Legislature(2021 - 2022)BARNES 124

02/23/2021 01:00 PM House TRANSPORTATION

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Audio Topic
01:02:26 PM Start
01:10:17 PM Overview: Roads & Highways
02:57:04 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Overview: Roads & Highways by TELECONFERENCED
- Commissioner John MacKinnon
- Deputy Commissioner Rob Carpenter
- Ryan Anderson, Northern Region Director
- Lance Mearig, Southcoast Region Director
- Wolfgang Junge, Central Region Director
**Streamed live on AKL.tv**
                    ALASKA STATE LEGISLATURE                                                                                  
            HOUSE TRANSPORTATION STANDING COMMITTEE                                                                           
                       February 23, 2021                                                                                        
                           1:02 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Grier Hopkins, Chair                                                                                             
Representative Ivy Spohnholz                                                                                                    
Representative Harriet Drummond                                                                                                 
Representative Sara Hannan                                                                                                      
Representative Tom McKay                                                                                                        
Representative Kevin McCabe                                                                                                     
Representative Mike Cronk                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
OVERVIEW: ROADS & HIGHWAYS                                                                                                      
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JOHN MACKINNON                                                                                                                  
Commissioner                                                                                                                    
Department of Transportation & Public Facilities                                                                                
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented a PowerPoint and answered                                                                      
questions.                                                                                                                      
                                                                                                                                
DOM PANNONE                                                                                                                     
Director, Administrative Services Division                                                                                      
Department of Transportation & Public Facilities                                                                                
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented a PowerPoint and answered                                                                      
questions.                                                                                                                      
                                                                                                                                
RYAN ANDERSON                                                                                                                   
Northern Region Director                                                                                                        
Department of Transportation and Public Facilities                                                                              
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:     Presented  a  PowerPoint   and  answered                                                             
questions.                                                                                                                      
                                                                                                                                
WOLFGANG JUNGE                                                                                                                  
Central Region Director                                                                                                         
Department of Transportation & Public Facilities                                                                                
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:     Presented  a  PowerPoint   and  answered                                                             
questions.                                                                                                                      
                                                                                                                                
LANCE MEARIG                                                                                                                    
Southcoast Region Director                                                                                                      
Department of Transportation & Public Facilities                                                                                
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:     Presented  a  PowerPoint   and  answered                                                             
questions.                                                                                                                      
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:02:26 PM                                                                                                                    
                                                                                                                                
CHAIR  GRIER HOPKINS  called  the  House Transportation  Standing                                                             
Committee  meeting   to  order   at  1:02   p.m.  Representatives                                                               
Spohnholz,  Drummond,  Hannan,  McKay,  McCabe,  and  Cronk  were                                                               
present at the call to order.                                                                                                   
                                                                                                                                
CHAIR HOPKINS asked committee members  to go around the table and                                                               
introduce themselves one by one, and all members did so.                                                                        
                                                                                                                                
^OVERVIEW: ROADS & HIGHWAYS                                                                                                     
                   OVERVIEW: ROADS & HIGHWAYS                                                                               
                                                                                                                              
1:10:17 PM                                                                                                                    
                                                                                                                                
JOHN  MACKINNON,  Commissioner,  Department of  Transportation  &                                                               
Public  Facilities (DOT&PF),  shared  a PowerPoint  presentation,                                                               
which  was included  in  members'  packets.   He  began with  the                                                               
responsibilities  and structure  of  the  DOT&PF, which  included                                                               
Alaska Aviation  and the Alaska  International Airport  System on                                                               
the aviation  side, and  Alaska Marine  Highway System  (AMHS) on                                                               
the marine side.   There was also a  facilities service division,                                                               
he  added,  which  this  year  has  absorbed  the  Department  of                                                               
Administration's leasing component.                                                                                             
                                                                                                                                
COMISSIONER MACKINNON stated the  DOT&PF also managed measurement                                                               
standards and commercial motor vehicle  compliance.  An important                                                               
part  of the  DOT&PF  was also  program  development, he  stated.                                                               
Finally, the DOT&PF  managed the state equipment  fleet, he said.                                                               
The  DOT&PF  was  divided  into   three  regions,  he  explained:                                                               
Northern   Region,  Central   Region,   and  Southcoast   Region.                                                               
Commissioner  MacKinnon  directed  attention to  the  outline  of                                                               
Alaska superimposed onto  a map of the  contiguous United States,                                                               
exemplifying  the former  was almost  as large  as the  latter in                                                               
terms  of size  served,  emphasizing the  takeaway  was when  all                                                               
infrastructures were taken into  consideration, including the 235                                                               
rural airports,  140 of which  are off  the road system  and thus                                                               
the "only way in or out,"  the DOT&PF served "every Alaskan every                                                               
day."                                                                                                                           
                                                                                                                                
