Legislature(1995 - 1996)

02/20/1996 01:39 PM Senate TRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                     SENATE TRANSPORTATION                                     
                       February  20, 1996                                      
                           1:39 p.m.                                           
  MEMBERS PRESENT                                                              
                                                                               
 Senator Steve Rieger, Chairman                                                
 Senator Robin Taylor, Vice Chair                                              
 Senator Lyda Green                                                            
 Senator Al Adams                                                              
 Senator Georgianna Lincoln                                                    
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
 All members present.                                                          
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
 Overview of the Three Year Statewide Transportation Improvement               
 Program (STIP)                                                                
                                                                               
  WITNESS REGISTER                                                             
                                                                               
 Joseph Perkins, Commissioner                                                  
 Department of Transportation & Public Facilities                              
 3132 Channel Drive                                                            
 Juneau, Alaska 99801-7898                                                     
 POSITION STATEMENT:  Discussed the STIP.                                      
                                                                               
 John Horn, P.E.                                                               
 Regional Director                                                             
 Department of Transportation & Public Facilities                              
 PO Box 196900                                                                 
 Anchorage, Alaska 99519-6900                                                  
 POSITION STATEMENT:  Discussed the STIP.                                      
                                                                               
                                                                               
 ACTION NARRATIVE                                                              
                                                                               
 TAPE 96-2, SIDE A                                                             
                                                                               
 Overview of the Three Year Statewide Transportation Improvement               
      Program (STIP)                                                          
                                                                               
 CHAIRMAN RIEGER called the Senate Transportation meeting to order             
 at 1:39 p.m. and invited Commissioner Perkins to the table.                   
                                                                               
 Number 014                                                                    
                                                                               
 JOSEPH PERKINS, Commissioner of the Department of Transportation &            
 Public Facilities, informed the committee that the department had             
 completed all its work with regard to the release of the STIP                 
 except for the final review.  The Statewide Transportation                    
 Improvement Program document should be out the beginning of next              
 week.  The department has released two draft documents, of which              
 the committee has the second document entitled Transportation,               
 Needs & Priorities.  Both of these documents have received                   
 extensive comment; reviewing all those comments in order to sort              
 out the projects for scheduling has taken much time.                          
                                                                               
 Mr. Perkins stated that Governor Knowles announced his                        
 Transportation Initiative in June; Governor Knowles' Initiative is            
 based on a $220 million federal program.  That program can be                 
 broken down as follows:  $120 million for the National Highway                
 System (NHS), $80 million for the Community & Regional                        
 Transportation System and new roads, and $15-20 million for Trails            
 & Recreational Access to Alaska for Alaska (TRACK) projects.  He              
 explained that the TRACK projects are enhancement projects required           
 by the federal government.  This program was sent out to all the              
 communities who were asked to submit or resubmit their projects               
 which lead to the development of a grading system for Community &             
 Regional projects and TRACK projects.  A separate grading system              
 for rural areas was also established.  Mr. Perkins clarified that             
 the regional boards met to grade the projects submitted by the                
 communities, then a board convened in Juneau in order to review and           
 score each project.  That process resulted in the Transportation             
 Needs & Priorities booklet before the committee.                             
                                                                               
 Number 097                                                                    
                                                                               
 Mr. Perkins emphasized that the NHS is extremely critical for                 
 Alaska.  Last year, Congress passed the NHS bill which recognized             
 that the era of interstate transportation has come to an end.                 
 Congress specified the NHS by roads, 159,000 miles of road in the             
 U.S. is included in this system.   Alaska has approximately 2,100             
 road miles and 1,900 marine miles of ferry connections designated             
 in the NHS.  Mr. Perkins informed the committee that the Dalton               
 Highway was not initially included in the system, but has since               
 been added to the legislation.  Since that time, the legislation              
 has requested nominations for intermodal connections.                         
                                                                               
