Legislature(2023 - 2024)BARNES 124
02/14/2023 01:00 PM House TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearing(s): Board of Marine Pilots | |
| Presentation(s): Alaska Marine Highway System Overview | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE TRANSPORTATION STANDING COMMITTEE
February 14, 2023
1:01 p.m.
MEMBERS PRESENT
Representative Kevin McCabe, Chair
Representative Sarah Vance, Vice Chair
Representative Tom McKay
Representative Craig Johnson
Representative Jesse Sumner
Representative Louise Stutes
Representative Genevieve Mina
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
CONFIRMATION HEARING(S):
Board of Marine Pilots
James Cunningham - Homer
- CONFIRMATION(S) ADVANCED
PRESENTATION(S): ALASKA MARINE HIGHWAY SYSTEM OVERVIEW
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
JAMES CUNNINGHAM, Appointee
Board of Marine Pilots
Homer, Alaska
POSITION STATEMENT: Testified as appointee to the Board of
Marine Pilots.
KATHERINE KEITH, Deputy Commissioner
Alaska Department of Transportation & Public Facilities
Juneau, Alaska
POSITION STATEMENT: Co-presented a PowerPoint titled "Alaska
Marine Highway System Overview."
CAPTAIN ANTHONY KARVELAS, Acting General Manager
Alaska Marine Highway System
Ketchikan, Alaska
POSITION STATEMENT: Co-presented a PowerPoint, titled "Alaska
Marine Highway System Overview."
DOM PANNONE, Administrative Services Director
Alaska Department of Transportation and Public Facilities
Juneau, Alaska
POSITION STATEMENT: Co-presented a PowerPoint, titled "Alaska
Marine Highway System Overview."
WAYNE PHILLIPS, Vessel Construction Manager; Capital Program
Manager
Alaska Marine Highway System
Department of Transportation & Public Facilities
Ketchikan, Alaska
POSITION STATEMENT: Co-presented a PowerPoint, titled "Alaska
Marine Highway System Overview."
ACTION NARRATIVE
1:01:51 PM
CHAIR KEVIN MCCABE called the House Transportation Standing
Committee meeting to order at 1:01 p.m. Representatives Vance,
McKay, Sumner, Stutes, and McCabe were present at the call to
order. Representatives Mina and C. Johnson arrived as the
meeting was in progress.
^CONFIRMATION HEARING(S): BOARD OF MARINE PILOTS
CONFIRMATION HEARING(S): BOARD OF MARINE PILOTS
1:02:31 PM
CHAIR MCCABE announced that the first order of business would be
the confirmation hearing on the governor's appointment to the
Alaska Board of Marine Pilots.
CHAIR MCCABE cited AS 08.62 as relating to the Board of Marine
Pilots and its duties. He invited James Cunningham to tell the
committee a little about himself, his experience, and why he
wants to serve on the Board of Marine Pilots.
1:03:56 PM
JAMES CUNNINGHAM, Appointee, Board of Marine Pilots, shared his
personal, educational, and vocational background, including
earning a bachelor's in science, in nautical science, and
working his way up to being a captain. He noted that he became
a full pilot in 2021.
1:06:53 PM
REPRESENTATIVE STUTES expressed her appreciation of what pilots
do, their education, and their knowledge of waters.
1:07:15 PM
REPRESENTATIVE MINA commented that she is impressed with Mr.
Cunningham's experience and asked if he had any involvement in
community work or other service outside of his career.
1:07:46 PM
MR. CUNNINGHAM responded that there is a program in the Navy
Reserves, [the Ready Reserve Force], for which he maintains his
professional background, and can be called in to serve as a
merchant marine. Beyond this, he said he hoped to "help out"
more in the future, but his focus is currently on raising a
family.
1:09:31 PM
REPRESENTATIVE STUTES asked about Mr. Cunningham's training to
get his final captain's license, and if he was able to use any
services of the Alaska Marine Highway System (AMHS).
1:09:48 PM
MR. CUNNINGHAM explained that part of the training is gaining
local knowledge and required trips, and he confirmed that one of
the avenues is utilizing the ferries to ride and "get your trips
in."