COMMISSIONER  MACKINNON   presented  a   detailed  list   of  the                                                               
components  which made  up DOT&PF's  infrastructure  on slide  2.                                                               
These included  837 public  buildings maintained  as well  as the                                                               
longest  highway  tunnel  in  the  country,  the  2.5-mile  Anton                                                               
Anderson Tunnel.                                                                                                                
                                                                                                                                
1:18:28 PM                                                                                                                    
                                                                                                                                
DOM PANNONE, Director,  Administrative Services Division, DOT&PF,                                                               
referenced  slide  3, on  the  2021  Fiscal Year  (FY)  operating                                                               
budget, which  was $606  million.  He  explained each  segment of                                                               
the pie  chart, of which  the green-colored segment,  or "other,"                                                               
was  the biggest  at around  $187  million and  was comprised  of                                                               
interagency receipts  for DOT&PF services,  international airport                                                               
revenue funds,  and the highway  equipment working  capital fund.                                                               
The   purple  segment,   at   $167   million,  included   Capital                                                               
Improvement Project  receipts, and paid for  engineers, planners,                                                               
and  the personnel  who delivered  projects.   The  blue and  red                                                               
segments, at $149  and $101 million respectively,  were the state                                                               
operating   budget.     These  segments   were  also   designated                                                               
unrestricted  general funds  (UGF) and  restricted general  funds                                                               
(RGF), respectively.                                                                                                            
                                                                                                                                
MR. PANNONE  moved on  to the  second pie chart  on the  slide 3,                                                               
which   showed   $875  million   in   federal   funds  paid   for                                                               
infrastructure  and  improvement  projects.    The  state  funds,                                                               
$65,000 UGF  and $16,000 RGF,  were the  ones needed in  order to                                                               
receive federal  dollars, he  explained.   The line  graph showed                                                               
the budget  for the two  biggest programs, AMHS and  Highways and                                                               
Aviation, he stated.   The significant drop shown for  2020 vis a                                                               
vis AMHS  was a $40  million reduction in  UGF; the RGF  showed a                                                               
15% decrease in  budgeted funding over the past five  years.  The                                                               
message  was that  reductions in  funding directly  affected what                                                               
services could be  offered to the public.  Mr.  Pannone offered a                                                               
detailed explanation  of slide 4,  which outlined  what comprised                                                               
funding.    The graphs  showed  how  much  funding was  spent  on                                                               
highways  by  region:    Northern  Region,  Central  Region,  and                                                               
Southcoast Region.  The AMHS  was included  in this  revenue, Mr.                                                               
Pannone offered,  as the  AMHS was part  of the  National Highway                                                               
System.  A portion of funds received was from riders, he added.                                                                 
                                                                                                                                
1:23:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HANNAN   asked  about   CARES  Act   funding  for                                                               
transportation, and if the difference  between "new" and "always"                                                               
federal money were reflected in cost breakdown.                                                                                 
                                                                                                                                
MR. PANNONE replied  federal money existed in  the capital budget                                                               
as  was   typical;  federal  funds   were  received   to  improve                                                               
infrastructure,  but  beyond  those improvements  themselves,  in                                                               
almost   all   cases   maintenance  was   largely   the   state's                                                               
responsibility.   In  terms of  CARES, federal  funds which  were                                                               
usable in the operating budget were  received.  He would be happy                                                               
to provide a breakdown, he added.                                                                                               
                                                                                                                                
REPRESENTATIVE HANNAN  asked if  the slides  reflected additional                                                               
federal  operational  money or  only  the  federal capital  money                                                               
ordinarily received.                                                                                                            
                                                                                                                                
MR. PANNONE replied, referencing slide  1, FY 21 operating budget                                                               
would have  $35 million from  federal authority on  the operating                                                               
side from  CARES funding, but  some of it was  being reprogrammed                                                               
for next fiscal year.                                                                                                           
                                                                                                                                
1:26:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SPOHNHOLZ  asked if  she had heard  correctly that                                                               
50% of AMHS budget came from rider fares.                                                                                       
                                                                                                                                
MR. PANNONE replied  traditionally the budget was 50%  UGF and it                                                               
did come from fares.                                                                                                            
                                                                                                                                
REPRESENTATIVE SPOHNHOLZ mused if only  land highways did as well                                                               
as marine highways.                                                                                                             
                                                                                                                                
1:26:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCABE asked  if 50%  of fares  covered the  AMHS                                                               
where the other 50% came from.                                                                                                  
                                                                                                                                
MR.  PANNONE   replied  in   Governor  Mike   Dunleavy's  current                                                               
operating  budget for  the AMHS,  $51 million  was budgeted  from                                                               
general  fund receipts  and $45  million was  budgeted from  AMHS                                                               
funds which  were derived from  receipts, so roughly half  of the                                                               
AMHS budget was revenue and half general funds.                                                                                 
                                                                                                                                
REPRESENTATIVE MCCABE  clarified half of operating  cost for AMHS                                                               
was subsidized by the state and half came from collected fares.                                                                 
                                                                                                                                
