Legislature(2023 - 2024)BUTROVICH 205

02/09/2023 01:30 PM Senate TRANSPORTATION

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Audio Topic
01:31:13 PM Start
01:32:36 PM Overview: Department of Transportation and Public Facilities (dotpf) Division of Facilities Services
02:18:16 PM Overview: Department of Transportation and Public Facilities (dotpf) Division Aviation Overview
02:59:50 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Teleconference <Listen Only> --
Presentation: Overview of Aviation by
The Department of Transportation & Public
Facilities
Presentation: Overview of Public Facilities by
The Department of Transportation & Public
Facilities
-- Testimony <Invitation Only> --
**Streamed live on AKL.tv**
                    ALASKA STATE LEGISLATURE                                                                                  
            SENATE TRANSPORTATION STANDING COMMITTEE                                                                          
                        February 9, 2023                                                                                        
                           1:31 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator James Kaufman, Chair                                                                                                    
Senator David Wilson, Vice Chair                                                                                                
Senator Löki Tobin                                                                                                              
Senator Jesse Kiehl                                                                                                             
Senator Robert Myers                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
OVERVIEW: DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES                                                                    
(DOTPF) DIVISION OF FACILITIES SERVICES                                                                                         
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
OVERVIEW: DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES                                                                    
(DOTPF) DIVISION AVIATION                                                                                                       
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JASON SAKALASKAS, Director                                                                                                      
Division of Facilities Services                                                                                                 
Department of Transportation and Public Facilities (DOTPF)                                                                      
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Provided an overview for the Division of                                                                  
Facilities Services                                                                                                             
                                                                                                                                
CHRISTOPHER HODGIN, PE                                                                                                          
Division of Statewide Public Facilities                                                                                         
Department of Transportation and Public Facilities (DOTPF)                                                                      
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Responded to question about  the Division of                                                             
Facilities Services overview                                                                                                    
                                                                                                                                
JOHN BINDER, Deputy Commissioner                                                                                                
Department of Transportation and Public Facilities (DOTPF)                                                                      
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:  Provided an  overview  of  the Division  of                                                             
Aviation                                                                                                                        
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:31:13 PM                                                                                                                    
CHAIR  JAMES KAUFMAN  called the  Senate Transportation  Standing                                                             
Committee meeting  to order at 1:31  p.m. Present at the  call to                                                               
order  were  Senators  Wilson,  Tobin,  Kiehl,  Myers  and  Chair                                                               
Kaufman.                                                                                                                        
                                                                                                                                
^Overview:  Department of  Transportation  and Public  Facilities                                                               
(DOTPF) Division of Facilities Services                                                                                         
  OVERVIEW: DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES                                                              
            (DOTPF) DIVISION OF FACILITIES SERVICES                                                                         
                                                                                                                                
1:32:36 PM                                                                                                                    
CHAIR  KAUFMAN  announced the  consideration  of  an overview  on                                                               
facility  services  from  the Department  of  Transportation  and                                                               
Public Facilities (DOTPF).                                                                                                      
                                                                                                                                
1:33:25 PM                                                                                                                    
JASON  SAKALASKAS,  Director,  Division of  Facilities  Services,                                                               
Department  of  Transportation  and  Public  Facilities  (DOTPF),                                                               
Fairbanks,  Alaska,  presented an  overview  of  the Division  of                                                               
Facilities Services.                                                                                                            
                                                                                                                                
MR.  SAKALASKAS  began  with  slide  2:  Division  of  Facilities                                                               
Services.                                                                                                                       
                                                                                                                                
     Mission:  Division  of  Facilities  Services  delivers,                                                                  
     improves,  and maintains  safe and  reliable facilities                                                                    
     across Alaska.                                                                                                             
                                                                                                                                
     Vision Division  of Facilities  Services strives  to be                                                                  
     the premier  facilities service provider  for Alaskans.                                                                    
     We    achieve    shared   goals    through    strategic                                                                    
     collaboration,  planning,  and continuous  improvement.                                                                    
     We leverage  experience, technology, and  industry best                                                                    
     practices   to  optimize   our   facilities  and   make                                                                    
     evidence-based decisions.                                                                                                  
                                                                                                                                
     Core  Values Integrity:  Doing  the  right thing,  even                                                                  
     when  no one  is watching.  Doing  what we  say we  are                                                                    
     going  to  do   Excellence:  Commitment  to  continuous                                                                    
     improvement,    innovation,   and    quality   Respect:                                                                    
     Unconditional  positive  and  professional  regard  for                                                                    
     team  members:  customers, stakeholders  and  coworkers                                                                    
     Service: Diligently fulfill the  needs of our customers                                                                    
     to  prepare for  Alaska's future  Safety: Provide  safe                                                                    
     facilities and promote a safety culture                                                                                    
                                                                                                                                
MR. SAKALASKAS continued with slide 3: Facilities Initiative.                                                                   
                                                                                                                                
     Division  of  Facilities  Services (DFS)  is  a  shared                                                                    
     services  initiative  intended  to deliver  a  holistic                                                                    
     approach to facility  construction and design services,                                                                    
     facility maintenance,  and leasing services  across the                                                                    
     State of Alaska.                                                                                                           
                                                                                                                                
     With  a united  purpose,  DFS  utilizes its  knowledge,                                                                    
     resources,  and expertise  to  maximize efficiency  and                                                                    
     improve public facilities across Alaska.                                                                                   
                                                                                                                                
