Legislature(2007 - 2008)SENATE FINANCE 532

02/13/2007 01:00 PM Senate TRANSPORTATION


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01:10:28 PM Start
01:13:40 PM Overview: Department of Transportation Highway System
02:51:00 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Joint w/ (H) Transportation
Overview of the Department of
Transportation Highway System
                    ALASKA STATE LEGISLATURE                                                                                  
                         JOINT MEETING                                                                                        
            SENATE TRANSPORTATION STANDING COMMITTEE                                                                          
            HOUSE TRANSPORTATION STANDING COMMITTEE                                                                           
                       February 13, 2007                                                                                        
                           1:10 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
SENATE TRANSPORTATION                                                                                                         
                                                                                                                                
 Senator Albert Kookesh, Chair                                                                                                  
 Senator John Cowdery, Vice Chair                                                                                               
 Senator Donny Olson                                                                                                            
 Senator Bill Wielechowski                                                                                                      
 Senator Gary Wilken                                                                                                            
                                                                                                                                
HOUSE TRANSPORTATION                                                                                                          
                                                                                                                                
 Representative Kyle Johansen, Chair                                                                                            
 Representative Mark Neuman, Vice Chair                                                                                         
 Representative Anna Fairclough                                                                                                 
 Representative Craig Johnson                                                                                                   
 Representative Vic Kohring                                                                                                     
 Representative Mike Doogan                                                                                                     
 Representative Woodie Salmon                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
Overview: Department of Transportation Highway System                                                                           
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to consider                                                                                                  
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                              
John MacKinnon, Deputy Commissioner                                                                                             
Department of Transportation &                                                                                                  
  Public Facilities                                                                                                             
3132 Channel Dr.                                                                                                                
Juneau, AK  99801-7898                                                                                                          
POSITION STATEMENT:  Presented overview                                                                                       
                                                                                                                                
Jeffrey Ottesen, Program Development Division Director                                                                          
Department of Transportation &                                                                                                  
  Public Facilities                                                                                                             
3132 Channel Dr.                                                                                                                
Juneau, AK  99801-7898                                                                                                          
POSITION STATEMENT:  Presented overview                                                                                       
                                                                                                                                
Malcolm Menzies, Southeast Regional Director                                                                                    
Department of Transportation &                                                                                                  
  Public Facilities                                                                                                             
3132 Channel Dr.                                                                                                                
Juneau, AK  99801-7898                                                                                                          
POSITION STATEMENT:  Presented overview                                                                                       
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR ALBERT KOOKESH  called the joint meeting of  the Senate and                                                             
House Transportation Standing Committees  to order at 1:10:28 PM.                                                             
Present  at  the  call  to   order  were  Senators  Wielechowski,                                                               
Cowdery, Olson,  Wilken, and  Chair Kookesh,  and Representatives                                                               
Kohring, Doogan,  Johnson, Neuman, Fairclough, Salmon,  and Chair                                                               
Johansen.                                                                                                                       
                                                                                                                                
     ^OVERVIEW: DEPARTMENT OF TRANSPORTATION HIGHWAY SYSTEM                                                                 
                                                                                                                                
CHAIR KOOKESH announced  the committee would hear  an overview of                                                               
the highway system.                                                                                                             
1:13:40 PM                                                                                                                    
                                                                                                                                
JOHN  MACKINNON,  Deputy  Commissioner  with  the  Department  of                                                               
Transportation (DOT), said he would  be presenting an overview on                                                               
the DOT's  highway system  in Alaska. The  DOT exists  to provide                                                               
for the  movement of  people and  goods and  for the  delivery of                                                               
state  services.  It  is  organized   into  the  marine  highway,                                                               
aviation, and highway and public  facilities divisions. It covers                                                               
three  regions: southeast,  central, and  northern. The  northern                                                               
region contains the  most roads and the central  region is mainly                                                               
urban.  There  are 2,113  centerline  miles  of national  highway                                                               
routes in  Alaska, as  well as lower-traffic  routes such  as the                                                               
Steers  and  Denali highways.  The  DOT  is responsible  for  765                                                               
bridges on  these combined routes,  and possesses  84 maintenance                                                               
stations statewide.                                                                                                             
                                                                                                                                
