Legislature(2011 - 2012)BUTROVICH 205

03/10/2011 01:00 PM Senate TRANSPORTATION


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01:03:59 PM Start
01:04:16 PM Confirmation Hearing
01:57:02 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Confirmation Hearing: TELECONFERENCED
Marc Luiken, Commissioner
Dept of Transportation and Public Facilities
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
            SENATE TRANSPORTATION STANDING COMMITTEE                                                                          
                         March 10, 2011                                                                                         
                           1:03 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Albert Kookesh, Chair                                                                                                   
Senator Joe Thomas, Vice Chair                                                                                                  
Senator Dennis Egan                                                                                                             
Senator Linda Menard                                                                                                            
Senator Charlie Huggins                                                                                                         
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CONFIRMATION HEARING                                                                                                            
     Commissioner - Department of Transportation and Public                                                                   
     Facilities (DOTPF)                                                                                                       
          Marc Luiken                                                                                                           
                                                                                                                                
     - CONFIRMATION ADVANCED                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
MARC LUIKEN, Commissioner Designee                                                                                              
Department of Transportation and Public Facilities (DOTPF)                                                                      
Juneau, AK                                                                                                                      
POSITION STATEMENT: Candidate for confirmation as Commissioner                                                                
of Transportation and Public Facilities.                                                                                        
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:03:59 PM                                                                                                                    
CHAIR ALBERT KOOKESH called the Senate Transportation Standing                                                                
Committee meeting to order at 1:03 p.m. Senators Egan, Menard,                                                                  
Huggins, Thomas, and Kookesh were present at the call to order.                                                                 
                                                                                                                                
^Confirmation Hearing                                                                                                         
                      CONFIRMATION HEARING                                                                                    
     Commissioner - Department of Transportation and Public                                                                 
                           Facilities                                                                                       
                                                                                                                                
1:04:16 PM                                                                                                                  
CHAIR KOOKESH  announced the business before  the committee would                                                               
be a confirmation hearing for  Marc Luiken, Commissioner Designee                                                               
for  the  Department  of  Transportation  and  Public  Facilities                                                               
(DOTPF).                                                                                                                        
                                                                                                                                
SENATOR MENARD joined the committee.                                                                                            
                                                                                                                                
MARC LUIKEN, Commissioner  Designee, Department of Transportation                                                               
and Public Facilities (DOTPF), said  he believes that he has been                                                               
preparing for this job for 30 years.  He was a pilot for 18 years                                                               
and the  last 12 he's used  the lessons he learned.  His function                                                               
was  similar  to   a  city  mayor.  He   oversaw  large  military                                                               
construction  and base  operations  much like  the Department  of                                                               
Transportation and Public Facilities (DOTPF).                                                                                   
                                                                                                                                
1:06:57 PM                                                                                                                    
COMMISSIONER LUIKEN said when he  moved his family to Alaska they                                                               
were amazed at  how Alaskans treat military and  decided this was                                                               
where they wanted to stay.                                                                                                      
                                                                                                                                
He made  organizational changes when he  became commissioner. Pat                                                               
Kemp,  Deputy  Commissioner,   Highways  and  Public  Facilities,                                                               
brings  thirty  years  of experience  to  the  department,  Steve                                                               
Hatter, Deputy  Commissioner for  Aviation, is a  talented leader                                                               
with  a  similar  background  to   his.  Michael  Nuessi,  Deputy                                                               
Commissioner, Marine  Operations also  brings 30 years  of marine                                                               
leadership  experience.  Finally,  they  have  three  strong  and                                                               
experienced regional directors.                                                                                                 
                                                                                                                                
1:09:35 PM                                                                                                                    
COMMISSIONER LUIKEN said DOTPF needs  to provide for the safe and                                                               
efficient  movement  of  people   and  goods.  To  use  resources                                                               
effectively   it's  important   to   bring  new   blood  to   the                                                               
organization. He  will strive  to build  an organization  that is                                                               
accountable.                                                                                                                    
                                                                                                                                