1:35:54 PM                                                                                                                    
MR.  SAKALASKAS  continued  with  slide  4:  Where  we  are  now.                                                               
Resources are in  the  hubs  of Fairbanks,  Anchorage and Juneau.                                                               
He  pointed  to satellite  rural  locations.  The slide  detailed                                                               
Position  Control Numbers  (PCN) for  maintenance and  operations                                                               
forces, statewide  public facilities, administrative  and leasing                                                               
groups.                                                                                                                         
                                                                                                                                
1:36:41 PM                                                                                                                    
MR. SAKALASKAS moved to slide 5: DFS Functional Areas. He                                                                       
highlighted the department's four functional areas.                                                                             
                                                                                                                                
     Statewide                                                                                                                
     Public Facilities                                                                                                        
        • Personnel in                                                                                                          
          Fairbanks,                                                                                                            
          Anchorage, Juneau                                                                                                     
                                                                                                                                
     Maintenance &                                                                                                            
     Operations                                                                                                               
        • Major Hubs:                                                                                                           
          Fairbanks,                                                                                                            
          Anchorage, Juneau                                                                                                     
        • Personnel around the State                                                                                            
                                                                                                                                
          Administration                                                                                                      
        • Personnel in                                                                                                          
          Fairbanks, Anchorage,                                                                                                 
          Juneau                                                                                                                
                                                                                                                                
     Leasing                                                                                                                  
     • Personnel in                                                                                                             
        Anchorage                                                                                                               
                                                                                                                                
1:37:10 PM                                                                                                                    
MR. SAKALASKAS continued with slide 6: Our Team and Function.                                                                   
                                                                                                                                
     Facilities Services (Component)                                                                                          
                                                                                                                                
     Statewide Public Facilities (SWPF)                                                                                       
        • Registered Professional Architects, Civil, and                                                                        
          Mechanical Engineers                                                                                                  
        • PMI Project Management Professionals (PMP)                                                                            
       • Certified Energy Management Professionals (CEM)                                                                        
        • Construction Contracting Officer                                                                                      
                                                                                                                                
MR. SAKALASKAS moved to slide 7, "Statewide Public Facilities."                                                                 
                                                                                                                                
     The State's vertical design and construction authority                                                                   
      for new facilities, deferred maintenance and energy                                                                     
     efficiency retrofit projects                                                                                             
                                                                                                                              
        • Facilities projects include multiple Federal and                                                                      
          State   funded   programs   supporting   airports,                                                                    
          transit, roads, executive branch departments and                                                                      
          more                                                                                                                  
        • Total Capital & Deferred Maintenance Projects:                                                                        
          170+                                                                                                                  
        • Total Budget of Projects: $390M+                                                                                      
                                                                                                                                
     DOT&PF Statutes on Public Facilities                                                                                     
      AS 35      Planning, design, construction and                                                                         
          maintenance of public facilities                                                                                      
        • AS 36 - Procurement and control over the                                                                              
          construction of all state public infrastructure                                                                       
         transportation, roads, bridges and facilities                                                                          
        • AS 44 - Planning, design, construction and                                                                            
          maintenance                                                                                                           
        • AS 44.42  State of Alaska Energy Efficiency                                                                           
          Program - energy efficiency retrofits of public                                                                       
          buildings                                                                                                             
                                                                                                                                
1:38:38 PM                                                                                                                    
MR. SAKALASKAS continued with slide 8: Statewide Public                                                                         
Facilities.                                                                                                                     
                                                                                                                                
     Project Delivery: Planning, Design & Construction                                                                        
    Capital   Improvement   Projects   (CIP)   &   Deferred                                                                     
     Maintenance                                                                                                                
                                                                                                                                
        • From small scale roof replacements to large                                                                           
          multi-year projects as the State Library Archives                                                                     
          and Museum and MEHS Aquatic Center.                                                                                   
                                                                                                                                
     Project Management Best Practices                                                                                        
        • Project Charters, Earned Value Management, Scope,                                                                     
          Risk and Stakeholder Management                                                                                       
                                                                                                                                
     Expertise in multiple project delivery methods                                                                           
        • Professional Services Term Agreements  HazMat,                                                                        
          A/E                                                                                                                   
        • Design  Bid  Build / Design  Build / Best                                                                             
          Value                                                                                                                 
        • Construction Manager General Contractor                                                                               
        • Job Order Construction Contracting                                                                                    
        • Energy Savings Performance Contracting                                                                                
                                                                                                                                
     Recent Major Projects                                                                                                    
                                                                                                                              
        • DEED Aquatic Center, DPS Crime Lab, DEED                                                                              
          Statewide Museum, ANC Jet Bridge                                                                                      
                                                                                                                                
1:40:22 PM                                                                                                                    
MR.  SAKALASKAS  continued  with  slide  9:  Energy  Program.  He                                                               
calculated  $4.2 million  in annual  savings with  the division's                                                               
energy program.  He reported approximately  $40 million  in state                                                               
project savings.  The cost savings provide  tremendous benefit to                                                               
the state.                                                                                                                      
                                                                                                                                
1:41:14 PM                                                                                                                    
MR. SAKALASKAS moved to slide 10: Our Team and Capabilities.                                                                    
                                                                                                                                
     Facilities Services (Component)                                                                                          
     Maintenance & Operations (M&O)                                                                                           
                                                                                                                                
        • Maintenance  professionals  spanning all  building                                                                    
          trade    disciplines        carpentry,   plumbing,                                                                    
          electrical, HVAC, building automation                                                                                 
        • Services    include   Preventative    Maintenance,                                                                    
          Emergency Repair, Complex system replacement                                                                          
        • State Facility  Asset Management,  Protection, and                                                                    
          Deferred                               Maintenance                                                                    
          Identification/Implementation                                                                                         
                                                                                                                                
