Legislature(2013 - 2014)BARNES 124
01/23/2014 01:00 PM House TRANSPORTATION
| Audio | Topic |
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| Presentation by Pat Kemp, Commissioner on Department of Transportation & Public Facilities | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
JOINT MEETING
HOUSE TRANSPORTATION STANDING COMMITTEE
SENATE TRANSPORTATION STANDING COMMITTEE
January 23, 2014
1:06 p.m.
MEMBERS PRESENT
HOUSE TRANSPORTATION
Representative Peggy Wilson, Chair
Representative Doug Isaacson, Vice Chair
Representative Eric Feige
Representative Lynn Gattis
Representative Craig Johnson
Representative Bob Lynn
Representative Jonathan Kreiss-Tomkins
SENATE TRANSPORTATION
Senator Dennis Egan, Chair
Senator Anna Fairclough
Senator Click Bishop
MEMBERS ABSENT
SENATE TRANSPORTATION
Senator Fred Dyson, Vice Chair
Senator Hollis French
COMMITTEE CALENDAR
PRESENTATION BY COMMISSIONER, PAT KEMP, DEPARTMENT OF
TRANSPORTATION & PUBLIC FACILITIES
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
PAT KEMP, Commissioner
Office of the Commissioner
Department of Transportation & Public Facilities (DOT&PF)
Juneau, Alaska
POSITION STATEMENT: Presented an overview of the Department of
Transportation & Public Facilities (DOT&PF).
JOHN BINDER, Deputy Commissioner
Department of Transportation & Public Facilities (DOT&PF)
Anchorage, Alaska
POSITION STATEMENT: Presented an overview of the Department of
Transportation & Public Facilities (DOT&PF).
KIM RICE, Deputy Commissioner
Department of Transportation & Public Facilities (DOT&PF)
Juneau, Alaska
POSITION STATEMENT: Answered questions during an overview of the
Department of Transportation & Public Facilities (DOT&PF).
JEFF OTTESEN, Director
Division of Program Development, Department of Transportation &
Public Facilities (DOT&PF)
Juneau, Alaska
POSITION STATEMENT: Presented an overview of the Department of
Transportation & Public Facilities (DOT&PF).
ACTION NARRATIVE
1:06:40 PM
CHAIR DENNIS EGAN called the joint meeting of the Senate and
House Transportation Standing Committees to order at 1:06 p.m.
Representatives Gattis, Isaacson, Lynn, and P. Wilson and
Senators Bishop and Egan were present at the call to order.
Representatives Kreiss-Tomkins, Johnson, and Feige and Senator
Fairclough arrived as the meeting was in progress.
^Presentation by Pat Kemp, Commissioner on Department of
Transportation & Public Facilities
Presentation by Commissioner, Pat Kemp, Department of
Transportation & Public Facilities
1:08:58 PM
SENATOR EGAN announced that the only order of business would be
an overview of the Department of Transportation & Public
Facilities by Commissioner Pat Kemp.
1:09:50 PM
PAT KEMP, Commissioner, Department of Transportation & Public
Facilities, recalled that, in the last year, the department had
created an executive management team which included the
deputies, the administration director, and the regional
directors. He declared that these monthly team meetings had
worked well, especially for reviewing the department as a whole.
He spoke about the benefit of intellectual capital, many years
of experience at the top of the department, and the unique
opportunity this offered to improve services, improve
efficiencies, and move back to the core mission. He declared it
to be a cohesive management team, with everyone working toward
solutions.
1:12:36 PM
COMMISSIONER KEMP reflected that there was now better internal
and external communication, specifically between the regions and
headquarters. He relayed that, although there were more federal
mandates which created additional costs, the Federal Highway
Administration (FHWA) and the Federal Aviation Administration
(FAA) were working in conjunction with the Department of
Transportation & Public Facilities (DOTPF), which had also led
to improved communications with the US Army Corps of Engineers.
He anticipated better priority on projects. He declared that,
as DOTPF was so large, it was more difficult to effect change
within.
1:15:18 PM
REPRESENTATIVE FEIGE asked for the reason that these improved
communications had occurred.
COMMISSIONER KEMP offered his belief that it was a combination
of reasons, as a variety of federal decisions did not fit in
Alaska. He offered an example of the federally mandated glide
ratio for airports, noting that most of the airports in the
Lower 48 had roads connected with the airports, which was not
the case in Alaska. He shared that improved communications now
allowed him to contact the federal agencies to explain the
differences in Alaska.
COMMISSIONER KEMP, reflecting on the difficulty of "pulling
everyone together" in a large, very diverse agency, stated that
the philosophy for communication was now in place, which had
started at the top of the department.
1:17:50 PM
COMMISSIONER KEMP listed the accomplishments of the department
in 2013, which included maintenance of the highways and the
airports, page 3 of the handout titled "Overview for 2014 Alaska
Legislature." [Included in members' packets] He declared that
the department did the things it needed to do. He directed
attention to a list that he had compiled, titled "2013
Noteworthy Milestones," [Included in members' packets] which
were a direct result of the organization and knowledge within
the department.
1:19:19 PM
COMMISSIONER KEMP pointed to item 2 of the "2013 Noteworthy
Milestones." He explained that the policy for repaving the
surfaces of roads with more than 5000 vehicles per lane with a
hard rock aggregate had reduced rutting, pointing to Egan Drive
as an example. He surmised that this had resulted in three
times the roadway life, which has been a huge cost savings. He
reported that both DeBarr Road and Dimond Boulevard had also
been repaved during the previous summer with hard rock aggregate
from Cantwell.
1:21:42 PM
REPRESENTATIVE FEIGE asked where additional sites of the hard
rock aggregate were located.
COMMISSIONER KEMP replied that Haines and Dupont were the only
other sites, and that additional hard rock had been brought in
from British Columbia. He explained that the Dupont rock was on
the shore, and described it as "the toughest rock that made it
over all the eons to shore from the mountains, in the coastal
mountains ... only the strongest rock survived."
1:23:12 PM
COMMISSIONER KEMP directed attention to item 5 of the milestone
list, which discussed the modified speed limit policy to allow
for more reasonable driving speeds on remote rural roadways,
including the Glenn, Richardson, and Alaska Highways. He opined
that this incorporated more safety on the roadways, as the
theory was that the users could set the speed limits.
