Legislature(1995 - 1996)

02/14/1995 01:30 PM Senate TRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                     SENATE TRANSPORTATION                                     
                       February 14, 1995                                       
                           1:30 p.m.                                           
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
 Senator Steve Rieger, Chair                                                   
 Senator Lyda Green                                                            
 Senator Al Adams                                                              
 Senator Georgianna Lincoln                                                    
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
 Senator Robin Taylor, Vice Chair                                              
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
 Confirmation Hearing:                                                         
                                                                               
 Department of Transportation and Public Facilities Designee:                  
                                                                               
  Joseph Perkins, Commissioner Designee                                        
  P.O. Box 20129                                                               
  Juneau, Alaska 99801                                                         
                                                                               
                                                                               
 ACTION NARRATIVE                                                              
                                                                               
 TAPE 95-3, SIDE A                                                             
                                                                               
 CHAIRMAN RIEGER called the Senate Transportation meeting to order             
 at 1:35 p.m.  Senator Hoffman joined committee members at the                 
 table.  The only item on the agenda was the confirmation of Joseph            
 Perkins, as the Commissioner of the Department of Transportation              
 and Public Facilities (DOTPF).                                                
                                                                               
 MR. PERKINS informed committee members he did not have a prepared             
 statement but was available to answer questions.  SENATOR ADAMS               
 asked how Mr. Perkins will handle ISTEA funding.  MR. PERKINS                 
 replied the ISTEA funding as it now stands is broken into several             
 categories: the national highway system; and others.  ISTEA funds             
 have been handled in the past through the state but there is a                
 provision within ISTEA to share this money with the communities.              
 Apparently this plan was developed two years ago and then was                 
 stopped.  He has created a committee to review that plan to see               
 what it does and to see if there is the potential to distribute               
 funds to the communities.  ISTEA funds will only exist for two more           
 years, when the bill will be reauthorized in Congress.  He did not            
 know how the bill will be changed in light of the reorganization of           
 the federal Department of Transportation, which is currently in the           
 hands of Congress.                                                            
                                                                               
 SENATOR HOFFMAN noted the Department submitted its six year plan,             
 prior to this Administration, which contained phased projected                
 appropriations.  Those have been changed and are now listed as                
 priorities, and the plan no longer seems to encompass a longer time           
 period than one year.  He asked Mr. Perkins if he intends to keep             
 the present system, or to reinstate a six year plan.  MR. PERKINS             
 replied DOTPF is going to redo its planning in that a six year plan           
 will be devised so that projects can be tracked more closely.  The            
 six year plan will identify projects that fulfill the needs of the            
 national highway system program and hopefully defend our share of             
 the funds.  All interstate roads in the "lower 48" have been                  
 finished, and are now in a reconstruction/maintenance phase.                  
 Alaska is probably the only state that has not finished its roads             
 in that system.                                                               
                                                                               
 Number 090                                                                    
                                                                               
 SENATOR HOFFMAN asked how communities provide input into the                  
 process.  He added that DOTPF holds hearings in many of the larger            
 communities, such as Dillingham, Bethel, Kotzebue, Barrow and Nome,           
 but the smaller communities do not have the opportunity to                    
 participate in the planning process.  MR. PERKINS stated he                   
 believed in having as much public participation as possible in                
 these programs.  In Alaska, it is sometimes difficult to reach the            
 smaller communities, but he pledged to try to ensure DOTPF planning           
 teams get to as many places as possible to give briefings and                 
 presentations.  In places that planning teams do not get to, the              
 public needs to be notified so that it can respond.                           
                                                                               
 Number 121                                                                    
                                                                               
 SENATOR GREEN discussed a situation in the Mat-Su Borough in which            
 Mr. Perkins and his staff were quick to ask for community input and           
 the problems were resolved amicably.  She also noted the public               
 perception of the DOTPF is that it is large and unwieldy with too             
 much power.  It has been argued that it could be reduced,                     
 privatized, or made more efficient.  She asked for Mr. Perkins'               
 view of those perceptions.                                                    
                                                                               