1:42:18 PM                                                                                                                    
MR. SAKALASKAS continued with slide 11: Maintenance and                                                                         
Operations.                                                                                                                     
                                                                                                                                
      The statewide, programmatic approach for delivering                                                                     
     facilities maintenance and assessing facility needs.                                                                     
                                                                                                                                
         Over 1,900 State owned facilities amongst all                                                                          
     departments                                                                                                                
                                                                                                                                
     731 DOT&PF Owned Facilities                                                                                                
                                                                                                                                
     Currently 835 Facilities maintained by DFS                                                                                 
                                                                                                                                
     10+:1 Facility to technician (Filled PCN) ratio                                                                            
                                                                                                                                
       Responsible care for DOT&PF, PBF, and portions of                                                                        
         DEED, DOH, DOL&WD, DPS, DNR, and Alaska Courts                                                                         
     facilities                                                                                                                 
                                                                                                                                
     Current M&O Focus:                                                                                                       
        • Maintenance  &  repairs to  support  Service-Level                                                                    
          Agreement (SLA) partners mission                                                                                      
        • Balancing    maintenance   responsibilities    and                                                                    
          deliverables while staying within budgetary                                                                           
          parameters                                                                                                            
        • Deploying   strategies  to   efficiently  overcome                                                                    
          geographical challenges to meet the needs of                                                                          
          State of Alaska facilities                                                                                            
        • Developing      a      comprehensive      Facility                                                                    
          Condition/Needs deployment strategy                                                                                   
                                                                                                                                
1:44:12 PM                                                                                                                    
MR. SAKALASKAS moved to slide 12: Our Team and Capabilities.                                                                    
                                                                                                                                
     Facilities Services (Component)                                                                                          
     Administration                                                                                                             
        • Business support functions                                                                                            
        • Budgeting,   spend   analysis,   accounting   team                                                                    
          liaison                                                                                                               
        • Costs are tracked at the building level                                                                               
                                                                                                                                
     Leasing (Component)                                                                                                      
     Leasing Team                                                                                                               
        • Leasing Contracting Officers                                                                                          
        • Process and manage  statewide leases for Executive                                                                    
          Branch agencies                                                                                                       
        • Process  and   manage  occupancy   agreements  for                                                                    
          tenants in State owned buildings                                                                                      
        • Contains leasing indirect budget authority                                                                            
                                                                                                                                
     Leases                                                                                                                   
        • Contains  the  Interagency  Receipt  Authority  to                                                                    
          process payments for statewide leases                                                                                 
                                                                                                                                
1:45:25 PM                                                                                                                    
MR. SAKALASKAS continued with slide 13: Leasing.                                                                                
                                                                                                                                
     LEASING PROGRAM                                                                                                          
                                                                                                                                
        • Division of  Facility Services leasing  program is                                                                    
          responsible    for     evaluating,    negotiating,                                                                    
          procuring, managing, and  administering leases and                                                                    
          contracts for  space from  the private  sector and                                                                    
          State property  owners on behalf of  the Executive                                                                    
          Branch                                                                                                                
        • Negotiate  lease  terms  and  consolidate  private                                                                    
          leased space into state-owned facilities when                                                                         
          economies can be realized                                                                                             
        • Provide  oversight and  management of  lease terms                                                                    
          and conditions to ensure compliance                                                                                   
        • Urgently  address and  remedy tenant  concerns and                                                                    
          hold private lessors accountable for all cure                                                                         
          issues relevant to the lease                                                                                          
                                                                                                                                
     LEASING OTHER DUTIES                                                                                                     
                                                                                                                              
        • Occupancy Agreement Management                                                                                        
        • Construction Delegations                                                                                              
        • Provide Office Closure Recommendation                                                                                 
                                                                                                                                
1:46:40 PM                                                                                                                    
MR. SAKALASKAS moved to slide 14: Key Summaries.                                                                                
                                                                                                                                
     Design & Construction:                                                                                                   
                                                                                                                                
        • Full-service    project     management,    program                                                                    
          planning,   and    management   of    design   and                                                                    
          construction                                                                                                          
        • Facility renewals,  preservation, renovations, and                                                                    
          new construction                                                                                                      
        • Federal,  state,  airport,  deferred  maintenance,                                                                    
          and capital improvements                                                                                              
        • Energy   efficiency  program   for  state   public                                                                    
         facilities Programmatic Maintenance and Care:                                                                          
        • Juneau, Anchorage, and  Fairbanks maintenance hubs                                                                    
          to serve rural and urban locations                                                                                    
        • Broad,   all-encompassing  services   to  maximize                                                                    
          building and equipment life to ensure facilities                                                                      
          perform as intended.                                                                                                  
        • Preventative  maintenance,  reactive  maintenance,                                                                    
          emergency    responses,    property    management,                                                                    
          repairs, sustainable practices and more                                                                               
        • Evaluating    state   facility    conditions   and                                                                    
          projecting needs Leasing & Space:                                                                                     
        • Administering leases and  contracts for space from                                                                    
          the private sector and State property owners on                                                                       
          behalf of the Executive Branch                                                                                        
                                                                                                                                
1:47:46 PM                                                                                                                    
MR. SAKALASKAS referred to slide 15: Computerized Maintenance                                                                   
Management System (CMMS).                                                                                                       
                                                                                                                                
     Facilities Management Software                                                                                           
     Saves time and money by managing buildings, assets and                                                                     
     occupancy more efficiently and effectively                                                                                 
                                                                                                                                
