Legislature(2011 - 2012)BARNES 124
01/25/2011 01:00 PM Senate TRANSPORTATION
| Audio | Topic |
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| Start | |
| Overview(s) by Marc Luiken, Commissioner, Department of Transportation and Public Facilities. | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
JOINT MEETING
HOUSE TRANSPORTATION STANDING COMMITTEE
SENATE TRANSPORTATION STANDING COMMITTEE
January 25, 2011
1:02 p.m.
MEMBERS PRESENT
HOUSE TRANSPORTATION
Representative Peggy Wilson, Chair
Representative Lance Pruitt, Vice Chair
Representative Eric Feige
Representative Craig Johnson
Representative Cathy Engstrom Munoz
Representative Pete Petersen
SENATE TRANSPORTATION
Senator Albert Kookesh, Chair
Senator Joe Thomas, Vice Chair
Senator Dennis Egan
Senator Linda Menard
Senator Charlie Huggins
MEMBERS ABSENT
HOUSE TRANSPORTATION
Representative Max Gruenberg
SENATE TRANSPORTATION
All members present
COMMITTEE CALENDAR
OVERVIEW(S) BY MARC LUIKEN~ COMMISSIONER~ DEPARTMENT OF
TRANSPORTATION AND PUBLIC FACILITIES.
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
MARK LUIKEN, Commissioner
Department of Transportation & Public Facilities (DOT&PF)
Anchorage, Alaska
POSITION STATEMENT: Presented the overview of the Department of
Transportation & Public Facilities (DOT&PF).
ACTION NARRATIVE
1:02:32 PM
CHAIR PEGGY WILSON called the joint meeting of the House and
Senate Transportation Standing Committees to order at 1:02 p.m.
Representatives Wilson, Munoz, Feige, Pruitt, and Petersen were
present at the call to order. Senators Kookesh, Huggins,
Menard, Egan, and Thomas were present at the call to order.
Representative Johnson arrived as the meeting was in progress.
Senator Giessel was also in attendance. [Due to technical
difficulties the call to order was taken from log notes and is
not on the audio recording.]
1:03:06 PM
^OVERVIEW(s) by Marc Luiken, Commissioner, Department of
Transportation and Public Facilities.
OVERVIEW(s) by Marc Luiken, Commissioner, Department of
Transportation and Public Facilities.
1:04:35 PM
CHAIR P. WILSON announced that the only order of business would
be an overview of the Department of Transportation and Public
Facilities by Commissioner Marc Luiken. She briefly described
Commissioner Luiken's career background.
1:05:03 PM
MARK LUIKEN, Commissioner, Department of Transportation & Public
Facilities (DOT&PF), began his PowerPoint overview by reading
the DOT&PF's mission statement [slides 2]. The DOT&PF's mission
is to provide for the safe and efficient movement of people and
goods and the delivery of state services. He stated he has
changed the goal slightly, to add "and efficient," which is a
theme that will be present throughout his overview today. The
DOT&PF's goal is to bring projects out more efficiently and find
more efficient ways to provide transportation to the state. He
stressed the importance of being good stewards of the state's
resources. Secondly, he pointed out since the federal resources
are diminishing it is vitally important to maximize state and
federal resources.
1:08:17 PM
COMMISSIONER LUIKEN said his initial focus at Department of
Transportation & Public Facilities (DOT&PF) will be to become
familiar with the department. He related his intention to spend
considerable time with the organization to better help define
its overall vision. He offered his belief that unless "you know
where you are going" it is difficult to become successful. He
vowed to work with his leadership team to better define the
DOT&PF's mission, vision, and values. He suggested that today's
PowerPoint overview will outline his initial ideas about the
DOT&PF. He briefly discussed the DOTPF vision [slide 3] and the
values [slide 4]. He emphasized the importance of transparency,
efficiency, and providing quality services in transportation
modes for the state. He said hopes to identify and inculcate
these values at DOT&PF, including using the highest ethical
standards in the interactions with people and to ensure that the
DOT&PF's decisions, actions, and processes are open and
understandable, both internally and externally. Finally, his
last goal is to provide outstanding service to customers. He
hopes clearly defining the DOT&PF goals will orient DOT&PF's
staff in the way they think and act.