 Number 135                                                                    
                                                                               
 MR. PERKINS responded that DOTPF is a large organization with                 
 approximately 3,000 employees, with representatives in almost every           
 part of the State of Alaska.  He plans to promote efficiency by               
 eliminating duplicate functions.  Presently he has the three                  
 regional directors reorganizing the regional offices so that each             
 regional office functions in the same manner.  He also plans to               
 look at whether there are special areas of expertise within each              
 regional office that could be used by other regions.  He felt the             
 question of privatization is difficult.  There are things in DOTPF            
 that can be privatized, but there are basic services that cannot.             
 Some of the highway and winter maintenance services in outlying               
 areas could be privatized.  He did not believe snow removal and               
 maintenance of the Parks Highway could be privatized because no               
 contractor in the state owns the necessary equipment.  Some                   
 services have been privatized, such as air field clearing, and                
 roads outside of maintenance areas.  He was unsure how much more              
 could be privatized.  In the area of construction, DOTPF is                   
 awarding design contracts to private firms, and he felt it is                 
 essential that two capabilities be maintained: a state-owned                  
 capability mandated by the federal government in the highway                  
 program; and a civilian engineering firm capability.  A balance               
 needs to be determined in DOTPF's engineering and design program to           
 establish what work will be contracted out.  DOTPF employees need             
 to know they are working in a stable work environment to improve              
 morale.  A majority of the physical construction work is contracted           
 out, but many of the projects are managed within DOTPF.  He plans             
 to do a pilot project in which the project management work would be           
 contracted out to civilian engineers and project managers because             
 he felt that capability needs to be preserved in the State.                   
                                                                               
 Number 313                                                                    
                                                                               
 SENATOR LINCOLN noted Mr. Perkins' construction experience on waste           
 heat facilities throughout rural Alaska.  She expressed concern               
 that inadequate input from communities regarding planning,                    
 feasibility, design, and construction, resulted in wasted funds and           
 manpower.  She asked what Mr. Perkins plans to do to remedy the               
 lack of community input, and to increase local hire.  He restated             
 his support of local input.  He discussed his involvement in public           
 hearings throughout the State with the Army Corps of Engineers, and           
 he found the toughest situations to occur when the communities were           
 split 50/50.  He plans to reappraise the entire Copper River                  
 Highway and find out what people think.  He promised there will be            
 plenty of public involvement, but he cannot promise that everybody            
 will be happy.  He thought the DOTPF has done a good job of                   
 obtaining public input in federal aid projects because it is                  
 required.  There is a fairly extensive record of those public                 
 hearings.  He conducted public hearings throughout the State of               
 Alaska on the Wetlands Program in 1977 and two people showed up in            
 Ketchikan, and six showed up in Juneau, yet the law that went into            
 effect became the monster we are dealing with now.  He felt it is             
 critical to get people to these meetings.                                     
                                                                               
 SENATOR LINCOLN asked how Mr. Perkins intends to lower the costs of           
 transportation.  MR. PERKINS replied that will be a very difficult            
 problem and he is unsure what he can promise.  DOTPF will continue            
 to improve airports and the necessary safety criteria upgrades will           
 be emphasized.  He does not have much of an impact on what carriers           
 charge.  All he can do is provide good facilities which will result           
 in more efficient and cost effective transportation.  He felt                 
 confident he could influence the costs of building and maintaining            
 the overall transportation system.  SENATOR LINCOLN clarified that            
 she is referring to the whole system including the ferry system,              
 the railroad, the roads, and the airplanes.  She felt many                    
 commissioners have failed to recognize that, contrary to the belief           
 that Alaska has a family of one, Alaska has a family of three:  the           
 urban family; the rural family; and the bush family, and their                
 lifestyles are very different.  Those differences need to be                  
 recognized, and not molded together.  Regarding the ferry system,             
 she asked whether MR. PERKINS planned to connect the Southeast                
 ferry to the Southcentral ferry, and to connect Valdez, Whittier,             
 and Cordova.  Prince William Sound residents are concerned that the           
 ferry system is inadequate, and that a road will not go in.  MR.              
 PERKINS has not had time to dig deeply into the problems of the               
 ferry system, therefore he was unprepared to answer at this time.             
 He will look at the problem and provide information at a later                
 date.  SENATOR LINCOLN asked Mr. Perkins to provide the committee             
 with the information.  He agreed.  SENATOR RIEGER remarked the                
 committee will also be taking up the Task Force recommendations               
 that were forwarded last October.                                             
                                                                               