1:18:14 PM                                                                                                                    
                                                                                                                                
MR. MACKINNON said  that there are 29 state-owned  harbors, 12 of                                                               
which  are operated  by local  governments. The  state and  local                                                               
government must maintain floats in these harbors.                                                                               
                                                                                                                                
SENATOR  COWDERY asked  if the  local government  collects harbor                                                               
fees.                                                                                                                           
                                                                                                                                
MR. MACKINNON  replied that the  local government  is responsible                                                               
for   collecting   operational   fees  and   conducting   routine                                                               
maintenance; major maintenance is done  by the state. The control                                                               
of  many  of  these  harbors   is  being  transitioned  to  local                                                               
governments.                                                                                                                    
                                                                                                                                
1:21:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN asked if there  is any cruise ship head-tax                                                               
money being distributed to the harbors.                                                                                         
                                                                                                                                
MR. MACKINNON  replied that none of  the tax money will  be going                                                               
to  the harbors,  but in  his  opinion highway  rest stops  would                                                               
greatly benefit from such additional funding.                                                                                   
                                                                                                                                
1:23:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN  asked  if   local  communities  have  the                                                               
opportunity to volunteer for rest stop maintenance.                                                                             
                                                                                                                                
MR. MACKINNON  replied that they  may do so through  the Adopt-A-                                                               
Highway program,  which applies to  highways but can  be extended                                                               
to apply to rest stops as well.                                                                                                 
                                                                                                                                
1:25:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON  asked if the  cruise ship head  tax could                                                               
be used for rest stop maintenance.                                                                                              
                                                                                                                                
MR.  MACKINNON  said   that  he  was  unfamiliar   with  the  tax                                                               
initiative and could not answer the question.                                                                                   
                                                                                                                                
REPRESENTATIVE JOHNSON  encouraged Mr. MacKinnon to  research the                                                               
idea.                                                                                                                           
                                                                                                                                
1:26:10 PM                                                                                                                    
                                                                                                                                
MR.  MACKINNON  said  that  the  DOT  also  oversees  measurement                                                               
standards  and  commercial   vehicle  enforcement.  It  certifies                                                               
scales and gas pumps and  enforces commercial vehicle inspections                                                               
and weighing. It has recently  increased penalties for overweight                                                               
loads.                                                                                                                          
                                                                                                                                
1:29:08 PM                                                                                                                    
                                                                                                                                
MR.  MACKINNON  said  that there  are  258  state-owned  airports                                                               
across  Alaska,  with a  $200  million  federally funded  budget.                                                               
Alaska is the largest airport  operator in the United States, and                                                               
134  airports are  staffed through  community contracts.   Annual                                                               
maintenance costs an average of $27,000 per airport.                                                                            
                                                                                                                                
He said  that the northern  region receives the  most maintenance                                                               
funding because  it contains many  of the state's  roads. Funding                                                               
has been  improved in  the last  few years,  and costs  have been                                                               
kept  down by  efficient equipment.  General funds  are generally                                                               
used for winter  maintenance, and much summertime  work is funded                                                               
federally.                                                                                                                      
                                                                                                                                
1:34:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN asked  if  the funding  chart referred  to                                                               
total funding, or just federal funds.                                                                                           
                                                                                                                                
MR. MACKINNON replied that the funding is 90 percent federal.                                                                   
                                                                                                                                
1:35:27 PM                                                                                                                    
                                                                                                                                
MR.  MACKINNON   reviewed  recent  natural   disasters  including                                                               
flooding,  and  explained  that first  response  comes  from  DOT                                                               
personnel before  contractors are hired to  effect more permanent                                                               
repairs.                                                                                                                        
                                                                                                                                