 The department submitted three more portions of state highways                
 under the intermodal connections request; they too have been added            
 to the NHS.  The portion of road in Juneau between the old ferry              
 dock and the rock dump is one of the intermodal connections                   
 submitted.  Mr. Perkins interjected that being listed on the NHS              
 allows those roads or portions of roads to be eligible for NHS                
 funds.  He further specified that this was added because of the               
 intermodal connection with a barge and fuel company.  Another                 
 intermodal connection was added in Nenana in order to extend to the           
 barge facility.  The largest intermodal connection is the Whittier            
 Road and tunnel.  Mr. Perkins believed that Congress would                    
 eventually provide federal aid for the NHS, therefore the more                
 miles Alaska has on the system the better.                                    
 Number 164                                                                    
                                                                               
 Mr. Perkins posed the question: how far behind is Alaska in                   
 constructing portions of the NHS in order to function at a minimum            
 standard?  A September assessment of the booklet resulted in a                
 shortfall of $1.2 billion; this estimate has been refined to                  
 approximately $1.7 billion for over 14 years at $120 million per              
 year in order to redo only the NHS portions in Alaska.  The                   
 department is currently in the midst of scheduling the $120 million           
 per year for the next three years in the STIP.  Mr. Perkins pointed           
 out that the STIP has taken time because of the care necessary when           
 allocating $720 million.                                                      
                                                                               
 Mr. Perkins mentioned that the report coming out early next week              
 will specify the projects with the highest priority for the next              
 three years.  This report will be available for public review.  Mr.           
 Perkins noted that the projects will be programmed according to the           
 perceived need and assigned grade of that particular project.  The            
 department has made the following assumptions:  that Alaska will              
 continue to receive $120 million per year in federal funds with $25           
 million in state matching funds, and the establishment of a new               
 "ISTEA" program.  Currently, the "ISTEA" program allocates more               
 money to Alaska than 22 other states.  Mr. Perkins informed the               
 committee of a GAO study which indicated that Alaska should receive           
 about $90 million per year; there is a lot at stake.  The                     
 reauthorization of the new federal highway program will be one of             
 the biggest priorities for Mr. Perkins and the governor.                      
                                                                               
 Number 242                                                                    
                                                                               
 Mr. Perkins specified the following negative aspects that Alaska              
 has with regards to the NHS.                                                  
  (1) Alaska is one of the few states that does not have a state               
  funded highway program.  Alaska's program is completely based                
  on federal funds.                                                            
  (2) Alaska has the lowest gas tax in the U.S.                                
  (3) Alaska ranks second in the nation for the amount of money                
  received back in comparison to the amount of money Alaska puts               
  into the program.  New York ranks first in this category.                    
 Mr. Perkins said that he would provide committee members with                 
 information regarding state rankings according to how much the                
 state puts into the program.                                                  
                                                                               
 Mr. Perkins stated that Alaska is approximately 15 years behind the           
 lower 48, which has completed its road net.  Alaska needs funding             
 to complete its road net at the minimal standard level, not funding           
 to maintain interstates and replace bridges (the two major problems           
 in the lower 48).  Mr. Perkins believed that the program identifies           
 Alaska's problems as well as the magnitude of those problems.  The            
 $120 million for the NHS illustrates to Congress that Alaska places           
 importance on its basic road system.  Alaska must demonstrate that            
 projects are being constructed based on need; otherwise Alaska will           
 face difficulties with reauthorization.                                       
                                                                               
 Number 276                                                                    
                                                                               
 Mr. Perkins expressed concern with the total highway budget.  He              
 explained that the amount of money spent from the highway trust               
 fund has been caught up in deficit reduction; the money in the                
 highway trust fund is counted as an asset towards deficit                     
 reduction.  Mr. Perkins said that there is a tendency to allow the            
 highway trust fund to accrue in order to count against other                  
 expenses.  Just that happened this past year.  Projections indicate           
 that the highway trust fund will lose at least $1 billion in total            
 allocations; last year's allocations totalled about $20 million.              
 Furthermore, the Congressional budget reduction plan includes a net           
 reduction of approximately 10-15 percent in the amount of available           
 trust fund money.  The Presidential plan includes a reduction of 7-           
 9 percent for the funding available for transportation.  Therefore,           
 Mr. Perkins concluded that Alaska is attempting to obtain a piece             
 of a smaller pie.  Under the seven year budget plan, the total                
 available money will be reduced.  Mr. Perkins did not believe that            
 Alaska would continue to maintain the funding it has in the past;             
 there will be a reduction.                                                    
                                                                               