1:11:49 PM
CHAIR MCCABE asked whether Mr. Cunningham had to pay to ride the
ferries.
1:12:01 PM
MR. CUNNINGHAM replied yes, at a reduced fare.
CHAIR MCCABE thanked Mr. Cunningham.
1:14:04 PM
CHAIR MCCABE stated that in accordance with AS 39.05.080, the
House Transportation Standing Committee has reviewed the
qualifications of the governor's appointee and recommends the
following name be forwarded to a joint session for
consideration: James Cunningham, Board of Marine Pilots. He
said that signing the report regarding the appointment to the
board in no way reflects an individual member's approval or
disapproval of the appointee, and the nomination is merely
forwarded to the full legislature for confirmation or rejection.
1:14:33 PM
The committee took an at ease from 1:14 p.m. to 1:16 p.m.
^PRESENTATION(S): Alaska Marine Highway System Overview
PRESENTATION(S): ALASKA MARINE HIGHWAY SYSTEM OVERVIEW
1:16:47 PM
CHAIR MCCABE announced that the final order of business would be
the Alaska Marine Highway System Overview presentation.
1:17:25 PM
KATHERINE KEITH, Deputy Commissioner, Alaska Department of
Transportation and Public Facilities, joined via Teams to co-
present the PowerPoint, titled "Alaska Marine Highway System
Overview." She acknowledged the other presenters to follow.
1:19:01 PM
CAPTAIN ANTHONY KARVELAS, Acting General Manager, Alaska Marine
Highway System (AMHS), joined via Teams and provided a brief
introduction. He began the presentation on slide 2, titled
"Where We Go," which shows the vast area AMHS covers. He noted
the logistics of the operations is quite extensive and includes
providing essential service to coastal communities by
transporting people, vehicles, and freight, and he stressed the
dependence the communities have on AMHS.
1:22:26 PM
MR. KARVELAS continued to slide 3, titled "Fleet Status," and
provided a brief rundown of ships in service and maintenance
status. He proceeded to slide 4, titled "Statistical
Information: Passengers." The figures on the slide represent
the passenger and vehicle count, and he pointed out the downward
trend due to a labor strike, followed by the COVID-19 Pandemic,
and crew shortages. He said AMHS is doing its best to recover.
He pointed out the figures [on the chart] are slightly
rebounding and opined the upward trend will continue.
1:25:17 PM
REPRESENTATIVE STUTES asked if the decrease in the ridership was
due to undependability of the vessels due to maintenance issues.
MR. KARVELAS responded that is correct, explaining the
difficulties with understaffing of engineers. The goal of AMHS
is to work on the issue moving forward.
1:26:29 PM
MS. KEITH brought attention to the Alaska Marine Highway
Operations Board (AMHOB), which kicked off in February 2022, and
noted the information received from the public verified that
reliability was a number one challenge. She explained the
"stabilization phase" is the first of three phases going to
recovery, and AMHS will continue to communicate with the public
about the realities of the situation and the challenges, as well
as build partnerships to find solutions.
1:29:23 PM
REPRESENTATIVE STUTES commented on AMHS being able to provide a
schedule earlier and asked if the summer schedule had been
released yet.
MS. KEITH responded it should be published on the coming Friday.
She reiterated the shortage of crews as being one of the
obstacles to providing a schedule earlier.
1:31:27 PM
REPRESENTATIVE VANCE reflected on the barriers of service to
Homer and Seldovia. She commented on public interest in working
with AMHS and asked how people can contact AMHS to make sure
their applications are being received.
MS. KEITH responded that about five months ago AMHS had hired a
consultant firm to assist in the onboarding process, and when
applicants reach out, there are a number of ways to support them
through the certifications that are required to become an AMHS
employee. She noted the many steps that must be taken and the
extra length of time for entry-level positions.
1:34:24 PM
REPRESENTATIVE MINA asked what the average retention is for
different positions at AMHS.
MS. KEITH replied that a report containing the answers could be
provided to the committee at a later date.
1:35:00 PM
CHAIR MCCABE asked if AMHS is on par with the rest of the
industry that provides ferry services.
MS. KEITH responded that current AMHS staffing levels are not
concrete and are more extreme than in the Lower 48. She noted
the competitive employee package offered by AMHS and noted the
potential for in-state recruitment.