SENATOR OLSON asked why $600,000  in DOT disaster funds was spent                                                               
on the Hooper Bay fire repair.                                                                                                  
                                                                                                                                
MR.  MACKINNON replied  that the  money was  spent to  repair the                                                               
road  leading from  the  airport to  the town  to  allow for  the                                                               
passage of freight and repair materials.                                                                                        
                                                                                                                                
SENATOR  OLSON  asked if  airports  without  surface runways  are                                                               
included in the DOT's maintenance budget.                                                                                       
                                                                                                                                
MR.  MACKINNON  replied  that   such  airports,  with  floatplane                                                               
facilities, are included in the budget.                                                                                         
                                                                                                                                
SENATOR OLSON  asked if complaints  about such airports  would be                                                               
directed to the DOT.                                                                                                            
                                                                                                                                
MR. MACKINNON responded that they would.                                                                                        
                                                                                                                                
1:39:10 PM                                                                                                                    
                                                                                                                                
MR.  MACKINNON said  that the  DOT  highways department  oversees                                                               
road  and  ferry   construction  contract  administration,  field                                                               
inspection, and quality assurance.  Current active projects total                                                               
over $1.5  billion, and  past projects  have included  the Alaska                                                               
Psychiatric Institute and the virology  lab for the Department of                                                               
Health  and  Social  Services.  The  combined  operating  capital                                                               
budget is about $2 billion.                                                                                                     
                                                                                                                                
1:40:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN asked  how the  DOT is  approaching bridge                                                               
improvements in regards  to future traffic caused  by the natural                                                               
gas pipeline.                                                                                                                   
                                                                                                                                
MR. MACKINNON replied  that the DOT is doing  inventory on routes                                                               
that need improving,  and is repairing them  beginning with those                                                               
in  the worst  condition. Particular  care is  being paid  to the                                                               
Dalton Highway.                                                                                                                 
                                                                                                                                
1:42:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SALMON said  that the governor has asked  for a $6                                                               
million cut in funding for the  northern region of the state, and                                                               
asked Mr. MacKinnon for his input.                                                                                              
                                                                                                                                
MR. MACKINNON said  that the DOT's share of the  proposed cuts is                                                               
$23 million.  The department responded  by proposing cuts  from a                                                               
wide variety  of programs across  the state,  but as of  yet none                                                               
are final.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  JOHANSEN   asked  Mr.  MacKinnon   to  eventually                                                               
provide   the  committee   with   a  break-down   of  the   DOT's                                                               
construction spending.                                                                                                          
                                                                                                                                
1:44:21 PM                                                                                                                    
                                                                                                                                
MR.  MACKINNON said  that funding  has been  improving in  recent                                                               
years, and  mentioned some  highways around  the state  that need                                                               
funding for  repairs. Often weight  limits on these  highways are                                                               
costly for  the trucking industry,  and proper  maintenance could                                                               
eliminate these restrictions.                                                                                                   
                                                                                                                                
1:47:01 PM                                                                                                                    
                                                                                                                                
SENATOR COWDERY asked  if there was a  correlation between weight                                                               
restrictions and speed limits.                                                                                                  
                                                                                                                                
1:47:48 PM                                                                                                                    
                                                                                                                                
MR. MACKINNON said  that he was not familiar with  the issue, but                                                               
that  the  DOT's  goal  was  to  eliminate  the  seasonal  weight                                                               
restrictions.                                                                                                                   
                                                                                                                                
He said that  a new interchange and road  extensions in Anchorage                                                               
will be built  this summer to help reduce  traffic congestion. He                                                               
cited  historic growth  in expenditures  by  the federal  highway                                                               
administration.                                                                                                                 
                                                                                                                                