MR. PANNONE replied yes.                                                                                                        
                                                                                                                                
1:28:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN asked  how much of the motor  fuel tax went                                                               
toward  the  operational  cost of  Alaska's  highways,  and  what                                                               
percentage that would be.                                                                                                       
                                                                                                                                
MR. PANNONE  referenced slide 4,  which showed  approximately $35                                                               
million  was  collected  on  gasoline   sales,  and  went  toward                                                               
maintenance and operations.   He referenced the table  on slide 4                                                               
which broke down motor fuel receipts.                                                                                           
                                                                                                                                
1:30:01 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  MACKINNON  mentioned  DOT&PF owned  and  maintained                                                               
almost 5,400  roads.   There was  an annual  capital construction                                                               
program, funded 93%  by federal funds, of about  $500 million per                                                               
year.   In March of 2020  when folks started feeling  the effects                                                               
of COVID-19,  the DOT&PF  realized things  could be  in jeopardy,                                                               
but by  making a COVID-19  mitigation plan  alongside contractors                                                               
and among  the construction industry,  which was  communicated to                                                               
the  Alaska Municipal  League, annual  construction program  went                                                               
off  with "hardly  a hiccup."   Since  so many  families' incomes                                                               
were involved, especially, Commissioner  MacKinnon shared that he                                                               
was very proud of the DOT&PF's  efforts to "keep things open most                                                               
of  the time."    He  mentioned the  closure  of  the Silver  Tip                                                               
maintenance station,  located at the  junction of the  Seward and                                                               
Hope  Highways,  which  had been  a  challenge,  having  recently                                                               
experienced weather  conditions the likes  of which had  not been                                                               
seen since 1983.  He also  brought up Klondike Highway, closed by                                                               
avalanche  on numerous  occasions, to  illustrate that  even when                                                               
working  under  full  capacity,   stations  were  closed  due  to                                                               
weather.                                                                                                                        
                                                                                                                                
COMMISSIONER  MACKINNON  said motor  fuel  tax  receipts came  in                                                               
lower than  was expected,  which he compared  to getting  part of                                                               
the  budget  in  Canadian  Dollars [meaning  value  was  lost  in                                                               
conversion].    Limited  resources  were  due  to  equipment  and                                                               
personnel  both, he  said.    He added  at  least 12  experienced                                                               
personnel  retired  recently, he  said,  and  the positions  they                                                               
vacated would not be filled easily.                                                                                             
                                                                                                                                
1:36:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCABE  asked  about hybrid  vehicles  and  their                                                               
impact in terms of unrealized motor fuel taxes.                                                                                 
                                                                                                                                
COMMISSIONER MACKINNON replied he could  find an answer but there                                                               
had been  a steady decline  in motor  fuel tax receipts  over the                                                               
last four or  five years.  He mentioned a  way to "capture" would                                                               
be to  raise registration fees  for electric vehicles.   He added                                                               
federal gas tax  has not been increased since 1993,  but the cost                                                               
of highway construction had more than doubled during that time.                                                                 
                                                                                                                                
1:38:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SPOHNHOLZ asked  what  the impact  was on  2020's                                                               
motor fuel  tax revenue  with the increase  in telework  and thus                                                               
reduction of commuting due to COVID-19.                                                                                         
                                                                                                                                
COMMISSIONER  MACKINNON  replied  since July  2020  numbers  were                                                               
about 80-85% of what had been expected.                                                                                         
                                                                                                                                
1:40:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCABE   asked  if  there  was   a  corresponding                                                               
downturn in maintenance needed as well.                                                                                         
                                                                                                                                
COMMISSIONER MACKINNON  replied he  did not  see any  downturn in                                                               
maintenance as snow still needed  to be cleared off, and potholes                                                               
were  caused  by freeze/thaw  action  and  old pavement,  not  by                                                               
traffic, and  80-85% of  normal traffic on  roads would  not make                                                               
that much of a difference.                                                                                                      
                                                                                                                                
1:42:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN asked for  clarification if the downturn in                                                               
motor fuel tax had captured was 80-85% of usual.                                                                                
                                                                                                                                
COMMISSIONER MACKINNON replied the DOT&PF  saw a 15% decline, and                                                               
that he would send a graph.                                                                                                     
                                                                                                                                