1:36:58 PM
DOM PANNONE, Director, Administrative Services, Alaska
Department of Transportation & Public Facilities, commented that
one of the parts of the health check [shown on slide 7, titled
"Charting The Course Towards Thriving Communities"], is the
operating budget, and reiterated that the dip in 2019-2020 is
now on a recovering trajectory. The funding level required to
keep all ships in service is being looked at, as well as how
much staff it takes to have a ship run.
1:38:20 PM
REPRESENTATIVE STUTES questioned how many of the ships Mr.
Pannone anticipates will be in service.
MR. PANNONE replied that that will be determined as the budget
is being crafted.
1:39:15 PM
MS. KEITH expanded on the answer and explained AMHS' current
proposed operating budget is based on a selection of seven
vessels operating throughout the year.
1:42:56 PM
CHAIR MCCABE asked which vessel is currently in lay-up.
MS. KEITH answered that the vessel currently in lay-up is the
Motor Vessel (M/V) Matanuska, and the rest are in overhaul.
1:43:19 PM
REPRESENTATIVE VANCE asked what the operational plan is -
knowing the yearly required maintenance - and what the overhaul
plan would look like.
MS. KEITH responded that has been a topic at AMHS short-range
and long-range planning discussions. She confirmed a following
presenter can discuss the overhaul process and noted the current
strategy to come up with backup plans.
REPRESENTATIVE VANCE asked about the success rate in the AMHS
budget for supplemental service.
MS. KEITH explained AMHS is lucky to have partnerships with
vendors in various places willing to work with them - and on a
very last-minute basis. She also described the ability to plan
ahead for supplemental services as being unsuccessful.
1:48:52 PM
REPRESENTATIVE STUTES commented on hiring vendors through a
third-party contract and the ability of AMHS to screen them.
1:50:00 PM
CHAIR MCCABE brought up the AMHS collective bargaining agreement
not allowing contracting to more than six villages/ports of call
and asked if there were more now.
MS. KEITH responded that is correct, and in all other instances
AMHS communicates with its union representatives to get the
letters of agreement (LOAs) in hand.
1:51:20 PM
MR. PANNONE continued the presentation on slide 8, titled "CY24
AMHS Funding." He pointed out the difference in this budget
from calendar year 2023 (CY 23) is that AMHS funded operational
increases with system revenues approximately $13.5 million. He
continued on slide 9, titled "2024 Governor's Proposed Operating
Budget," that featured a chart showing allocations of operating
expenditures and funding.
1:54:20 PM
MR. PANNONE proceeded to slide 10, titled "Rural Ferry Service
Grant & Timeline." He explained it is a timeline for context
and awareness of the decisions that have been made around the
newly created rural ferry grants that were a product of the bi-
partisan infrastructure law.
1:57:32 PM
WAYNE PHILLIPS, Vessel Construction Manager; Capital Projects
Manager, Alaska Marine Highway System, Department of
Transportation & Public Facilities, joined the presentation on
slide 11, "Fleet Health Check," which highlighted the
modernization of the fleet and vessel availability. He
proceeded to slide 12, titled "Aging Fleet."
1:59:55 PM
REPRESENTATIVE MINA asked how the average age of an AMHS vessel
compares to the rest of the industry.
2:00:11 PM
MR. PHILLIPS responded that the answer is on slide 12, which
showed AMHS's nine vessels and their ages. He continued to
slide 13, titled "AMHS Reliability: Next Steps." He
acknowledged AMHS does struggle with reliability, and that the
vessels go through a rigorous U.S. Coast Guard inspection and
overhaul process as well as other regulatory processes to ensure
the safety of the vessels.
2:05:15 PM
MR. PHILLIPS noted he reached out to a consulting team to get an
accurate estimate on what it would take to get the M/V Matanuska
back in service.
2:06:17 PM
CHAIR MCCABE asked if the issue with the M/V Matanuska was steel
or engines.
MR. PHILLIPS responded that the need for extensive steel work
was found, as well as hazardous materials ("hazmat"), namely
asbestos. He continued to slide 14, titled "FTA Awards:
Vessel." Summaries of vessel modernization, vessel replacement,
design of a new mainliner, and a climate responsive ferry option
were shown and their award amounts.
