Legislature(2015 - 2016)BUTROVICH 205
03/01/2016 01:00 PM Senate TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearings: Board of Marine Pilots | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
SENATE TRANSPORTATION STANDING COMMITTEE
March 1, 2016
1:11 p.m.
MEMBERS PRESENT
Senator Peter Micciche, Chair
Senator Click Bishop, Vice Chair
Senator Mike Dunleavy
Senator Dennis Egan
MEMBERS ABSENT
Senator Bert Stedman
COMMITTEE CALENDAR
CONFIRMATION HEARINGS
Board of Marine Pilots
Andrew Mack - Anchorage, Alaska
Tom Rueter - Anchorage, Alaska
- CONFIRMATIONS ADVANCED
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
ANDREW MACK
Anchorage, Alaska
POSITION STATEMENT: Board of Marine Pilots appointee.
TOM RUETER
Anchorage, Alaska
POSITION STATEMENT: Board of Marine Pilots re-appointee.
ACTION NARRATIVE
1:11:25 PM
VICE CHAIR CLICK BISHOP called the Senate Transportation
Standing Committee meeting to order at 1:11 p.m. Present at the
call to order were Senators Egan, Dunleavy, and Vice Chair
Bishop.
^Confirmation Hearings: Board of Marine Pilots
Confirmation Hearings: Board of Marine Pilots
1:12:38 PM
VICE CHAIR BISHOP announced the confirmation hearing for Andrew
Mack, appointee to the Board of Marine Pilots, and noted that
his term would expire on March 1, 2020.
1:12:55 PM
CHAIR MICCICHE joined the committee.
1:13:11 PM
At ease
1:13:39 PM
CHAIR MICCICHE asked Mr. Mack to tell them about himself and why
he would be a good candidate for the Board of Marine Pilots.
1:14:07 PM
ANDREW MACK, Board of Marine Pilots appointee, Anchorage,
Alaska, said he was born and raised in Soldotna. He is an
attorney and his work for the last 10 years has been on a
variety of resource issues. Most recently he worked as a
consultant to several organizations, including village
corporations that are involved in development on the North
Slope. He is also a managing director at Pt Capital.
MR. MACK said he was introduced to the water front as a young
person and became a commercial fisherman in different fisheries
for 14 years. He said that mariners have a "pretty solid record"
of trafficking the waters safely in the state except for the one
notable exception. A great deal of marine traffic successfully
happens in Cook Inlet and Prince William Sound and all across
the Alaska coastline, and the pilots are an important ingredient
in that mixture. They bring a perspective which allows folks to
maintain their focus on good business practices that leads to a
safe practice. He felt that his experience-base and some of the
things he had done through his life to benefit the Marine Pilot
Board.
CHAIR MICCICHE disclosed that he had known Mr. Mack for 35 years
just being from the same small town.
1:17:02 PM
SENATOR DUNLEAVY said on his application under "conflict of
interest" Mr. Mack answered "yes" to the question of him or his
family being affected financially by decisions made by the
board, but answered "no" to explain "the potential financial
benefit," and asked him to explain that answer.
MR. MACK replied that he should have said "no" to both
questions, but at the time he couldn't think of any financial
decisions the board might make that would affect him or his
family financially. He honestly realized that he had answered
that wrong and said it was an error.
SENATOR DUNLEAVY asked why he wanted to be on the board.
MR. MACK answered that the board is built so that it has
representatives of various interests - industry, pilots, and the
public - and all of them want marine business to be conducted
safely, because it is good business in Alaska.
SENATOR DUNLEAVY asked why he wants to be on this particular
board.
MR. MACK answered because he is fascinated with the marine
industries and how they are so important to the economy of
Alaska, most of which happens almost invisibly. Alaska has a
"pretty unique system," he said, especially considering all the
variations of harbors, weather and distances. Part of his
fascination is curiosity, but he also thinks he has some unique
experiences in understanding marine transportation systems, how
they can benefit Alaska, and how they can be done safely.
SENATOR DUNLEAVY said a number of pilots and agents on the board
have years of experience and asked, other than commercial
fishing, what experience Mr. Mack has that would be applicable
to this position.
MR. MACK answered that his current work is in business
development. His clients have an interest in the long term
success of Alaska. Whether it's a village corporation or a
company doing business in Dead Horse, they all have a common
purpose, which to successfully keep their businesses away from
scenarios where bad things happen. He has experience as a
commercial fisherman, but he also spends most of his days trying
to solve knotty problems in the business community. He hoped to
bring some of those experiences to the board, a lot of whose
activities are not solely focused on the water. In fact, most of
their focus in on land activities.
SENATOR DUNLEAVY asked who some of his clients are.
MR. MACK answered that he works for a couple of village
corporations on the North Slope. Some of them have multiple
issues and are well-known clients. One of the companies he does
a lot of business with is Kuukpik Corporation on the North Slope
and another is the Inuit Corporation based in Wainwright.
