Legislature(1999 - 2000)
04/08/1999 01:40 PM Senate TRA
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SENATE TRANSPORTATION COMMITTEE
April 8, 1999
1:40 p.m.
MEMBERS PRESENT
Senator Jerry Ward, Chairman
Senator Mike Miller
Senator Georgianna Lincoln
MEMBERS ABSENT
Senator Drue Pearce, Vice Chair
Senator Rick Halford
COMMITTEE CALENDAR
SENATE BILL NO. 129
"An Act relating to the Alaska marine highway system vessel, M/V
Malaspina; and providing for an effective date."
-MOVED SB 129 OUT OF COMMITTEE
PREVIOUS SENATE ACTION
SB 129 - No former action to report
WITNESS REGISTER
Ms. Llewellyn Lutchansky, Staff Aide
Senator John Torgerson
Alaska State Capitol
Juneau, AK 99811-1182
POSITION STATEMENT: Presented SB 129
Mr. Bob Doll, General Manager
Ferry Operations
Department of Transportation & Public
Facilities
3132 Channel Drive
Juneau, AK 99801-7898
ACTION NARRATIVE
TAPE 99-08, SIDE A
Number 001
SB 129-M/V MALASPINA ACCOUNT
CHAIRMAN WARD called the Senate Transportation Committee meeting to
order at 1:40 p.m. and brought up SB 129.
Number 013
MS. LLEWELLYN LUTCHANSKY, Staff to Senator Torgerson, presented the
sponsor statement for SB 129. Sponsored by the Senate Finance
Committee, SB 129 would create a sub-account in the Alaska marine
highway system to separately track revenues and expenditures
related to the day boat operation of the M/V Malaspina.
Expenditures for its operation, maintenance and capital
improvements would be limited to the gross revenues generated by
the vessel, and to any other funds the Legislature may appropriate
to the account.
This will be its second year of operation as a day boat in the
Northern Lynn Canal during the summer months. Last session the
Legislature allowed the department an initial subsidy and directed
DOTPF to limit operation costs to the program receipts the
Malaspina generates by seeking union concessions and targeting high
volume seasonal runs.
The Southeast Alaska Transportation Plan is premised on the
development of sub-area or regional transportation services and
facilities. As more high-speed "day boats" are put into operation
in the region's four zones over the next five years, substantial
savings are expected to be realized in operations and maintenance
costs.
SENATOR LINCOLN asked if the department would comment on the bill.
Number 071
MR. BOB DOLL, General Manager of Alaska Marine Highway System,
stated the department has worked with Senator Torgerson's office to
determine the effect of the bill, and he doesn't foresee any
significant difficulties ahead. The Malaspina has been more
closely observed than any other ship, and it operates in one of the
high revenue links. There are two or three links in the system
offering comparable revenues: Bellingham - Ketchikan and Prince
Rupert - Ketchikan. The Malaspina is not a typical operation and
he admitted apprehensiion about lessons being drawn from it, but as
far as the bill is concerned, he was sure it can be worked out.
SENATOR LINCOLN mentioned the zero fiscal note. She quoted in the
last paragraph in the sponsor statement, "...the Legislature does
not intend to subsidize the operation of day boats," and asked Mr.
Doll for his reaction to that statement.
MR. DOLL replied the Southeast Alaska Transportation Plan addresses
two kinds of operation. One operation involves the construction of
new high-speed ships that would provide "shuttle service." The
other operation involves conversion of existing vessels that would
be called "day boats."
A new "shuttle" ship would have a much smaller crew and much
smaller operating cost. The question of tariffs for that operation
has not been approached. Regarding the zero fiscal note, tracking
the cost of operation and revenue of a ship on a weekly basis is an
intensive process that will require some additional labor, but
nothing the department can put a cost to. He concluded they will
need to establish the cost of operating the shuttle ships and an
initial estimate of tariffs, and adjust the two after a couple of
seasons of operation.
Number 149
CHAIRMAN WARD asked the wish of the committee.
SENATOR MILLER moved SB 129 out of committee with individual
recommendations and attached zero fiscal note. Without objection,
it was so ordered. The committee adjourned at 1:48 p.m.
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