Legislature(1999 - 2000)
01/28/1999 01:34 PM Senate TRA
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
JOINT MEETING
HOUSE TRANSPORTATION STANDING COMMITTEE
SENATE TRANSPORTATION STANDING COMMITTEE
January 28, 1999
1:34 p.m.
HOUSE MEMBERS PRESENT
Representative Andrew Halcro, Vice Chair
Representative Bill Hudson
Representative John Cowdery
Representative Jerry Sanders
Representative Allen Kemplen
Representative Albert Kookesh
HOUSE MEMBERS ABSENT
Representative Beverly Masek, Chair
SENATE MEMBERS PRESENT
Senator Jerry Ward, Chairman
Senator Drue Pearce
Senator Georgianna Lincoln
SENATE MEMBERS ABSENT
Senator Rick Halford
Senator Mike Miller
COMMITTEE CALENDAR
Overview by the Department of Transportation and Public Facilities
WITNESS REGISTER
JOSEPH L. PERKINS, Commissioner
Department of Transportation & Public Facilities
3132 Channel Drive
Juneau, AK 99801-7898
Telephone: (907)465-3901
KURT PARKAN, Deputy Commissioner
Department of Transportation & Public Facilities
3132 Channel Drive
Juneau, AK 99801-7898
Telephone: (907)465-6977
ACTION NARRATIVE
TAPE 99-3, SIDE A
Number 0001
CHAIRMAN JERRY WARD called the joint meeting of the House and
Senate Transportation Standing Committees to order at 1:34 p.m.
House members present at the call to order were Representatives
Halcro, Sanders, and Kemplen. Senate members present at the call
to order were Senators Ward and Pearce. Representatives Hudson and
Kookesh arrived at 1:35 p.m. Senator Lincoln arrived at 1:56 p.m.
Representative Cowdery arrived at 2:05 p.m.
OVERVIEW BY THE DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
CHAIRMAN WARD announced the first order of business to be an
overview of the Department of Transportation and Public Facilities
(DOT/PF), and introduced JOSEPH L. PERKINS, Commissioner,
Department of Transportation and Public Facilities, State of
Alaska.
MR. PERKINS introduced the "Department of Transportation
management team," specifically:
Kurt Parkan, Deputy Commissioner
Boyd J. Brownfield, Deputy Commissioner
Nancy Slagle, Director, Division of Administrative Services
Michael L. Downing, Director, Division of Statewide Design and
Engineering Services
John D. Horn, Regional Director, Central Region
Anton (Tony) K. Johansen, Regional Director, Northern Region
Robert Martin, Jr., Regional Director, Southeast Region
Dennis Poshard, Legislative Liaison/Special Assistant, Office
of the Commissioner
Thomas B. Brigham, Director, Division of Statewide Planning
Robert J. Doll, General Manager, Ferry Operations
SUMMARY OF INFORMATION
MR. PERKINS described transportation as the lifeblood of the
economy. The average American household spends $6000 a year, or
one-fifth their annual income, on transportation, and it makes up
11% of the nation's gross national product. Additionally, 7% of
Americans work in transportation.
MR. PERKINS specified that Alaskans are particularly dependant on
transportation. It is his feeling that the transportation system
in Alaska has improved in the last four years. A recent survey
showed 52% of Alaskans were completely satisfied with the roads and
highways, 90% completely satisfied with the international airports,
and 67% completely satisfied with the Marine Highway system. He
related that 51% of people felt that their area was funded fairly.
With regard to roads, 59% surveyed felt the DOT was correctly
building roads, and 60% believed all gravel roads in the state
should be paved.
Number 0154
MR. PERKINS emphasized that the transportation system in Alaska has
a long way to go; however, it was his belief that the newly
increased federal funding will provide even more improvement.
Despite reductions in the operating budget of the DOT/PF, progress
is still being made in constructing and maintaining the highway
system.
Number 0176
MR. PERKINS referred to the chart on page 1 of the 01-28-99 handout
titled Legislative Briefing which illustrates the increased use of
federal funds. He reported that federal funding has recently
"loosened up," including recently approved funding for striping.
Federal funding does not cover any winter maintenance, brushing,
culvert cleaning or shoulder work, and it is mostly limited to
surface repair work. The funding is adequate for the time being,
he explained; however, any decreased funding or increased
restrictions could cause problems.
Number 0212
MR. PERKINS further stated that DOT/PF crews doing maintenance work
in the summer months are paid with federal funds. This allows the
winter crew members to remain employed in the summer. He warned,
however, that further operating reductions will affect winter
maintenance in Alaska, as this is where the vast majority of the
DOT/PF budget is currently going.