1:44:23 PM                                                                                                                    
                                                                                                                                
RYAN  ANDERSON,  Northern   Region  Director,  DOT&PF,  continued                                                               
presenting  with   slide  6.  He  imparted   that  geographically                                                               
speaking, Northern Region was the  largest, with 90 airports, 390                                                               
bridges, 8  maintenance districts, and 322  personnel working out                                                               
of  37  maintenance  camps.   Northern  Region  also  served  124                                                               
communities,  6  boroughs, over  50  city  governments, over  100                                                               
tribes,   and one metropolitan  planning organization  (MPO), the                                                               
Fairbanks  Area  Surface   Transportation  Planning  Organization                                                               
(indicated as FAST Planning on  the slide), composed of mayors of                                                               
Fairbanks and  North Pole, representatives of  the Fairbanks City                                                               
Council  and  North Star  Borough  Assembly,  as well  as  DOT&PF                                                               
representatives.  The  Northern  Region design  and  construction                                                               
team,  comprised  of 200  full-time  and  70 seasonal  employees,                                                               
historically   delivered  $200   -   $250   million  dollars   in                                                               
construction  contracts for  airports and  highway infrastructure                                                               
projects throughout the Northern Region.                                                                                        
                                                                                                                                
1:46:31 PM                                                                                                                    
                                                                                                                                
CHAIR HOPKINS  asked the $250 million  came out to about  half of                                                               
the $500 million the state put forward.                                                                                         
                                                                                                                                
MR. ANDERSON  replied the  number included  airports as  well, so                                                               
the number represented  airport and highway funds,  so it usually                                                               
came out to 30% or more.                                                                                                        
                                                                                                                                
1:47:21 PM                                                                                                                    
                                                                                                                                
MR. ANDERSON  referenced slide 7, Northern  Region Overall Budget                                                               
evolution  since  2013. The  DOT&PF  used  a variety  of  funding                                                               
sources both  state and federal. approx.  Annual expenditure from                                                               
all funding sources in the  Northern Region was approximately $80                                                               
million.  He  pointed out UGF have declined  since 2013, deferred                                                               
maintenance  funds  have  declined, federal  airport  improvement                                                               
funds  have   maintained.  The  DOT&PF  was,   according  to  Mr.                                                               
Anderson,  reliant on  federal  preventative maintenance  funding                                                               
for  eligible  activities.   These  activities  included  asphalt                                                               
repairs, leveling, resurfacing,  drainage controls, striping, and                                                               
the like.   He pointed out  federal funds were unable  to be used                                                               
for  snow  removal or  routine  maintenance  such as  grading  or                                                               
vegetation  clearing.   Heavy maintenance  on the  Dalton Highway                                                               
was indicated in green on the line graph, he added.                                                                             
                                                                                                                                
1:49:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCCABE  asked about the percentage  of the Federal                                                               
Airport Improvement program.                                                                                                    
                                                                                                                                
MR. ANDERSON  replied the information  could be provided,  and it                                                               
was a small amount.                                                                                                             
                                                                                                                                
1:50:12 PM                                                                                                                    
                                                                                                                                
MR.    ANDERSON    referenced    slide   8,    innovations    and                                                               
accomplishments.   Teams  had developed  road "priority  systems"                                                               
after snow  events.  For  2019-2020, there were 391  snow events.                                                               
After snow,  the target  response for  priority one  highways and                                                               
expressways, 12 hours, was met in  just over ten hours.  Priority                                                               
zones  two,  three,   and  four,  with  18,  24,   and  30  hours                                                               
respectively, didn't do as well.   When taking into consideration                                                               
what should be done with  the information, it was determined that                                                               
a limited  number of staff,  with the help of  technology, should                                                               
do  more.   Looking at  conditions  on a  particular road  before                                                               
heading there was one example.                                                                                                  
                                                                                                                                
MR.  ANDERSON shared  scheduling crews  on 12-hour  shifts during                                                               
the winter to deal with  snow removal helped with target response                                                               
times.   At the  start of  the pandemic,  crews who  had formerly                                                               
been one week on, one week off  on the Dalton Highway went to two                                                               
weeks on,  two weeks off,  which also helped production  in terms                                                               
of less travel  time.  This change did have  an additional budget                                                               
component, he added.                                                                                                            
                                                                                                                                
MR.  ANDERSON  referenced  slide   9,  entitled  Northern  Region                                                               
Capital Program.  He led members  through the chart on that slide                                                               
entitled  "2021 Northern  Region Construction."   He  pointed out                                                               
that due  to COVID-19 and CARES  Act funding, DOT&PF was  able to                                                               
have a  "zero match" for  airport funding,  but he added  that he                                                               
did not anticipate this staying the case indefinitely.                                                                          
                                                                                                                                
1:54:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SPOHNHOLZ asked about the zero match.                                                                            
                                                                                                                                
MR.   ANDERSON  replied   for   the   federally  funded   airport                                                               
improvement program,  which funded airport projects,  there was a                                                               
0% match.                                                                                                                       
                                                                                                                                
1:55:23 PM                                                                                                                    
                                                                                                                                
MR.  ANDERSON  looked  at  slides  focusing  on  an  overview  of                                                               
construction  projects  beginning   with  summer  2021  projects:                                                               
projects already begun  last summer as well as  projects to start                                                               
this coming  summer.  There were  46 projects in all,  in Barrow,                                                               
Kotzebue, Nome, and Cordova, as well as in smaller communities.                                                                 
                                                                                                                                