1:24:21 PM
REPRESENTATIVE ISAACSON expressed his support for what the
department had done. He said that increasing the speed limits
from Salcha to Fairbanks could also be helpful. He asked for
clarification that the additional previous requirements had
lessened safety, and, if the faster speeds were safer, could it
be done elsewhere.
COMMISSIONER KEMP replied that safety had been increased when
the speed limit was brought under a certain policy. He declared
that drivers would drive at the speed limit they were most
comfortable with, and he suggested that overall studies reported
that 85 percent of the drivers "drive the right speed" which he
labelled the "85th percentile speed." He explained that
artificially lowering this speed limit resulted in more rear end
accidents due to disparate speeds.
REPRESENTATIVE ISAACSON asked if there was consideration for the
aforementioned Salcha to Fairbanks route.
COMMISSIONER KEMP replied that the Fairbanks North Star Borough
(FNSB) had requested to maintain the artificially lower speed
limit. He expressed his discomfort at driving the posted speed
limit of 55 mph on that stretch of roadway. He stated that 85
percent of the drivers on this roadway would drive at the speed
they felt most comfortable.
REPRESENTATIVE ISAACSON pointed out that the FNSB did not have
enforcement power on that roadway, and that the first responders
came from the City of North Pole. He suggested that DOTPF
engage with the municipalities for further discussion.
1:28:01 PM
REPRESENTATIVE FEIGE shared that an unofficial pre-session
survey in his district indicated that the change of speed limits
had not changed driver activity, and that it had been well
received. He shared that he maintained the 55 mph speed limit
on the aforementioned Salcha roadway, as there were always City
of North Pole police cruisers present.
COMMISSIONER KEMP expressed that he had also observed the police
cruisers, although it was difficult for him to slow to 55 mph.
1:29:33 PM
COMMISSIONER KEMP referred to item number 3, the Anchorage
Airport master plan, noting that he was "not around when the
department first came out with a master plan." He opined that
the department may have jumped too quickly to a conclusion, and
that the former plan had been untenable. He stated that the
current plan more accurately described a means to maximize the
existing assets, until an additional runaway was constructed.
He offered his belief that the department had done a good job
with this revised plan. He declared that the 16 noteworthy
milestones were a list that he had compiled of items that went
above and beyond the normal course of business, reflecting a
product of "the way we're organized and the way we're trying to
manage the department."
1:31:37 PM
REPRESENTATIVE ISAACSON suggested increasing the marketing
efforts of Fairbanks as it was on "the Great Circle" and in some
instances, closer than Anchorage to some destinations.
Referring to item 16, he asked about the success for the use of
the salt and beet brine solution statewide, and what were the
storage considerations. He asked if the state should grow
beets.
COMMISSIONER KEMP replied that there had been experimentation
with the solution throughout Alaska, and although there were
some problems in colder temperatures, it was working well in
some parts of Anchorage and the Kenai Peninsula. He declared
that success was dependent on the rates of application and the
operator training. He opined that, in the long run, it would
save money. He reported that highway ice-ups were a huge
problem in Fairbanks, and that this solution worked well as an
anti-icing remedy.
REPRESENTATIVE ISAACSON asked if there were any storage issues,
such as chemical reactions, to preclude bulk purchasing.
COMMISSIONER KEMP replied that he was unaware of any chemical
reaction, but that costs for the proposed salt storage sheds
would be recovered within a year or two due to the bulk savings.
CHAIR EGAN asked if the anti-icing solution was less corrosive.
COMMISSIONER KEMP expressed his agreement. He added that there
were suggestions that the solution had attracted moose in the
Anchorage Bowl area; however, research in other areas did not
support this.
CHAIR P. WILSON pointed out that a reduction in the use of sand
had led to savings for the municipalities during the clean-up.
COMMISSIONER KEMP expressed his agreement, and stated that this
would also save money in the long term. He said that 2013 had
been a very good year, but the MAP 21 challenge still had to be
addressed, slide 4 "Where are We Headed?". He reminded the
committee that, last year, he had suggested either funding the
projects with state dollars, or eliminating projects. He
declared that this was now at least a $600 million problem. He
stated that the state was now overprescribed on its non-NHS
routes, as a result of MAP-21, in which Congress had dictated
that funding be directed toward commerce and freight corridors.
These NHS routes included the mainline ferry system and other
routes beyond the secondary and community routes.
1:38:06 PM
CHAIR EGAN asked for a definition to community route.
COMMISSIONER KEMP pointed to the North Douglas Highway as a non-
NHS community route.
CHAIR EGAN asked for clarification whether Egan Drive was an NHS
route.
COMMISSIONER KEMP replied that this included Egan Drive, as well
as most of the major corridors in the north. He pointed out
that the Anchorage Bowl was not affected due to the Anchorage
Metropolitan Area Transportation Solutions (AMATS), but that
many routes in the Matanuska-Susitna Borough were non-NHS. He
explained that determination was by a complicated formula, but
the DOTPF had to strive for solutions. He noted that the
statewide revenue problem and lack of state funding could
necessitate changes.
1:39:35 PM
COMMISSIONER KEMP stated that, although his department could do
anything, it takes time as there was a finite amount of
resources. He declared that DOTPF was working toward more
efficiency.
1:40:01 PM
REPRESENTATIVE GATTIS asked what type of extra-curricular
activities would be phased out.
COMMISSIONER KEMP, in response, reported that statewide mapping
would be transferred to Department of Natural Resources,
although DOTPF would continue to provide support with its GIS
system, which was tied to federal program requirements.
1:40:44 PM
REPRESENTATIVE ISAACSON commented that DOTPF had been very
supportive of the overall state mapping project, and he hoped
that the department would continue to share the information.
COMMISSIONER KEMP clarified that the department was continuing
its support with that partnership. He gave an example of the
Ambler road, a resource road, and shared that the department had
retained its partnership with Alaska Industrial Development and
Export Authority (AIDEA). He stated his willingness to let
these extra-curricular projects move to other agencies which
could be more effective.
