Legislature(2003 - 2004)
03/11/2003 01:35 PM Senate TRA
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
JOINT MEETING
HOUSE TRANSPORTATION STANDING COMMITTEE
SENATE TRANSPORTATION STANDING COMMITTEE
March 11, 2003
1:35 p.m.
MEMBERS PRESENT
HOUSE TRANSPORTATION
Representative Jim Holm, Co-Chair
Representative Beverly Masek, Co-Chair
Representative Hugh Fate
SENATE TRANSPORTATION
Senator John Cowdery, Chair
Senator Donny Olson
MEMBERS ABSENT
HOUSE TRANSPORTATION
Representative Vic Kohring
Representative Dan Ogg
Representative Mary Kapsner
Representative Albert Kookesh
SENATE TRANSPORTATION
Senator Thomas Wagoner, Vice Chair
Senator Gene Therriault
Senator Georgianna Lincoln
COMMITTEE CALENDAR
OVERVIEW: PORT OF BELLINGHAM
PRESENTERS
Jim Darling, Executive Director
Port of Bellingham
P.O. Box 1677
Bellingham, WA 98227-1677
JIMMY BENTON, Port Commissioner
Port of Bellingham
P.O. Box 1677
Bellingham, WA 98227-1677
PETE CREMIN, Whatcom County Elective Executive
Port of Bellingham
P.O. Box 1677
Bellingham, WA 98227-1677
MARK OSMANSON, Mayor of Bellingham
Port of Bellingham
P.O. Box 1677
Bellingham, WA 98227-1677
TAPES
03-07, SIDE A [SENATE TRA TAPE]
SUMMARY OF INFORMATION
CHAIR JOHN COWDERY convened the joint meeting of the Senate
Transportation Standing Committee and the House Transportation
Standing Committee at 1:35 p.m. Present were Senators Cowdery
and Olson and Representatives Holm, Masek and Fate.
CHAIR COWDERY announced the Port of Bellingham overview was
before the committee. He invited Mr. Jim Darling to come
forward.
JIM DARLING, Executive Director of the Bellingham Port
Authority, introduced his party and expressed appreciation for
having the ferry terminal in Bellingham. He described the
terminal as a community project for both the State of Alaska and
Bellingham.
JOHN CARTER, CFO and Terminal Building Manager, gave members a
virtual tour of the Bellingham Ferry Terminal. He informed
members that the Port of Bellingham (Port) has been involved
with the State of Alaska since 1989 when the ferry terminus was
moved from Seattle to Bellingham. At that time they signed a 20-
year lease and to date have invested over $11 million in the
community and cruise facility.
Bellingham is located in burgeoning Whatcom County and is
connected to Vancouver British Columbia and Seattle by rail
service and Interstate 5. The community has a 100-year history
of waterfront activity with much of it related to Alaska.
The terminal facility has five employees working under contract
with the State of Alaska. They take reservations, handle staging
operations, baggage handling, and security activities. He
pointed out that the ferries are frequently filled to capacity
and that the operation provides a steady source of revenue and
economic stability.
He advised that over the next five to six years they anticipate
spending up to $300,000 in ongoing capital maintenance on the
14-year old facility and that they are faced with additional
security costs for which they are not reimbursed. He noted that
the ticketing contract is up for renewal in June 2003 and then
reported that growth has flattened because the ferries are
currently running close to capacity with regard to vehicles and
staterooms.
He said their slogan this year is "Partner with the Port" and
emphasized that they do not take this relationship for granted
and will continue to work to maintain a successful partnership.
JIMMY BENTON, Port Commissioner, presented pictures of the Port
to the committee members.
PETE CREMIN, Whatcom County Elective Executive, described
Bellingham as a community with a strong affiliation with Alaska.
He explained his personal ties to Juneau and emphasized the
importance of the current relationship between Alaska and
Bellingham/ Whatcom County. They are proud to call themselves
the "Gateway to Alaska" and will work to fortify the current
relationship.
MARK OSMANSON, Mayor of Bellingham, reported that they are
delighted to have the Alaska Ferry Terminal in Bellingham and
emphasized that the capacity concern pointed to earlier was not
terminal capacity; rather, it was that the ferries are full. He
assured members that any suggestions they have for improving the
facility would be eagerly received.
SENATOR OLSON expressed appreciation at not having to pay
Washington State tax when shopping in the state. He then asked
whether expenses were rising faster than revenues.
MR. DARLING replied they are one of 80 port authorities in
Washington and probably the most diversified. In addition to
transportation facilities, they operate a large real estate
portfolio of commercial and industrial property and have two
small boat harbors with about 2,500 vessels. There is high
demand for both the marinas and the real estate which provide
balance to the transportation facilities.
They have received considerable federal help to meet increased
security costs for aviation, but that help has not been
available in the marine area. Overall, diversification has
softened recent economic blows.
SENATOR OLSON asked if there was danger of a marine strike that
might impact Alaska.
MR. DARLING replied that issue is resolved and there is no need
for concern.
SENATOR OLSON asked about custom facilities.
MR. DARLING replied there are custom facilities in Bellingham,
on the boarder in Blaine and a regional office at the airport in
Bellingham.
CO-CHAIR MASEK thanked the individuals for taking time to travel
to Juneau to give the overview and expressed appreciation for a
job well done.
MS. BENTON remarked that they have a hard working staff. He then
advised that their municipal charter is a bit different from
others in that they are allowed to make a profit. This benefits
the community and helps defray the costs that some other
governments have difficulty managing.
MR. DARLING thanked the committee and stated the relationship
has been beneficial.
MAYOR OSMANSON said it would be fair to say that operating the
Marine Highway System is a very expensive proposition, but the
Bellingham portion is supported financially by Bellingham and
Whatcom County and they are happy to provide support.
ANNOUNCEMENTS
There were no announcements.
ADJOURNMENT
There being no further business to come before the committee,
Chair Cowdery adjourned the joint Senate and House
Transportation Standing Committee meeting at 2:00 p.m.
NOTE: The meeting was recorded and handwritten log notes were
taken. A copy of the tape(s) and log notes may be obtained by
contacting the Senate Records Office at Terry Miller Building,
Room 226, Juneau, Alaska 99801, (907) 465-2870, and after
adjournment of the second session of the 23 Alaska State
Legislature this information may be obtained by contacting the
Legislative Reference Library at (907) 465-3808.
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