SENATOR DUNLEAVY said he was trying to understand Mr. Mack's
motivation and asked him to detail any other associations he has
with the government and administration.
MR. MACK answered that he recently got a contract with the
governor and the administration to help think through some
knotty issues centered on access to ANWR and other federally
controlled areas. He said the contract terms had been discussed
publically.
1:26:31 PM
SENATOR DUNLEAVY asked his role with Pt Capital.
MR. MACK replied that Pt Capital is a private equity fund, a way
for investors to directly invest in business. He explained that
Alaska has historically exported its resources and in some cases
its capital, and Pt Capital is designed to do the opposite: to
attract capital from outside of Alaska and place it into
investments here. His role is to look for opportunities where
the capital may be placed.
SENATOR DUNLEAVY asked if Pt Capital is just focused on Alaska
or the Arctic.
MR. MACK answered that it is focused on Alaska.
SENATOR DUNLEAVY asked if this is the same Pt Capital that the
owner of the Dispatch, Alice Rogoff, is part of.
CHAIR MICCICHE interrupted to say that Senator Bishop has to
leave for another meeting and had a question.
SENATOR BISHOP said it appears that Mr. Mack has experience in
Arctic issues including maritime activities and it appears that
he is also the principal author of the North Slope Borough
Offshore Arctic oil and gas development policy positions. He
asked him to expand on what those positions entailed.
MR. MACK answered that he was an employee for the North Slope
Borough and head of Government External Affairs for a number of
years. In that capacity, he looked at a range of options that
the communities thought made sense for them. They looked at
other business systems that were being employed, sometimes
globally, but certainly around Alaska.
One of the things he did with them was put together some
important issues for conducting safe business. The Assembly -
including former Mayor Itta - unanimously passed a resolution on
how marine pilots might be used to make sure that all the
proposed activity was conducted safely.
1:32:12 PM
SENATOR DUNLEAVY asked if the owner of the Dispatch is linked to
Pt Capital.
MR. MACK replied that he was almost certain that her role is
senior advisor there.
1:32:39 PM
SENATOR DUNLEAVY asked if his contract with the governor's
office will be extended at the end of the month.
MR. MACK said he didn't know, but he is currently working
diligently on it.
SENATOR DUNLEAVY asked if that is the plan.
MR. MACK answered that they have to get through the first part
of the contract, and then the administration will tell him
whether they want more help or that it will be closed out.
1:33:18 PM
SENATOR DUNLEAVY asked with the governor defunding Arctic
Power's lobbying efforts on behalf of Alaska and Washington, if
he would be taking over some of that work
MR. MACK answered that the subject had never come up.
SENATOR DUNLEAVY asked if there are any potential conflicts or
associations he should be noting beyond what was in his
application.
MR. MACK answered that he couldn't think of anything off the top
of his head. If there was an interface or connection between
opportunities that Pt Capital might be pursuing - something
involving pilots - he would be obligated to come forward, but
there aren't any of those right now.
SENATOR DUNLEAVY asked if he had to disassociate himself from
any other business arrangements or contracts to sit on the
board. He assumed he didn't have to do that with any of the ones
he mentioned.
MR. MACK answered that he assumed the same thing and promised to
look into it. He stated that as an attorney he has always lived
under the code of professional conduct, which is if you see a
conflict you raise it and try to resolve it.
1:36:32 PM
CHAIR MICCICHE said he thought the struggle the committee was
having is that they know a lot of people with years of
applicable marine pilot experience, and while he knows and
trusts Mr. Mack - no question - sometimes people in the building
sort of wonder how these things come together. He asked Mr. Mack
to tell them more about his contract with the governor.
MR. MACK replied that the contract is with the governor and the
administration to help them plan for and address some of the
large issues that always challenge the State of Alaska, notably
federal activity and decision making in the Arctic National
Wildlife Refuge (ANWR), the Outer Continental Shelf (OCS) and
the National Petroleum Reserve Alaska (NPRA). He is well versed
in these issues and already does some of the same work for other
clients. The contract dates are pretty narrow and its total
value is $50,000; it is scheduled to end in another month. He
doesn't know if it will be continued.
1:39:08 PM
SENATOR DUNLEAVY asked what the deliverables of the contract
are.
MR. MACK answered that some of it is limited to reporting, along
with consulting and advisory services, and there would be a
written product at some point. He explained that one of the
reasons he has good relations with many of the corporate
entities and leadership on the North Slope is because he lived
in Barrow for three years (2003-2006).
CHAIR MICCICHE thanked him for being with the committee today.
1:41:03 PM
CHAIR MICCICHE announced the hearing for Tom Rueter and asked
him to tell them about himself and why he wanted to continue
serving on the Board of Marine Pilots.