     Asset Management                                                                                                         
       A complete asset inventory gives our organization                                                                        
      greater visibility into utilization and maintenance                                                                       
     costs, helping maximize the useful life of assets                                                                          
                                                                                                                                
     Real Estate & Lease Management                                                                                           
     Manage entire portfolio of properties and leases from                                                                      
     the owner or tenant perspective                                                                                            
                                                                                                                                
     Capital Improvement                                                                                                      
     Provides Assessment/Needs Analysis (Capital Planning)                                                                      
     and Capital Project Management                                                                                             
                                                                                                                                
1:50:02 PM                                                                                                                    
MR.  SAKALASKAS   continued  with  slide  16:   SFS  FY23  Budget                                                               
Authority.  The slide  detailed the  facilities services  and the                                                               
leasing components.                                                                                                             
                                                                                                                                
MR. SAKALASKAS  moved to slide  17: DFS  Appropriation Authority.                                                               
He   mentioned  various   components  including   the  facilities                                                               
services general  fund, Interagency Committee of  Aviation Policy                                                               
(ICAP),  interagency  receipts,  public  building  fund,  program                                                               
receipts and lease agreement interagency receipts.                                                                              
                                                                                                                                
1:51:01 PM                                                                                                                    
MR. SAKALASKAS detailed slide 18: Challenges.                                                                                   
                                                                                                                                
     Divisional                                                                                                               
                                                                                                                                
        • Recruitment and Retention    Highest Vacancy Rates                                                                    
          in SWPF at 26% and 19% M&O.                                                                                           
        • DM  Backlog  Statewide  -  $703,493.1K  (excluding                                                                    
          University)                                                                                                           
                                                                                                                              
     Maintenance and Operations                                                                                               
        • Statewide  Personnel  and Material  Transportation                                                                    
          Coordination                                                                                                          
        • Maintaining  Optimal  Service Level  With  Drastic                                                                    
          Commodity/Service/Utility Cost Increases                                                                              
        • Aging  infrastructure  (35+ years  avg)  requiring                                                                    
          increased   repair/replacement    with   Operating                                                                    
          resources                                                                                                             
                                                                                                                                
     Statewide Public Facilities                                                                                              
        • Volatility of  construction economy,  and material                                                                    
          pricing impacting project costs                                                                                       
        • Constrained  resources  on available  professional                                                                    
          Architectural/Engineering professional services                                                                       
          and Contractors                                                                                                       
                                                                                                                                
1:54:27 PM                                                                                                                    
MR.  SAKALASKAS continued  with  slide 18.  He mentioned  service                                                               
agreements with  utility cost increases. Utility  costs incur 30-                                                               
50 percent of the active  budget; fluctuations affect the ability                                                               
to deliver services. He noted  that the aging infrastructure adds                                                               
to the deferred maintenance backlog.                                                                                            
                                                                                                                                
1:55:48 PM                                                                                                                    
MR. SAKALASKAS moved to slide 19: Backlog $703,493.1 (excluding                                                                 
University). The graph details the various agency backlog. The                                                                  
data breaks down the number of buildings.                                                                                       
                                                                                                                                
MR. SAKALASKAS slide 20: Relationships and Goals.                                                                               
                                                                                                                                
     RELATIONSHIPS                                                                                                            
                                                                                                                                
        • State Facilities Council                                                                                              
          • Organization and Facilitation                                                                                       
          • Leveraging knowledge across all department.                                                                         
          • Understanding statewide issues across all                                                                           
             departments                                                                                                        
          • Facilities Maintenance, Management, and project                                                                     
             delivery topics                                                                                                    
          • Common dissemination of information                                                                                 
                                                                                                                                
        • OMB                                                                                                                   
          • Support on varied facilities topics                                                                                 
          • Deferred Maintenance Prioritizations                                                                                
          • Divestment Initiative                                                                                               
                                                                                                                                
     STRATEGIC PLANNNG GOALS                                                                                                  
                                                                                                                                
        • Striving for continuous improvement                                                                                   
                                                                                                                                
        • Highlight Goals:                                                                                                      
          • Increasing continued improvement expertise and                                                                      
             growing culture                                                                                                    
          • Continued savings in consolidated contracts                                                                         
          • Increasing realized energy savings                                                                                  
          • Strengthening safety                                                                                                
          • Expanding successful maintenance practices and                                                                      
             technology                                                                                                         
          • Expanding project delivery tools and facilities                                                                     
             planning                                                                                                           
                                                                                                                                
1:57:49 PM                                                                                                                    
MR. SAKALASKAS reviewed the slides in the appendix referencing                                                                  
state-owned facilities by agency.                                                                                               
                                                                                                                                
CHAIR  KAUFMAN asked  about the  challenges  related to  material                                                               
costs and  staffing availability. He  asked about other  areas of                                                               
concern.                                                                                                                        
                                                                                                                                
1:58:54 PM                                                                                                                    
MR. SAKALASKAS  stated that the  department could  overcome other                                                               
challenges if the material and staffing issues were solved.                                                                     
                                                                                                                                
CHAIR  KAUFMAN  asked  about  deferred  projects  and  mitigating                                                               
inflation.                                                                                                                      
                                                                                                                                
MR. SAKALASKAS  replied that projects are  selected strategically                                                               
because of the effects of inflation.                                                                                            
                                                                                                                                
2:00:07 PM                                                                                                                    
CHAIR  KAUFMAN asked  about  deferred  maintenance and  strategic                                                               
project assessment.                                                                                                             
                                                                                                                                