1:56:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCCABE asked what a segmented circle was.                                                                        
                                                                                                                                
MR. ANDERSON replied  a segmented circle was  a navigation device                                                               
comprised of a set of panels  around a windsock, which served the                                                               
purpose of displaying traffic patterns to airline pilots.                                                                       
                                                                                                                                
REPRESENTATIVE MCCABE  asked if segmented circles  were federally                                                               
mandated.                                                                                                                       
                                                                                                                                
MR.  ANDERSON  replied  advisory  circles were  mandated  by  the                                                               
Federal  Aviation   Association  as  the   currently  recommended                                                               
device, and they were in  the process of being updated throughout                                                               
the state.                                                                                                                      
                                                                                                                                
1:58:07 PM                                                                                                                    
                                                                                                                                
CHAIR HOPKINS  asked about concerns regarding  maintenance on the                                                               
Dalton Highway.                                                                                                                 
                                                                                                                                
MR. ANDERSON  a rainy  summer such as  2019-2020 wasn't  the best                                                               
for road  surfacing, as wet  material degraded quickly.   He said                                                               
DOT&PF was  trying to get more  grading done and was  also trying                                                               
new   techniques   for   pothole    patching.      With   federal                                                               
infrastructure  dollars,  DOT&PF  was always  looking  to  repair                                                               
sections of the  Dalton Highway, he stated.  He  added that south                                                               
of Deadhorse  was to  be paved,  which would  drastically improve                                                               
the road  for truckers.  After  pointing out one more  project on                                                               
the  map, he  said the  DOT&PF  tried to  stay on  top of  Dalton                                                               
Highway maintenance every year.  The  two weeks on, two weeks off                                                               
schedule should improve things even more expediently, he added.                                                                 
                                                                                                                                
2:00:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DRUMMOND asked  if  paving miles  362-414 of  the                                                               
Dalton Highway was a first.                                                                                                     
                                                                                                                                
MR. ANDERSON  replied there  were several  paved sections  on the                                                               
highway, but that that was the northernmost section to be paved.                                                                
                                                                                                                                
2:01:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CRONK  offered that  east of  Toque to  the border                                                               
was the  worst road  in the  state, and yet  it was  considered a                                                               
"lifeline."  He wondered when it could be updated.                                                                              
                                                                                                                                
MR. ANDERSON  replied there was  a lot  of summer work  and there                                                               
were several large capital projects in  the queue.  He offered to                                                               
deliver a list of the projects.                                                                                                 
                                                                                                                                
2:03:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HANNAN asked  where the  infamous "Dalton  slump"                                                               
was in relation to where they were paving.                                                                                      
                                                                                                                                
MR.  ANDERSON replied  about mile  208-209, south  of where  they                                                               
were paving.                                                                                                                    
                                                                                                                                
2:03:44 PM                                                                                                                    
                                                                                                                                
MR. ANDERSON  turned attention back  to slide 11,  Fairbanks area                                                               
projects,  including the  University  Avenue  Bridge project  and                                                               
Third  Street intersection  project.    Other project  highlights                                                               
included quite  a few on  Richardson Highway.  Chena  Hot Springs                                                               
Road  project was  entering its  second year,  with permafrost  a                                                               
continuing challenge  to keeping roads  level and straight.   Air                                                               
convection embankments were being utilized  to try to keep things                                                               
more  frozen.   Thermal  modeling  work  with the  University  of                                                               
Alaska Fairbanks  continued to  inform innovations,  Mr. Anderson                                                               
imparted.                                                                                                                       
                                                                                                                                
2:07:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CRONK  asked  if   Chena  Hot  Springs  Road  was                                                               
becoming  more  qualified  for  federal  funding,  and  what  the                                                               
difference was between highway funding and road funding.                                                                        
                                                                                                                                
MR. ANDERSON  replied there were National  Highway System routes,                                                               
which received  a larger  proportion of  the funding,  and Alaska                                                               
State Highway  Funding, and  Chena Hot Springs  Road was  part of                                                               
the latter category.                                                                                                            
                                                                                                                                
2:08:42 PM                                                                                                                    
                                                                                                                                
MR. ANDERSON  shared that the  University Avenue Bridge  over the                                                               
Chena  River, built  in  1963, would  be  replaced entirely;  the                                                               
Wendell Avenue Bridge,  built in 1953 before  Fairbanks had paved                                                               
roads, would  be replaced in  2021.   Back to the  Dalton Highway                                                               
paving  project about  which Representative  Drummond had  asked,                                                               
maintenance and operations departments  would be working together                                                               
to  closely monitor  the insulated  embankment with  the goal  of                                                               
saving grading work.                                                                                                            
                                                                                                                                
2:11:24 PM                                                                                                                    
                                                                                                                                
CHAIR HOPKINS asked what an insulated embankment was.                                                                           
                                                                                                                                