 Number 300                                                                    
                                                                               
 CHAIRMAN RIEGER asked Mr. Perkins to clarify the numbers in the               
 federal deficit reduction plan.  JOSEPH PERKINS explained that a              
 net reduction of $1 billion would occur next year.  Over the seven            
 year period, the Congressional plan reduces transportation spending           
 appropriations by approximately 15 percent.  The Presidential                 
 proposal includes a reduction of 7-9 percent.                                 
                                                                               
 In response to Senator Lincoln, Mr. Perkins stated that the current           
 transportation spending appropriations are $20 billion.  Next year            
 the $20 billion would shrink to about $19 billion and in the                  
 following years it would shrink to about $15 billion.  CHAIRMAN               
 RIEGER ascertained that the next year would have a five percent               
 reduction equaling $19 billion.                                               
                                                                               
 SENATOR TAYLOR asked Mr. Perkins if he was familiar with a study              
 done within the department by Roger Allington regarding the marine            
 highway system.  How does this prioritization in scoring reflect              
 the outcome of that study?  JOSEPH PERKINS believed that Mr.                  
 Allington's study was a draft study which was not used in the                 
 development of the priorities in the booklet.  Mr. Perkins informed           
 the committee that the department intends to perform and implement            
 a Southeast Alaska study.  Currently, Southeast is working under a            
 1986 transportation plan; Southeast should have two fast ferries              
 running between Juneau and Skagway.                                           
                                                                               
 SENATOR TAYLOR pointed out that the study would not be completed              
 until 1998 which means that two more funding cycles would have                
 passed.  Senator Taylor emphasized that all the options Mr.                   
 Allington's study reviewed resulted in the ferry system being in              
 gridlock by the turn of the century or shortly thereafter.  One               
 hundred cars would be left at port per sailing.  This is only four            
 years away.  Senator Taylor stated that he could find three or four           
 studies within the department which reached the same conclusion as            
 Mr. Allington's study.  Senator Taylor expressed frustration with             
 the trend of tying up more ferries longer and increasing the costs            
 of utilizing the ferry while most of the road projects are upgrades           
 or replacement of already existing roads.  He pointed out that $182           
 million is going to the Glenn Highway; how many bridges are                   
 necessary for those commuting to Anchorage?  What will be done to             
 interconnect Southeast Alaska?  With regards to high speed ferries,           
 no one in the marine highway business is adopting high speed                  
 ferries.                                                                      
                                                                               
 Number 364                                                                    
                                                                               
 JOSEPH PERKINS clarified that the funding for the Glenn Highway is            
 going to upgrade the portion of the road between Palmer and                   
 Gunsight Mountain which was constructed in the late 1940s and                 
 1950s.  This portion of the Glenn Highway has 15, 20, and 30 mile             
 per hour curves.  Regarding Senator Taylor's comments about the               
 department's studies, there is not a study indicating what and                
 where funding should be placed.  The department has many pieces               
 which have never been consolidated into a document that would                 
 specify the appropriation of money.  He indicated that following              
 any of the existing pieces would not be going in the correct                  
 direction.                                                                    
                                                                               
 Mr. Perkins agreed with Senator Taylor's opinion of fast ferries.             
 The current plan calls for fast ferries, but that portion of the              
 plan was not implemented.  He reiterated that Southeast Alaska                
 needs a transportation plan.  Southeast Alaska has had the same               
 transportation system for the last 20 years, only now the system              
 does not work as well.  Alaska needs to be looking 20 years in the            
 future.  Mr. Perkins mentioned that a cost estimate had been done             
 for transportation from Sitka to Warm Springs as an alternative.              
 The cost estimate was $40 to $200 million which is too expensive.             
 The ferry situation in Sitka will be resolved because the cost                
 estimate for the construction of the road is too expensive for that           
 option to be weighed.  Furthermore, every study has been performed            
 by either the marine highway system or the Southeast Region of the            
 department.  Mr. Perkins emphasized that the study he proposes                
 would be performed at headquarters and he would supervise it                  
 personally.  He hoped that the study could be completed before the            
 next legislative session.  Mr. Perkins said that there is no                  
 document that provides a step-by-step method for transportation.              
                                                                               
