Legislature(2003 - 2004)

03/11/2003 01:35 PM Senate TRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
                         JOINT MEETING                                                                                        
            HOUSE TRANSPORTATION STANDING COMMITTEE                                                                           
            SENATE TRANSPORTATION STANDING COMMITTEE                                                                          
                         March 11, 2003                                                                                         
                           1:35 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
HOUSE TRANSPORTATION                                                                                                            
                                                                                                                                
Representative Jim Holm, Co-Chair                                                                                               
Representative Beverly Masek, Co-Chair                                                                                          
Representative Hugh Fate                                                                                                        
                                                                                                                                
SENATE TRANSPORTATION                                                                                                           
                                                                                                                                
Senator John Cowdery, Chair                                                                                                     
Senator Donny Olson                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
HOUSE TRANSPORTATION                                                                                                            
                                                                                                                                
Representative Vic Kohring                                                                                                      
Representative Dan Ogg                                                                                                          
Representative Mary Kapsner                                                                                                     
Representative Albert Kookesh                                                                                                   
                                                                                                                                
SENATE TRANSPORTATION                                                                                                           
                                                                                                                                
Senator Thomas Wagoner, Vice Chair                                                                                              
Senator Gene Therriault                                                                                                         
Senator Georgianna Lincoln                                                                                                      
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
OVERVIEW: PORT OF BELLINGHAM                                                                                                    
                                                                                                                                
PRESENTERS                                                                                                                    
                                                                                                                                
Jim Darling, Executive Director                                                                                                 
Port of Bellingham                                                                                                              
P.O. Box 1677                                                                                                                   
Bellingham, WA 98227-1677                                                                                                       
                                                                                                                                
JIMMY BENTON, Port Commissioner                                                                                                 
Port of Bellingham                                                                                                              
P.O. Box 1677                                                                                                                   
Bellingham, WA 98227-1677                                                                                                       
                                                                                                                                
PETE CREMIN, Whatcom County Elective Executive                                                                                  
Port of Bellingham                                                                                                              
P.O. Box 1677                                                                                                                   
Bellingham, WA 98227-1677                                                                                                       
                                                                                                                                
MARK OSMANSON, Mayor of Bellingham                                                                                              
Port of Bellingham                                                                                                              
P.O. Box 1677                                                                                                                   
Bellingham, WA 98227-1677                                                                                                       
                                                                                                                                
TAPES                                                                                                                         
                                                                                                                                
03-07, SIDE A [SENATE TRA TAPE]                                                                                                 
                                                                                                                                
SUMMARY OF INFORMATION                                                                                                        
                                                                                                                                
CHAIR  JOHN COWDERY  convened  the joint  meeting  of the  Senate                                                             
Transportation  Standing Committee  and the  House Transportation                                                               
Standing  Committee at  1:35 p.m.  Present were  Senators Cowdery                                                               
and Olson and Representatives Holm, Masek and Fate.                                                                             
                                                                                                                                
CHAIR  COWDERY  announced the  Port  of  Bellingham overview  was                                                               
before  the  committee.  He  invited  Mr.  Jim  Darling  to  come                                                               
forward.                                                                                                                        
                                                                                                                                
JIM   DARLING,  Executive   Director  of   the  Bellingham   Port                                                               
Authority, introduced  his party  and expressed  appreciation for                                                               
having  the  ferry  terminal  in  Bellingham.  He  described  the                                                               
terminal as a community project for  both the State of Alaska and                                                               
Bellingham.                                                                                                                     
                                                                                                                                
JOHN CARTER,  CFO and Terminal  Building Manager, gave  members a                                                               
virtual  tour  of  the Bellingham  Ferry  Terminal.  He  informed                                                               
members  that the  Port of  Bellingham (Port)  has been  involved                                                               
with the State  of Alaska since 1989 when the  ferry terminus was                                                               
moved from Seattle to Bellingham. At  that time they signed a 20-                                                               
year lease  and to  date have  invested over  $11 million  in the                                                               
community and cruise facility.                                                                                                  
                                                                                                                                
Bellingham  is  located  in  burgeoning  Whatcom  County  and  is                                                               
connected  to  Vancouver British  Columbia  and  Seattle by  rail                                                               
service and  Interstate 5. The  community has a  100-year history                                                               
of waterfront activity with much of it related to Alaska.                                                                       
                                                                                                                                
The terminal  facility has five employees  working under contract                                                               
with the State of Alaska.  They take reservations, handle staging                                                               
operations,  baggage   handling,  and  security   activities.  He                                                               
pointed out  that the ferries  are frequently filled  to capacity                                                               
and that  the operation provides  a steady source of  revenue and                                                               
economic stability.                                                                                                             
                                                                                                                                
