02/08/2005 01:30 PM Senate TRANSPORTATION
| Audio | Topic |
|---|---|
| Start | |
| SB63 | |
| SB40 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| = | SB 63 | ||
| = | SB 40 | ||
| * | SB 85 | ||
ALASKA STATE LEGISLATURE
SENATE TRANSPORTATION STANDING COMMITTEE
February 8, 2005
1:33 p.m.
MEMBERS PRESENT
Senator Charlie Huggins, Chair
Senator John Cowdery, Vice Chair
Senator Gene Therriault
Senator Albert Kookesh
Senator Hollis French
MEMBERS ABSENT
All members present
OTHER LEGISLATORS PRESENT
Senator Lyman Hoffman
Senator Donny Olson
COMMITTEE CALENDAR
SENATE BILL NO. 63
"An Act relating to road signs encouraging the use of safety
belts."
MOVED CSSB 63(TRA) OUT OF COMMITTEE
SENATE BILL NO. 40
"An Act relating to the establishment of the Kuskokwim Port
Authority; and providing for an effective date."
HEARD AND HELD
SENATE BILL NO. 85
"An Act repealing the ban on the use of certain off-road
vehicles within five miles of the right-of-way of the James
Dalton Highway; and providing for an effective date."
SCHEDULED BUT NOT HEARD
PREVIOUS COMMITTEE ACTION
BILL: SB 63
SHORT TITLE: USE SEAT BELT ROAD SIGNS
SPONSOR(s): SENATOR(s) STEVENS B
01/19/05 (S) READ THE FIRST TIME - REFERRALS
01/19/05 (S) TRA, FIN
02/03/05 (S) TRA AT 1:30 PM BUTROVICH 205
02/03/05 (S) <Bill Hearing Postponed to 02/08/05>
02/08/05 (H) TRA AT 1:30 PM CAPITOL 17
BILL: SB 40
SHORT TITLE: KUSKOKWIM PORT AUTHORITY
SPONSOR(s): SENATOR(s) COWDERY, HOFFMAN
01/11/05 (S) PREFILE RELEASED 1/07/05
01/11/05 (S) READ THE FIRST TIME - REFERRALS
01/11/05 (S) TRA, FIN
02/03/05 (S) TRA AT 1:30 PM BUTROVICH 205
02/03/05 (S) <Bill Hearing Postponed to 02/08/05>
02/08/05 (H) TRA AT 1:30 PM CAPITOL 17
BILL: SB 85
SHORT TITLE: OFF-ROAD VEHICLE USE ON DALTON HIGHWAY
SPONSOR(s): SENATOR(s) SEEKINS
01/31/05 (S) READ THE FIRST TIME - REFERRALS
01/31/05 (S) TRA, RES
02/08/05 (H) TRA AT 1:30 PM CAPITOL 17
WITNESS REGISTER
Ms. Nona Wilson, Legislative Liaison
Department of Transportation & Public Facilities
3132 Channel Dr.
Juneau, AK 99801-7898
POSITION STATEMENT: Commented on SB 63
Mr. Mark Neidhold, Chief of Design and Construction Standards
Department of Transportation & Public Facilities
3132 Channel Dr.
Juneau, AK 99801-7898
POSITION STATEMENT: Commented on SB 63
Mr. Leo Morgan, Chairman
Kuskokwim Corporation
Aniak, AK 99557
POSITION STATEMENT: Testified in opposition to SB 40
Mr. Paul Fuhs, Lobbyist
1635 Sitka St. STE 301
Anchorage, AK
POSITION STATEMENT: Testified in opposition to SB 40
Mr. Bob Charles, Vice President
Calista Corporation
Anchorage AK
POSITION STATEMENT: Testified in support of SB 40
Ms. Evelyn Thomas, Vice President
Crooked Creek Traditional Council
PO Box 69
Crooked Creek, AK 99575
POSITION STATEMENT: Testified in support of SB 40
Mr. Thor Williams, City Council Member
City of Bethel
Bethel AK
POSITION STATEMENT: Commented on SB 40
ACTION NARRATIVE
CHAIR CHARLIE HUGGINS called the Senate Transportation Standing
Committee meeting to order at 1:33:23 PM. Present were Senators
John Cowdery, Gene Therriault, Hollis French, and Chair Huggins.