1:10:52 PM
COMMISSIONER LUIKEN referred to the organization chart [slide
5]. One change made to the organization is to move the
Administrative Services Director, Laura Baker, directly under
his authority. He reported his three new deputy commissioners
as Pat Kemp, the Deputy Commissioner of Highways & Public
Facilities; Steve Hatter, Deputy Commissioner of Aviation; and a
new Deputy Commissioner of the Alaska Marine Highway System
(AMHS), who will be announced once the Marine Safety
Transportation Board (MSTB) has had an opportunity to further
discuss the deputy commissioner position with him. He offered
some remarks, such that Mr. Hatter's background is similar to
his and their approach to issues is similarly aligned so he
anticipates continuity on aviation projects. He introduced
Captain John Falvey as the Acting Deputy Commissioner of the
Marine Highway System. He related that Deputy Commissioner Pat
Kemp resides in Juneau and will retain the Division of Design &
Engineering Services, Division of Program Development, Division
of Measurement Standards & Commercial Vehicle, Enforcement,
Transportation Management & Security, Statewide Facilities, and
the State Equipment Fleet.
1:13:42 PM
COMMISSIONER LUIKEN offered one important criteria he used when
selecting his lead staff: leadership skills. He stressed that
all three of his Deputy Commissioners are strong leaders. He
said that Steve Titus would remain the Regional Director for the
Northern Region, Rob Campbell, who was previously the Chief of
Design, has accepted the Regional Director's position for the
Central Region, and Gary Davis would remain as the Regional
Director for Southeast Alaska. He reiterated the importance of
having strong leadership at the top of DOT&PF's organization.
1:15:04 PM
COMMISSIONER LUIKEN turned to funding [slide 6]. He reviewed
DOT&PF's funding, relating its operating budget of nearly $253
million is comprised primarily of Capital Improvement Program
(CIP) fund receipts of about $140 million, with the remaining
balance of $112 million derived from the International Airport
System revenue. The interagency receipts and Highway Working
Group Capital Fund primarily represent the State Equipment
Fleet. He noted the general funds total $328 million. The
Capital Budget of $664 million represents federal funds Alaska
receives. The general funds are comprised of the state matching
funds and $72 million in Highway Safety Program receipts. He
related that the $91 million remaining is derived from AIDEA
funding, Highway Working Group Capital, International Airport
receipts, and AIS Construction receipts, which are primarily
bonds.
1:17:49 PM
COMMISSIONER LUIKEN reviewed the DOT&PF's Project Prioritization
[slide 7]. He stressed that safety is the first priority. The
DOT&PF's second priority is sustainment of DOT&PF's Asset
Management System, which is comprised of maintaining pavement,
bridges, airports, ferries, and transit systems. Next, the
priority is implementing the 2030 Long Range Transportation
Plan, including the Regional Transportation Plans, the Aviation
Improvement Program (AIP), and the State Transportation
Improvement Program (STIP).
1:18:34 PM
CHAIR P. WILSON requested an update on STIP changes at some
point in the future, including plans for each region.
COMMISSIONER LUIKEN agreed to do so. He offered spreadsheets
that outline changes to the STIP, titled "Central Region Change
Summary" which was passed out to members. He offered to
highlight a few of the safety programs. He explained that the
Highway Safety Program is data driven and helps determine the
cost/benefit ratio to the safety projects. The program is
funded at $15 million. The Alaska Highway Safety Office is
funded with federal dollars, and is the conduit between the
DOT&PF and the Department of Public Safety (DPS). The funds are
used for education and outreach. He mentioned he recently
participated in producing a commercial spot with DPS, which will
be used for public education. This year, beginning next month,
the DOT&PF will also update its Strategic Highway Safety Plan.