1:49:10 PM                                                                                                                    
                                                                                                                                
MR. MACKINNON explained  the Statewide Transportation Improvement                                                               
Program (STIP),  which is a  required listing of  planned project                                                               
activity  for  all  federally funded  highway  construction.  The                                                               
program  is  officially  renewed  every four  years,  but  renews                                                               
continuously because of changes in project budgets.                                                                             
                                                                                                                                
1:51:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHANSEN  asked  how the  marine  highway  system                                                               
figures into federal National Highway System (NHS) funding.                                                                     
                                                                                                                                
JEFFREY OTTESEN,  Program Development Division Director  with the                                                               
DOT,  said  that vessels  and  terminals  of the  marine  highway                                                               
system connected with  a national highway are  considered part of                                                               
the NHS for funding reasons.  The vessels are not earning revenue                                                               
for the state, but are allowed to use NHS funding.                                                                              
                                                                                                                                
1:52:36 PM                                                                                                                    
                                                                                                                                
MR.  MACKINNON  said that  the  Alaska  Highway System  (AHS)  is                                                               
comprised of 1,500  centerline miles that don't  meet the federal                                                               
standards  for NHS.  There  are over  10,600  miles of  Community                                                               
Transport Program roads in Alaska.                                                                                              
                                                                                                                                
1:53:57 PM                                                                                                                    
                                                                                                                                
MR. MACKINNON showed  a chart on federal  distribution of highway                                                               
funds in Alaska,  48 percent of which goes to  NHS and 39 percent                                                               
of  which   goes  to  community  roads   and  municipal  planning                                                               
organizations.                                                                                                                  
                                                                                                                                
REPRESENTATIVE  JOHNSON  asked  if percentages  of  funding  were                                                               
mandated by the federal government.                                                                                             
                                                                                                                                
MR.  MACKINNON replied  that  the mandates  were  part of  Alaska                                                               
statue.                                                                                                                         
                                                                                                                                
1:55:22 PM                                                                                                                    
                                                                                                                                
MR. MACKINNON  said that STIP  is currently being amended,  and a                                                               
program  called  SAFETY-LU  receives  high funding  but  this  is                                                               
leading  to  less  funding  for   more  ordinary  projects.  Many                                                               
earmarks   requested  by   communities  and   organizations  have                                                               
restricted the DOT's ability to fund other projects.                                                                            
                                                                                                                                
1:57:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHANSEN  said  that   earmarks  were  picked  by                                                               
Alaska's delegation as obvious priorities.                                                                                      
                                                                                                                                
MR. MACKINNON said that they often do not fully fund a project.                                                                 
                                                                                                                                
1:58:09 PM                                                                                                                    
                                                                                                                                
SENATOR  COWDERY asked  how long  plans  for a  project might  be                                                               
viable.                                                                                                                         
                                                                                                                                
MR. MACKINNON  replied that  plans may  be valid  for as  long as                                                               
five years.                                                                                                                     
                                                                                                                                
1:59:07 PM                                                                                                                    
                                                                                                                                
MR.  MACKINNON  said  that  the  DOT is  still  waiting  for  the                                                               
transportation appropriations  bill from the US  Congress, and it                                                               
is currently  operating under a continuing  resolution and hoping                                                               
that  the  bill will  be  able  to  clarify actual  funding.  The                                                               
current SAFETY-LU authorization expires  in 2009, which may cause                                                               
insolvency in the highway trust fund.                                                                                           
                                                                                                                                
He said that  the DOT's operating budget request  is $544 million                                                               
for 2008.  Much of this  goes to  general funds support,  and the                                                               
remainder  to  equipment  replacement and  international  airport                                                               
maintenance.                                                                                                                    
                                                                                                                                
2:01:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN asked if there is a gas tax in Alaska.                                                                    
                                                                                                                                
MR.  MACKINNON replied  that the  highway  gas tax  in Alaska  is                                                               
eight cents  per gallon, which is  the lowest in the  country. It                                                               
was instated  in 1963 and  has not  changed since that  year; the                                                               
national average is 25 cents per gallon.                                                                                        
                                                                                                                                