MR.  SAKALASKAS  responded  that  the Office  of  Management  and                                                               
Budget  (OMB) provides  the department  with project  needs lists                                                               
for  each agency.  He mentioned  a committee  with a  member from                                                               
each agency that  scores projects for criticality.  He noted that                                                               
projects  are ranked  and scored  within the  committee and  then                                                               
moved to OMB.                                                                                                                   
                                                                                                                                
2:02:38 PM                                                                                                                    
SENATOR  MYERS   asked  about  the  division   maintaining  other                                                               
agencies   facilities.  He  wondered  about  the  other  agencies                                                               
maintenance needs.                                                                                                              
                                                                                                                                
MR. SAKALASKAS replied that contracts  were established with some                                                               
agencies because of a fostering of resources and relationships.                                                                 
                                                                                                                                
2:03:58 PM                                                                                                                    
SENATOR  MYERS   asked  if  the  university   performed  its  own                                                               
maintenance.                                                                                                                    
                                                                                                                                
MR. SAKALASKAS  replied yes, the  university was  responsible for                                                               
its maintenance.  The university also has  a deferred maintenance                                                               
backlog.                                                                                                                        
                                                                                                                                
2:04:28 PM                                                                                                                    
SENATOR  TOBIN  asked  about the  energy  retrofit  program.  She                                                               
wondered about a  recent court case and  the tenuous contracting.                                                               
She requested an update.                                                                                                        
                                                                                                                                
2:05:05 PM                                                                                                                    
CHRISTOPHER  HODGIN,  Professional  Engineer  (PE),  Division  of                                                               
Statewide  Public Facilities,  Department  of Transportation  and                                                               
Public Facilities (DOTPF), Anchorage,  Alaska, responded that the                                                               
statutory requirement  for the facilities  was met in  the energy                                                               
efficiency  program. The  department  retrofit over  70 of  state                                                               
facilities.  He  stated  the  goal   for  program  expansion.  He                                                               
contended that the court case had not interfered in the efforts.                                                                
                                                                                                                                
2:07:10 PM                                                                                                                    
SENATOR TOBIN wondered  how to extend the  maintenance program to                                                               
education facilities.                                                                                                           
                                                                                                                                
MR.  HODGIN replied  that  application  for education  facilities                                                               
requires a change in statute.                                                                                                   
                                                                                                                                
VICE-CHAIR WILSON  asked about leasing  facilities. He  asked the                                                               
department purview when canceling or renewing a lease.                                                                          
                                                                                                                                
MR.  SAKALASKAS  responded   that  contractual  obligations  with                                                               
tenants  are reviewed  first. The  department  works with  groups                                                               
asking to relocate and active engagement is accommodated.                                                                       
                                                                                                                                
2:09:22 PM                                                                                                                    
VICE-CHAIR  WILSON asked  about a  hypothetical person  or entity                                                               
wishing to discontinue the lease.  He wondered if a cost analysis                                                               
was warranted.                                                                                                                  
                                                                                                                                
MR.  SAKALASKAS replied  that  the  department provides  analysis                                                               
prior to a move. Additionally,  a review of alternative locations                                                               
is performed.                                                                                                                   
                                                                                                                                
MR. HODGIN replied  that he would get back to  the committee with                                                               
details about lease analysis.                                                                                                   
                                                                                                                                
2:10:37 PM                                                                                                                    
SENATOR  KIEHL appreciated  the  department's  ongoing work  with                                                               
energy  efficiency.  He presumed  that  energy  efficiency was  a                                                               
component of  other deferred maintenance  projects. He  asked how                                                               
savings are tracked from such improvements.                                                                                     
                                                                                                                                
2:11:20 PM                                                                                                                    
MR. HODGIN  responded that  the ability  to track  energy savings                                                               
with deferred  maintenance projects  allows the  investigation of                                                               
appropriate funding sources for the projects.                                                                                   
                                                                                                                                
SENATOR KIEHL repeated the question                                                                                             
                                                                                                                                
MR. HODGIN stated that energy  efficiency projects sought synergy                                                               
and  the  opportunity  to  leverage the  funds  with  the  energy                                                               
efficiency project.  He mentioned the annual  reports documenting                                                               
energy related accomplishments.                                                                                                 
                                                                                                                                
2:14:08 PM                                                                                                                    
SENATOR KIEHL asked  about the division's analysis  of new energy                                                               
sources.                                                                                                                        
                                                                                                                                
2:14:53 PM                                                                                                                    
MR. HODGIN  replied that considerations included  cogeneration at                                                               
different facilities.  He mentioned the technology's  success and                                                               
the anticipated cost savings.                                                                                                   
                                                                                                                                
2:17:25 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
                                                                                                                                
^Overview:  Department of  Transportation  and Public  Facilities                                                               
(DOTPF) Division Aviation Overview                                                                                              
  OVERVIEW DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES                                                               
                   (DOTPF) DIVISION AVIATION                                                                                
                                                                                                                                
2:18:16 PM                                                                                                                    
CHAIR   KAUFMAN  reconvened   the  meeting   and  announced   the                                                               
consideration of an overview of the Division of Aviation.                                                                       
                                                                                                                                
2:18:50 PM                                                                                                                    
JOHN  BINDER, Deputy  Commissioner, Department  of Transportation                                                               
and  Public  Facilities  (DOTPF), Juneau,  Alaska,  provided  the                                                               
presentation: Division of Aviation Overview.                                                                                    
                                                                                                                                
MR. BINDER began with slide 2: Mission Statements.                                                                              
                                                                                                                                
     Alaska DOT&PF                                                                                                              
    "Keep    Alaska    Moving     through    service    and                                                                     
     infrastructure"                                                                                                            
                                                                                                                                