1:41:13 PM
TOM RUETER, Anchorage, Alaska, Board of Marine Pilots appointee,
Anchorage, Alaska, said he had been in Alaska since 1973 and had
been involved in the maritime industry for 30 years. He is
currently general manager for Alaska Maritime Agencies that
represents a variety of vessels that utilize pilotage services
under the Marine Pilotage Act. A good portion of those services
include making arrangements and requests, advising interested
vessel operators what the regulatory regime is regarding the use
of pilotage, advising on advance notices and where they can and
can't go without pilots, and explaining the nature of the pilot
services and their charges. He explained that larger vessel
operators that have an ongoing service - barge and tug services,
for instance - have offices and staff in Alaska who meet the
needs of their vessels, because they have scheduled services.
He explained that agents frequently represent vessels that may
show up in Alaska with the owners one time in a year or one time
ever, but do not have a regular presence and so they need local
knowledge and understanding of the regulatory regime. Whether
the owner is in Hong Kong or London, they ask an agent to set up
arrangements for their vessel that is coming into Anchorage or
Seward or locations of that nature. He and people like him are
out there talking with the pilots and making arrangements. Mr.
Rueter said he has been involved with the Board of Marine Pilots
as a participant in the meetings since 1990 or 1989 or so.
MR. RUETER said he has also been an active participant in the
Alaska Steamship Association, a group of industry members
seeking to make sure that the services and the training of
pilots through the board are meeting with industry expectations
and concerns over safety as navigational aids and processes
change.
He explained that the pilot works with the bridge crew, taking
command of the vessel as provided, so that their local knowledge
is utilized when coming into pilotage waters. Because many of
the principals do not have an active presence, the Steamship
Association also engages the pilots to make sure that their
services are cost effective, because they are a recognized and
approved monopoly of the state and obligated to provide services
to ensure the safety of the marine environment in and around the
state's waters. His interest in participating on the board is to
help offer insight to vessel owners that are absent from their
vessels.
1:47:08 PM
CHAIR MICCICHE said his experience is clearly long-standing and
applicable. He asked Mr. Mack if he had much to do with the
terminal compatibility and simulation studies in the facilities
that have become somewhat highly developed toward those efforts.
MR. RUETER answered that he had limited participated in the
simulation facilities at AVTEC in Seward and a simulation review
in Juneau. He said that new terminals are rare, but vessel
operator insights and expectations have been solicited as to
what conditions might be necessary at a new terminal for mooring
and line handling arrangements.
CHAIR MICCICHE said there is no question that when an entity
brings a new vessel into Alaskan waters, the pilots are there
every step of the way, and the simulations and compatibility
studies couldn't be done without them.
1:48:41 PM
SENATOR DUNLEAVY asked Mr. Rueter if his experience is critical
in doing this job well.
MR. RUETER answered that the board has two industry members, two
pilot members, and two public members who are charged with
understanding the regulations, and a disposition could be
accomplished by any number of people. Expertise comes into play
when pilots are questioned as to how to safely bring a vessel of
a certain size in or what guidelines or concerns someone might
have about vessel operations. He explained that the board leans
quite strongly on a strong pilotage association and its training
guidelines while indoctrinating new personnel that will be
licensed by the board. However, the board is not specifically
involved in saying a person is guiding the ship appropriately.
They rely almost entirely on the association to say trained
pilots had accompanied this individual, observed them in their
practices and find them to be fully fit to provide these
services, and then recommend to the board that they be granted a
license. He said that the job involves listening carefully to
the facts and expertise put forward by the licensed pilots
relative to new pilots coming on and the ability to understand
different positions, whether it has to do with pilots or
industry and that, "It could be addressed by any of many
professionals."
1:52:08 PM
SENATOR BISHOP said his resume' speaks for itself and asked if
Mr. Rueter thinks AVTEC brings value to the maritime industry
with its compliments of training cohorts in Seward.
MR. RUETER answered that he participated when they brought in
the original simulator from Kongsberg in the early 90s, and
their efforts to expand that with the participation of pilots
has been very beneficial. Until that time, they labored long and
hard to convince pilots and other industry to utilize their
services and equipment. Otherwise, frequently pilots would have
to go off to Florida and Switzerland and other places around the
world to accomplish various trainings.
CHAIR MICCICHE asked if he is fluent in the Japanese language.
MR. RUETER answered yes.
CHAIR MICCICHE thanked both gentlemen for being with the
committee today. He said the members would sign a report
recommending that the appointments be forwarded to a joint
session for consideration. This does not reflect an intent by
any of the members to vote for or against confirmation of the
individuals during any further sessions.
1:54:36 PM
CHAIR MICCICHE adjourned the Senate Transportation Standing
Committee meeting at 1:53 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Andrew Mack.pdf |
STRA 3/1/2016 1:00:00 PM |
|
| Tom Rueter.pdf |
STRA 3/1/2016 1:00:00 PM |
|
| Board of Marine Pilots Fact Sheet.pdf |
STRA 3/1/2016 1:00:00 PM |
|
| Board of Marine Pilots Roster.pdf |
STRA 3/1/2016 1:00:00 PM |
|
| Confirmation Memo.pdf |
STRA 3/1/2016 1:00:00 PM |