MR. PERKINS cited examples of cost effective DOT/PF division
reorganization within the last two years. He examined specific
changes the department has made in materials and equipment: using
chipseal instead of asphalt in permafrost areas, use of liquid
treatments versus sanding, decreased usage of sand by means of
computerized sand spreaders, and specialized trucks.
Number 0282
MR. PERKINS noted that one of the biggest cost items for the DOT/PF
is electricity. The department is aware of the need to "attack the
electric bill" by means of increased insulation and
weather-stripping. They are looking into "LED" signals in
Anchorage which use about one-tenth the power of regular signals.
He added that requests for lights have been resisted, not because
money is not available to install the lights, but due to the fact
that money is not available to pay the additional electric bills.
Another increased cost for the DOT/PF, he continued, is the use of
cellular phones. Employees plowing in wild country, in cold
conditions, and in the middle of the night, he explained, are
better served with cellular phones than radios.
Number 0313
MR. PERKINS referred the committee to the second chart in the
above-mentioned handout. This chart compared all western states by
lane miles per DOT/PF employee, and Alaska had the highest number
at 34.9 miles per employee. It is his belief that, considering the
vast size of our state, the DOT/PF in Alaska is extremely
efficient.
Number 0344
MR. PERKINS considered the third chart in the handout to illustrate
the 9.9% decrease in budgeted departmental positions since 1985.
They have, however, requested 82 new positions in the 2000 budget,
including 56 positions to run the Malaspina as a day ferry. He
stressed that DOT/PF employees in rural areas take care of both the
airport and the roads in their area.
Number 0378
MR. PERKINS addressed transportation bill TEA-21. He noted that,
although the bill funded fiscal year 1998, it did not get passed
until the end of FY 1998. Therefore, the department operated on "a
bunch of emergency measures," he continued. Despite the fact that
information changed daily and they had little idea what TEA-21
would cover, Mr. Perkins proudly reported that the department was
successful in obligating every cent of their 1998 funds. In
addition to that, he continued, the DOT/PF was able to pick up an
additional $3 million plus from the federal government in funds
returned by states who could not obligate them. He summarized the
benefits of TEA-21, including:
* National funding levels tied to gas tax receipts
* 94% of authorized highway funding "guaranteed"
* Nearly states receive more funding
* More discretionary program funding
* More Congressionally designated projects
Number 0410
MR. PERKINS reported that the DOT/PF recently submitted a request
for funding to the United States Department of Transportation in
the amount of $10 million. If approved, this would be used for
improvements to the Dalton Highway. He reminded the committee that
Alaska is competing against 49 other states for federal funding;
therefore, it behooves the department to be well-organized. He
referred to section 118F of TEA-21 which allows the state of Alaska
to use federal money on any public highway in the state. With the
exception of Alaska and Puerto Rico, the rest of the states must
spend their money on federally-designated roads.
Number 0466
MR. PERKINS referred the committee to the fourth chart in the
handout which breaks down the available funding and illustrates the
formula used. Despite the projected $315 million figure for 2000,
it is his opinion that there will be an additional $1 billion in
the trust fund, possibly resulting in increased funding for the
state of Alaska. He cautioned, however, that beginning in 1999
every state is required to get back at least 90% of the money they
paid in for gas taxes. If other states do not reach this
percentage, he explained, the difference is taken from the states
that collect more than 90%. The state of Alaska, he observed,
collects $5 for every $1 paid. Therefore, if redistribution is
needed, it may lower the program funding in 2000. He went on to
offer a detailed explanation of each category in the chart.
Number 0543
REPRESENTATIVE COWDERY questioned whether it was actually possible
to build a bridge in Ketchikan that would be high enough for ships
to go under.
MR. PERKINS agreed that it was a difficult challenge, but he did
not feel it would be impossible. Passing cruise ships would need
to have at least 180 feet to clear it, he added. Currently, there
is $20 million appropriated for the Ketchikan bridge, and an
estimated $12 million of that will probably go to designing it with
an option to do construction management. After that point, he
continued, decisions would need to be made, such as where it would
go, if a tunnel would be better than a bridge, or if a lower bridge
with a draw on it be an option.
SENATOR PEARCE asked, "Above and beyond the engineering
difficulties, at what cost might we be able to land that bridge?
Would $20 million cover it?"
MR. PERKINS said no, and explained that total costs could be
between $60 million and $100 million. The majority of the
construction funds, he noted, would have to come out of another
funding source, as the DOT/PF has elected to not even consider
taking those funds from the regular program.