     Alaska International Airports System (AIAS)                                                                                
     "To keep Alaska flying and thriving"                                                                                       
                                                                                                                                
     Statewide Aviation (SWA)                                                                                                   
     "To sustain and improve the quality of life throughout                                                                     
     Alaska"                                                                                                                    
                                                                                                                                
2:20:13 PM                                                                                                                    
MR. BINDER  continued with  slide 3:  Organization/Leadership. He                                                               
explained  that  he  oversees the  entire  aviation  system.  The                                                               
system  is separated  into  statewide  and international  airport                                                               
systems.  The  international   systems  are  self-sustaining  and                                                               
require  no state  funding. Rural  airports rely  on the  general                                                               
fund for operations.                                                                                                            
                                                                                                                                
2:20:47 PM                                                                                                                    
MR. BINDER moved to slide  5: Alaska International Airport System                                                               
(AIAS) Structure. The international  system generates revenue via                                                               
the airlines operating in Anchorage  and Fairbanks. The rates and                                                               
fees are set with cost predictions and adjustments.                                                                             
                                                                                                                                
2:21:22 PM                                                                                                                    
MR.   BINDER  continued   with  slide   6:  Annual   Revenue  and                                                               
Operations,  Maintenance  and  Debt  Costs. He  provided  a  FY22                                                               
example showing the  total of $123.52 million  in revenue sources                                                               
and $122.45 million in operating costs.                                                                                         
                                                                                                                                
2:22:12 PM                                                                                                                    
MR. BINDER talked  about slide 7: Cargo Tonnage.  He detailed the                                                               
graph displaying monthly cargo in metric tonnes.                                                                                
                                                                                                                                
2:22:50 PM                                                                                                                    
MR. BINDER moved  to slide 9: Aviation System  Planning. He noted                                                               
that the  department had  a website devoted  to the  system plan.                                                               
The Federal  Aviation Administration (FAA) mandates  that airport                                                               
sponsors have a system plan. In  Alaska, the state is the airport                                                               
sponsor for most  airports. The FAA allows  for continuous system                                                               
plans, which the state opted for.                                                                                               
                                                                                                                                
     Why?                                                                                                                       
      • Required through FAA Advisory Circular 150/5070-7                                                                       
        The Airport System Planning Process                                                                                     
      • Primary purpose is to determine the type, extent,                                                                       
        location, timing, and cost of the airport                                                                               
        development needed in a state or metropolitan area                                                                      
        to establish a viable system of airports.                                                                               
     • Plan includes all public airports across Alaska and                                                                      
        is funded through annual AIP grants.                                                                                    
                                                                                                                                
2:24:04 PM                                                                                                                    
MR. BINDER  continued with slide  10: Continuous  Aviation System                                                               
Planning. He  stated the  benefit of  a continuous  plan involves                                                               
the active contract.  He detailed the three phases  listed on the                                                               
slide                                                                                                                           
                                                                                                                                
     Phase I                                                                                                                  
     2008 - 2013                                                                                                                
        • Continuous Planning Process                                                                                           
        • Website & CIMP Establishment                                                                                          
        • Videos: Lifeline and Counting the Cost                                                                                
                                                                                                                                
     Phase II                                                                                                                 
     2014 - 2019                                                                                                                
        • Needs Collection                                                                                                      
        • Capital Projects Database                                                                                             
        • Digital Project Evaluation Process                                                                                    
        • CIMP Application Development                                                                                          
        • Needs Directory & Reporting Tools                                                                                     
        • Economic Impact                                                                                                       
        • Rural Lighting Analysis                                                                                               
                                                                                                                                
     Phase III                                                                                                                
     2020 - 2025                                                                                                                
        • Performance Measures                                                                                                  
        • Digital Capital Improvement Plan                                                                                      
        • Capital Inspection Process Update                                                                                     
        • Data Connections                                                                                                      
        • Air Carrier Outreach & Comment Map                                                                                    
        • Airport Resiliency Study                                                                                              
        • Other Special Studies                                                                                                 
                                                                                                                                
2:25:31 PM                                                                                                                    
MR.  BINDER  continued  with  slide   10  and  the  challenge  of                                                               
gathering data.  He explained that  the website captured  all the                                                               
data  related  to  statewide  aviation.  Airports  and  projects,                                                               
current and future are listed on the website.                                                                                   
                                                                                                                                
2:27:18 PM                                                                                                                    
MR. BINDER moved to slide 11: System Challenges.                                                                                
                                                                                                                                
       Hearing our customers  the AASP team is currently                                                                      
        creating a comment map to report airport related                                                                        
     issues directly to DOT&PF staff.                                                                                           
     Accurately capturing needs across the system:                                                                            
      An estimated 3,500 airport needs exist totaling over                                                                      
     $4B  from runway resurfacing to wind cone replacement                                                                      
     to crack sealing.                                                                                                          
     So much data  collecting it and making it available!                                                                     
     How to tell Alaska's story  Upcoming videos                                                                              
     Community relocations and airport resiliency                                                                             
                                                                                                                                
2:28:39 PM                                                                                                                    
MR. BINDER moved  to slide 12: Centralized  Aviation Database. He                                                               
mentioned  the changes  in technology  including connectivity  to                                                               
other systems  via the centralized aviation  database. The system                                                               
allows  the division  to submit  documents electronically  to the                                                               
FAA. Scoring  and document  collection are  done via  the website                                                               
too.  He  mentioned  the  performance  metrics  for  the  various                                                               
airports.                                                                                                                       
                                                                                                                                