1:34:37 PM
SB 63-USE SEAT BELT ROAD SIGNS
MS. CHERYL SUTTON, staff to Senator Ben Stevens, introduced SB
63. Currently under the highway fatality memorial signs program,
there are no provisions for a seatbelt sign. Research shows that
55 percent of fatalities in accidents could have been avoided
had the individual been wearing a seatbelt. The Department of
Transportation (DOT) can incorporate this type of sign into the
memorial program. SB 63 provides suggested sign options for the
committee. The intent is to have the sign incorporated under the
program and posted at the sites of fatal accidents where no
seatbelt was used. The DOT does not charge for memorial signs
because they serve both a public and a private purpose.
1:37:41 PM
SENATOR THERRIAULT asked for clarification regarding the last
sentence of SB 63.
MS. SUTTON deferred to the DOT.
SENATOR THERRIAULT asked the need for a title.
MS. SUTTON informed the title of the bill is to honor a young
man who died.
1:39:09 PM
SENATOR THERRIAULT stated it was uncommon to name a statute
after an individual.
Senator Kookesh joined the committee.
SENATOR FRENCH asked whether the suggestive sign options were
binding.
MS. SUTTON said not necessarily. They are just suggestions.
SENATOR FRENCH envisioned a standard safety sign.
MS. SUTTON said SB 63 was specifically directed toward buckling
up.
CHAIR HUGGINS inquired about the sign specifics.
1:41:31 PM
MS. SUTTON did not know precisely what the sign would look like.
SENATOR COWDERY asked whether other states have similar
legislation.
MS. SUTTON did not know.
CHAIR HUGGINS called the DOT representatives to testify.
1:42:55 PM
MS. NONA WILSON, legislative liaison, Alaska Department of
Transportation (DOT), and Mark Neidhold, chief of design and
construction standards, Alaska DOT testified regarding SB 63.
MS. WILSON addressed Senator Therriault's question regarding the
last line of SB 63. There are placement criteria regulations
regarding sign management. The DOT maintains concern regarding
highway clutter and driver distractions, and must have authority
over signage organization.
MR. NEIDHOLD added signs were placed after considering several
issues such as the proliferation of signs on the roadway,
potential distracters, placement of safe distance from the side
of road, etc. The last line of SB 63 preserves the DOT's
authority to manage signage.
1:45:37 PM
SENATOR COWDERY asked whether other states had passed similar
legislation.
MR. NEIDHOLD said signs were allowed through a federal uniform
standard. Other states do post signs within the regulatory
standards but he was not sure about memorial signs.
SENATOR COWDERY asked whether an administrative order rather
than a statute could accomplish the issue.
MS. WILSON answered it could be done either way.
SENATOR COWDERY asked who maintains the memorial signs.
MR. NEIDHOLD explained the DOT maintains the signs and there is
a term limit by Alaska code.
1:47:48 PM
SENATOR THERRIAULT asked the limitations on what the DOT could
erect.
MR. NEIDHOLD referenced Alaska administrative code. Two signs
are allowed under the memorial program, which are supplementary
plaques. They are "please drive safely", or "please don't drink
and drive", supplemented by "in memory of", or sponsored by the
name of the family.
MS. WILSON clarified the DOT absorbs the costs ($500) of posting
signs.
SENATOR THERRIAULT asked Mr. Neidhold to describe the sign SB 63
is proposing.
MR. NEIDHOLD said the DOT recommends the sign be similar to
preexisting signage with a supplemental plaque. Regulatory signs
should be stand alone signs because it speaks to uniformity and
driver expectancy. Regulatory signs are non-distracting.
SENATOR THERRIAULT asked the latitude that line 8 gives the DOT.