1:42:00 PM
COMMISSIONER KEMP declared that the department was working more
closely with the Alaska State Legislature, especially with
transportation issues in the Matanuska-Susitna Borough. He
noted that the borough had hired a transportation director, whom
the department met with every few months. He opined that good
changes were occurring. He clarified that it took between five
to ten years from project inception to completion. He expressed
his desire to have policies and structure in place that would
sustain the changes he had put into place.
1:44:24 PM
CHAIR EGAN asked for an update on the recently stormed damaged
Gustavus dock.
COMMISSIONER KEMP pointed out that the dock project had been
implemented prior to his tenure, and that he was unsure if the
existing dock would suffice in Gustavus. He declared that the
department would review the dock and work toward a solution.
1:45:09 PM
REPRESENTATIVE FEIGE, referring to item 15, the increased use of
herbicides, on the "2013 Noteworthy Milestones," asked how the
change in regulations had allowed for this to be counted as a
milestone.
COMMISSIONER KEMP replied that, although there was the ability
to maintain a good pesticide program, the new regulations had
been more reasonable for working through the process. He shared
that other groups wanted to piggyback on the department permit.
He declared that this would not result in mass spraying, but
rather point spraying under guardrails and other difficult
places. He stated that, over the long run, keeping the brush
down would save millions of dollars and enhance safety, and he
lauded the results of the last year.
1:47:23 PM
REPRESENTATIVE FEIGE said one of the biggest hazards on the
Richardson and Glenn Highways is moose and vehicular collisions.
He asked whether herbicide application has been helpful with
moose issues and if any decrease in collisions has occurred.
COMMISSIONER KEMP answered that the department just started
applying pesticides last year; however, it will take multiple
years to change the plants to low-lying weeds that will prevent
other brush from emerging. Initially, the department will need
to mechanically remove the trees and brush, followed by a
maintenance application. He offered his belief this will be a
good thing for the department since the DOT&PF cannot currently
accommodate its ongoing brushing problems. For example, the
department encounters include roots growing under the pavement,
shaded areas, and brush obscuring animals so they are not
visible to motorists. He reiterated these issues can be
addressed unless something like pesticide application is done.
Most states have an active herbicide program and while the
department has the authority to use chemicals, it is a little
behind the times.
1:48:52 PM
CHAIR P. WILSON shared that some of her constituents have
expressed concern that runoff will adversely impact fisheries
and fish quality will be compromised by the chemicals used. She
asked the commissioner to elaborate on potential impacts and the
types of herbicides being used.
COMMISSIONER KEMP said, "Believe me, I don't want a thumb
growing out of my forehead either." He suggested a fine line
exists between the DOT&PF's pesticide use and the science behind
it so he has relied on the Department of Environmental
Conservation's (DEC's) analysis with respect to the type of
herbicides to use. He suggested the DEC could come before the
committee to provide details on the science aspects of pesticide
use.
1:50:19 PM
REPRESENTATIVE ISAACSON assumed [the Moving Ahead for Progress
in the 21st Century Act] (MAP-21) and [Fairbanks Metropolitan
Area Transportation Solutions] (FMATS) funding will be covered
in Finance subcommittee meetings.
COMMISSIONER KEMP responded that the department is currently
working on the funding issues. He explained federal funding
expenditure parameters have changed and MAP-21 funds can no
longer be spent on some projects as previously allowed by the
Federal Highway Administration (FHWA). Typically, charges
accrue for the design or permitting process as the DOT&PF works
on projects. When the DOT&PF cannot complete projects the state
must reimburse the federal government; however, he offered his
belief that since MAP-21 instituted the funding changes the
state basically will have a "free pass" on reimbursements. He
said the department has currently been working with federal
agencies but must now hold serious discussions on MAP-21 funding
issues.
1:52:28 PM
REPRESENTATIVE JOHNSON asked for an assessment of pipeline
preparedness. He related his understanding from DOT&PF's prior
updates that substantial funding will be needed to upgrade
roads, bridges, and ports in order to transport materials for
the proposed pipeline, for example, on the Dalton Highway or
other routes. He asked whether the department has focused on
this. He would like the DOT&PF's assurance that during
construction an [Environmental Impact Statement] (EIS) will not
hold up Alaska's pipeline. He understood additional funding
will be necessary for upgrades for bridges; however, the
pipeline is closer to being a reality than ever before and he
believes the DOT&PF will play a key role.
COMMISSIONER KEMP offered to answer the question in several
segments. First, when he returned to DOT&PF [as commissioner]
he reviewed the department's pipeline infrastructure needs list.
He vaguely recalled the figure was over $1 billion; however he
questioned the need for some of the expenditures. Thus, the
DOT&PF revisited and examined the infrastructure needs list and
internally agreed on the anticipated needs. For example, he
recalled one item was to replace a truss bridge across the
Gerstle River since it couldn't handle the substantial loads
necessary for the pipeline use. In its review, the DOT&PF
determined that loads of this magnitude would only happen every
few months so instead of the replacing the bridge, an
alternative solution was found - trucks could take the Tok
cutoff and Richardson Highway and bypass the bridge entirely.
COMMISSIONER KEMP continued. Secondly, during the pipeline
debate period the DOT&PF began work to repair the state's
bridges. In fact, he understood the Richardson Highway will be
fully capable of handling additional proposed pipeline traffic.
Third, with respect to the pipeline, the biggest issue on the
Parks Highway is ensuring that regular traffic will be safely
accommodated. Therefore, the DOT&PF has worked on significant
passing lane projects that will allow trucks to pull over so
traffic can pass. Further, although the department previously
made a commitment to the Alaska Trucking Association (ATA) to
have the Parks Highway weight-restriction free, he determined
the DOT&PF would incur significant costs for road upgrades.
Additionally, he determined that weights must be restricted in
the spring and fall. He has informed Aves Thompson, ATA, of his
findings and the organization accepts this decision. He
recapped that over $100 million would have been required to
upgrade the Parks Highway to accommodate perhaps 10-20
overweight vehicles per year, but other options exist, such as
transportation loads by train. He described his department's
approach has been to take a common-sense approach on the
proposed pipeline issues and in doing so in his estimation the
infrastructure is fine, the department is ready for the
pipeline, and can react quickly to anything that might come up.