He remarked Safe Routes to School (SRTS), a federally funded
program that has had some success, encourages children K-8 to
walk or bike to school and the DOT&PF provides safe means for
them to do so. Additionally, the program facilitates planning,
development and implementation of projects and activities to
improve safety, traffic, and fuel consumption around schools.
He reiterated that the SRTS program helps make it safer for kids
to get to school.
1:21:28 PM
COMMISSIONER LUIKEN reviewed the governor's priorities,
including jobs, safety, roads to resources, and deferred
maintenance [slide 8]. He elaborated on the governor's
priorities, noting the first priority is to provide jobs for
Alaskans. Last year the DOT&PF put out to bid about $500
million in contracts, which equals jobs, he said. The DOT&PF
also helped pave the way for the Alaska Ship & Drydock, Inc. by
negotiating some land swaps that will afford the company an
opportunity to compete to build the Alaska Class Ferry (ACF).
He stated that between funding new roads and opening Alaska's
mineral potential, the DOT&PF is also leveraging $673 million in
federal funds for highways and aviation with state matching
funds. He characterized this as a big year for the DOT&PF, by
putting projects out to bid and in doing so putting Alaskans to
work.
COMMISSIONER LUIKEN continued discussing the governor's
priorities, turning to the second priority: safety. He said
that 2010 was the safest year yet on Alaska's roads. He
acknowledged that while any fatality is tragic, that overall
highway deaths were reduced to 57 deaths this past year. He
related the DOT&PF's goal for the three-year average of the
number of highway fatality deaths is 67, but the DOT&PF
surpassed its goal. He reported the three-year average is
currently at 61 highway fatalities. He offered his belief that
the state has been making progress in highway safety, in part,
due to the creation of four highway safety corridors. He
explained that through this process, the DOT&PF partners with
the Department of Public Safety (DPS) to collaborate and provide
improvements in road engineering, education and enforcement.
The DPS is responsible for the enforcement portion, and the
DOT&PF has worked diligently to engineer roads for greater
safety. He detailed that he has worked with Commissioner
Masters, DPS, as previously mentioned, on public education. He
outlined that the DOT&PF has focused on three primary projects
in its Roads to Resources program: the Ambler mining district
access, Foothills West road to Umiat, and Western Access, which
is often called "the road to Nome." The DOT&PF recently
finished a study and identified a preferred alternative proposed
to the latter project. The Governor has emphasized these
projects, as will the DOT&PF, he vowed.
1:25:31 PM
COMMISSIONER LUIKEN, in response to Chair P. Wilson, agreed to
do provide a future briefing on each of the projects. He
continued his overview, stating that $25 million was in the
Governor's DOT&PF budget last year for maintenance and that
effort began last summer. He offered his belief an additional
$27 million is included in the FY 12 budget to address deferred
maintenance needs across all modes.
1:26:10 PM
COMMISSIONER LUIKEN reviewed successes [slides 9 & 10] He
referred to the photograph in slide 10 depicting some of
DOT&PF's successes. He referred to the image on the upper left
of the photo of the Tanana River Bridge, located at Alaska
Highway Milepost 1303. This $30 million project started in 2007
and replaced the span bridge, he stated. The new bridge opened
this summer, while the old span bridge is currently being
deconstructed, and should be completed by 2011. The lower left
photo shows the road in the village of Newtok, he said. This
strongly supported federal project is being built in conjunction
with the U.S. Department of Defense. This year, 1,800 feet of
road was completed this year and the department plans to move
forward with the evacuation shelter within the next year. The
upper right photo shows the completed Hoonah dock. The terminal
should open next month, which is a little behind schedule. Last
summer, the DOT&PF Fairbanks International Airport (FIA) opened
up direct service to Denver by Frontier Airlines and service to
Salt Lake City by Delta Airlines. The DOT&PF plans to add
international flights to Europe this summer via Edelweiss Air
(Switzerland) which will also complement the current Condor
Airlines service from Anchorage to numerous points in Europe.