Number 0579
MR. PERKINS referred the committee two pages ahead in their
brochure to a chart titled "High Priority Projects - Cash Flow Plan
With Adjustment for Reduced Spending Authority." He stressed that
these projects were not submitted by the DOT/PF, but were suggested
by "others." Each one of these projects listed, he added, require
a 20% match. The darker shaded projects will be done by DOT/PF and
match requests will be made. The lightly shaded projects will be
done by the people who requested them, and responsibility for
matches will belong those people.
TAPE 99-3, SIDE B
Number 0000
MR. PERKINS continued to explain that, historically, the DOT/PF can
expect appropriations to be approximately 88% of the amount
authorized. This requires them to go into projects and reduce each
one individually. However, the funding does not expire, he
observed, and will remain available for that particular project
"forever."
Number 0017
SENATOR LINCOLN asked where Gravina Island is located.
MR. PERKINS explained that was the Ketchikan bridge previously
referred to.
SENATOR LINCOLN asked exactly who the "others" were that suggested
these projects be "high priority."
MR. PERKINS declared that in some cases he did not know; however,
it can sometimes be assumed from title of the project where the
proposals came from.
SENATOR LINCOLN asked if this list represented the total amount of
applications for funds.
MR. PERKINS said that it had been the preference of the DOT/PF to
use all of the TEA-21 funding on the Dalton Highway rather than
these projects. By moving the Dalton Highway funding out of their
regular program, he added, the community list could then be
prioritized by the DOT/PF.
SENATOR LINCOLN asked how is was decided who would be placed in the
list where DOT/PF provides matching funds.
MR. PERKINS cited the example of the Dalton Highway project. He
pointed out that the DOT/PF initially requested $80 million for
this project; however, only $3 million was approved. This project
will actually displace a project from the regular program and will
save that program $3 million, so it was decided funds should be
matched. With regard to the Gravina Island bridge, the match was
appropriated last year and authorized by the legislature.
SENATOR LINCOLN wondered if money not used in a certain project
could be moved into another or if the allocated funding always had
to follow that project.
MR. PERKINS reported that only the United States Congress could
reprogram money to another project.
CHAIR WARD asked Mr. Perkins to address the issue of the railroad.
Number 0046
MR. PERKINS explained that transportation plans have been drawn up
regionally. The DOT/PF is requesting funding for a Northwest
Regional Transportation Plan. Such a study would include
assessment of resources available and details regarding how the
railroad would be put in. He announced that this plan has the
support of individuals he has spoken with in Nome, Kotzebue and
Fairbanks.
Number 0070
REPRESENTATIVE SANDERS questioned whether the Cook Inlet shoal
project would be a candidate for this program.
MR. PERKINS indicated that nothing more could be added to this
program for five years; however, changes would be possible after
that time if the congressional delegation authorized it.
REPRESENTATIVE HUDSON stressed that this was the first time many
members of the committees had seen this list of high priority
projects. It was his hope that both the House and Senate
Transportation Committees would be able to take "a hard look" at
each item on this list, and be able to make recommendations to the
congressional delegation through the Administration. He questioned
whether these projects were, in fact, the highest priorities for
the state of Alaska.
MR. PERKINS announced that he would support further review by the
both the legislature and the Administration, and would be open to
hearing suggestions for possible reprogramming.
Number 0092
MR. PERKINS referred back to the TEA-21 chart: specifically, the
program called "Alaska Shakwak." He again clarified the difference
between authorization and appropriation of funds. Appropriation,
he explained, is always done at a lower level than authorized.
This discrepancy creates accounts of money left over. Due to
legislation passed in the 1980s, he advised, the state of Alaska
could give the balance of this money to Canada for the Shakwak
project. This project is for the road from the Haines border to
the Alaska border through Canada; however, specific wording states
the money could be used for the "highway all the way to Haines and
the Marine Ferry System that connects to the lower 48." That
description has freed up $57 million that does not require a match.
It is his recommendation that this money be spent as quickly as
possible, because it is not in TEA-21 and could be changed in a
yearly appropriations bill. The DOT/PF advised this be divided as
follows: $11 million to a Haines highway project already under
construction, $11 million to a Haines highway project scheduled for
next year, and "$30 plus million" to the purchase of a new ferry.
Number 0143
SENATOR LINCOLN sought clarification as to how the Southeast ferry
system was chosen over other parts of Alaska.