MR.  ANDERSON replied  an insulated  embankment worked  like home                                                               
insulation.   It was  two to  six inches thick,  went two  to six                                                               
feet down, and  was laid to keep heat from  penetrating down from                                                               
the roads, thus keeping embankments frozen, he said.                                                                            
                                                                                                                                
CHAIR HOPKINS  asked if an  insulated embankment  was constructed                                                               
differently than that of Gold Stream Road.                                                                                      
                                                                                                                                
MR.  ANDERSON replied  Dalton Highway  embankment was  almost ten                                                               
feet high, and it was colder so it would stay frozen longer.                                                                    
                                                                                                                                
MR. ANDERSON spoke  to the last slide, moving  the Dalton Highway                                                               
Drill Rig 28  miles south, an 18-hour move.   This was the second                                                               
year in a row the move will have taken place, he added.                                                                         
                                                                                                                                
2:14:23 PM                                                                                                                    
                                                                                                                                
WOLFGANG  JUNGE,  Central  Region   Director,  DOT&PF,  shared  a                                                               
breakdown of Central Region, which  was a combination of Alaska's                                                               
most urban areas:  Anchorage,  Matanuska-Susitna (Mat-Su) and the                                                               
Kenai  Peninsula,  combined  with   over  80  rural  communities.                                                               
Central Region was  the most populated, with  over 290,000 people                                                               
living  in  the Anchorage  area,  over  100,000 in  Mat-Su,  over                                                               
55,000 down  on the Kenai,  and at  least 15,000 in  rural areas.                                                               
In addition to  the road system, Central Region  also supported a                                                               
robust  aviation network  which  in turn  supported  some of  the                                                               
busiest airports  including Ted Stevens International  Airport in                                                               
Anchorage, hub airports in Bethel,  Dillingham, and Homer, and 69                                                               
smaller  airports  in rural  communities.    Central Region  also                                                               
owned and operated Anton Anderson  Memorial Tunnel, also known as                                                               
the  Whittier Tunnel,  which stretched  2.5  miles and  connected                                                               
Whittier with the National Highway System.                                                                                      
                                                                                                                                
MR. JUNGE  moved onto  Central Region's  operating budget.   Like                                                               
Northern Region, he pointed out,  maintenance and operations were                                                               
largely funded  with state general  funds. The   significant drop                                                               
between FY 16 and FY 17  reflected a boundary change done between                                                               
those  two years,  he stated.   Funding  categories consisted  of                                                               
aviation fuel tax, rural airport  receipts, motor fuel tax, motor                                                               
rental tax, and  program receipts from maintenance  programs.  In                                                               
terms of Central  Region's Capital Budget, Mr.  Junge pointed out                                                               
that  while   2020  was  a   busy  year  with  $196   million  in                                                               
construction payments, 2021 looked to  be quite a bit busier with                                                               
$460 million  in active contracts  either in process or  ready to                                                               
be  bid  on,  representing  at least  40  projects  in  highways,                                                               
aviation,    earthquake    permanent    repairs    and    airport                                                               
infrastructure and  repairs.  The  DOT&PF estimated  the projects                                                               
represented  close  to  $8 million  in  preventative  maintenance                                                               
contracting on  highways and airport  infrastructure.   Mr. Junge                                                               
pointed  out  that as  with  the  other regions,  Central  Region                                                               
required match funds from the state to receive federal funds.                                                                   
                                                                                                                                
MR.  JUNGE  pointed out  that  with  the  CARES Act  money,  like                                                               
Northern  Region, the  federal  aviation match  went  to zero  in                                                               
2021.   In 2021 Central  Region expected to receive  $340 million                                                               
in  its statewide  transportation  improvement  program and  $120                                                               
million for airports under the airport improvement program.                                                                     
                                                                                                                                
2:18:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCCABE  asked whether  the looming  designation of                                                               
the  Mat-Su   borough  as  "metropolitan"   transportation  meant                                                               
funding would be divided differently.                                                                                           
                                                                                                                                
MR. JUNGE  replied funding  for municipal  planning organizations                                                               
(MPOs) was  set and  allocated by  population demographics.   The                                                               
population expected  to come out of  the census for the  2020 MPO                                                               
within  the Mat-Su  borough, primarily  encompassing Wasilla  and                                                               
Palmer, would be  apportioned out of the MPO  funding provided by                                                               
the federal government, he added.                                                                                               
                                                                                                                                
REPRESENTATIVE MCCABE  said he  hoped it  would have  resulted in                                                               
more increased funding.                                                                                                         
                                                                                                                                
MR. JUNGE replied there was  not a larger allocation; the funding                                                               
was just further subdivided among the existing MPOs.                                                                            
                                                                                                                                