Additionally, DOT&PF plans to add another international carrier
with service to Anchorage in 2012. Finally, Jet Blue Airways
will begin direct service from Los Angeles to Anchorage this
summer, he said.
1:29:44 PM
COMMISSIONER LUIKEN reported that the Alaska Marine Highway
System (AMHS) has installed a fuel management system on several
vessels. The fuel management system offers significant fuel
savings since the system is automated. He consulted with
Captain Falvey, then confirmed the system will be installed an
additional three vessels this summer.
COMMISSIONER LUIKEN pointed out several other projects. This
year the DOT&PF completed the Gustavus causeway, which opened up
ferry service to serve that community, noting AMHS will provide
fulltime service to Gustavus beginning this summer. He reported
that this past summer the DOT&PF suffered a significant
landslide on the Taylor Highway. The DOT&PF received $12
million in emergency funding and quickly cleared and reopened
the highway. He commended the Northern Region for its efforts
during that natural disaster. The DOT&PF successfully
designated its American Recovery and Reinvestment Act of 2009
(ARRA) funds, and ranked fifth in the nation in the amount of
funds obligated. He mentioned another project, which completed
work to open a new runway at Barrow, and also reported that the
DOT&PF has completed half of its runway seven extension at the
Anchorage International Airport (AIA) and has plans to finish
the remaining portion of the project this summer. He remarked
that the project will significantly increase the capability of
the AIA. It will be able to handle the heaviest new aircraft
being brought on in many new fleets.
1:32:04 PM
COMMISSIONER LUIKEN reported on the successful aviation summit
held in Anchorage this summer, which was attended by 18
companies from around the world. The summit was held in an
effort to help participants understand the unique cargo transfer
laws that apply in Alaska and Hawaii. He related this summit
generated significant interest in Alaska. The Anchorage and
Fairbanks airport managers recently spent three weeks in Asia as
a follow-up to that summit, conducting 14 meetings in 7 days in
3 different countries. The managers were able to answer
questions and generate significant interest by air carriers in
using Alaska's international airports. He offered his belief
this effort should reap huge benefits to Alaska in the coming
years. The department completed paving road resurfacing
projects from Anchorage to Palmer, which improved safety and
comfort for vehicular travel. He anticipated next year lighting
projects will also be completed. The Sterling and Tok weigh
stations were finished this summer, which will add additional
capability for commercial vehicle enforcement. He remarked that
the DOT&PF also held a successful ports and harbors conference
in December 2010.
1:34:40 PM
COMMISSIONER LUIKEN reported on challenges the DOT&PF faces
[slide 11]. He reported that the federal transportation and
aviation reauthorization bills have not yet be acted on by the
Congress. The current funding for the programs is being
authorized under a continuing resolution which will expire on
March 4, 2011. He said he anticipates another resolution will
be passed prior to the Congress taking action on the
reauthorization bills. He remarked that it makes it very
difficult for DOT&PF to program projects since it the funding
level is uncertain and the DOT&PF's projections represent "our
best guess." The DOT&PF has been operating on the assumption
that the levels will be at the same levels as the current
SAFETEA-LU [Transportation Equity Act: A Legacy for Users]
transportation funding levels.
1:36:08 PM
COMMISSIONER LUIKEN related proposed changes could result in up
to a 20 percent reduction in federal highway funding in Alaska.
