HOUSE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE March 9, 1999 8:07 a.m. MEMBERS PRESENT Representative Andrew Halcro, Co-Chairman Representative Carl Morgan Representative Lisa Murkowski Representative Reggie Joule MEMBERS PRESENT BY TELECONFERENCE FROM WHITEHORSE Representative John Harris, Co-Chairman Representative Fred Dyson MEMBERS ABSENT Representative Albert Kookesh COMMITTEE CALENDAR OVERSIGHT HEARING: OPENING OF SEASONAL ROADS IN RURAL AREAS *HOUSE BILL NO. 40 "An Act combining parts of the Department of Commerce and Economic Development and parts of the Department of Community and Regional Affairs by transferring some of their duties to a new Department of Commerce and Rural Development; transferring some of the duties of the Department of Commerce and Economic Development and the Department of Community and Regional Affairs to other existing agencies; eliminating the Department of Commerce and Economic Development and the Department of Community and Regional Affairs; relating to the Department of Commerce and Rural Development and the commissioner of commerce and rural development; adjusting the membership of certain multi- member bodies to reflect the transfer of duties among departments and the elimination of departments; creating the office of international trade and relating to its duties; and providing for an effective date." - BILL HEARING POSTPONED *HOUSE BILL NO. 103 "An Act relating to civil actions by municipalities and certain public corporations and prohibiting certain civil actions by them against firearms or ammunition manufacturers and dealers." - BILL HEARING POSTPONED *HOUSE BILL NO. 98 "An Act relating to contracts for the provision of state public assistance to certain recipients in the state; providing for regional public assistance plans and programs in the state; relating to grants for Alaska tribal family assistance programs; and providing for an effective date." - BILL HEARING POSTPONED WITNESS REGISTER JOE PERKINS, Commissioner Alaska Department of Transportation and Public Facilities 3132 Channel Drive Juneau, Alaska 99801-7898 NANCY SLAGLE, Director of Administrative Services Alaska Department of Transportation and Public Facilities 3132 Channel Drive Juneau, Alaska 99801-7898 DAVID SLOAN. MLA Yukon Legislative Assembly PO Box 2703 Whitehorse, Yukon Y1A2C6 POSITION STATEMENT: Opposed to DOT decision. PETER JENKINS, MLA Yukon Legislative Assembly PO Box 2703 Whitehorse, Yukon Y1A2C6 POSITION STATEMENT: Opposed to DOT decision. LISA VONBARGEN Valdez Convention and Visitors Bureau PO Box 870 Valdez, Alaska 99686 POSITION STATEMENT: Opposed to DOT decision. DANA ULVI PO Box 27 Eagle, Alaska 99738 POSITION STATEMENT: Opposed to DOT decision. PATRICIA SANDERS PO Box 126 Eagle, Alaska 99738 POSITION STATEMENT: Opposed to DOT decision. JEANNE TETANGELO PO Box 27 Eagle, Alaska 99738 POSITION STATEMENT: Opposed to DOT decision. BARRY WESTPHAL PO Box 60 Eagle, Alaska 99738 POSITION STATEMENT: Opposed to DOT decision. JEAN WOODALL PO Box 58 Eagle, Alaska 99738 POSITION STATEMENT: Opposed to DOT decision. BRETT CARLSON Alaska Visitors Association Anchorage, Alaska POSITION STATEMENT: Opposed to DOT decision. KEN BECHTEL Holland-America 1980 S. Cushman Street Fairbanks, Alaska 99701 POSITION STATEMENT: Opposed to DOT decision. KATHY HELFRICK Alaska Visitors Association 1958 Porcupine Land Fairbanks, Alaska 99712 POSITION STATEMENT: Opposed to DOT decision. CHARLES REX Fairbanks City Council 970 Wood Way Fairbanks, Alaska 99709 POSITION STATEMENT: Opposed to DOT decision. FRANK ROSE PO Box 72478 Fairbanks, Alaska 99707 POSITION STATEMENT: Opposed to DOT decision. ED ZEINE, Mayor City of Cordova PO Box 1210 Cordova, Alaska 99574 POSITION STATEMENT: Opposed to DOT decision. DAN SHARP, Area Biologist Alaska Department of Fish and Game Cordova, Alaska 99574 POSITION STATEMENT: Opposed to DOT decision. JOHN HANDELAND, Mayor City of Nome PO Box 281 Nome, Alaska 99762 POSITION STATEMENT: Opposed to DOT decision. JERRY JERNIGAN PO Box Tok, Alaska 99780 POSITION STATEMENT: Opposed to DOT decision. GARY KRANNENBERG PO Box 508 Tok, Alaska 99780 POSITION STATEMENT: Opposed to DOT decision. JERRY MCCUNE Cordova District Fisheries United PO Box 372 Cordova, Alaska 99574 POSITION STATEMENT: Opposed to DOT decision. ALAN LEMASTER PO Box 222 Gakona, Alaska 99586 POSITION STATEMENT: Opposed to DOT decision. RON HOLMSTROM Mile 22 Denali Highway Paxson, Alaska 99737 POSITION STATEMENT: Opposed to DOT decision. ACTION NARRATIVE TAPE 99-12, SIDE A Number 0005 CO-CHAIRMAN HALCRO called the House Community and Regional Affairs Standing Committee to order at 8:07 a.m. Members present at the call to order