REPRESENTATIVE NEUMAN asked if there is a federal gas tax.                                                                      
                                                                                                                                
MR.  MACKINNON replied  that  the  federal tax  is  18 cents  per                                                               
gallon, and the tax is not included in the DOT program receipts.                                                                
                                                                                                                                
2:03:42 PM                                                                                                                    
                                                                                                                                
MR.  MACKINNON said  that the  general fund  request for  2008 is                                                               
$236  million, most  of which  will  go to  highway and  aviation                                                               
maintenance and operations.  The rest will go  to marine highway,                                                               
administration,    planning,    measurement,   facilities,    and                                                               
operations  costs.  The  state  possesses  700  buildings  across                                                               
Alaska.                                                                                                                         
                                                                                                                                
2:05:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON asked  if  the general  fund  is used  to                                                               
leverage any federal money.                                                                                                     
                                                                                                                                
MR. MACKINNON replied  that all leverage money is  in the capitol                                                               
budget as highway and aviation matched funds.                                                                                   
                                                                                                                                
2:06:02 PM                                                                                                                    
                                                                                                                                
MR. MACKINNON  said that a  2005 public opinion survey  showed 80                                                               
percent  approval  of  the  DOT.  There has  been  a  20  percent                                                               
reduction in  fatalities in the last  two years, and a  6 percent                                                               
decrease in bridge deficiency.                                                                                                  
                                                                                                                                
2:07:23 PM                                                                                                                    
                                                                                                                                
SENATOR  WIELECHOWSKI  asked  if  the DOT  sees  increased  costs                                                               
because of melting permafrost due to global warming.                                                                            
                                                                                                                                
MR.  MACKINNON  replied that  the  DOT  does have  problems  with                                                               
melting permafrost, but it is used to dealing with it.                                                                          
                                                                                                                                
SENATOR WIELECHOWSKI asked for a cost estimate.                                                                                 
                                                                                                                                
MR. MACKINNON said that he did not have an estimate.                                                                            
                                                                                                                                
2:08:03 PM                                                                                                                    
                                                                                                                                
MR.  MACKINNON explained  that  safety  is a  major  goal at  the                                                               
federal  and  state  levels, and  highway  fatalities  have  been                                                               
reduced by  30 percent in  the last  five years due  to increased                                                               
traffic fines  for dangerous sections  of road,  increased patrol                                                               
officers, effective maintenance, and improved paving.                                                                           
                                                                                                                                
2:11:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN   said  that  the  University   of  Alaska                                                               
Fairbanks has been  researching ways to reduce  highway wear, and                                                               
asked about  any other efforts  by the  DOT in terms  of reducing                                                               
costs.                                                                                                                          
                                                                                                                                
MR. MACKINNON said that the  DOT uses milling machines that grind                                                               
down only the  traveling surface for refill, which  saves tons of                                                               
asphalt.  New aggregates  are being  used on  highways to  resist                                                               
studded  tire wear,  which  can  double the  life  of the  paving                                                               
surface.                                                                                                                        
                                                                                                                                
REPRESENTATIVE NEUMAN asked  if the DOT could use  granite in the                                                               
roads to make them wear-resistant.                                                                                              
                                                                                                                                
MR. MACKINNON  replied that granite  is not hard enough  for road                                                               
surfaces.                                                                                                                       
                                                                                                                                
2:15:19 PM                                                                                                                    
                                                                                                                                
MR. MACKINNON said  that one of the challenges facing  the DOT is                                                               
recruiting and  retaining staff, because state  and federal wages                                                               
are too low. The DOT staff  is aging, and replacements need to be                                                               
found.  The  lack   of  the  appropriations  bill   is  an  added                                                               
uncertainty for the department.                                                                                                 
                                                                                                                                