1:58:29 PM
COMMISSIONER KEMP pointed out that he recently received numerous
comments on hauling double trailers on the Glenn and the Parks
[Highway] and while the department will consider these requests
he has concluded that safety "trumps" other considerations.
REPRESENTATIVE JOHNSON responded that he is "tickled" with
Commissioner Kemp's answer. He recalled DOT&PF's anticipated
pipeline upgrade cost estimates were approximately $1.6 billion.
Thus, to have the department indicate it is ready represents
great news. He commended Commissioner Kemp for his common-sense
approach efforts on the issues, especially noting the magnitude
of anticipating a proposed pipeline project. He asked the
commissioner to review his figures and let the legislature know
if anything changes.
2:00:22 PM
SENATOR BISHOP thanked Commissioner Kemp for his timely response
to inquiries. He has particularly appreciated the department's
leadership with respect to the apprenticeship opportunities on
DOT&PF projects since it trains the next generation of Alaskans.
He commended the DOT&PF on its response to a Glennallen project,
in which a local contractor had expressed concerns and the
matter was handled timely. He further commended Commissioner
Kemp on the "tow plow" accommodations since these changes
represent another example of cost savings to the state.
2:01:43 PM
REPRESENTATIVE FEIGE reiterated similar gratitude related to his
legislative district. As the Richardson Highway improves and
becomes capable of handling loads, he also expressed an interest
in the department applying some funds to reconstruction efforts
and safety improvements on the last remaining section - mile
66.5 to mile 92 - of the Glenn Highway. Significant twist and
turns, as well as falling rocks create problems and have been
one of the major sources of complaints in the district.
Secondly, he mentioned that outhouse closures [on the Richardson
Highway] present a problem for motorists, in particular, since
the Paxson Lodge has closed. It's approximately a 4.5 hour
drive from Delta Junction to Glennallen, with few options for
motorists in need of restroom facilities. He acknowledged some
outhouses are available, although he was unsure whether they
were DOT&PF facilities. He requested that more outhouses be
open for the public's use during the winter.
COMMISSIONER KEMP admitted a disparity on restrooms currently
exist, noting that in the Northern Region restrooms are usually
kept open, but are shut down in the Central Region in the
winter. He said this item is on the department's list of things
to review for consistency. He agreed that it's best to keep the
facilities open, although some of the facilities are managed by
the Department of Natural Resources (DNR). He said he fully
understands the issue.
REPRESENTATIVE FEIGE reiterated that the Paxson Lodge was often
the rest stop but is now closed.
2:04:58 PM
JOHN BINDER, Deputy Commissioner, Department of Transportation &
Public Facilities, introduced himself.
COMMISSIONER KEMP explained that the former deputy commissioner,
Mr. Hatter, left the department to take a job in the private
sector. Mr. Binder worked last summer as the operations manager
for the Statewide Aviation, with jurisdiction over 250 rural
airports. He's recently begun his job as deputy commissioner.
SENATOR BISHOP welcomed him.
2:06:41 PM
MR. BINDER offered to provide a PowerPoint update on DOT&PF's
Alaska's aviation system. He said aviation is fundamental and
critically important to Alaska. He turned to the DOT&PF's
mission statements, reading, "Keep Alaska moving through service
and infrastructure." Under the mission's umbrella, the two
aviation components have developed purpose statements. The
Alaska International Airport System's (AIAS) mission statement
reads: "To keep Alaska flying and thriving," which emphasizes
the business enterprise role in Alaska's economy. The Statewide
Aviation (SWA) services many rural communities without road
access. SWA's mission statement reads: "To sustain and improve
the quality of life throughout Alaska."
2:07:50 PM
MR. BINDER, noting he oversees the AIAS and the rural airport
systems, described the organization of DOT&PF's aviation program
[slide 3]. Overall, the DOT&PF owns 254 airports, with 252
airports falling under the rural airport system - often referred
to as Statewide Aviation or (SWA). The AIAS was established 50
years ago, when legislators recognized the advantages of
operating the two major airports as a system instead of having
the two airports competing with one another [slide 4].
Operating as a system the aviation fund has been completely
self-sustaining through the rates and fees charged to the AIAS
users. Therefore, general fund dollars are not requested or
needed to operate the airports. However, this requires the
DOT&PF must interact daily with its customer base and operate
with an agile and market-completive business enterprise - one
that is "high-value." It must also demonstrate to the airlines
that the AIAS operates by being good stewards of the rates users
pay to use the system.
2:09:01 PM
MR. BINDER turned to slide 5, entitled, "Annual Revenues and
Operations, Maintenance and Debt Costs - Funded from Customer
Charges." In fiscal year 2013 (FY 2013), AIAS received
approximately $114 million in annual operating revenues,
including interest income and passenger facility charges (PFC)
collected. The AIAS has approximately $1.5 billion in assets
and obtains an average of approximately $50 million per year in
federal capital contributions through the Airport Improvement
Program (AIP) funds. Rate and fee charges assessed to customers
are developed and administered by the passenger terminal lease
and operating agreements - the contracts between AIAS and
individual members of the majority of its airline customers.
The customers, mainly air carriers, recognize, understand, and
endorse these legally binding agreements. These agreements
allow the DOT&PF to address rising costs or lower activity -
fewer take-offs and landings - in a slowing economy by imposing
adjustments to the rates and fees charged.
2:10:16 PM
MR. BINDER turned to a chart that depicts monthly revenues,
entitled, "Airfield Revenue Activity" by certified maximum gross
take-off weight over the past four fiscal years [slide 6]. He
pointed out the red line depicts FY 2014 to date. He noted the
steady decrease in revenue, driven primarily by the global
economy, airline fleet mix changes, and competitor airports. He
related that FY 2013 overall experienced a 5 percent decrease in
revenue from the prior year, and FY 2014 is down 1 percent
compared to last year for the same time period.
2:10:42 PM
MR. BINDER referred to an increase in passenger activity during
October and November 2013, which has helped to mitigate some of
the continuing drop in cargo [slide 7]. This chart depicts
number of passenger enplanements or the number of people who
boarded aircraft in the past four fiscal years. In contrast to
the cargo trend, passenger traffic at the AIAS has continued to
climb. The department continues to work with visitor bureaus
and economic development corporations in Alaska to help guide
the long-term planning in order to capitalize on this market
opportunity.