2:30:01 PM                                                                                                                    
MR.  BINDER  continued with  slide  14:  Capital Improvement  and                                                               
Maintenance Program (CIMP).                                                                                                     
                                                                                                                                
     An airport inspection program that:                                                                                      
        •  Captures capital needs                                                                                               
        •  Collects discreet data for system analysis                                                                           
          (lighting/instrument systems, surface condition,                                                                      
          etc.)                                                                                                                 
        •  Facilitates stakeholder outreach                                                                                     
                                                                                                                                
     Application-based for mobile devices                                                                                     
        •  Reduces airfield experience requirements                                                                             
                                                                                                                                
     Time & travel intensive                                                                                                  
        •  Goal: to conduct inspections that capture needs,                                                                     
          to then be developed into capital projects                                                                            
          through the AIP program.                                                                                              
                                                                                                                                
2:32:40 PM                                                                                                                    
MR. BINDER  continued with slide 16:  Aviation Project Evaluation                                                               
Board  (APEB). The  board  is  made up  of  himself, the  Airport                                                               
Improvement  Program (AIP)  manager and  one representative  from                                                               
each  region. The  board reviews  proposed  airport projects  and                                                               
provides  a prioritized  spending  plan. A  planner captures  the                                                               
needs and stakeholder influence to  select a proposed project for                                                               
board approval. He stressed that  an emergency project would take                                                               
priority.                                                                                                                       
                                                                                                                                
2:36:30 PM                                                                                                                    
MR. BINDER moved  to slide 17: Aviation  Project Development. The                                                               
process following the board approval  was displayed on the chart.                                                               
He noted  that the FAA will  not issue a grant  until the project                                                               
is ready.                                                                                                                       
                                                                                                                                
2:37:41 PM                                                                                                                    
MR. BINDER  continued with slide 19:  Airport Improvement Program                                                               
(AIP)  for Department  of  Transportation  and Public  Facilities                                                               
(DOTPF) Airports  in FFY 2022.  He mentioned  project improvement                                                               
funding for  both cargo  and passenger  programs. He  spoke about                                                               
primary and  non-primary entitlements, as outlined  in the slide.                                                               
Every state  has an  apportionment based on  their land  size and                                                               
population.  Alaska tends  to receive  approximately $20  million                                                               
annually in state apportionment.                                                                                                
                                                                                                                                
CHAIR KAUFMAN  asked if the  apportionment is  beneficial because                                                               
of the land size.                                                                                                               
                                                                                                                                
MR.  BINDER  replied  yes  and noted  that  Senator  Stevens  was                                                               
responsible   for  the   Alaska  Supplemental   apportionment  of                                                               
approximately  $19   million.  The  annual   improvement  funding                                                               
amounts  to  approximately  $100   million.  The  remaining  $100                                                               
million is  discretionary funding.  Alaska's projects  score well                                                               
on the national priority ranking.                                                                                               
                                                                                                                                
2:40:08 PM                                                                                                                  
MR. BINDER continued discussing slide  19. He stated that funding                                                               
for Anchorage  or Fairbanks remains in  the international system.                                                               
For the rural system, funds are  pooled and directed to any rural                                                               
airport that year.                                                                                                              
                                                                                                                                
SENATOR KIEHL referenced  slide 19 and asked if  the $256 million                                                               
was a statewide allocation.                                                                                                     
                                                                                                                                
MR. BINDER  responded that $256 million  went to DOT in  FY22. He                                                               
moved  to slide  20: AIP  Rural  System Capital  Funding FY  2016                                                               
through FY 2022. He shared  that the funding varies significantly                                                               
because  Alaska  is  its  own  FAA region,  and  each  region  is                                                               
allocated a  certain amount. Generally,  the state  contributes a                                                               
5-6 percent match of project eligible costs.                                                                                    
                                                                                                                                
     Federal Capital Funding                                                                                                    
        • Rural System AIP annual average FFY 2016 - 2019 =                                                                     
          $132.9M                                                                                                               
        • FFY 2020 AIP = ~$198.9M                                                                                               
        • FFY 2021 AIP = ~$184.2M                                                                                               
        • FFY 2022 AIP = ~$236.4M                                                                                               
        • FFY 2022 BIL = ~$19.6M                                                                                                
                                                                                                                                
     Rural Airport System State Match                                                                                           
     Required                                                                                                                   
        • Generally, 6.25% of project eligible costs                                                                            
                                                                                                                                
        • A few Essential Air Service (EAS) airports in                                                                         
          designated economically distressed communities                                                                        
          qualify for a 5% match of project eligible costs                                                                      
                                                                                                                                
2:43:16 PM                                                                                                                    
MR.  BINDER highlighted  slide  21:  Airport Improvement  Program                                                               
(AIP)  for  DOT&PF  Airports  in  FFY 2022.  He  noted  that  the                                                               
dashboard was  currently active on  the system plan  website. The                                                               
site is  interactive and  reflects the  active projects  in zones                                                               
and legislative districts.                                                                                                      
                                                                                                                                
MR. BINDER continued with slide 23: PFAS: Airports.                                                                             
                                                                                                                                
     What is PFAS?                                                                                                            
        • Family of chemicals                                                                                                   
        • Do not break down easily                                                                                              
        • Widespread                                                                                                            
                                                                                                                              
     Products & Sources                                                                                                       
        • Aqueous Film Forming                                                                                                  
        • Foam (AFFF)                                                                                                           
        • Consumer Products                                                                                                     
        • with non-stick and                                                                                                    
        • stain-resistant                                                                                                       
                                                                                                                                