1:11:15 PM                                                                                                                    
His first day  on the job he  was in Bethel, which  has the third                                                               
busiest  airport in  the state,  and he  saw the  need to  expand                                                               
service  to 24  hours. The  second  week he  spent in  Ketchikan,                                                               
where  he  learned  about  the  Marine  Highway  System  and  the                                                               
struggles  the borough  has operating  its  airport. Recently  he                                                               
visited Nome and  now understands the issues there  better. He is                                                               
encouraging the regional  heads to engage more. He  also plans to                                                               
take the leadership  team to Skagway and then  to eastern Alaska.                                                               
The website now holds more  information about projects. They will                                                               
continue to make this system more interactive.                                                                                  
                                                                                                                                
1:13:34 PM                                                                                                                    
His  priorities   include  the  policy  directives   set  by  the                                                               
governor.  These   include  safe  families,  jobs   and  economic                                                               
opportunity, Roads to Resources, and rare earth development.                                                                    
                                                                                                                                
He said he is very pleased to be part of the governor's team.                                                                   
                                                                                                                                
1:15:22 PM                                                                                                                    
SENATOR THOMAS asked how he would describe his management style.                                                                
                                                                                                                                
COMMISSIONER LUIKEN  answered managers manage things  and leaders                                                               
lead people;  this means serving. He  is looking at ways  to best                                                               
do this for his department.                                                                                                     
                                                                                                                                
SENATOR  THOMAS said  he's always  been bothered  by how  long it                                                               
takes to get  things done. Some of this is  the process. He hopes                                                               
the  commissioner will  look at  that and  inspire folks  to move                                                               
things forward as fast as is practicable.                                                                                       
                                                                                                                                
COMMISSIONER  LUIKEN responded  they will  soon start  looking at                                                               
the federal process  and how things are slowed.  He mentioned the                                                               
National   Environmental  Protection   Act  (NEPA)   process;  he                                                               
received a letter from the  Environmental Protection Agency (EPA)                                                               
asking for  input on regulations. Also,  he said he is  a results                                                               
type  person  and  this  will   be  part  of  his  organizational                                                               
structure. He  intends to shorten  the time between  planning and                                                               
delivery                                                                                                                        
                                                                                                                                
1:19:24 PM                                                                                                                    
SENATOR MENARD  said his  intent is to  move things  forward. She                                                               
asked him  to speak to the  Knik Arm Bridge to  the Interior. She                                                               
complimented Special Assistant Brenda  Hewitt on being responsive                                                               
to requests to make highway corridors safer.                                                                                    
                                                                                                                                
COMMISSIONER LUIKEN confirmed that  he supports that project. The                                                               
state  does have  a  Record  of Decision  and  it  has also  been                                                               
defined as a  National Highway System Asset. The  challenge is to                                                               
find the funding.                                                                                                               
                                                                                                                                
1:21:26 PM                                                                                                                    
SENATOR  MENARD  warned  against  looking  only  at  the  numbers                                                               
because this is, in her opinion, the correct path.                                                                              
                                                                                                                                
SENATOR  HUGGINS said  he supports  the  commissioner because  of                                                               
what he represents  but the job will be tough  because there is a                                                               
need  to restore  confidence. He  observed  that public  projects                                                               
usually are subsidized over time  and often they don't make sense                                                               
financially. He  asked how this  can be articulated  because many                                                               
people don't understand the transportation needs of the state.                                                                  
                                                                                                                                
COMMISSIONER LUIKEN  noted that there  was a similar  question at                                                               
the health caucus.  He said that all Americans  should have equal                                                               
access to goods and services,  health care, and a reasonable cost                                                               
of  living.  That is  what  the  transportation system  provides.                                                               
Perhaps  Alaska  isn't  totally  on  par with  the  rest  of  the                                                               
country, but its citizens do  deserve a reasonable accommodation.                                                               
The charter to the airport system recognizes this.                                                                              
                                                                                                                                
SENATOR  HUGGINS  said safety  is  important.  He asked  how  the                                                               
safety manager will approach this.                                                                                              
                                                                                                                                
COMMISSIONER LUIKEN  confirmed the importance of  safety and said                                                               
that as they  approach projects this is a key  component. To that                                                               
end they are partnering with  the Department of Public Safety and                                                               
with the Highway Patrol.                                                                                                        
                                                                                                                                