2:10:54 PM
MR. BINDER turned to slide 8, entitled "Operating Agreement with
Air Carriers." He characterized the new operating agreement as
a significant achievement with thirty airlines having signed the
agreement to date. Not only has this validated the existing
agreement structure but the new agreement contains several new
provisions, including increasing the terms from five to ten
years. It also enhances collaboration between the airport and
the airlines on issues such as capital projects, debt service
handling, and shared maintenance responsibilities, while it
retains the airline supported financial protection for payment
of system costs, as well as preferential assignment of gates and
parking based on airport usage. The airlines' primary interface
with the AIAS is achieved through the Airline Airports Affairs
committee, which conducts regular teleconferences and quarterly
face-to-face conferences to address any air carrier concerns.
2:12:30 PM
MR. BINDER turned to slide 9, entitled "Strategic Planning &
Marketing" and said that strategic planning is vital in
maintaining economic viability in the global marketplace. The
AIAS continues to conduct internal and external assessments in
order to identify any areas that need refinement or improvement
to stay competitive. This year's strategic agenda includes
improving external communications, employing development and
integration of technologies into operations, and finalizing
business and marketing plans to help guide strategic engagements
in the passenger and the cargo marketplace worldwide.
Communication with state agencies and economic development
corporation continues to be critical as the state promotes the
international airports, particularly with Asian carriers who
account for more than 90 percent of all cargo that passes
through Anchorage and Fairbanks.
2:13:22 PM
MR. BINDER said that as Commissioner Kemp alluded to, master
plans are not only required by Federal Aviation Administration
(FAA) regulations, but they make good sense [slide 10]. The
planning process includes comprehensive public engagement,
assessing numerous future growth scenarios, selecting preferred
options, and soliciting public comment. Both the Anchorage and
Fairbanks master plans are scheduled to be completed this
summer. The phased-approach plans have experienced great
success thus far and have gained overall community. He pointed
out that the links on the slide provide additional information,
[as follows:
http://dot.alaska.gov/aias/news;
http://pdcprojects.info/FAIMasterPlan;
http://www.ancmasterplan.com].
2:14:08 PM
MR. BINDER turned to slide 12 entitled "Rural System Scope and
Scale." He explained that the rural system contains all state-
owned airports minus the Anchorage and Fairbanks international
airports and makes up the largest aviation system in North
America.
2:14:18 PM
SENATOR FAIRCLOUGH, referring back to slide 5, related to
terminal rents and concessions percentages and dollar amounts,
asked for a comparison for the past five years on whether lease
rates have increased or decreased in the past five years. She
further asked if any trending on the airport revenues generated.
Additionally, she asked to speak to the DOT&PF off-line about
leasing and the non-competition clause at Anchorage
International Airport.
MR. BINDER offered to provide the information.
2:15:32 PM
MR. BINDER said that rural contractors, DOT&PF, and
municipalities perform a tremendous job by keeping this critical
lifeline open to communities throughout the year. As previously
mentioned, airports provide the only practical access for 82
percent of Alaska's communities that lie off the state's main
road system.
2:15:54 PM
MR. BINDER pointed out that Alaska depends significantly on the
FAA's Airport Improvement Program (AIP) for the majority of its
capital project funding for the rural system. Although funding
has declined in the past few years, the current federal FY 14
Omnibus bill as signed includes full AIP funding, which had been
cut last year by sequestration. He noted the primary projects
listed are expected to receive capital funding over the next two
years [slide 13]. Additionally, the DOT&PF has developed an
Alaska airport needs directory that includes all state-owned
airports. The directory provides insight into construction
history, revenues, operating costs, and existing infrastructure,
as well as well as other details. He encouraged members to
review the document and provide the DOT&PF with any
recommendations. He commented that he has already passed out
some copies to legislators. The needs directory document is
located electronically [at http://dot.alaska.gov/airport-portal-
newsres.shtml.]
2:16:50 PM
REPRESENTATIVE FEIGE, referring to slide 13, asked for
clarification on rural access.
MR. BINDER responded that the rural access encompasses items,
such as modifying or lengthening the runway to accommodate more
aircraft or obstruction clearing to enable instrument approach
capabilities. Most of the projects listed are for runway
extensions, taxiway rehabilitation, and several airport
reconstructions, he said.
2:17:42 PM
SENATOR BISHOP asked whether the 20-to-1 glide slope falls under
the rural access from federal directive.
MR. BINDER, after consulting with [staff] answered yes, it does.
2:17:59 PM
REPRESENTATIVE FEIGE asked for further clarification on 20-to-1
glide slope. He related his understanding that it referred to
the obstruction clearance plane that starts from the center of
runway and increases by one foot slope every twenty feet out.
MR. BINDER answered that is correct. Of several slopes that
affect airports, this specific 20-to-1 issue addresses the
visible glide path from the missed approach point for non-
precision approaches beginning 200 feet from the end of the
runway and starts up.
2:19:01 PM
MR. BINDER turned to slide 14, entitled "Alaska Aviation System
Plan (AASP)," which refers to a five-year AIP funding plan to
assist airport owners to develop a system-wide 20-year vision
and an associated implementation plan. This includes processes
and products needed to maximize service and efficiency while
minimizing cost. Many of the highlighted items on slide were a
result from the last contract ended early in 2013. The
continuing system plan contract began this fall. The tasks
authorized during the next 12 months include the public
involvement plan, the airport Capital Improvement and
Maintenance Program, as well as associated workgroups and
research. These workgroups address issues such as the 20-to-1
glide slope, obstructions and obstacles, and airspace.
2:20:12 PM
CHAIR P. WILSON referred to one item on slide 14, listed as 2008
AASP Phase 1, Stage 1 Report. She asked whether other phases
will follow or if it will all be done under Phase 1.
MR. BINDER answered yes; that phase 1 encompasses the next 12
months of the program and assesses what will happen during the
next five years. Everything that follows could be considered as
Phase 2, including DOT&PF's assessment of emerging issues.
2:21:16 PM
SENATOR FAIRCLOUGH referred to slide 14, to 2013 and the Alaska
Bypass Mail: Preparing for Change item listed. She asked for
any insight into this issue. She related her understanding that
the federal government has taken on this issue but asked for
DOT&PF's perspective.
