that are
located at the airport. Therefore, the hotel would be a tenant
and pay rent and a percentage of the revenue. In response to
Representative Fairclough, Mr. Parrott confirmed that a long-
term lease, not selling [the property], is what's anticipated.
In further response, Mr. Parrott explained that the standard
leases the airport utilizes are such that the property always
belongs to the airport and the improvements are either left, per
the airport's approval, or the lessee is required to take them.
2:53:07 PM
MR. PARROTT, in response to Representative Keller, clarified
that there is a large swath of land located west of the existing
north-south runway that is airport property still available for
development. In further response to Representative Keller, Mr.
Parrott specified that on a previous master plan the tunnel was
anticipated to be north of the north terminal and north of
taxiway "Victor" and from there it would proceed west. The
hotel is anticipated to be very near or connected to the
passenger terminal.
2:54:14 PM
REPRESENTATIVE FAIRCLOUGH commented that in Anchorage there is
conflict between airport growth and usage. She asked if there
are airspace problems or is there airspace time that would allow
expansion. She then suggested that the land use around the
airport is causing conflicts. Therefore, she questioned whether
it would be in the state's best interest to acquire adjacent
property to the air traffic pattern as it becomes available.
MR. PARROTT said that the master plan team is analyzing the
ability of the airspace to handle more air traffic. Moreover, a
FAA team from the Lower 48 is reviewing reallocating and
reapportioning the airspace over all of Alaska, but specifically
in the Anchorage Bowl area to try to make it as efficient as
possible. With regard to the land use around the airport, there
are some areas the airport is looking to acquire when they
become available. One such parcel, which would meet some FAA
safety area requirements, is located north of the Lake Hood
strip. The TSAIA is also working with the Municipality of
Anchorage as it goes through its zoning and planning process to
ensure that the airport and surrounding areas are zoned
appropriately.
2:57:07 PM
REPRESENTATIVE FAIRCLOUGH noted her appreciation for TSAIA's
efforts, but pointed out that people are moving in adjacent to
the airport and then complaining to the city after-the-fact. If
steps aren't taken to mitigate the problem now, it will be a
long-term problem. She then recalled that in the past there has
been conversation regarding separating freight from passenger
mobility. The location of that has been rumored to be in the
Mat-Su area.
MS. KLEIN confirmed that a number of things will be considered
in the Alaska Airport System Improvement Plan, including the
potential separation of freight and passengers. She noted that
the plan hasn't been updated since about 1996. The plan is part
of the National Transportation System and thus has to integrate
with it. At this time, the Alaska Airport System Improvement
Plan is being started and it will cover the entire state. The
plan will review forecasts for traffic, the changes over the
past 10-15 years, the demand for the next 30 years, and the
improvement necessary in Alaska to make the system whole. Ms.
Klein encouraged everyone to participate in those public
meetings and surveys over the next year-and-a-half.
2:59:56 PM
REPRESENTATIVE KELLER commented that there is room on Point
McKenzie.
3:00:21 PM
CHAIR JOHANSEN inquired as to how Ms. Klein came to be in her
current position.
MS. KLEIN informed the committee that she is a life-long Alaskan
who has worked in the international airport system for about 13
years. She related that she departed that system in 2005, at
which point she returned to the private sector where she ran an
engineering company the last couple of years. Ms. Klein said
that she was honored when the governor and the commissioner of
DOT&PF asked her to take this position, which she characterized
as challenging. She then informed the committee that she grew
up in rural Alaska in a small community outside of Ketchikan and
thus is very familiar with the marine highway system as well as
aviation as those were the only modes of transportation to get
to her homestead. Ms. Klein noted that she is an accredited
airport executive and has a background in engineering from the
University of Alaska Fairbanks.
3:01:51 PM
MS. KLEIN, in further response to Chair Johansen, identified the
biggest challenge to be funding for rural airports, which are
critical to Alaska's future economy. The greatest challenge
will be to determine how to fund and operate the 256 rural
airports. She highlighted that these airports are the only link
to medical facilities for most of the citizens.
3:02:40 PM
REPRESENTATIVE FAIRCLOUGH asked if Ms. Klein served as the chair
of the transition team for DOT&PF.
MS. KLEIN replied yes, adding that the governor asked her to
chair the transition team. She noted that she selected the 18
members of the team from throughout Alaska and the team
completed its report in about three weeks.
3:03:08 PM
REPRESENTATIVE FAIRCLOUGH recalled that one of the issues the
transition team tackled was lack of morale and personnel
problems in DOT&PF.
MS. KLEIN said that she has heard that morale continues to be a
problem, and therefore she will work with the commissioner to
improve morale, visit the employees "in the trenches," and
actively listen to their concerns.
3:03:40 PM
REPRESENTATIVE FAIRCLOUGH related her understanding from the
commissioner that the low morale had changed. She inquired as
to how long Ms. Klein has been on the job.
MS. KLEIN answered about three days.
REPRESENTATIVE FAIRCLOUGH expressed the need to understand
transportation as it affects communities, especially in the
rural areas. Representative Fairclough relayed what she told
the chair after a previous challenging meeting, as follows: "I
don't want people in the trenches to think, just because we're
trying to figure out where the administration and the leadership
is taking us, that we don't truly ... understand that there are
many fine people, including leadership, that are in the
department that are doing excellent work for Alaskans." She
requested a report on morale and how employees will be valued.
MS. KLEIN related her understanding that there is an employee
survey underway, which hasn't been completed. Once that survey
is complete, the findings could be shared with the committee.
The commissioner is also visiting with employees [in an attempt
to address morale]. Therefore, Ms. Klein opined that there have
been some improvements.
3:06:23 PM
CHAIR JOHANSEN pointed out that the Ketchikan Gateway Borough
runs the local airport. He then inquired as to the implications
for the aviation division if that airport, including access to
the airport, is given back to the state.
MS. KLEIN responded that she would have to research that.
However, she noted that at this point, the department encourages
communities to keep their airports since they have greater
interest in maintaining and caring for them. Ms. Klein said
that she couldn't imagine that the department would want to take
the airport back due to the department's operating and
maintenance concerns as well as budget shortfalls.
Additionally, the Ketchikan airport is linked to Ketchikan's
ferry and the borough owns some of the infrastructure.
3:07:45 PM
CHAIR JOHANSEN then asked whether the state would need to take
over access to the airport if the borough decided it wasn't its
responsibility.
MS. KLEIN answered that she would have to review the grant
assurances.
3:08:16 PM
ADJOURNMENT
There being no further business before the committee, the House
Transportation Standing Committee meeting was adjourned at 3:08
p.m.
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