He advised that  over the next five to six  years they anticipate                                                               
spending up  to $300,000  in ongoing  capital maintenance  on the                                                               
14-year  old facility  and that  they are  faced with  additional                                                               
security costs for  which they are not reimbursed.  He noted that                                                               
the ticketing  contract is up for  renewal in June 2003  and then                                                               
reported  that  growth  has flattened  because  the  ferries  are                                                               
currently running close  to capacity with regard  to vehicles and                                                               
staterooms.                                                                                                                     
                                                                                                                                
He said  their slogan this  year is  "Partner with the  Port" and                                                               
emphasized that  they do not  take this relationship  for granted                                                               
and will continue to work to maintain a successful partnership.                                                                 
                                                                                                                                
JIMMY BENTON,  Port Commissioner, presented pictures  of the Port                                                               
to the committee members.                                                                                                       
                                                                                                                                
PETE  CREMIN,   Whatcom  County  Elective   Executive,  described                                                               
Bellingham as a community with  a strong affiliation with Alaska.                                                               
He  explained his  personal  ties to  Juneau  and emphasized  the                                                               
importance  of  the  current   relationship  between  Alaska  and                                                               
Bellingham/  Whatcom County.  They are  proud to  call themselves                                                               
the  "Gateway to  Alaska" and  will work  to fortify  the current                                                               
relationship.                                                                                                                   
                                                                                                                                
MARK  OSMANSON,  Mayor  of Bellingham,  reported  that  they  are                                                               
delighted to  have the  Alaska Ferry  Terminal in  Bellingham and                                                               
emphasized that the  capacity concern pointed to  earlier was not                                                               
terminal capacity; rather,  it was that the ferries  are full. He                                                               
assured members that any suggestions  they have for improving the                                                               
facility would be eagerly received.                                                                                             
                                                                                                                                
SENATOR  OLSON  expressed  appreciation  at  not  having  to  pay                                                               
Washington State  tax when shopping  in the state. He  then asked                                                               
whether expenses were rising faster than revenues.                                                                              
                                                                                                                                
MR.  DARLING replied  they  are  one of  80  port authorities  in                                                               
Washington  and probably  the most  diversified.  In addition  to                                                               
transportation  facilities,  they  operate a  large  real  estate                                                               
portfolio  of commercial  and industrial  property  and have  two                                                               
small  boat  harbors with  about  2,500  vessels. There  is  high                                                               
demand for  both the  marinas and the  real estate  which provide                                                               
balance to the transportation facilities.                                                                                       
                                                                                                                                
They have  received considerable  federal help to  meet increased                                                               
security  costs  for  aviation,  but   that  help  has  not  been                                                               
available  in  the  marine  area.  Overall,  diversification  has                                                               
softened recent economic blows.                                                                                                 
                                                                                                                                
SENATOR OLSON asked  if there was danger of a  marine strike that                                                               
might impact Alaska.                                                                                                            
                                                                                                                                
MR. DARLING replied  that issue is resolved and there  is no need                                                               
for concern.                                                                                                                    
                                                                                                                                
SENATOR OLSON asked about custom facilities.                                                                                    
                                                                                                                                
MR. DARLING  replied there are  custom facilities  in Bellingham,                                                               
on the boarder in Blaine and  a regional office at the airport in                                                               
Bellingham.                                                                                                                     
                                                                                                                                
CO-CHAIR MASEK thanked the individuals  for taking time to travel                                                               
to Juneau to  give the overview and expressed  appreciation for a                                                               
job well done.                                                                                                                  
                                                                                                                                
MS. BENTON remarked that they have  a hard working staff. He then                                                               
advised  that their  municipal charter  is a  bit different  from                                                               
others in that  they are allowed to make a  profit. This benefits                                                               
the  community  and  helps  defray  the  costs  that  some  other                                                               
governments have difficulty managing.                                                                                           
                                                                                                                                
MR.  DARLING thanked  the committee  and stated  the relationship                                                               
has been beneficial.                                                                                                            
                                                                                                                                
MAYOR OSMANSON  said it would be  fair to say that  operating the                                                               
Marine Highway  System is a  very expensive proposition,  but the                                                               
Bellingham  portion is  supported financially  by Bellingham  and                                                               
Whatcom County and they are happy to provide support.                                                                           
                                                                                                                                
ANNOUNCEMENTS                                                                                                                 
                                                                                                                                
There were no announcements.                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being  no further  business to  come before  the committee,                                                               
Chair   Cowdery   adjourned   the    joint   Senate   and   House                                                               
Transportation Standing Committee meeting at 2:00 p.m.                                                                          
                                                                                                                                
                                                                                                                                
NOTE:   The meeting was  recorded and handwritten log  notes were                                                               
taken.  A  copy of the tape(s)  and log notes may  be obtained by                                                               
contacting the  Senate Records Office  at Terry  Miller Building,                                                               
Room  226,  Juneau,  Alaska  99801,  (907)  465-2870,  and  after                                                               
adjournment  of  the  second  session  of  the  23  Alaska  State                                                               
Legislature this  information may  be obtained by  contacting the                                                               
Legislative Reference Library at (907) 465-3808.                                                                                

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