2:20:28 PM                                                                                                                    
                                                                                                                                
MR.  JUNGE moved  on  to slide  21,  Maintenance Innovations  and                                                               
Accomplishments,   which   highlighted  some   safety   measures,                                                               
including  an increase  in  brine, which  improved  safety as  it                                                               
helped prevent  bonding between snow/ice  and pavement.   He also                                                               
mentioned  the addition  of week-on,  week-off  schedules at  the                                                               
Bethel airport, which  has helped with filling  positions to keep                                                               
the airport  open.  Despite  record-setting rain  levels, highway                                                               
closures were avoided due to  20-hour coverage on Seward Highway.                                                               
In addition, LED lighting system  upgrades have lowered costs and                                                               
increased service  life.  As  far as accomplishments,  there were                                                               
several drainage and surface repairs noted.                                                                                     
                                                                                                                                
MR.  JUNGE  moved  on  to   slide  22,  Regional  Construction  -                                                               
Anchorage.  He noted  that regardless  of location,  the goal  is                                                               
always  to improve  and rehabilitate.  The DOT&PF  Central Region                                                               
was anticipating a robust year,  he stated, with projects ranging                                                               
from   highway   construction   and   improvement   projects   to                                                               
rehabilitation  projects,  pavement preservation  and  earthquake                                                               
repair  projects.   One  notable project  was  the O'Malley  Road                                                               
construction.                                                                                                                   
                                                                                                                                
MR. JUNGE  moved on to  slide 23, Regional Construction  - Kenai.                                                               
The notable project here was  the Sterling Highway reconstruction                                                               
project, a  $500 million-plus project anticipating  completion in                                                               
2025.                                                                                                                           
                                                                                                                                
2:25:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DRUMMOND  asked if  Sterling Highway  estimate was                                                               
really $500 million, half a billion.                                                                                            
                                                                                                                                
MR. JUNGE confirmed this.                                                                                                       
                                                                                                                                
MR. JUNGE moved on to  slide 24, Regional Construction in Mat-Su,                                                               
the fastest-growing area  in the state, in which  there were more                                                               
than 15 active projects in 2021.   The largest of these was Parks                                                               
Highway, he  stated.   Work was underway  for a  dedicated Mat-Su                                                               
district office by 2022.   Additionally, DOT&PF had funded Mat-Su                                                               
borough  over $100K  to  help  set up  an  MPO  with Wasilla  and                                                               
Palmer.  A board was to be established by June 2021, he stated.                                                                 
                                                                                                                                
2:27:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CRONK asked  what the  holdup was  with the  last                                                               
section on the Long Lake area near Toque.                                                                                       
                                                                                                                                
MR. JUNGE  replied one of the  challenges with the area  north of                                                               
Palmer was  that it was  a low average  daily traffic count.   He                                                               
said there was currently a  "Long Lake re-route" project in play,                                                               
but that was still four to five years out.                                                                                      
                                                                                                                                
2:29:56 PM                                                                                                                    
                                                                                                                                
MR.  JUNGE  imparted to  the  committee  some details  about  the                                                               
Seward Highway project, one of  the largest projects, which would                                                               
include replacement of five  bridges originally constructed after                                                               
the 1964 earthquake.   He also shared  information about Sterling                                                               
Highway construction,  another large  project for the  state, and                                                               
Knik Goose  Bay Road reconstruction  from two-lane  to four-lane.                                                               
Knik Goose  Bay Road  reconstruction was  the state's  number one                                                               
priority project, he added.                                                                                                     
                                                                                                                                
2:32:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCCABE why permissions  were only being granted at                                                               
this time, when Knik Goose Bay  Road expansion was meant to start                                                               
in 2021.                                                                                                                        
                                                                                                                                
MR.  JUNGE replied  under Governor  Bill Walker,  Knik Goose  Bay                                                               
Road construction  had been paused,  which contributed to  a year                                                               
or two of delay.  In addition,  he added, the city of Wasilla had                                                               
desires  in terms  of roundabouts,  there were  over 150  partial                                                               
acquisitions,  and  impacts  on   adjacent  property  owners  and                                                               
businesses   could  be   quite   substantial.   The  DOT&PF   had                                                               
incorporated   the    Acquisition   Incentive    Program,   which                                                               
incentivizes adjacent  homes of up  to 20% over market  value for                                                               
property owners.                                                                                                                
                                                                                                                                
2:36:10 PM                                                                                                                    
                                                                                                                                
LANCE   MEARIG,  Southcoast   Region   Director,  Department   of                                                               
Transportation & Public Facilities,  shared the Southcoast Region                                                               
had  fewer  communities connected  to  each  other by  roads,  it                                                               
relied more  on airports, the  Alaska Marine Highway  System, and                                                               
other marine  transportation.  As  shown on slide  28, Southcoast                                                               
Region included  just over 1500  road lane miles,  20 maintenance                                                               
stations, 44  airports, 17  seaplane bases,  186 bridges,  and 15                                                               
harbors,   serving  96   communities,   12   boroughs,  51   city                                                               
governments, and 60 tribes.                                                                                                     
                                                                                                                                