 Number 406                                                                    
                                                                               
 SENATOR TAYLOR stated that Mr. Allington's study was a step-by-step           
 study which was drafted and performed at headquarters.  Mr.                   
 Alington's study has been buried for the last two and a half years;           
 now the department wants to perform the same study.  Senator Taylor           
 insisted that this was unacceptable.  He asked how many studies               
 were done in the department before deciding to spend money on the             
 Glenn Highway; he did not know of any such study.  Senator Taylor             
 expressed the need to rethink this process.  Why was the Halibut              
 Point road constructed halfway and due for completion this summer,            
 but pushed back two years?                                                    
                                                                               
 JOSEPH PERKINS said that he could not address that specific road.             
 He explained that the department attempts to base transportation              
 construction on need.  Alaska has state highways that cannot be               
 travelled in the Spring, those roads should be dealt with first.              
                                                                               
 Number 437                                                                    
                                                                               
 SENATOR ADAMS asked if all or part of the projects scheduled for              
 1996 would be included in the three year STIP.  JOSEPH PERKINS                
 replied yes.  The majority of the 1996 projects scheduled for                 
 construction were continued because they were too far along in the            
 process.                                                                      
                                                                               
                                                                               
 CHAIRMAN RIEGER asked if the projects that the six year book                  
 discussed as slated for construction in 1996 were approved in a               
 legislative appropriations bill.  JOSEPH PERKINS assumed that those           
 projects had already received legislative authorization.  Only                
 those projects needing to be authorized would be brought forth.  If           
 there are problems with those projects on the list, the department            
 would like to know of them.                                                   
                                                                               
 SENATOR LINCOLN was unhappy with the six year plan.  She expressed            
 concern with the priorities laid out by the plan.  This document is           
 difficult to interpret; it is not user friendly.  Senator Lincoln             
 was concerned that the public process was not present in the                  
 development of this plan.  Commenting on a document that is not               
 user friendly is difficult.  She said that her district had                   
 approximately 51 percent of the highways in Alaska.  Senator                  
 Lincoln did not see a transportation plan for the State of Alaska.            
 A transportation plan for rural and bush Alaska is needed.                    
                                                                               
 What parallel projects could be impacted by these roads?  For                 
 example, economic development would be effected by the                        
 transportation in that area as well as education, and                         
 infrastructure.  Senator Lincoln could not grasp all this with the            
 document before her.  She suggested developing a 50 year                      
 transportation plan.  Transportation is the key to any development            
 in Alaska.  She further pointed out health issues regarding the               
 dust problems associated with transportation.  In conclusion,                 
 Senator Lincoln requested a short and long term plan that receives            
 legislative and public review before becoming final.                          
 Number 524                                                                    
                                                                               
 JOSEPH PERKINS informed the committee that John Horn, the Regional            
 Director of Central Regions, was present.  Mr. Horn participated in           
 the public participation of the plan and could discuss the process            
 that took place at the regional level.                                        
                                                                               
 SENATOR GREEN interjected that her district had input during this             
 planning process.  SENATOR LINCOLN said that perhaps that was                 
 because Senator Green's district was a city.  SENATOR GREEN thought           
 that on the whole a good job was done with the public process.                
                                                                               
 JOHN HORN, Regional Director of the Department of Transportation &            
 Public Facilities, specified that he would concentrate his comments           
 on the ranking criteria and public process in the Central Region.             
 The department has moved from a regional allocation to determining            
 the statewide needs of Alaska.  The process began with the                    
 Governor's Transportation Initiative in June 1995.  After that,               
 community input was solicited.  Communities were informed of the              
 plan and the department worked with local governments, state and              
 federal agencies, interest groups, and solicited participation from           
 citizens.  The department then developed ranking criteria; that               
 criteria was not oriented to any particular area in Alaska.                   
 Therefore, a separate criteria was established for remote roads and           
 trails not on the contiguous highway system, the marine highway,              
 TRACK, and rural and urban roads on the contiguous highway system.            
                                                                               