He said he anticipates that given the fiscal impacts nationally
that the state should expect an overall reduction in federal
funds. He recalled the governor also discussed the time
constraints imposed by the National Environmental Policy Act
(NEPA) process. He remarked that the NEPA process slows the
DOT&PF's ability to bring projects out to bid. He turned to
discuss the AMHS. He related that he instructed Captain Falvey,
and will also ask his new deputy commissioner, to work at
creating efficiencies for the AMHS's system to attempt to shrink
the state subsidies required. He remarked that the fuel
efficiency is one way the AMHS has created cost savings, but the
DOT&PF's leadership will continue to work to identify other
efficiencies. He said he previously mentioned the natural
disaster on the Taylor Highway, noting that other disasters
routinely happen. During those times, the DOT&PF must then
focus on recovery and not on routine projects. He commented
that natural disasters create challenges but these challenges
are not insurmountable.
1:39:05 PM
COMMISSIONER LUIKEN said he opened his overview by describing
his vision and characterized this next slide as a good example:
"511.Alaska.gov" [slide 12]. He stated that this website
represents a method to disperse information to the public. He
pointed out that the DOT&PF recently had a significant data base
crash. The road weather information provided on that site is a
popular one so when it was down for a couple of weeks the
commissioner "heard" about it. The DOT&PF remedied the problem
with the "501 Alaska" since its cameras have the same
capabilities. He also referred to the Project Description
Project listing on the "511.Alaaksa.gov" website, which will
provide online access to obtain the STIP information timeline.
He emphasized the helpful information provided on the website.
1:41:12 PM
COMMISSIONER LUIKEN referred to the photograph of legislators
who traveled on the Dalton Highway last summer [slide 13]. He
informed members that the DOT&PF will offer another Dalton
Highway tour on June 21, 2011 and welcomed members to
participate.
CHAIR P. WILSON remarked that she enjoyed the Dalton Highway
tour last year and also urged members to participate in June
2011.
1:42:46 PM
SENATOR MENARD referred to her district in the Matanuska-Susitna
Borough (Mat-Su Borough) and the Knik/Goose Bay Road Highway
Safety Corridor. She recalled last summer's traffic fatalities
on the Knik/Goose Bay Road and asked whether the department is
providing enough resources to ensure safety. She advised that
the Matanuska-Susitna valley population has increased to nearly
100,000 residents. She commented that she was very happy about
the record of decision from the Federal Highway Administration
(FHWA) for the Knik Arm Bridge and Toll Authority (KABATA),
which came through in December 2010. She characterized the
project as an asset and the project could provide a great exit
point in the event of an earthquake. She reported that she
currently serves on the KABATA board. She further asked for the
total number of employees at the DOT&PF.
COMMISSIONER LUIKEN answered that he reviewed the statistics
after the traffic fatality on Knik/Goose Bay Road. He reported
that the department has seen a significant decline in fatal
accidents on Knik/Goose Bay Road due to the engineering and
additional DPS enforcement efforts. He said he thought
additional improvements for safety could be made. He offered to
provide the traffic data. He also responded that the DOT&PF has
approximately 3,600 to 3,800 employees.
1:46:20 PM
REPRESENTATIVE MUNOZ asked for update on Lynn Canal Highway
project.
COMMISSIONER LUIKEN answered that the DOT&PF is awaiting a
ruling by the 9th Circuit Court of Appeals ruling. He added
that the DOT&PF is prepared to move forward on the next section
of that road, that the department has one more permit to
complete and could move forward once the federal court ruling is
issued. In further response to Representative Munoz, he offered
to provide more detail later on the oral arguments in that case.
1:47:51 PM
SENATOR THOMAS expressed his concern about the DOT&PF
contracting out large construction projects, recalling that
currently up to 60 percent of the road projects are awarded to
out-of-state contractors. He said he was not convinced outside
firms can do construct projects "cheaper." He surmised that the
DOT&PF has a record of the standard, certainly more so than the
design companies that are subcontractors. He asked the
commissioner to review that record. He recalled the
commissioner's concern that the state might lose 20 percent of
FHWA funds, which would amount to $175 to $200 million in
federal funding. He asked how the state should proceed given
that the state may also potentially forego collecting the motor
fuels tax. He noted that simultaneously the state continues to
build new roads and must also address the deferred maintenance
costs for facilities. He said it seemed to him that the state
has a huge bill to pay at the same time is experiencing reduced
income while expanding its facilities.
