Legislature(2019 - 2020)BUTROVICH 205
01/29/2019 01:30 PM Senate TRANSPORTATION
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| Audio | Topic |
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| Start | |
| Confirmation Hearing(s) | |
| 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
January 29, 2019
1:31 p.m.
MEMBERS PRESENT
Senator Shelley Hughes, Chair
Senator Mike Shower, Vice Chair
Senator David Wilson
Senator Peter Micciche
Senator Jesse Kiehl
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
CONFIRMATION HEARING(S)
Commissioner, Department of Transportation and Public Facilities
John MacKinnon - Anchorage
- CONFIRMATION ADVANCED
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
JOHN MACKINNON, Commissioner Designee
Department of Transportation and Public Facilities
Anchorage, Alaska
POSITION STATEMENT: Testified as commissioner designee of the
Department of Transportation and Public Facilities.
KEN MCCARTY, President
Birchwood Airport Association
Eagle River, Alaska
POSITION STATEMENT: Commented on earthquake preparedness during
the confirmation hearing for commissioner of the Department of
Transportation and Public Facilities.
ACTION NARRATIVE
1:31:25 PM
CHAIR SHELLEY HUGHES called the Senate Transportation Standing
Committee meeting to order at 1:31 p.m. Present at the call to
order were Senators Wilson, Micciche, Kiehl, and Chair Hughes.
Senator Shower arrived soon thereafter.
^CONFIRMATION HEARING(S)
CONFIRMATION HEARING(S)
Commissioner, Department of Transportation and Public Facilities
1:32:24 PM
CHAIR HUGHES announced the the committee would consider the
governor's appointment of John MacKinnon as commissioner of the
Department of Transportation and Public Facilities.
1:33:20 PM
SENATOR SHOWER joined the committee.
1:33:29 PM
JOHN MACKINNON, Commissioner Designee, Department of
Transportation and Public Facilities (DOTPF), thanked the
committee for holding the hearing and expressed appreciation for
the opportunity to once again serve the State of Alaska. He
related that he was born and raised in Juneau and graduated from
Huxley College of Environmental Studies [with a degree in Marine
Resource Ecology.] After graduation, he worked for the National
Marine Fisheries Service at the Auke Bay Lab for several years
and then became a building contractor doing mostly commercial
work. In 2002, he took a position as interim city manager for
the City and Borough of Juneau, and in 2003 he was appointed
deputy commissioner of transportation for the State of Alaska.
In 2008, he assumed the role of executive director for the
Associated General Contractors of Alaska (AGCA) and served in
that capacity until the new administration offered the
opportunity to return to DOTPF. He related that it was not a
difficult transition to move from DOTPF to AGCA in 2008 because
the issues are the same. "It was how do we improve what we do in
the construction business." Returning to DOTPF from AGCA will be
a similar transition.
He said his time at AGCA was spent advocating for the industry
in support of construction and development projects, working on
statute and regulation changes to improve the way business is
done, and working with owner agencies on issues to the benefit
of both sides.
1:37:47 PM
COMMISSIONER DESIGNEE MACKINNON said he takes public service
very seriously and his philosophy is "how to get to 'Yes' when
you're doing something." He shared that his belief may have been
shaped by his personal experience of having government officials
tell him he couldn't do something as a contractor. Some years
later he was very appreciative when a government official
described a path to get approval of his request. "It was
refreshing to have somebody in a regulatory position tell me how
to get what I needed to do instead of just the simple answer of
"No."
He said DOTPF staff generally go out of their way to accommodate
the wishes and needs of the public, but there are times when the
needs of an individual or group do not outweigh the greater
public benefit on certain transportation improvements. He
reiterated that his philosophy at DOTPF will be to look for ways
to serve the public by getting them to "Yes" when possible.
1:39:53 PM
SENATOR WILSON asked what DOTPF will do for the Mat-Su to ensure
equitable sharing of capacity to address improvements to their
safety corridor and to get relief after the earthquake.
COMMISSIONER DESIGNEE MACKINNON said Central Region personnel
have identified KGB Road and the next phase of the Parks Highway
as priorities one and two respectively. Both are difficult
projects because of the disruption to residents and businesses
along the way. He noted that he experienced the same
difficulties with the first phase of the Parks Highway
interchange when he joined DOTPF in 2003. He explained that
increasing capacity to meet the traffic demands means limiting
intersections and moving access to driveways to a frontage road.
He noted that when projects are large, they are often broken
into pieces to generate a little more competition in bidding and
better use of the public's money.