1:52:07 PM
MS. WILSON responded it was for sensible placement criteria and
general area compromise.
CHAIR HUGGINS asked whether the DOT had any issues with SB 63.
MS. WILSON said no.
1:55:41 PM
CHAIR HUGGINS asked the position of the safety officer.
MR. NEIDHOLD responded the safety staff is on board.
MS. WILSON added there is the support of the Alaska Highway
Safety Office as well.
2:00:21 PM
SENATOR THERRIAULT moved Amendment 1.
Line 8 after the word "at" insert "or near".
Hearing no objections, Amendment 1 was adopted.
SENATOR THERRIAULT moved Amendment 2.
Delete Section 1.
2:02:31 PM
CHAIR HUGGINS asked for sponsor concerns regarding Amendment 2.
MS. SUTTON could not speak for Senator Ben Stevens but added he
wanted Section 1 in the bill.
2:03:18 PM
Hearing no objections, the committee adopted Amendment 2
2:04:27 PM
SENATOR THERRIAULT moved CSSB 63(TRA) out of committee as
amended with individual recommendations and attached fiscal
notes. Hearing no objections, the motion carried.
SB 40-KUSKOKWIM PORT AUTHORITY
2:06:03 PM
MR. RYAN MAKINSTER, staff to Senator John Cowdery, introduced SB
40, which would establish a port authority for the Kuskokwim
River area.
Senator Hoffman joined the committee.
MR. MAKINSTER continued the boundary for the authority would
extend along the river ten miles on either side. The purpose of
the authority would be to develop and improve infrastructure in
the area such as transportation, energy and waste disposal.
Revenue bonds bring together infrastructure. Revenue bonds would
fund regional projects and would be secured by the mechanism
used to pay back the bond with no obligation to the state. The
board of the port authority would consist of nine members
nominated by private and public people.
2:08:51 PM
Unemployment rates in the Kuskokwim area are high as are
associated transportation costs. Many people will benefit from
the associated regional projects, which would include mining.
2:10:47 PM
Locals would not see any benefit from the mine except for
possible job creation. Development of the mine should benefit
the area and not just a limited populace.
SENATOR THERRIAULT referred to a map included in the bill packet
and asked Mr. Makinster to explain where the port authority
would be.
MR. MAKINSTER referenced the crosshatched area outlined on the
map.
CHAIR HUGGINS asked about a road from Donlin to Yukon River.
MR. MAKINSTER stated the road was no longer being considered.
2:12:18 PM
CHAIR HUGGINS asked for a larger version of the map.
SENATOR COWDERY asked whether the governor's office was slated
to testify.
CHAIR HUGGINS said no.
2:13:27 PM
SENATOR FRENCH asked how the Kuskokwim Port Authority would
differ from AIDEA (Alaska Industrial Development and Export
Authority).
MR. MAKINSTER said that hadn't been thought out yet.
SENATOR COWDERY interjected the Kuskokwim Port Authority would
be appointed by the governor. In turn the board would hire an
executive director. He said that was different from AIDEA. The
Donlin Creek Mine is proven to have more than 12 million ounces.
SENATOR THERRIAULT asked Mr. Makinster to go over the list on
page 2, lines 17-20. He noted the breadth of it is one of the
criticisms from those suspicious of the bill.
2:16:07 PM
MR. MAKINSTER responded the language was used for other port
authorities, such as the Anchorage Port Authority. It doesn't
dictate but allows them to work in the areas for the betterment
of the region. Some of the current concerns of the local
residents are misguided because the port authority would not
dictate everything in the region. It gives them the ability to
revenue bond and to gather as a group.
2:18:02 PM
CHAIR HUGGINS asked Mr. Makinster to address the concerns of
those in opposition to the bill.
MR. MAKINSTER explained the Kuskokwim Corporation concerns have
been addressed. They feel the port authority will try to
override control of their areas. That is not the intent of the
sponsor. The port authority would allow them a better economic
base. Economies of scale prove the infrastructure set up by a
port authority would be better economically for the entire
region.