 Mr. Horn said that the following areas were reviewed:                         
  * possible economic benefits,                                                
  * health and quality of life with regards to air and water                   
    quality as well as dust concerns and access to basic                       
    sanitation,                                                                
  * safety                                                                     
  * intermodal connectivity (if the placement of a road could                  
    eliminate the need for an airport),                                        
  * local government contributions (whether that be a right of                 
    way or materials),                                                         
  * the maintenance priority,                                                  
  * public support (a project did not receive as much weight if                
    the public support was weak),                                              
  * environmental considerations because most projects require                 
    an environmental impact statement or analysis,                             
                                                                               
 TAPE 96-2, SIDE B                                                             
                                                                               
  * new access to water sources, landfills, sewage lagoons,                    
        honeybucket sites, health care, airports,                              
  * system preservation such as projects that other groups were                
    doing which could be correlated with the department's                      
        project,                                                               
  * other unique factors.                                                      
                                                                               
 Number 571                                                                    
                                                                               
 Mr. Perkins informed the committee that the Central Region received           
 about 1,100 different projects which were scored.  Those receiving            
 high enough scores were then sent to the Project Evaluation Board.            
 He noted that he was a member of the Project Evaluation Board which           
 enabled him to score other regions.  The board then averaged the              
 scores they had assigned the projects, the final score, and the               
 booklet was produced.  The booklet was sent out to anyone                     
 interested and any comment was welcomed.  The process began again             
 and finally, a booklet was produced in December requesting that               
 comments be sent by January 8th.  This process will be completed              
 early next week and the final document finished.                              
                                                                               
 JOSEPH PERKINS interjected that the final document also would                 
 receive public comment.                                                       
                                                                               
 SENATOR LINCOLN pointed out that cities and boroughs have planning            
 people who are full-time and paid to review such documents as this.           
 Smaller rural and bush communities do not have the city and borough           
 councils to review this document.  She reiterated that this                   
 document is not user friendly.  She asked if these communities had            
 to request or inform the department of interest in order to review            
 the document.  JOHN HORN clarified that every community received              
 the document.  Through the process, the mailing list increased.  In           
 the central region alone, 500 or 600 booklets were mailed.  Mr.               
 Horn said that they solicited people to participate in the process.           
                                                                               
 Number 525                                                                    
                                                                               
 SENATOR GREEN asked if a community that maintains its roads and               
 does not have anything to trade for work on its roads would be                
 penalized.  JOHN HORN was not sure that such a community would                
 necessarily be penalized.  In working with the criteria, some                 
 things have been identified as needing to be changed.  For example,           
 the maintenance which the local government in the Mat-Su took over            
 was one item number; those need to be two separate items.  Mr. Horn           
 mentioned that a local government could also take over the                    
 maintenance of some like facility in order to reduce the                      
 department's maintenance load.                                                
                                                                               
 SENATOR GREEN asked if that meant the local government could go               
 outside of its city limits.  JOHN HORN did not think that the local           
 charter would allow going outside of the city limits.  The dilemma            
 is that there is no doubling of points; a high maintenance priority           
 is given points and the local government who wanted to assume the             
 maintenance received the same points.                                         
                                                                               
 CHAIRMAN RIEGER asked if the actual 1996 construction program could           
 be provided to the committee.  According to prior comments,                   
 Chairman Rieger assumed that most of the 1996 projects were                   
 authorized from prior legislative appropriations.  Mr. Perkins and            
 Mr. Horn said that information would be provided.  Chairman Rieger            
 inquired as to what is happening now that the projects have been              
 prioritized.                                                                  
                                                                               