 Number 347                                                                    
                                                                               
 SENATOR LINCOLN questioned whether Mr. Perkins has thought about              
 eliminating certain top level management positions due to                     
 duplication of efforts.  She also questioned what other                       
 technologies are available to resolve the dust control problems at            
 rural airports.  MR. PERKINS stated technology has not provided a             
 magic substance to control dust.  He promised to look into the                
 recent advances in this area.  Regarding the mid- to upper-level              
 management positions within DOTPF, he is looking into restructuring           
 DOTPF to increase efficiency.  There will be one or two exempt                
 positions that will not be filled.  He is looking at other                    
 positions individually to decide whether or not they are required.            
 So far, he has reviewed the regional positions.  There are three              
 top level positions in each of the three regions that are basically           
 duplicate positions.  One of the positions is not filled in                   
 Southeast.  He plans to reduce the number of these positions.  He             
 added a very large percentage of the Department's budget is funded            
 with federal dollars, therefore if there is a cut in federal                  
 funding, the Department size will decrease substantially.  The only           
 thing funded by the General Fund in an operational mode, is                   
 maintenance and operations.  Those budgets have been cut as much as           
 possible without decreasing service and equipment.  If there is a             
 decline in funding, there will be a decline in services provided.             
 He cannot use the designer or construction worker funded by the               
 federal CIP funds to do state maintenance work.  The majority of              
 the planning effort done in the Department, that is federally                 
 funded, includes almost all of the design and construction workers.           
 Over the last ten years, the budget has remained constant, but the            
 workload has increased.  This has lead to deferred maintenance                
 because there are no people to do that work.  The fact that so many           
 of the DOTPF employees are federally funded may give the public a             
 false impression of the State's costs.                                        
                                                                               
 Number 418                                                                    
                                                                               
 SENATOR ADAMS asked what alternative plans, such as a fuel tax,               
 might be submitted by Mr. Perkins, in the form of legislation.  MR.           
 PERKINS replied he is currently examining several things and                  
 developing a plan.  He is reviewing the possibility of instituting            
 a fuel tax and a dedicated fund for maintenance purposes, but he is           
 not prepared to present that at this time.  By next year DOTPF will           
 have a package put together that addresses maintenance.  Whether a            
 tax is included in that package has not been decided.  There have             
 been recommendations from the Transition Team and various others              
 that considered a fuel tax and dedicated fund for maintenance of              
 State facilities.                                                             
                                                                               
 SENATOR ADAMS asked if Mr. Perkins would be willing to transfer               
 some of the excess funds generated by the Anchorage airport to                
 other areas of the State for airport maintenance.  MR. PERKINS                
 replied DOTPF already transfers funds from Anchorage to Fairbanks.            
 SENATOR ADAMS asked who the three division directors are.  MR.                
 PERKINS answered the Central Region Director is John Horn, the                
 Southeast Director is Jon Scribner, and the Northern Region                   
 Director is Stephen Sisk.                                                     
                                                                               
 SENATOR HOFFMAN remarked that the mayor of Anchorage is looking at            
 the possibility of proposing to take over the operations of the               
 International Airport, with the primary goal of preventing the                
 state from losing money.  MR. PERKINS stated DOTPF does not have a            
 position on the airport authority proposed by the mayor of                    
 Anchorage.  Beginning next week, he will be visiting the airports.            
 SENATOR HOFFMAN felt the possibility of creating a transportation             
 authority should be examined, to prevent splintering of the                   
 transportation system, and to benefit all citizens.  He asked Mr.             
 Perkins' opinion on the sale of the Alaska Railroad.  MR. PERKINS             
 felt he does not have the knowledge to comment on that question.              
                                                                               
 SENATOR LINCOLN asked Mr. Perkins' position on studded tires.  MR.            
 PERKINS replied the issue of whether the studded tires are damaging           
 the road is clear, but that damage needs to be weighed against the            
 safety factor.  He stated if lives are being saved by the use of              
 studded tires, they need to be used.  Maybe some method of                    
 returning money from the purchase of them, or a tax, to help repair           
 some of the damage, is feasible.  SENATOR LINCOLN remarked that               
 someone within DOTPF stated the problem with the road in Juneau was           
 not caused by studded tires, it was caused by inadequate paving               
 material that was used.  MR. PERKINS was unsure, but had assumed              
 the cause was studded tires.                                                  
                                                                               
 SENATOR GREEN moved that the committee forward Mr. Perkins name on            
 to the Legislature.  SENATOR RIEGER clarified there is a standard             
 form used which says there is no stated objection; it is not an               
 indication of support or opposition.  There being no objection, the           
 motion passed.                                                                
                                                                               
 SENATOR REIGER adjourned the meeting at 2:13 p.m.                             
                                                                               

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