1:43:26 PM
COMMISSIONER DESIGNEE MACKINNON related that he started work as
commissioner on December 3, 2018, just after the earthquake. The
first day on the job Senators Murkowski and Sullivan invited him
to visit some of the damaged areas via helicopter. On one stop
they looked at and took photos of the damage on Vine Road. The
next day the borough manager called and asked for help to
rebuild that road. Mr. MacKinnon said his staff confirmed that
the department could get the work done. "Within a couple of
days, Vine Road was repaired and paved over," he said.
1:44:47 PM
CHAIR HUGHES thanked him for the response. She said she
appreciates DOTPF's system, but she is not sure that people
realize how much the Mat-Su has grown. She highlighted that more
than 19,000 people live along the two-lane KGB Road, whereas
Juneau has a population that is one-third larger and is served
by a four-lane divided expressway. "It's been grievous to see
the number of fatalities and serious injury along [KGB Road], so
I appreciate your attentiveness to that," she said.
Chair Hughes segued to ask how he will deal with the issue of
his property along the proposed Juneau access road and funding
for the ferry system.
1:46:50 PM
COMMISSIONER DESIGNEE MACKINNON explained that the conflict of
interest relates to the Kensington Mine. He and other family
members are the primary owners of the Hyak Mining Company that
owns the property on which the Kensington Mine is constructed.
Kensington Mine is currently mining the ore body that belongs to
Hyak Mining Company. He explained that when he joined DOTPF in
2003, he resigned as a director and officer of Hyak Mining
Company. He also sought an ethics opinion from the department's
ethics attorney who advised him to refrain from making any
decisions related to the project because there was a conflict of
interest. That opinion was reaffirmed by the current ethics
attorney. "I would recuse myself from any matter that would
result in either a withholding or making a decision on that
particular project or any project that might reasonably benefit
that Kensington Mine property," he said.
1:48:28 PM
SENATOR SHOWER asked if he had consulted the ethics attorney
about any other areas that might be a conflict of interest.
COMMISSIONER DESIGNEE MACKINNON said he was waiting for an
opinion as to whether being a trustee on the pension and health
trust for the Alaska carpenter union might be a conflict. He
explained that he became a trustee as a result of contracts that
he negotiated with six trade unions while he worked for AGCA. He
said he did not see it as a conflict since carpenters do not
deal directly with DOTPF.
SENATOR SHOWER asked if his plan was to recuse himself should
there be an ethical issue.
COMMISSIONER DESIGNEE MACKINNON said yes, "I hold the public
trust very important."
1:50:18 PM
SENATOR MICCICHE asked what his management philosophy will be
and the largest challenges he foresees to get the department to
more adequately fulfill its mission.
COMMISSIONER DESIGNEE MACKINNON replied the largest challenge he
sees is staffing because annual turnover is 10-12 percent. His
goal is to hire professionals, treat them well, and help them do
their job without micromanaging.
1:53:17 PM
SENATOR MICCICHE noted that in recent years the only capital
budget for highway projects has relied on federal dollars. He
asked Mr. MacKinnon how he proposes to manage the state's
transportation needs with the $1.6 billion budget gap.
COMMISSIONER DESIGNEE MACKINNON replied the state receives about
$500 million a year from the federal highway trust fund. The
state match is about 10 percent and he could not imagine a
budget scenario where the state would give up that kind of
leverage. The situation is similar in aviation. About $200
million per year comes from the federal Airport Improvement
Plan. He reminded the members that there is more process
associated with spending federal dollars than state dollars, but
it's hard to turn those dollars down.
1:55:31 PM
SENATOR KIEHL asked what his thoughts were on how to do long-
term planning for the Marine Highway System.
COMMISSIONER DESIGNEE MACKINNON said the model that works can be
seen in the southern Southeast community of Metlakatla. The
small ship Lituya operates 12 hours a day five days a week
between Metlakatla and Ketchikan and the crew goes home at
night. The model of having smaller ships that are home ported in
different areas could work, but it would take consistency
between administrations to carry that through. "It's hard to
have a program when the wind keeps changing, he said.
1:58:41 PM
CHAIR HUGHES noted that Governor Dunleavy has talked about
Alaska being open for business and that, in addition to oil and
gas, he would like to see other doors opened. She asked if he
and the administration were thinking about new projects and the
need for new infrastructure such as airstrips or port
development to accommodate new mines.
COMMISSIONER DESIGNEE MACKINNON said the Roads to Resources
program under former Governor Murkowski was responsible for
several small projects that resulted in access to timber sales
on Gravina Island and in the Mat-Su. The Ambler Road is also on
the books as a result of the program which, if completed, would
access a number of mining properties in northwest Alaska. He
noted that involving DOTPT in such projects can complicate the
NEPA (National Environmental Policy Act) process so the
department generally stays out of the way until it is asked to
help.