COMMISSIONER LUIKEN answered that he would love to address both
concerns in more detail later. He related his initial thoughts
are that the DOT&PF will gain savings through organization
efficiencies. He related his understanding, with respect to the
fuel tax issue, that the motor fuel tax is a Department of
Revenue issue so it is not necessarily tied to DOT&PF state or
federal funding. He remarked that the amount of money committed
to transportation is three to four times greater than the motor
fuel tax revenue generated for the state.
1:52:05 PM
SENATOR EGAN mentioned one big project not previously mentioned
is the M/V Susitna, which is being constructed entirely in the
state at the Ketchikan shipyard. He characterized the vessel as
a state of the art vessel. He said he hopes that the U.S. Navy
will build a vessel twice that size in Alaska. He cautioned the
commissioner not to forget the Alaska Class Ferry (ACF) as the
ferry system is important to coastal communities.
COMMISSIONER LUIKEN agreed that the ACF ferry is a success and
is at the 10 percent completion stage.
1:54:21 PM
SENATOR HUGGINS referred to the Highway Safety Corridors, noting
that 50 percent are located in his district. He related his
understanding that three signal lights are ready for
positioning, but was told that there is a three-year delay for
installation. He then commended the significant improvement in
Alaska's bike paths to the extent that the public now expects
them. He cautioned that safety needs must be "retooled" in
areas where bike paths are adjacent to schools. He also
suggested revisiting the lease costs on rural airport leases as
tenants cannot afford to "park" small planes. He stressed the
importance of aviation fuel production in the state.
COMMISSIONER LUIKEN asked to delay his response on the state's
Highway Safety Corridors. He answered that the DOT&PF currently
is proposing changes to Title 17, Chapter 45, which, in most
instances will result in a reduction in lease rates for rural
airports. He acknowledged the aviation fuel concerns.
SENATOR HUGGINS, in response to a question, clarified that he
was referring to the 100 low-lead (100LL).
COMMISSIONER LUIKEN explained that Alaska responded to the
Environmental Protection Agency's (EPA) proposed rulemaking to
make 100LL endangerment finding. He elaborated that last summer
the EPA proposed regulation changes that would issue an
endangerment finding on 100LL fuel, which would identify it as a
danger to humans. The DOT&PF responded with its concern that
scientific data does not support the finding and to quantify the
impact on Alaska's aviation system. The EPA contacted DOT&PF
and agreed to include Alaska in its research. He pointed out
that while the EPA would make the finding but the Federal
Aviation Administration (FAA) would ultimately make the decision
on whether lead is an issue.
1:59:59 PM
COMMISSIONER LUIKEN, in response to Chair Wilson, explained that
the FAA has been working for over 20 years to find a substitute
to 100LL that will work in high-compression engines that drive
the smaller aviation aircraft, acknowledging that some larger
aircraft can also use 100LL. The state would like to ensure
that testing will occur in Alaska since alternative fuel
products may work in Kansas but not in Barrow. He advised that
the Alaska International Airport System is currently working
with the Alaska Fuel Suppliers Consortium (AFSC) to bring in
additional fuel storage tankage at the airport. He related that
the DOT&PF has seen a different mode of supply from tanker fuel
suppliers and the larger volume of fuel needed will require
additional storage capacity. The AFSC is very interested in
building additional tanks to provide for additional capacity,
which should result in an absence of fuel shortages, such as the
one Alaska experienced a year ago.
2:02:03 PM
CHAIR P. WILSON asked for a cost comparison for aviation fuel
refined in Alaska versus fuel that is barged in.
COMMISSIONER LUIKEN said he was unsure of the cost comparison.
He explained that as tankers have begun to bring in fuel that
competition has increased. He offered his belief that
competition should have a favorable impact on jet aviation fuel
costs.