2:08:04 PM
REPRESENTATIVE VANCE asked about the long-range plan on
replacing older vessels in the fleet.
MR. PHILLIPS replied that his understanding is that a lot of the
awards/grants have just "come down," and he does not have a
solid breakdown of how and when it will happen.
REPRESENTATIVE VANCE commented that she looks at the long-range
goal and how the state can be more successful. She suggested a
picture of what the needs for the future are in replacing these
vessels, as well as being fiscally responsible and responsible
for the reliability of service.
2:12:02 PM
CHAIR MCCABE asked what the vision may be for the climate
responsive ferry vessel operations.
MR. PHILLIPS responded it is in the very early stages and the
design is not even done. The "best fit" must be decided on, and
it may be more of a hybrid type ferry: both electric and diesel.
He reiterated there is a grant in place to study this.
2:14:18 PM
MR. PHILLIPS continued his discussion on the M/V Columbia, M/V
Matanuska, M/V Tazlina, and M/V Kennicott vessel modernizations.
2:18:09 PM
MR. PHILLIPS continued the presentation on slide 15, titled "FTA
Awards: Docks." The slide featured ferry dock infrastructure in
five rural Alaska communities - a $45.5 million award - to
increase the sustainability of AMHS port operations.
2:21:08 PM
MR. PHILLIPS quickly summarized dock, remodeling, and
maintenance projects.
2:22:17 PM
MS. KEITH touched on the number of projects that are going on
and the willingness of AMHS to summarize details in writing and
submit them to the committee. She continued to slide 16, titled
"Crew Health Check," and noted Mr. Karvelas would elaborate more
on the status of the crew.
2:22:54 PM
MR. KARVELAS acknowledged AMHS is suffering an unprecedented
shortage of employees - mainly crew. He stressed his
appreciation for the openness of the commissioner's office, and
its willingness to help resolve the issues of money and people.
Further, he gave credit to the employees of AMHS, who often are
held over to work extra shifts in order to keep the system
running. He noted that AMHS is doubling down its efforts to
find more crew by working on LOAs with the unions, a dedicated
recruitment web page, more job fairs, and recruitment of high
school kids with the goal of retention, to name a few.
2:28:32 PM
MR. KARVELAS continued to slide 17, titled "Crew Metrics,"
which highlighted fleetwide staffing levels on the left-hand
side, and operating [the M/V Aurora] on the right-hand side. He
reiterated employee retention and recognizing the pilot's
organization as two key areas of focus for AMHS.
2:31:21 PM
CHAIR MCCABE asked what the age limit is for prospective
employees in the ferry system and if the requirement is under
the state or the U.S. Coast Guard.
MR. KARVELAS replied it is 18 years of age and a U.S. Coast
Guard requirement. He proceeded to slide 18, titled "The Last
FUNtier," where he explained the benefits of visiting and, more
so, living in Alaska.
2:34:48 PM
MS. KEITH rejoined the presentation on slide 19, titled "AMHS
Comprehensive Evaluation." She noted the desire of AMHS to
continue to perform at high levels, and that AMHS has gathered
much useful information and recommendations on operational
resiliency and efficiency.
2:36:23 PM
REPRESENTATIVE STUTES asked about the collaborative effort
between AMHOB and AMHS in reference to a long-term
sustainability plan.
MS. KEITH replied that AMHS and AMHOB are now into about a year
of collaborative efforts with meetings occurring every other
week. She also noted consultants on board to help with the
preliminary effort, which is "phase two" of the long-range
planning effort that also includes stakeholder engagement.
2:40:33 PM
ADJOURNMENT
There being no further business before the committee, the House
Transportation Standing Committee meeting was adjourned at 2:40
p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 1.31.23 James Cunningham Marine Pilot App_Redacted.pdf |
HTRA 2/14/2023 1:00:00 PM |
Board of Marine Pilots - James Cunningham |
| AMHS Overview (H)TRA 2.14.23.pdf |
HTRA 2/14/2023 1:00:00 PM |
AMHS Overview 2.14.23 |