MR.  BINDER informed  the  committee  that PFAS  is  a family  of                                                               
chemicals  that many  people interact  with daily.  The chemicals                                                               
were created  to provide waterproofing for  certain products like                                                               
tents,  raincoats and  dental floss.  He stated  that PFAS  are a                                                               
component of the aqueous film-forming  firefighting foam that has                                                               
entered the  ground and contaminated  soil and ground  water. The                                                               
FAA  requires airports  to use  the  foam. He  spoke about  cross                                                               
contamination  related  to  old  landfills. He  noted  that  most                                                               
airports were  tested, and changes were  made appropriately. Some                                                               
municipal water sources  are known to be  contaminated with PFAS.                                                               
Soil contamination  impacts capital projects. He  shared that 632                                                               
total  wells  have been  sampled  with  144 deemed  above  action                                                               
level.                                                                                                                          
                                                                                                                                
MR.  BINDER continued  with  slide  24: PFAS:  Work  to Date.  He                                                               
stated  that  a new  fluorine-free  foam  is available,  and  the                                                               
legislature can  expect a  capital request to  swap out  the PFAS                                                               
foam and trucks.                                                                                                                
                                                                                                                                
2:47:34 PM                                                                                                                    
MR.  BINDER continued  with slide  25: Aircraft  Rescue and  Fire                                                               
Fighting.                                                                                                                       
                                                                                                                                
     PFAS Mitigation                                                                                                          
        • Long-term Solution Implementation                                                                                     
        • Site Characterization                                                                                                 
        • Development Projects                                                                                                  
                                                                                                                                
     Challenges                                                                                                               
        • Funding                                                                                                               
       • No industry guidance for transition (clean-out)                                                                        
        • F3 Inventory                                                                                                          
        • Evolving Regulatory Guidance                                                                                          
        • Development Projects                                                                                                  
                                                                                                                                
2:48:36 PM                                                                                                                    
SENATOR  KIEHL commented  on the  PFAS issue.  He noted  that the                                                               
division was required to use PFAS  and was not at fault. He asked                                                               
about a disposal solution for the remaining PFAS foam.                                                                          
                                                                                                                                
MR. BINDER  replied that  two or three  vendors had  the approved                                                               
foam. He would provide the  committee with additional information                                                               
about  required quantities.  He noted  that the  closest approved                                                               
disposal location  was in Oregon.  He anticipated that  FAA would                                                               
help  with the  procurement  of the  fluorine-free  foam and  the                                                               
disposal  of the  PFAS  foam. He  believed  that federal  dollars                                                               
could  be  used  to  replace   some  foam-dispensing  trucks.  He                                                               
expressed uncertainty about the cleaning portion of the request.                                                                
                                                                                                                                
2:50:50 PM                                                                                                                    
SENATOR TOBIN expressed interest  in retention and recruitment of                                                               
employees.  She  wondered what  resources  might  be required  to                                                               
ensure that rural airports are well staffed and remain open.                                                                    
                                                                                                                                
MR.  BINDER  responded  that airport  vacancy  rates  varied.  He                                                               
stated that the current budget  did not offer adequate funding to                                                               
fill  the  vacancies.  He mentioned  that  rural  locations  were                                                               
challenged   to  find   employees  with   adequate  training   or                                                               
certification.                                                                                                                  
                                                                                                                                
2:53:23 PM                                                                                                                    
SENATOR  TOBIN  asked  about   the  offroad  Commercial  Driver's                                                               
License  (CDL). She  wondered  if  the lack  of  the offroad  CDL                                                               
option might impact  the ability to recruit  contractors to rural                                                               
areas.                                                                                                                          
                                                                                                                                
MR. BINDER  responded that he  would provide  further information                                                               
to the committee.                                                                                                               
                                                                                                                                
SENATOR MYERS referenced a report  from the FAA about weather and                                                               
safety.  He  noted  the  issue  with  rural  airports  and  their                                                               
monitoring equipment. He wondered about the status of the issue.                                                                
                                                                                                                                
MR.  BINDER replied  that weather  reporting was  lacking in  the                                                               
state.   He  explained   that   weather-reporting  systems   were                                                               
expensive to install  and maintain. Currently the  FAA or another                                                               
federal   entity   maintains   the    systems.   The   last   FAA                                                               
reauthorization   bill  allowed   for   building  eight   weather                                                               
reporting systems. He pointed out the weather camera program.                                                                   
                                                                                                                                
2:56:22 PM                                                                                                                    
SENATOR  MYERS asked  about  issues with  lighting  at the  rural                                                               
airports. He recalled that vandalism  was the cause of the faulty                                                               
lighting.                                                                                                                       
                                                                                                                                
MR.  BINDER replied  that some  locations saw  this problem  in a                                                               
cyclical pattern. The division  reemphasized education for school                                                               
children  to   help  communicate  the  consequences   of  airport                                                               
vandalism.  He pointed  to  work with  the  Department of  Public                                                               
Safety (DPS) to track the issue and raise public awareness.                                                                     
                                                                                                                                
2:59:50 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair  Kaufman  adjourned   the  Senate  Transportation  Standing                                                               
Committee meeting at 2:59 PM.                                                                                                   
                                                                                                                                

Document Name Date/Time Subjects
2.9 DOTPF DFS Overview.pdf STRA 2/9/2023 1:30:00 PM
2.9 DOTPF Aviation Overview.pdf STRA 2/9/2023 1:30:00 PM
DOTPF DFS-Aviation Follow Up Answers to Questions 3.20.23.pdf STRA 2/9/2023 1:30:00 PM
Follow Up