CHAIR HUGHES asked him to talk about the proposed annual fee for
Uber and Lyft to use the Anchorage International Airport and the
concern that it might be more than the annual fee taxis are
charged.
2:02:06 PM
COMMISSIONER DESIGNEE MACKINNON said that internal discussions
are ongoing, and the public comment period is open on the
proposal to charge transportation network companies (TNCs) up to
but not more than $2.50 to pickup and drop-off riders. He noted
that the costs associated with having Uber and Lyft conduct
business at the airport include putting in porta pottys and
trash barrels at the cellphone lot where the drivers spend time.
He further noted that airport activity is increasing and over
the long term there will be a large capital expense to
accommodate the additional cabs, buses, and TNCs.
2:04:02 PM
CHAIR HUGHES asked if the fees for TNCs and taxis would be
equitable. She pointed out that if a taxi permit is $75 per year
and a TNC driver is charged $2.50 per pickup or drop off, that's
equivalent to just 30 trips.
COMMISSIONER DESIGNEE MACKINNON said both equity and parity are
considered in the ongoing conversations.
2:04:53 PM
SENATOR WILSON commented that the leases at the airport aren't
equitable either. He asked Mr. MacKinnon his philosophy and
DOTPF's direction on the public-private partnerships to build
new projects around the state.
COMMISSIONER DESIGNEE MACKINNON said the traditional model for
construction has been design, bid, build, but the design build
model has been used successfully in recent years. The Alaska
Psychiatric Institute (API), Glenn Parks Interchange, and
Whittier Tunnel are examples. The Construction Manager/General
Contractor (CMGC) model has been used for facilities for several
years and is starting to be used for highways. Through an RFP
process the most qualified contractor is selected to work with
the department and designers early in the process. After the
design process, the maximum price on the construction contract
is negotiated. DOTPF has used that model on three bridge
projects and the Federal Highway Administration has been
promoting it. The benefit is that the guaranteed maximum price
is established when the construction contract is negotiated. By
contrast, the design, bid, build contract establishes the
guaranteed minimum price of a project.
2:08:32 PM
SENATOR SHOWER mentioned the damage associated with the recent
earthquake and asked if he would support establishing a
statewide building code for triplexes and smaller buildings.
COMMISSIONER DESIGNEE MACKINNON said most municipalities have
adopted building codes that are for single family homes as well
as larger facilities. With budget cuts to state agencies the
last several years, the Fairbanks and Juneau fire marshal
offices were consolidated in Anchorage and the net effect is
that in outlying areas it takes longer to get plans approved to
build anything.
CHAIR HUGHES asked if public facilities are designed to current
earthquake standards.
COMMISSIONER DESIGNEE MACKINNON said the new facilities are
built to current codes but the buildings that had failures -
such as the schools in Eagle River and Houston, were built in
the 1980s under a different set of codes.
2:11:11 PM
SENATOR SHOWER related that after the earthquake his
cardiologist asked if he could fly a heart attack victim to the
hospital in Anchorage because the roads and bridges were
unusable. He asked Mr. MacKinnon his thoughts on building
alternate routes to accommodate that sort of situation.
COMMISSIONER DESIGNEE MACKINNON said the legislature asked for a
study last year of the Glenn Highway corridor and alternate
routes, and the department will present the report to the
committee later this week. He explained that if there is another
bridge event on the Glenn Highway corridor like last spring,
DOTPF can handle the connectivity, but the volume of traffic is
a challenge. The situation was the same after the earthquake.
The southbound lane to Mirror Lake was closed for 4-5 days and
the bypass worked well but it could not handle the volume of
traffic. That corridor has 40,000-50,000 cars a day and it takes
at least 4 lanes to handle that.
2:13:36 PM
SENATOR KIEHL highlighted that the state library and museum in
Juneau is another example of a Construction Manager/General
Contractor (CMGC) project success. He recalled that DOTPF
brought it in about $7.5 million under budget.
He noted the shift in approach in the departments public
facilities section over the years; certain people build the
facilities and others manage them. He asked if consolidation
would be more efficient and effective.
COMMISSIONER DESIGNEE MACKINNON replied that is happening. In
2015 the state recreated the Division of Facilities Services
within DOTPF and over time all public buildings will migrate
back under that division. So far, that model is working, he
said.
SENATOR KIEHL asked if that is helping to get a handle on the
deferred maintenance issues in state facilities.
COMMISSIONER DESIGNEE MACKINNON replied it has made it clear
what the deferred maintenance needs are, but there hasn't been
any funding. "We're getting woefully behind on things," he said.