MR. BINDER responded that the specific report was prepared early
in 2013, when the bypass mail funding was a significant issue at
the federal level. Bypass mail funding typically arises when
the federal government considers budget cuts; however, Alaska is
affected more than Lower 48 states by cuts since the program
subsidizes Alaska's rural communities. In mid-summer this issue
was tabled at the federal level and DOT&PF has not heard further
discussion since then. The DOT&PF provided a "talking paper" to
brief Alaska's Congressional Delegation, which was first
reviewed by the Parnell administration. The DOT&PF will
continue to monitor and review the bypass mail issue since it
will adversely impact rural Alaska communities and ultimately
rural consumers.
2:22:53 PM
MR. BINDER turned to slide 15, entitled "Aviation Challenges"
noting that the DOT&PF continues to feel increasing regulatory
pressure from federal agencies. While local federal agencies
have been receptive and helpful, he pointed out a "disconnect"
has arisen stemming from changes in the federal decision-making
process. Many decisions previously made by local federal staff
are being made at higher levels in the federal government by
decision-makers with less awareness and appreciation for the
uniqueness of Alaska and the realities Alaska experiences. The
DOT&PF continues to work on its relationships with federal
agencies, ensuring that local federal staff is briefed on
specific issues so they can articulate them to headquarters in
the Lower 48.
MR. BINDER outlined challenges, such as decreasing AASP funding
for infrastructure improvements, regulatory compliance, and
weather challenges, especially since much depends on the ability
to predict winter events. He highlighted the Environmental
Protection Agency's (EPA) ban on the use of urea, which is a
deicing agent used as by airports. The new deicing agent -
[Cryotech] E36 - is a little more than twice as expensive as
urea and thus far has not been as effective. Its effectiveness
depends on the application so airport staff has been fine-tuning
the application procedures. This year significant freeze-thaw
cycles exist statewide, which impacts deicing.
2:24:40 PM
CHAIR EGAN asked whether the DOT&PF has ever received permission
to use the Alaska Marine Highway System (AMHS) to transport
deicing agents, which were a concern due to toxicity issues.
MR. BINDER was unsure, but offered to report back.
2:25:04 PM
REPRESENTATIVE FEIGE asked why urea was banned since it is
commonly used as fertilizer in the Lower 48. Since it doesn't
corrode aluminum it is a good substitute for salt on airport
runways, he said.
MR. BINDER answered he was unsure of the details, but he
understood the directive was an EPA ban. He offered to provide
more details to the committee.
2:25:46 PM
REPRESENTATIVE ISAACSON commented that he appreciated meeting
with Mr. Binder earlier to discuss concerns. He appreciated the
DOT&PF's ongoing assistance with customs in the Northern Region
to ensure the Fairbanks International Airport (FIA) can be kept
open on weekends for non-scheduled international traffic.
2:26:24 PM
MR. BINDER pointed out the DOT&PF has had success working with
federal agencies, for example, the Federal Aviation
Administration (FAA) has backed off on the 20-to-1 issue and the
Transportation Security Administration (TSA) has modified its
screening process. He elaborated that in the past TSA placed
significant pressure on rural airports, even though the DOT&PF
has argued that the threat and risk at rural airports is minimal
and not enough to warrant imposing some regulations. He
highlighted that TSA has implemented a risk-based approach using
Alaska as the test case in places such as Barrow and Adak.
CHAIR P. WILSON commented that passengers have appreciated the
TSA changes since it speeds up the pre-check security process.
2:28:19 PM
REPRESENTATIVE LYNN thanked the department for the rural airport
tour. He hoped other legislators would be able to visit the
airports.
MR. BINDER named several rural airports the legislative group
visited this past summer, including Chefornak, Tuntutuliak, and
Kwigillingok - often called Kwig. He encouraged members to
participate in future tours of rural Alaska since this offers
them an opportunity to view first-hand the challenges at rural
airports.
2:29:37 PM
REPRESENTATIVE JOHNSON related his understanding that when
Alaska Airlines eliminates one plane by adding passengers to
flights, it represents fewer fees to the airport since fees are
based on landings and not the number of passengers. He asked
whether DOT&PF has done any analysis on the impacts smaller
planes will have on landings and the fee structure, including
anticipated impacts the smaller Bombardier planes serving
Fairbanks will have on landing fees. He recalled that the
Alaska Airline changes would increase passengers by about nine
per flight.
MR. BINDER responded that the proposed change would have minimal
impact since landing fees are based on the gross weight of the
aircraft. He elaborated that the weight-based cutoff is at
12,500 pounds and below, which exempts most of the small
aircraft and private pilots. The landing rates are also lower
for signatory carriers or those that have signed an operating
agreement. Thus the rates are a little higher rate for those
not signing the agreement, he said.
2:32:43 PM
REPRESENTATIVE JOHNSON asked for him to address specific fees.
MR. BINDER answered that he did not have figures for the Q400,
but the fees for 737s fees are currently approximately $386 per
landing for signatory carriers and 25 percent more for non-
signatory carriers. He anticipated the Q400 fees would be
comparable since it will be based on maximum weight and there
won't be a significant change in aircraft weight.
REPRESENTATIVE JOHNSON, for comparison purposes, questioned
whether the Q400 is about the same weight as the 737.
MR. BINDER answered that the Q400 [Bombardier] will be close in
weight.
2:34:04 PM
SENATOR FAIRCLOUGH asked for the estimated growth opportunities
at the airport versus the number of landings and take-offs. In
other words, she asked how full the traffic pattern is and if
any opportunities for increased revenue and growth exist.
MR. BINDER understood Senator Fairclough was specifically
interested in the Anchorage international airport's capacity.
He responded that the overall the AIAS has a large capacity.
The airline flight schedule has several peak times per day when
the system is "maxed out" such as the "red eye." The DOT&PF's
master plan's phased approach will address the peak periods by
diverting several cargo planes to Fairbanks or having an airline
add several more flights to serve Fairbanks. This would help
reduce peak load times since the system has plenty of capacity
outside the peak loads. Currently, the peak times may add
slight delays, but the system makes up that time very quickly.