 Number 485                                                                    
                                                                               
 JOHN PERKINS explained that the department is trying to determine             
 that the money is going to the correct years.  A normal project               
 development in an urban area would have preliminary engineering one           
 year, in some cases, two years.  Then a design followed by right of           
 way activity and construction would occur.  This entire process               
 could stretch over six or seven years for a major project.  Mr.               
 Perkins said that the department is trying to free up as much money           
 as possible for each year.  For example, a priority one project               
 without a design would not be funded for construction in 1996.                
 Such a project would be funded for design and the construction                
 dollars would be for 1997.  He reiterated that the department is              
 attempting to balance over $700 million.  Mr. Perkins mentioned the           
 AMATS situation in which the department gives AMATS an amount that            
 it must utilize in the development of its projects.  The AMATS area           
 develops the projects, the state does not.                                    
                                                                               
 Mr. Perkins informed the committee that the department received               
 hundreds of letters, in fact the board had to convene for an extra            
 session in order to review the comments.  He was pleased with what            
 the communities have offered; this will create great savings.  For            
 example, communities donating right of way and gravel where                   
 previously the department had to purchase those.  Such communities            
 were ranked higher because of those donations.  The ownership of              
 several highways is being relinquished which decreases the                    
 department's maintenance costs.  The project supports communities             
 who help themselves.                                                          
                                                                               
 Number 445                                                                    
                                                                               
 CHAIRMAN RIEGER asked if the NHS is controlled by AMATS within                
 Anchorage or only the community.  JOSEPH PERKINS explained that the           
 NHS must be included in AMATS program; however, it is controlled by           
 the department.                                                               
                                                                               
 CHAIRMAN RIEGER inquired as to the level of cooperation or                    
 interaction between the department and people proposing the Prince            
 of Wales Island and Haines ferries.  JOSEPH PERKINS said that the             
 department funded the second study of this issue.  The feasibility            
 boat study has been completed.  Mr. Perkins felt that the                     
 department's relationship and involvement had been good.  The                 
 Prince of Wales route is not part of the NHS which would place it             
 under Community & Regional Program funding.                                   
                                                                               
 SENATOR LINCOLN requested a copy of the GAO study.  She also asked            
 if transportation would be considered at the federal level for                
 block grants to the states for highway money.                                 
 Number 415                                                                    
                                                                               
 JOSEPH PERKINS did not believe that block grants for transportation           
 would be considered.  The problem lies in the amount of the funds             
 per state, not in the fund's delivery.  Alaska has flexibility,               
 similar to that of a block grant, under the "ISTEA" program.  Mr.             
 Perkins expressed concern with the notion that the NHS should only            
 be funded at a federal level; then the national gas tax is lowered            
 in the amount of the other programs.  If the states then want the             
 other programs, they would be required to raise their gas or other            
 tax in order to pay for the programs.  Mr. Perkins believed that              
 this line of thinking is becoming more popular.  That scenario                
 would hurt Alaska badly;  Alaska cannot raise the necessary money             
 for those other projects through a tax increase.  Therefore, it is            
 imperative for Alaska to have as many miles on the NHS as possible.           
 The NHS is tied into the defense of the U.S. and the commerce of              
 Alaska.  Mr. Perkins pointed out that the plan for the Central and            
 Northern Regions is to upgrade the NHS.                                       
                                                                               
 SENATOR LINCOLN expressed concern with the Northern Region's                  
 reported allegations.  How far along is the investigation of those            
 allegations?  JOSEPH PERKINS said that he was watching this.  There           
 are sexual discrimination type allegations.  Outside counsel is               
 performing the investigation.  Mr. Perkins indicated that the                 
 investigation would be completed in the next few days.  A deputy              
 has been assigned to the case.  Mr. Perkins informed the committee            
 that he would review the final recommendations from the                       
 investigators.  Mr. Perkins emphasized that he would take the                 
 necessary action.                                                             
                                                                               
 JOSEPH PERKINS agreed to make copies of the GAO report for all the            
 committee members.                                                            
                                                                               
 CHAIRMAN RIEGER requested a copy of the 1996 construction program.            
 JOSEPH PERKINS said that he would also be providing information               
 regarding transportation and its funding at the federal level.                
                                                                               
 SENATOR LINCOLN assumed that when the three year plan is out, the             
 committee would receive copies.  JOSEPH PERKINS replied yes.                  
                                                                               
 There being no further business before the committee, the meeting             
 was adjourned at 2:50 p.m.                                                    
                                                                               

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