CHAIR HUGGINS asked whether the intent of SB 40 is to add value
to the region.
MR. MAKINSTER replied yes.
SENATOR KOOKESH noted a major concern of the people of the
Kuskokwim community is that none of their committees were spoken
to regarding formation of a borough. He asked Mr. Makinster
whether he has contacted the community.
MR. MAKINSTER affirmed they spoke with Kuskokwim Corporation two
weeks ago. Their concerns include not being adequately
represented on the board. Specific language in SB 40 states
members of the board should come from many different arenas.
SENATOR KOOKESH asked whether the sponsor talked to either the
State Representative or State Senator who represents the
communities.
MR. MAKINSTER replied no.
SENATOR KOOKESH asked Senator Cowdery whether he has talked to
the State Representative or State Senator who represents the
communities. He said six of the ten communities are in his
district.
SENATOR COWDERY said he spoke to Senator Hoffman.
SENATOR KOOKESH expressed concern that he was not considered
when drafting of the bill. The communities have valid concerns.
SENATOR COWDERY said he asked Chair Huggins not to move SB 40
today.
2:23:43 PM
CHAIR HUGGINS encouraged Senator Kookesh to speak to the bill
sponsor regarding any concerns.
SENATOR KOOKESH admonished Senator Cowdery for failure to speak
to the State Senator and State Representative who represent the
communities before introducing SB 40.
2:25:16 PM
SENATOR FRENCH asked whether anyone has spoken to the Donlin
Creek and Placerville stakeholders to find out their position on
the bill.
MR. MAKINSTER said they are working with them but no
determination has been made yet as to the course of development.
SENATOR COWDERY said it was not his intention to ram anything
through or to bypass anybody. He said he was disappointed that
someone from the governor's office was not present.
CHAIR HUGGINS asked Mr. Makinster to remain with the committee.
2:27:19 PM
MR. LEO MORGAN, chairman of Kuskokwim Corporation, testified in
opposition of SB 40. Neither the Corporation nor the communities
were contacted regarding the bill. Their lands include 10
village corporations that merged in 1977. One hundred and twenty
linear miles of the proposed port authority is on Kuskokwim
land. Kuskokwim Corporation supports development of the
exploratory mine. SB 40 does not include communities east of the
proposed port authority and they are members of the merged
corporation, including Georgetown, Red Devil, Sleetmute, and
Stony River.
2:29:21 PM
The scope of the proposed port authority is too broad and
includes activities that would normally be done by a borough
with elected representation. The governor would appoint the port
authority board and there would be no assurance that the
villages would be adequately represented. The Port Authority
could discourage formation of local government.
2:30:54 PM
CHAIR HUGGINS asked Mr. Morgan whether the community supports
mining activity.
MR. MORGAN responded yes.
SENATOR COWDERY asked Mr. Morgan how he would like the board
members appointed.
MR. MORGAN said he would appoint members from the affected area.
SENATOR COWDERY asked Paul Fuhs to describe the role of a board
member.
MR. PAUL FUHS, lobbyist, Kuskokwim Corporation, said he helped
write Alaska's Port Authority laws in 1993 with Senator Drue
Pearce. One of the most important jobs of the board is to lay
forward a development plan.
2:33:55 PM
The board sets the direction and is the actual decision makers.
The executive director executes day-to-day operations,
negotiates, and makes recommendations to the board. The majority
actions of the board determine what the port authority does.
SENATOR LYMAN HOFFMAN informed the committee the Kuskokwim
Corporation is a for profit corporation. Their primary interest
is to make money for their shareholders.
2:36:24 PM
SENATOR KOOKESH asked Mr. Fuhs if he would be more comfortable
if SB 40 listed specifically where the board members come from.
MR. FUHS answered under the Alaska Constitution you cannot
specify where a board member comes from and you specifically
cannot specify a board member from a private corporation.
2:38:27 PM
CHAIR HUGGINS invited Senator Olson to join the committee.