Again, the overall capacity allows plenty of room for growth
without any changes to the system.
2:36:54 PM
JEFF OTTESEN, Director, Division of Program Development,
Department of Transportation & Public Facilities (DOT&PF),
offered to cover the Arctic ports last since the topic will be
covered by the U.S. Corps of Engineers next week. He turned to
slide 2 entitled "Statewide Long Range Transportation Plan
[SLRTP]." He explained that the SLRTP is a federally required
multi-modal document that encompasses all modes in Alaska. The
plan requires a wide public-involvement that has been expanded
to include a freight component. This plan provides an
opportunity to address any emerging issues the state faces - one
that allows for debate to seek solutions.
MR. OTTESEN reviewed the federal funding rule changes, noting
the FHWA has placed more emphasis on asset management, which
translates to a focus on maintenance. He offered to discuss the
level of funding necessary to repair bridges, pavement, and
other items in the transportation system. Although FHWA funding
has been slightly reduced, more importantly, the FHWA funding
changed in terms of the emphasis on purposes the funds can be
used for. The FHWA has emphasized "big" roads - ones carrying
freight and the majority of the traffic - and has deemphasized
roads that are not in the main system. Additionally, the FHWA
has re-emphasized safety - having tripled the safety dollars to
states - but it cut programs such as the Shakwak Funding
Program, the Denali Commission program, and much of the funding
to the Indian Reservation Road Program. Thus many of the
programs that have been important to the state have been zeroed
out. Finally, the DOT&PF will continue to review demographic
changes Alaska faces, as indicated by slide 3 entitled
"Statewide Long Range Transportation Plan (cont.)".
2:40:16 PM
CHAIR P. WILSON asked whether the Shakwak funding elimination is
permanent. She related her understanding that this funding was
practically considered a treaty with Canada. She related her
conversation with the Pacific NorthWest Economic Region (PNWER)
members earlier today, such that about one-third of the Yukon's
transportation funding is derived from Shakwak funds.
2:41:01 PM
KIM RICE, Deputy Commissioner, Department of Transportation &
Public Facilities (DOT&PF), suggested that the DOT&PF meets with
the Yukon government fairly regularly. She understood the Yukon
Territory has hired a lobbyist in Washington, D.C. to assist
them in restoring Shakwak funding. Further, the DOT&PF has been
supportive since most of the traffic on the Yukon highways is
from Alaskans or U.S. citizens. She characterized the roadway
as being the driveway to Alaska since it also connects to the
Dalton Highway. She recalled the funding was previously set at
$35 million per year and the Yukon has sufficient funds to carry
out their programs for several years. She reiterated that the
DOT&PF has been working with Canada and Alaska's Congressional
Delegation has been supportive; however, it appears to be more
of a foreign affairs issue rather than a transportation issue.
2:42:16 PM
MR. OTTESEN related that the University of Alaska Anchorage -
Institute of Social Research's (ISER) research indicates that
the state's population will increase about 28 percent over the
next 20 years; however, the population growth is skewed to
people over the age of 60, which is anticipated to triple. He
related this has significant implications since people - ages 65
and older - tend to lose either their inclination or ability to
drive, which means the state's transit needs will increase and
the state will continue to become more urbanized. Alaska has
often been mistakenly considered a rural state since most of its
population lives in urban areas. The implication for urban
routes will be challenges to keep up with capacity. He
characterized the Statewide Long Range Transportation Plan
(SLRTP) as being primarily a policy plan rather than one in
which specific projects span aviation, marine highways, the
railway, and highways. Since the plan's focus is more on policy
issues it only portrays a list of projects that will span ten
years based on the department's other planning documents.
2:43:51 PM
CHAIR P. WILSON asked whether less money will be spent on rural
areas or if the "Roads to Resources (R2R)" funds will make up
for some of shortfalls.
MR. OTTESEN answered that the FHWA federal program will
generally have less money for urban and rural communities. The
funds are designated for larger roads typically considered as
being part of the National Highway System roads, such as the
Dalton, Richardson, Glenn, Seward, and the Parks highways. In
Southeast Alaska, the NHS roads are the Haines and Klondike
Highways. Although Egan Drive will receive more FHWA funds,
funding for roads such as the Glacier Highway and Mendenhall
Loop Road funding will be reduced. For example, based on the
formula, Ketchikan will be entitled to only receive about $1
million per year, which is considerably less than its historic
FHWA spending. Therefore, the FHWA funding is insufficient to
meet the communities' needs.
2:45:43 PM
MR. OTTESEN turned to slide 4 entitled, "SLRTP Steps and
Timeline." The dark line on the slide indicates where the
consultant is at in terms of the timeline. He reported that
department will use several mechanisms to conduct public
outreach and next month will hold the first of three
transportation stakeholder group meetings - both live and
webcast meetings.
2:46:09 PM
MR. OTTESEN shifted to slide 5 entitled, "Notable Resource
Roads" and discussed the first of five active resource roads.
First, the road to Tanana, which is essentially a community-to-
community road connecting Tanana to the statewide road network -
even though substantial gold mining occurs in the area. He
described the new road as a simple 12-foot wide, gravel surfaced
"pioneer road." He reviewed the status, that permits are "in
hand" but the project will need some additional rights-of-way
acquisition, and that some bridge work and clearing has been
authorized, but the rest will go into construction in 2014,
pending completion of any right-of-way agreements. He
characterized it as a multiple use project - one that likely
will reduce the cost of milk in Tanana from $10-$12 per gallon
to $5-$6 per gallon.
2:47:19 PM
REPRESENTATIVE ISAACSON remarked that is excited about the road.
He asked for clarification on any communications with Tanana
since Manley Hot Springs also has a right-of-way and Doyon's
[Limited] platforms has begun pushing towards Tanana. He asked
whether the department has been working to complete the
triangular loop and for a status report.
MR. OTTESEN answered that he will need to speak to the Northern
Region's director, Steve Titus, for more information. He
recalled holding one telephone meeting with the mayor to discuss
the bridge project, but related he did not discuss the
triangular connection. He offered to obtain additional
information for the committee.