MR.  MEARIG shared,  as other  regions had  done before  him, the                                                               
Southcoast Region  breakdown of highway and  aviation maintenance                                                               
and   operations  funding   breakdown.      This  breakdown   was                                                               
represented on  a bar graph  on slide  29 of the  presentation. A                                                               
summary of  2021 Southcoast Region construction  was presented on                                                               
slide 30,  with projected contract  values between $140  and $175                                                               
million,  which  historically  speaking,  was  almost  twice  the                                                               
yearly average.                                                                                                                 
                                                                                                                                
2:39:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   HANNAN  asked   whether  maintenance   operation                                                               
facilities in horrific shape in  Haines could be helped with this                                                               
this money, or if it was separate.                                                                                              
                                                                                                                                
MR. MEARIG replied  regarding airports, the funds  could be used,                                                               
but  in terms  of highways  the federal  funds were  separate and                                                               
could not be used for buildings.                                                                                                
                                                                                                                                
REPRESENTATIVE HANNAN  asked whether  there were any  requests or                                                               
plans for those maintenance  operation buildings, specifically in                                                               
Haines, to be updated.                                                                                                          
                                                                                                                                
MR. MEARIG  replied needs have  been identified  and prioritized,                                                               
but  funding  to  address  deferred   maintenance  had  not  been                                                               
received.                                                                                                                       
                                                                                                                                
2:43:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SPOHNHOLZ  asked why  the state airport  match was                                                               
lower in Southcoast Region.                                                                                                     
                                                                                                                                
MR. MEARIG replied  it was a feature of the  types of airports in                                                               
Southcoast.                                                                                                                     
                                                                                                                                
REPRESENTATIVE  SPOHNHOLZ said  she  was interested  in the  type                                                               
that made it distinct.                                                                                                          
                                                                                                                                
MR. MEARIG said he'd have to get that information.                                                                              
                                                                                                                                
2:44:26 PM                                                                                                                    
                                                                                                                                
MR. MEARIG directed the committee's  attention to slide 31, which                                                               
showed Southcoast Region's  winter storm response time.   As with                                                               
the  other  regions, Southcoast  was  broken  into four  priority                                                               
"zones,"  each  of   which  had  its  own  response   time.    As                                                               
exemplified on the  slide, targets in priority zones  one and two                                                               
were met with  success while lower priority zones  three and four                                                               
struggled a bit.                                                                                                                
                                                                                                                                
MR.  MEARIG  shared slide  32,  airport  and highway  and  harbor                                                               
projects in Southcoast Region.  He  stated Alaska used to have an                                                               
extensive  harbor  program  but  had been  trying  to  divest  in                                                               
harbors  and  turn the  money  over  to  a community  or  another                                                               
project.   In terms of  projects to  highlight, there would  be a                                                               
major reconstruction  of Haines Highway,  miles 12 to  25, broken                                                               
into two phases.                                                                                                                
                                                                                                                                
2:49:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   HANNAN  asked   about  acquisition   of  private                                                               
property land and whether it had been resolved.                                                                                 
                                                                                                                                
MR.  MEARIG replied  it had  not  been resolved  and project  was                                                               
expected to be underway in 2023.                                                                                                
                                                                                                                                
2:50:31 PM                                                                                                                    
                                                                                                                                
MR. MEARIG  presented slide 34,  Katlian Bay Road, a  $33 million                                                               
road  extension  through  extremely challenging  terrain.    This                                                               
project would move into its third season when weather permitted.                                                                
                                                                                                                                
2:51:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CRONK asked  what  the purpose  was in  extending                                                               
Katlian Bay Road.                                                                                                               
                                                                                                                                
MR.  MEARIG  replied Katlian  Bay  Road  was being  extended  for                                                               
recreational and subsistence use for residents of Sitka.                                                                        
                                                                                                                                
2:52:45 PM                                                                                                                    
                                                                                                                                
MR.  MEARIG  said  the  last   project,  roundabouts  at  Stephen                                                               
Richards  and   Floyd  Dryden  Middle  School   in  Juneau,  were                                                               
completed  under time  and  budget  due to  the  lack of  tourist                                                               
traffic during the "sad" year of 2020.                                                                                          
                                                                                                                                
2:54:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCKAY asked  for  a  roundabout application,  and                                                               
whether adjustments had been made for inflation.                                                                                
                                                                                                                                
COMMISSIONER  MCKINNON replied  accidents were  much less  severe                                                               
with roundabouts,  and in  terms of the  budget figures  he could                                                               
not answer but directed it toward Mr. Pannone.                                                                                  
                                                                                                                                
2:57:04 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Transportation Standing  Committee meeting was adjourned  at 2:56                                                               
p.m.                                                                                                                            

Document Name Date/Time Subjects
DOTPF House Trans - Roads & Highways Presentation 2.23.2021.pdf HTRA 2/23/2021 1:00:00 PM
DOTPF Overview - Roads & Highways