2:17:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN asked  if  the DOT  had jurisdiction  over                                                               
highway warning signs.                                                                                                          
                                                                                                                                
MR. MACKINNON  said that sign  placement is  federally regulated,                                                               
and the DOT must abide by  a federal manual. Highway markings are                                                               
often obscured or worn off  because of intense weather conditions                                                               
and snowplowing.                                                                                                                
                                                                                                                                
2:21:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SALMON  asked why lights are  insufficient on some                                                               
rural runways.                                                                                                                  
                                                                                                                                
MR. MACKINNON said that the  DOT is presently attempting to light                                                               
all rural runways.                                                                                                              
                                                                                                                                
SENATOR  WILKEN  asked  Mr.  MacKinnon to  speak  about  the  re-                                                               
appropriation  of  $700,000  in  funding for  the  O'Brian  creek                                                               
bridge washout.                                                                                                                 
                                                                                                                                
MR.  MACKINNON  explained  that  in 2005  the  DOT  received  the                                                               
appropriation  to  provide  access  across native  lands  to  the                                                               
Copper River  for dip-netting; the  money wasn't able to  be used                                                               
but  access has  since been  cut off  by the  creek washout.  The                                                               
original appropriation may now be  used to replace the washed-out                                                               
bridge or install a boat-launch facility.                                                                                       
                                                                                                                                
2:24:08 PM                                                                                                                    
                                                                                                                                
SENATOR WILKEN  asked Mr.  MacKinnon for detail  on the  Weigh In                                                               
Motion truck weighing system.                                                                                                   
                                                                                                                                
MR. MACKINNON said  that in Anchorage pavement  sensors have been                                                               
installed that weigh trucks as  they move, which eliminates weigh                                                               
station stops.                                                                                                                  
                                                                                                                                
2:25:21 PM                                                                                                                    
                                                                                                                                
SENATOR WILKEN  asked if a  trucker could conceivably  drive from                                                               
Anchorage to Prudhoe Bay without stopping at weigh stations.                                                                    
                                                                                                                                
MR. MACKINNON said that was correct.                                                                                            
                                                                                                                                
2:26:24 PM                                                                                                                    
                                                                                                                                
SENATOR OLSON asked how the DOT implemented dust control.                                                                       
                                                                                                                                
MR. MACKINNON said that paving  materials can be impregnated with                                                               
chemicals that reduce dust, but the process is very expensive.                                                                  
                                                                                                                                
2:28:13 PM                                                                                                                    
                                                                                                                                
SENATOR  OLSON said  that airport  vendors in  his districts  say                                                               
they are being charged dissimilar  gross revenue fees than others                                                               
across the state.                                                                                                               
                                                                                                                                
MR. MACKINNON said that an effort  is being made across Alaska to                                                               
bring every airport to the same fee standard.                                                                                   
                                                                                                                                
SENATOR  OLSON asked  for the  DOT's  stance on  a Juneau  access                                                               
road.                                                                                                                           
                                                                                                                                
MALCOLM MENZIES,  Southeast Regional  Director for the  DOT, said                                                               
that the  DOT had  solicited state logging  road bids  which were                                                               
unexpectedly high,  and Governor Sarah  Palin ordered the  DOT to                                                               
cancel  the bid.  The DOT  will  continue to  design the  federal                                                               
highway  and accept  bids in  April. The  road will  be built  in                                                               
three phases with a total of seven bridges.                                                                                     
                                                                                                                                
SENATOR OLSON asked  how the governor's budget  cuts would affect                                                               
road construction.                                                                                                              
                                                                                                                                
MR. MENZIES  replied that the  road is  a federal project  and as                                                               
such the DOT will be reimbursed for the costs.                                                                                  
                                                                                                                                
2:34:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON  asked  if  the  materials  purchased  in                                                               
anticipation of  the logging  road project would  be used  in the                                                               
federal project.                                                                                                                
                                                                                                                                