2:16:58 PM
SENATOR MICCICHE commented that part of managing deferred
maintenance is having a surplus asset disposal plan, which the
state has never had. He asked if he foresees a comprehensive
plan to evaluate the inventory and dispose of the surplus
assets.
COMMISSIONER DESIGNEE MACKINNON said the department has
discussed that with the Office of Management and Budget (OMB)
and is looking at the potential to dispose of some surplus
assets. He cited the examples of a partially occupied state-
owned building on Tudor Road that was earthquake damaged and
several state-owned buildings that were left vacant when the
Kulis Air National Guard Base moved off the Anchorage
International Airport property to JBER.
2:20:00 PM
SENATOR MICCICHE asked about the potential to streamline the
department by privatizing certain services to take advantage of
good and poor business cycles in the construction industry.
COMMISSIONER DESIGNEE MACKINNON said his answer would focus on
the part of the department that does the construction projects.
Theres the design section called preconstruction and another
called construction. About 50 percent of design for DOTPF
projects is done in-house on an availability basis. Over the
years the department has found that 40-60 percent in-house works
well. There is also the federal requirement that when a project
goes to construction, someone from DOTPF has to oversee the
project and make certain decisions. He added that things are
contracted out when it is a benefit to both sides.
SENATOR MICCICHE said he would submit a series of questions on
that issue to the chair to relay to the department. I just want
to make sure were evaluating all of the potential for bringing
the cost down, he said.
2:22:52 PM
CHAIR HUGHES asked if the economics are about the same for in-
house design versus contracting out or if one is generally more
economical.
COMMISSIONER DESIGNEE MACKINNON said it depends on the
availability of resources within the department and the region.
The northern region has greater capacity to take on these
projects and the central region tends to have larger projects
such as Cooper Landing. Its important to have in-house
capabilities for projects but it's also important to take
advantage of consultants if that makes the most sense
economically.
CHAIR HUGHES said she hopes to continue the conversation on
using the most economical approach to projects in the
transportation finance subcommittee.
2:25:12 PM
SENATOR SHOWER mentioned the earthquake damage to the Port of
Anchorage, the ongoing repairs, and the most recent $2 billion
estimate for repairs. He asked what has to happen strategically
to make sure that critical piece of infrastructure is repaired
appropriately.
2:25:59 PM
COMMISSIONER DESIGNEE MACKINNON said hed like DOTPF to have
control, but the Municipality of Anchorage owns the Port of
Anchorage and is very territorial. He noted that he met with
Railroad officials and they are very aware of the vulnerability
of the port and what could be done. There are alternate ports in
Whittier and Seward connected by road and railroad, but those
would both require substantial investment. Port MacKinzie is
another alternative but it isnt built to take the volume of
freight that comes into Anchorage. Its designed to take
conveyors to load natural resources onto ships.
CHAIR HUGHES related that she was exploring the possibility of
having a hearing on that topic.
2:28:09 PM
SENATOR SHOWER explained that he raised the question because he
wants the public to know that alternate methods of bringing
supplies into the state are being discussed.
COMMISSIONER DESIGNEE MACKINNON confirmed that the topic of
conversation with the Alaska Railroad was that freight could be
delivered by truck, through the ports of Whittier and Seward,
via barge, and air freight. It would cost more but there would
be food on the shelves in grocery stores.
CHAIR HUGHES advised that the committee would have a hearing on
the recent earthquake and the disruptions that occurred.
2:29:55 PM
CHAIR HUGHES opened public testimony.
2:30:26 PM
KEN MCCARTY, President, Birchwood Airport Association, Eagle
River, highlighted that if the roads and bridges are damaged,
the airport would be the center for moving supplies.
2:31:41 PM
CHAIR HUGHES closed public testimony.
2:31:57 PM
Chair Hughes stated that in accordance with AS 39.05.080, the
Senate Transportation Committee reviewed the following and
recommends the appointment(s) be forwarded to a joint session
for consideration:
Commissioner, Department of Transportation and Public Facilities
John MacKinnon - Anchorage
CHAIR HUGHES clarified that the committee is not voting on the
nomination at this point and the vetting will continue in
subsequent committees. The only vote that will take place will
be on the floor.
SENATOR MICCICHE assured the public that earthquake plans were
in place. He added that it is always a good idea look them over
with an eye for improvement.
2:34:56 PM
There being no further business to come before the committee,
Chair Hughes adjourned the Senate Transportation Standing
Committee meeting at 2:34 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| STRA Agenda 1.29.19.pdf |
STRA 1/29/2019 1:30:00 PM |
|
| Commissioner-Designee DOT MacKinnon Resume.pdf |
STRA 1/29/2019 1:30:00 PM |
Commissioner-Designee DOT MacKinnon Resume |