1:28:16 PM                                                                                                                    
SENATOR HUGGINS commented that Alaska  repaves the same roads and                                                               
there  is a  rising expectation  that  new things  will be  done.                                                               
That's likely the reason for  all the excitement over the Susitna                                                               
Dam.                                                                                                                            
                                                                                                                                
COMMISSIONER LUIKEN said he  recognizes the department's position                                                               
in the  state's history  and he  hopes to be  the first  to build                                                               
something new.                                                                                                                  
                                                                                                                                
SENATOR EGAN said  he appreciates the open  communication and the                                                               
direction  his leadership  is taking.  He noted  the commissioner                                                               
was an  expert on  air transportation and  urged him  to remember                                                               
that he has  to be an expert on water  transportation as well. He                                                               
also urged  him to follow  the advice  of those who  are intimate                                                               
with the  Alaska Marine Highway  System.   We want to  "repave" a                                                               
ferry; we  have $65 million  and are hoping  to get a  second $65                                                               
million for  the Alaska  Class Ferry.  It is  a highway.  He then                                                               
asked  how the  new  roadless classification  would affect  DOT's                                                               
construction of road projects, especially in Southeast Alaska.                                                                  
                                                                                                                                
1:32:11 PM                                                                                                                    
COMMISSIONER LUIKEN said he had  the same question and he doesn't                                                               
have an answer yet. He offered to follow up.                                                                                    
                                                                                                                                
SENATOR  THOMAS   noted  that   several  other   departments  are                                                               
important to DOTPF, including  Natural Resources (DNR), Community                                                               
and Regional Affairs (CRA), and  Commerce, Community and Economic                                                               
Development  (DCED).  He  finds  it   odd  how  often  there  are                                                               
duplications and  lost opportunities when departments  don't work                                                               
together. He urged increased cooperation.                                                                                       
                                                                                                                                
COMMISSIONER  LUIKEN replied  the  DOTPF has  been aggressive  in                                                               
approaching DNR,  DCED, and  DEC. All  the commissioners  want to                                                               
work together and avoid duplication  of effort. Second, they have                                                               
hired Mr.  Al Clough to lead  Roads to Resources. He  is a mining                                                               
resource  and has  a good  working relationship  with DNR  at the                                                               
very least.                                                                                                                     
                                                                                                                                
1:35:56 PM                                                                                                                    
SENATOR HUGGINS  said the Senator from  Seward mentioned building                                                               
ships in  Ketchikan, which he  supports. He noted the  state must                                                               
make sure that  it's about jobs. If the ship  is cheaper to build                                                               
elsewhere remember, that Alaska need jobs here.                                                                                 
                                                                                                                                
COMMISSIONER  LUIKEN  quoted Captain  Falvy,  who  said "We  will                                                               
ensure that it is competitive; that  we get the best product; and                                                               
that  we  provide a  procurement  process  to level  the  playing                                                               
field."                                                                                                                         
                                                                                                                                
SENATOR HUGGINS  commented that his  borough had a ship  built in                                                               
Ketchikan. He said he was proud that it was built in the state.                                                                 
                                                                                                                                
SENATOR EGAN  reiterated that  the M/V  Susitna was  under budget                                                               
and on time  and it was a  feather in the cap of  Alaska Ship and                                                               
Dry dock.                                                                                                                       
                                                                                                                                
SENATOR MENARD said  when the Susitna needs a place  to tie up it                                                               
should be  on her side  of the water.  She asked how  Ted Stevens                                                               
could be the number one cargo airport in the world.                                                                             
                                                                                                                                
1:40:23 PM                                                                                                                    
COMMISSIONER LUIKEN replied it's in  the top five in gross weight                                                               
landed in  the world, because  of its strategic  location between                                                               
the  Asian  markets  and  the  North  American  markets.  It's  a                                                               
natural. The  industry knows  it can maximize  its cargo  load by                                                               
using Alaska as  the half way point. To promote  this DOTPF had a                                                               
successful airport  summit in Asia.  They stressed  the strategic                                                               
location and  Alaska's lenient cargo  transfer rights. In  all 14                                                               
locations they  stopped they received positive  indications about                                                               
expanding into Alaska. DOTPF will  have a follow-up conference in                                                               
August for Anchorage and Fairbanks.                                                                                             
                                                                                                                                