MR.  MENZIES replied  that there  would be  no money  or material                                                               
wasted.                                                                                                                         
                                                                                                                                
REPRESENTATIVE  JOHANSEN asked  for detail  on the  federal funds                                                               
for the access road.                                                                                                            
                                                                                                                                
2:35:22 PM                                                                                                                    
                                                                                                                                
MR.  OTTESEN said  that funds  would  come from  two places,  the                                                               
Shakwak  program  and  the  bridge   funding  program,  which  is                                                               
generally  restricted   to  replacement  bridges  but   would  be                                                               
applicable in this project.                                                                                                     
                                                                                                                                
2:36:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHANSEN  asked if there  was a morale  problem in                                                               
the ranks  of DOT employees,  and related a personal  story about                                                               
working in the DOT when he was younger.                                                                                         
                                                                                                                                
MR. OTTESEN replied  that he thought department  morale was fine,                                                               
despite statements from other entities.                                                                                         
                                                                                                                                
2:40:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SALMON  said that  people  in  his district  were                                                               
having   problems   with   uneven  application   of   fuel   tank                                                               
regulations.                                                                                                                    
                                                                                                                                
MR. MACKINNON said that the DOT  is in the process of making sure                                                               
airport  fuel   tanks  are  double-walled,  and   eventually  all                                                               
airports will abide by the same regulations.                                                                                    
                                                                                                                                
2:43:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN  asked  for   an  explanation  of  Shakwak                                                               
funding.                                                                                                                        
                                                                                                                                
MR.  OTTESEN said  that Shakwak  is a  program developed  in 1970                                                               
that allows American  funding to flow to the  Canadian portion of                                                               
the  Alaskan highway  system,  named for  a  geological fault  in                                                               
Canada. Later  the law  was modified to  allow Canadian  funds to                                                               
come to Alaska.                                                                                                                 
                                                                                                                                
2:45:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN asked  if Shakwak  funding applied  to the                                                               
marine highway system.                                                                                                          
                                                                                                                                
MR. OTTESEN  said that  the terminals and  ferries of  the marine                                                               
highway  system,  as well  as  roads  leading to  terminals,  are                                                               
eligible for such funding.                                                                                                      
                                                                                                                                
2:46:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN asked  if such funds could be  used for the                                                               
Juneau access road.                                                                                                             
                                                                                                                                
MR. OTTESEN  said that  the DOT is  proposing using  some Shakwak                                                               
funds for  the access  road because the  road would  be replacing                                                               
ferry service.                                                                                                                  
                                                                                                                                
SENATOR OLSON  said he  thought Shakwak funds  should be  used to                                                               
update the ferry fleet.                                                                                                         
                                                                                                                                
2:47:19 PM                                                                                                                    
                                                                                                                                
MR. OTTESEN  replied that the  ferry system is  clearly expensive                                                               
to  the state,  and  studies show  that ferry  lines  need to  be                                                               
shortened and streamlined.                                                                                                      
                                                                                                                                
REPRESENTATIVE  DOOGAN asked  if  a ferry  terminal must  already                                                               
exist for a Shakwak-funded road to be built to it.                                                                              
                                                                                                                                
MR. OTTESEN said  that in the case of the  Juneau road, the funds                                                               
can be used because a ferry terminal is included in the plans.                                                                  
                                                                                                                                
2:49:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHANSEN  asked  how  long  the  state  has  been                                                               
receiving Shakwak money.                                                                                                        
                                                                                                                                
MR.  OTTESEN said  that the  state has  been receiving  the money                                                               
since  the  early 1990s,  and  the  funding has  been  relatively                                                               
erratic.  It has  been used  for Haines  highway projects  in the                                                               
past.                                                                                                                           
                                                                                                                                
SENATOR  KOOKESH thanked  the presenters  and, seeing  no further                                                               
business, adjourned the joint committee meeting at 2:51:00 PM.                                                                
                                                                                                                                

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