MR. PERKINS stressed that this was determined by minimum change to
the current language describing how this money could be spent. Any
attempt to apply that money to another region in Alaska, he added,
would have required a new paragraph in the legislation, and it is
his opinion that it never would have passed by the other states.
He concluded by returning to the TEA-21 chart and examining the
remaining projects.
Number 0170
CHAIR WARD asked for a brief update on the status of the Anchorage
International Airport project.
MR. PERKINS proudly informed the committee that ratings have
improved, and he is expecting that the bonds should already be
signed off. It is his belief that the interest rate on these bonds
will come in at under 5%. $25 million was authorized by the
Federal Aviation Administration for this project; however, is was
given as a Letter of Instruction (LOI). This mean that the
distribution of this money will be throughout a ten-year period, he
explained, and that will not be sufficient for construction.
Consequently, the DOT/PF will be asking the state of Alaska to bond
an additional $25 million, to be paid back with the federal money
at the end of the ten-year period.
Number 0209
REPRESENTATIVE COWDERY asked whether or not the $25 million
estimation had, in fact, grown to $40 million.
MR. PERKINS observed that there had been a lot of rumors about cost
increases; however, that has not been the case. Some of the things
requested, he explained, were not necessary and were removed. This
did not affect the size, function or aesthetics of the airport, he
added.
REPRESENTATIVE COWDERY asked if $40 million was still coming from
the FAA.
MR. PERKINS clarified that, out of $40 million received as LOI, $25
million was committed to the terminal project and $15 million will
go to other projects on the airport.
REPRESENTATIVE COWDERY questioned whether passenger facility
charges will be implemented.
MR. PERKINS reported that a final decision on passenger facility
charges has not yet been made; however, all of the major airlines
will support them 100%. So far, he added, Juneau is implementing
them and Ketchikan is on the verge of doing so.
Number 0255
VICE CHAIRMAN HALCRO disclosed his lengthy experience working at
the airport and added that his company has been there for 30 years.
He expressed concern that there be adequate indoor parking so that
customers do not have to walk so far in the ice and snow to get to
their car. He further addressed the amount of money spent by
companies on concessionaire fees. He requested that everyone of
the concessionaires involved, regardless of their industry, have a
"seat at the table" regarding decision-making. He acknowledged
that the airport industry is seasonal, and stressed that the
concessionaires are very important to the stability and livelihood
of the airport.
Number 0272
MR. PERKINS expanded on the issue of passenger facility charges,
and stated that it has been requested in the national bill that
small carriers be exempt from such fees.
REPRESENTATIVE COWDERY agreed that small carriers service rural
Alaska; however, he pointed out that some larger carriers, such as
Alaska Airlines, also do so. He wondered if such exemptions from
passenger facility charges would be done by specific airline or by
rural location.
MR. PERKINS explained that the exemption would be by community and
not airline.
Number 0305
REPRESENTATIVE COWDERY asked how much these fees might raise with
or without exemptions factored in.
MR. PERKINS stated he was unaware of the exact figure.
KURT PARKAN, Deputy Commissioner, Department of Transportation and
Public Facilities, informed the committee that it was estimated "a
couple of years ago" to bring in approximately $5 million without
exemptions.
VICE CHAIRMAN HALCRO inquired if the estimated 1000 new jobs would
be private-sector jobs through contractors or public state jobs.
MR. PERKINS stated they would be private-sector jobs.
VICE CHAIRMAN HALCRO wondered if the chart referring to lane miles
per employee could be affected by the fact that some communities
have state-maintained roads and other municipalities maintain their
own roads.
MR. PERKINS understood this chart to be a direct comparison of
work, rather than where the work took place or what it was.
Number 0325
VICE CHAIRMAN HALCRO asked how profitable it is for the Alaska
Marine Highway to operate the current day ferries.
MR. PERKINS clarified that there is currently only one day ferry,
the Malaspina, and that has only operated for 71 days. The cost
was $457,000 to operate between Juneau, Skagway and Haines,
including overhead, risk management charges, and all other charges.
The projected cost approved by the legislature last year was
$577,000. The ferry carried an average of 515 passengers and 140
vehicles, and rented out an average of 15 cabins daily. It should
be noted, he added, that there was a tremendous amount of public
acceptance for this day ferry operation.
CHAIR WARD asked for additional questions. Hearing none, Chair
Ward and Vice Chairman Halcro thanked Mr. Perkins for his
presentation and for bringing his staff with him.
ADJOURNMENT
Number 0352
CHAIR WARD adjourned the joint meeting of the House and Senate
Transportation Standing Committees at 2:53 p.m.
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