2:02:44 PM
COMMISSIONER LUIKEN, in response to Representative Petersen,
explained that he has been advised that Flint Hills intends to
restart the tower in April 2011, which is an indicator that a
little competition has potentially helped in its decision-making
process.
2:03:33 PM
REPRESENTATIVE PRUITT recalled some discussion about adding a
north to south runway at the Anchorage International Airport
(AIA). He further recalled some carriers gave some "pushback."
He asked for a status report.
COMMISSIONER LUIKEN answered during his short tenure as Deputy
Commissioner that adding the runway was not an option under
consideration. He advised that the DOT&PF will issue another
plan on the AIA System and the DOT&PF will commence plans at the
Fairbanks International Airport (FIA) this summer.
2:04:38 PM
REPRESENTATIVE JOHNSON asked what happened to the Lena Point
camera since it provided a good indicator of the weather at the
airport.
COMMISSIONER LUIKEN answered that the FAA manages the camera
program but offered to find out.
SENATOR EGAN suggested that the camera at Peterson Hill, which
overlooks the runway, is available online and could provide the
weather information at the airport.
2:06:01 PM
CHAIR P. WILSON said she would like to pose a series of
questions carried over from last year. She began by asking for
a status report on the regional planning organizations.
COMMISSIONER LUIKEN responded that he anticipated that the
legislature will be discussing the issue, noting that several
communities in Southeast Alaska are also interested. He offered
to provide input during the discussions. In further response to
Chair P. Wilson, he reiterated his willingness to participate in
the discussions on regional planning organizations.
2:07:10 PM
CHAIR P. WILSON recalled that the Alaska Railroad Corporation
(ARRC) has been charging the DOT&PF fees for maintenance
upgrades where the railroad crosses highways. She recalled the
fees and expressed concern that the rate of cost plus 70 percent
was too high.
COMMISSIONER LUIKEN related his understanding that the ARRC and
DOT&PF have met on this matter and the ARRC has agreed to
provide an advance list of planned upgrades at crossings to
DOT&PF so the costs could be submitted in the budget process as
capital projects. This advance notice would afford the DOT&PF
cost projections that would allow the DOT&PF to negotiate the
cost as well as request the necessary amount be included in its
budget.
CHAIR P. WILSON could not recall whether maintenance fees were
being charged on a monthly or annual basis.
COMMISSIONER LUIKEN answered that the ARRC charges a maintenance
cost per crossing and at this time the ARRC is not willing to
discuss the maintenance costs. He said the DOT&PF is still
negotiating with ARRC on this issue.
CHAIR P. WILSON said she hoped the ARRC would come up with
something that is agreeable rather than have the legislature
take action.
COMMISSIONER LUIKEN pointed out that part of slowdown in
resolving the fee issue was due to the prior counsel workload,
which he described as "being swamped." He commented that the
ARRC now has a new general counsel. He indicated the DOT&PF has
requested that the negotiations on this matter be reopened. In
further response to Chair P. Wilson, he offered to keep her
apprised on the matter.
2:10:07 PM
COMMISSIONER LUIKEN, in response to Chair P. Wilson, indicated
he would work with the Department of Environmental Conservation
(DEC) Commissioner Hartig to reach a conclusion about the
naturally occurring asbestos issue in Ambler. In further
response to Chair P. Wilson, he agreed the issue is that the
gravel was found to be harmful to residents and that he offered
to keep the committee informed on the matter.
2:11:12 PM
REPRESENTATIVE WILSON related her understanding that the
Ketchikan Gateway Borough has been operating its airport at a
deficit of about $400 thousand per year and has been considering
transferring ownership to the state.
COMMISSIONER LUIKEN advised that he currently has a team in
Ketchikan assessing the situation. He explained that last
summer the state auditors reviewed the financial documents and
provided the DOT&PF with a report. The audit demonstrated that
under the current lease, the Ketchikan Gateway Borough's
assessment was probably correct. He related that he then
offered to send a team of airport operators to look at Ketchikan
International Airport (KIA) operations since he is not convinced
that the airport has taken advantage of efficiencies to lower
costs. The team has been in Ketchikan for the past two days.