1:42:57 PM                                                                                                                    
SENATOR MENARD said Singapore pointed  out the weather limitation                                                               
but if there was a heated hanger this might help.                                                                               
                                                                                                                                
COMMISSIONER LUIKEN said  that's a "nice to  have" for Singapore.                                                               
If  they  chose to  go  elsewhere  they would  sacrifice  revenue                                                               
generating  capability.  Anchorage  airport already  has  deicing                                                               
mechanisms.                                                                                                                     
                                                                                                                                
SENATOR MENARD said she is particularly interested in exports.                                                                  
                                                                                                                                
COMMISSIONER  LUIKEN  replied  most   of  those  goods  that  are                                                               
exported  are  in  the  summer  and  fall  when  the  weather  is                                                               
generally good.                                                                                                                 
                                                                                                                                
SENATOR MENARD said more and  more seafood is exported during the                                                               
cold months.                                                                                                                    
                                                                                                                                
1:46:11 PM                                                                                                                    
SENATOR HUGGINS  asked if  there is room  to adjust  landing fees                                                               
without jeopardizing cargo load.                                                                                                
                                                                                                                                
COMMISSIONER LUIKEN  replied that DOTPF recently  met with Alaska                                                               
Airlines. Because they are able  to collect large fuel fee costs,                                                               
it  keeps  the  other  rates  and  fees  low.  It  would  require                                                               
significant negotiations with the airlines.                                                                                     
                                                                                                                                
SENATOR  HUGGINS  mentioned the  stranded  gas  issue, and  asked                                                               
Commissioner  Luiken sees  scenarios  where Alaska  can be  self-                                                               
sustaining on jet fuel.                                                                                                         
                                                                                                                                
COMMISSIONER LUIKEN  responded it  will depend on  getting enough                                                               
oil in the pipeline so that Flint Hills can operate year round.                                                                 
                                                                                                                                
SENATOR THOMAS  said the  problem with Flint  Hills is  that they                                                               
burn fuel  to make  jet fuel  rather than  using natural  gas. He                                                               
surmised  that they  could  operate 30  percent  cheaper if  they                                                               
operated on natural gas.                                                                                                        
                                                                                                                                
COMMISSIONER  LUIKEN  said  this   is  another  area  of  working                                                               
cooperatively with the commissioner of DNR.                                                                                     
                                                                                                                                
SENATOR THOMAS  said Great Bear  believes there is lots  of shale                                                               
oil near  Prudhoe Bay and they  want the state to  participate by                                                               
building roads. A  two year schedule is aggressive.  He asked how                                                               
quickly a few roads could be built to get rigs out to evaluate.                                                                 
                                                                                                                                
COMMISSIONER LUIKEN said the thing  that drives getting a project                                                               
out quickly is funding. State  and private funding is far quicker                                                               
than relying on federal funding.                                                                                                
                                                                                                                                
SENATOR   THOMAS  said   there  will   be  federal   requirements                                                               
regardless.                                                                                                                     
                                                                                                                                
1:52:43 PM                                                                                                                    
COMMISSIONER  LUIKEN  agreed  but  the  funding  depends  on  the                                                               
process.                                                                                                                        
                                                                                                                                
SENATOR MENARD  noted that she had  a seat on the  railroad board                                                               
and those real estate holdings are contentious.                                                                                 
                                                                                                                                
COMMISSIONER  LUIKEN  replied  the  new chair  seems  to  have  a                                                               
reasonable approach  to deal  with that issue  and is  willing to                                                               
explore options. The board has a good relationship with him.                                                                    
                                                                                                                                
SENATOR  HUGGINS   noted  that   the  community  of   Willow  has                                                               
considerable land  and the  school there  sits on  railroad land.                                                               
That community  would like some  control over at least  pieces of                                                               
that land.                                                                                                                      
                                                                                                                                
COMMISSIONER  LUIKEN answered  he  wants all  the  users to  have                                                               
safety.                                                                                                                         
                                                                                                                                
1:56:25 PM                                                                                                                    
SENATOR KOOKESH asked for a motion.                                                                                             
                                                                                                                                
SENATOR MENARD moved to advance the  name Marc Luiken to the full                                                               
body for consideration.                                                                                                         
                                                                                                                                
1:57:02 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair Kookesh adjourned the meeting at 1:57 p.m.                                                                                

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