2:48:33 PM
MR. OTTESEN continued. He stated that the map [on slide 7]
shows the proposed route. He referred to this project as being
an example of a successful rapidly-executed community and
resource road project.
MR. OTTESEN turned to slide 8 entitled, "Ambler District
Access." He described the Ambler Mining District as being one
of the world's richest mining districts consisting of copper,
zinc, lead, silver, and gold deposits. The DOT&PF has already
performed field work and outreach with the villages, but
ultimately decided this road would be best as a "resource owner
financed" project since the state isn't likely to fund the
hundreds of millions of dollars necessary for the project. This
decision led to a public-private partnership (PPP) with
significant advantages for the owner, including the ability to
pay for the road during the life of the mine. Thus the project
has been transferred from DOT&PF to Alaska Industrial
Development and Export Authority (AIDEA). He said this will
likely become the model in instances in which the resource owner
needs to finance the road and the PPP represents the best
approach for these types of projects.
2:50:20 PM
CHAIR EGAN asked whether village concerns have been addressed
and if the route has been finalized.
MR. OTTESEN answered that he has not been directly involved in
this effort since AIDEA is now leading the project. He pointed
out several alternatives have been discussed with the current
route focus at the south flank of the Brooks Range [depicted in
red on slide 9].
2:50:54 PM
MR. OTTESEN brought up the third resource project, referring to
slide 10 entitled, "Foothills West Access." Sometimes referred
to as the Umiat project, it is currently in a holding pattern
while Linc Energy completes its winter drilling to better define
the prospects. Linc Energy has indicated to DOT&PF that the
company would like the pipeline and the road to be permitted
under a single Environmental Impact Statement (EIS) if the
drilling results are sufficiently positive, which would "take
the state out of the picture" since DOT&PF is not involved in
building pipelines for the private sector. He reported that
Linc Energy would like to discuss this further with AIDEA if the
road project moves forward, which also suggests that DOT&PF will
likely "shed this project." Referring to the map on slide 11
entitled, "Foothills West Alternatives." He pointed out a
series of alternatives under consideration, including one from
Meltwater that tie into the road network serving Prudhoe Bay.
He pointed out three proposed routes link up to the Dalton
Highway by either heading due east or southeast.
2:52:34 PM
MR. OTTESEN next turned to slide 12 entitled, "Shelter Cove
Road" which lies near Ketchikan. This project was funded by the
legislature in 2008 and 2012 with bond packages approved by the
voters and will entail constructing a 14-foot wide, single-lane
gravel road. He described the project as a combination of new
road, new alignment, and upgraded road on an existing alignment.
Several ownerships exist for the land, including the Department
of Natural Resources, the Mental Health Trust, and the U.S.
Forest Service. Since a number of resource and recreational
sites are on this route it is considered a multi-purpose road
rather than a resource road. He gave the status of the project,
noting a U.S. Corp of Engineers permit is expected in 2014 and
construction is most likely to occur in 2015, although work
could begin if the permit is issued sooner. He pointed out that
the route is difficult to see on the map [slide 13] but falls
within the blue cloud-like area.
2:54:00 PM
MR. OTTESEN next reported on slide 14 entitled, "West Susitna
Access Reconnaissance." He stated that several members of the
legislature expressed interest in this particular route. The
department- completed a draft report, which is due to be posted
on the department's website later today. This report is quite
lengthy, but he offered to distribute copies to members in a few
days. He suggested that the project could benefit numerous
users and will provide access to state land, which suggests the
route would be more of a public road with multiple users. He
stated that at this time the project is not funded and no
further work is planned.
2:55:17 PM
CHAIR P. WILSON asked for a "ballpark figure" of the overall
cost of the Shelter Cove Road.
MR. OTTESEN estimated the project will cost hundreds of millions
of dollars, although it will depend on the specific alignment;
however, no matter which route is selected the road must span a
large crossing over the Susitna River, which he estimated to
cost $80 million. He said additional funds would be necessary
if the road accessed coal fields to southwest.
2:55:58 PM
REPRESENTATIVE ISAACSON asked for clarification on any minerals
and potential energy uses in the area. He further asked if the
department is working on transmission plans and how the plans
are being coordinated.
MR. OTTESEN responded that the department had performed
additional work on the report to document the resources. He
described the resources as being "many and plentiful" including
oil, gas, coal, hydroelectric, wind, and geothermal. He
indicated that 70 to 80 different resource owners have been
identified. He said the interest by resource owners ranges from
very high to the fear that state projects might impact other
projects that fall under National Environmental Policy Act of
1969 (NEPA). He concluded that lots of resources exist and the
DNR has expressed interest due to access to resources, such as
timber and potential lot sales to the public.
2:58:05 PM
REPRESENTATIVE FEIGE commended the DOT&PF on the cross-agency
work with DNR to match up the plan, use, and potential payoff to
the state, but the key will be the location for crossing the
Susitna River. He suggested that the current site depicted is
one of the few points on the Susitna River to cross to the west
side. Since this lies west of the mouth of the Yenta River, it
would eliminate the need to cross that drainage as well. He
said he appreciated the efforts the department has made.
2:59:32 PM
SENATOR FAIRCLOUGH asked whether the department is required to
prepare the Statewide Transportation Improvement Program (STIP)
annually under federal requirements. In response to a question,
she clarified she thought his earlier testimony indicated that
the department conducted the plan annually.
MR. OTTESEN answered that the Statewide Long Range
Transportation Plan (SLRTP) must be updated every five years
whereas the STIP must be updated every two years with a four
year horizon. Additionally, the STIP must be aligned and
consistent with the SLRTP, but both plans are required by
federal agencies.
3:01:25 PM
ADJOURNMENT
There being no further business before the committees, the joint
meeting of the Senate and House Transportation Standing
Committees was adjourned at 3:01 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 2013 DOT Milestones.pdf |
HTRA 1/23/2014 1:00:00 PM |
|
| DOT Joint Transp Program Updates 1 23 14.pdf |
HTRA 1/23/2014 1:00:00 PM |
|
| DOT Joint Transpo Department Overview 1 23 14.pdf |
HTRA 1/23/2014 1:00:00 PM |
|
| DOT Joint Transpo Aviation Overview 1 23 14.pdf |
HTRA 1/23/2014 1:00:00 PM |