He reported that the DOT&PF is working with the KIA and
Ketchikan Gateway Borough (KGB) on the issue of the airport
costs.
2:13:05 PM
CHAIR P. WILSON asked for status on the request to expand
airport services in Bethel.
COMMISSIONER LUIKEN acknowledged that this is an important issue
for the community and the carriers. He said the Bethel Airport
services will be discussed with the Aviation Advisory Board
tomorrow. He offered to continue to move forward on this issue.
2:13:57 PM
CHAIR P. WILSON asked to turn to the AMHS, ports, and harbors.
She asked for the DOT&PF's involvement with federal government
with respect to design marine highway corridors. She also asked
whether the DOT&PF has given any thought to creating a plan for
deep harbors in the event another route is developed through the
Arctic.
COMMISSIONER LUIKEN answered yes. He reported that the DOT&PF
received about $250,000 last year to perform a study. The
DOT&PF conducted a joint regional ports and harbor study with
U.S. Corps of Engineers. The effort resulted in a "big list of
needs" from many different sources. The DOT&PF is currently in
the process of culling the list to identify only essential items
and remove any duplication. Once finished, the DOT&PF will then
work with the U.S. Corps of Engineers to prioritize the list.
In further response to Chair Wilson, he offered his belief that
this list pertains to all ports and harbors. He then provided
an untitled list of projects by region and community to the
committee.
2:16:59 PM
CHAIR P. WILSON asked for status on the DOT&PF efforts on the
Prince Rupert, with respect to the AMHS.
COMMISSIONER LUIKEN identified that Prince Rupert initially was
only willing to offer a five-year lease to the state, which is a
"non-starter" due to the federal funding process. He reported
that this issue has since been resolved as Prince Rupert has
committed to allow a long-term lease. The DOT&PF has solicited
appraisal services that will close out tomorrow. He hoped by
the end of the week that the DOT&PF would have two contracts in
place to finish the appraisal and allow the state to begin
negotiations with Prince Rupert on a long-term lease.
2:18:07 PM
CHAIR P. WILSON asked for a status on the Hoonah Ferry terminal.
COMMISSIONER LUIKEN answered that it should be completed in
March 2011.
CHAIR P. WILSON then asked for status on the Haines Ferry
terminal upgrades.
COMMISSIONER LUIKEN related that the environmental process
should begin next month. He explained that the project will be
completed in two phases, first, to replace the sheet pile cells
and then to construct the unloading facility for the ferry. He
said he hoped that the first phase would be out to bid by the
end of the year.
CHAIR P. WILSON also asked whether the facility would be able to
accommodate both front-loading and side-loading ferries.
COMMISSIONER LUIKEN, after consulting with Captain Falvey,
confirmed that it would accommodate both types of ferries.
2:19:40 PM
CHAIR P. WILSON recalled reading that rural Alaska has provided
a single unified list of needed appropriations. She asked about
funding levels.
COMMISSIONER LUIKEN responded that the DOT&PF has not yet
completed the study. He remarked that once the DOT&PF compiles
a single list, that the department will continue to work with
the U.S. Corps of Engineers to prioritize projects. At that
point the DOT&PF will have a better idea of the costs, he
advised.
CHAIR P. WILSON asked whether the state could partner with the
Denali Commission to try to obtain funding other than relying
solely on state funds.
COMMISSIONER LUIKEN answered that he was certain that the DOT&PF
will look at all sources of funding.
2:20:55 PM
CHAIR P. WILSON thanked Commissioner Luiken for his overview.
2:21:33 PM
ADJOURNMENT
There being no further business before the committees, the joint
meeting between the House Transportation Standing Committee and
the Senate Transportation Standing Committee was adjourned at
2:21 p.m.
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