MR. FUHS continued a port authority works when people in the
community all want it to happen and municipalities generally
form them. People have to vote on it and local people have to
support it. When the boundaries were drawn people were left out.
Placer Dome wants to see the local people working together.
Calista owns the subsurface and Kuskokwim Corporation owns the
surface. The right-of-way would go across Kuskokwim Corporation
land so they will have a huge role in the development.
SENATOR KOOKESH asked whether there would be continued
discussion between the Kuskokwim Corporation and Senator
Cowdery.
MR. FUHS said they met with Senator Cowdery's staff immediately
upon hearing about the bill and put their issues on the table.
2:41:35 PM < Recess > 2:50:56 PM
MR. THOR WILLIAMS, city council member, City of Bethel,
testified. Bethel is the largest port in western Alaska. The
city supports the communities and would offer to help with
economic development.
2:53:00 PM
CHAIR HUGGINS asked Mr. Williams to expound.
MR. WILLIAMS said they understand that issues are out there with
several parties. They have questions whether their port would
have a role in the proposed port authority. The City of Bethel
supports development.
2:55:10 PM
SENATOR COWDERY asked Mr. Williams whether he had ideas for the
make up of the board.
MR. WILLIAMS said they would support representation of the
corporations and the local communities as well as the City of
Bethel and the City of Napakiak.
2:58:12 PM
CHAIR HUGGINS asked Mr. Williams to state their major concerns.
MR. WILLIAMS said predominantly it is the question of the impact
to their own port authority. It is a seasonal port that supplies
needs for the lower Kuskokwim and for the upper Kuskokwim up to
McGrath.
3:01:39 PM
MR. BOB CHARLES, vice president, Calista Corporation, affirmed
they do own the subsurface resource acreage in the region.
Calista has participated in numerous meetings around the region
to talk about the project. They determined an opportunity
existed to bring the communities together in financing and
developing infrastructure. Cultivating and developing their
resources presents opportunity for long-term sustainable
development. The port authority could help bring the different
stakeholders together to directly participate in the financing
of other projects.
3:04:43 PM
SENATOR COWDERY asked Mr. Charles whether he knew of any other
minerals in the area.
MR CHARLES advised there is primarily gold, platinum, and small
quantities of other minerals.
SENATOR COWDERY asked the amount of gold.
MR CHARLES said Donlin Creek is indicated to have 11.1 million
ounces of gold. The grade is an average of three grams per ton.
SENATOR COWDERY asked how power would get to the mine.
MR CHARLES stated they are currently looking at renewable energy
and a power plant.
3:08:39 PM
SENATOR COWDERY asked whether shallow gas was available.
MR CHARLES said there was potential but probably not feasible.
SENATOR COWDERY asked the amount of power needed.
MR CHARLES said there is 70 mega watts of power plant
requirement for the mine.
3:09:48 PM
SENATOR COWDERY asked where the road would be.
MR CHARLES advised it was proposed to be below Crooked Creek
towards Donlin Creek.
CHAIR HUGGINS asked whether Calista Corporation was supportive
of a port authority.
MR CHARLES said yes. It would bring all the stakeholders
together.
3:14:16 PM
SENATOR COWDERY asked the labor needs for a full scale
operation.
MR CHARLES expects to see 700 jobs created.
SENATOR COWDERY asked the depth to pay dirt.
MR CHARLES speculated 1/2 billion tons of overburden.
3:18:01 PM
MS. EVELYN THOMAS, vice president, Crooked Creek Traditional
Council, testified. The Council met and concluded they must
support SB 40. They hope to have the port authority in the mid
Kuskokwim region.
CHAIR HUGGINS asked her to characterize the view of the Crooked
Creek Traditional Council.
MS. THOMAS assured him they are very supportive. The tribe's
position is they must have some input in the development of the
area.
3:21:08 PM
CHAIR HUGGINS held SB 40 in committee. He invited the governor's
administration to the next hearing on SB 40. There being no
further business to come before the committee, he adjourned the
meeting at 3:23:05 PM.
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