were Representatives Halcro, Morgan, Murkowski and Joule. Representatives Harris and Dyson joined the meeting by teleconference from Whitehorse, YT at approximately 8:15. Representative Kookesh was absent. CO-CHAIRMAN HALCRO announced that the only order of business before the committee was the decision taken by the Department of Transportation and Public Facilities to not plow open certain seasonal roads. He asked Commissioner Perkins to begin his testimony. Number 0200 COMMISSIONER PERKINS explained that the Governor had directed DOT to find $900,000 in cuts in the current year budget, which he and his staff did through a number of cuts. These included saving $316,000 by not plowing open the seasonal roads, but letting them melt off naturally, instead. Commissioner Perkins said DOT would use emergency funding to open the Taylor Highway for one week so that miners in the 40 Mile district would be able to get fuel in, otherwise they would not be able to operate this summer. Number 1340 REPRESENTATIVE MORGAN asked a question regarding the impact the late opening of the road would have on Holland-America tours. COMMISSIONER PERKINS replied that it was a tough decision, but he had to go with putting the money into keeping other roads open to get people to work and kids to school. REPRESENTATIVE MURKOWSKI asked a question regarding her concern that by allowing the roads to melt off that would shift the costs to a heavier need for repair under the annual maintenance program this summer. COMMISSIONER PERKINS responded that it would not be a big problem and DOT would fix it as they go. REPRESENTATIVE MORGAN asked how much the department has saved in light of the fact that this winter has seen less than normal snowfall. COMMISSIONER PERKINS responded that the DOT Northern Region covers a vast area and that any savings realized by light snowfall amounts had been taken into account when the decision was made. REPRESENTATIVE MORGAN expressed his frustration that the Bush areas of the state seem to be the first to be hurt when cuts are made. COMMISSIONER PERKINS responded that many of the areas affected by the DOT decision are not considered the Bush, in his view, including the three small communities at the ends of the roads in question Teller, Eagle, and McCarthy. REPRESENTATIVE MORGAN asked if DOT planned to keep the Taylor Highway open after the one-week opening in March. COMMISSIONER PERKINS said no, they would have one seasonal maintenance station open for the week, but could not afford the expense of keeping it open until spring. REPRESENTATIVE MORGAN said that travelers who have already booked reservations for travel in May would be unfairly inconvenienced. NUMBER 2030 CO-CHAIRMAN HALCRO asked Commissioner Perkins for a brief budget overview, noting the general fund appropriation for DOT Northern Region for FY 99 was increased by $900,000 over FY 98. COMMISSIONER PERKINS responded by discussing how many temporary employees would not be hired due to the cut, although he did not know if they would be 3-month or 6-month temps. NANCY SLAGLE, Administrative Services Director for DOT provided general staffing numbers for the committee. CO-CHAIRMAN HALCRO asked about the idea of contracting work to private companies. COMMISSIONER PERKINS explained that in most places where this has been tried it has not succeeded because the costs are prohibitive, due to the fact that snow plowing takes place overnight. Cost differential and overtime is very costly. He noted that the state of Wyoming posts signs that there is no highway maintenance between 10:00 p.m. and 6:00 a.m. He also noted that winter maintenance is not just snow plowing, but sanding and other ice fighting efforts. Number 2700 CO-CHAIRMAN HALCRO asked what is the "Navigator" publication. COMMISSIONER PERKINS explained that it is a guide published by DOT to tell highway travelers where and when certain roads will be under construction. It is paid for by federal highway funds. REPRESENTATIVE JOULE noted that the House Finance Committee had put $235,000 back in the supplemental budget to open the roads. He asked what would not get done for that amount. COMMISSIONER PERKINS responded that the department would not open the Denali or Copper River highways. Number 2850 REPRESENTATIVE DYSON introduced members of the Yukon government who wished to testify. DAVID SLOAN, Member of the Yukon Legislative Assembly (MLA), read a statement from MLA David Keenan, Yukon Minister of Tourism. He said not having the Taylor Highway open to connect to the Top of the World Highway in Yukon would have a devastating effect on tourism businesses that are trying to expand their season onto the shoulder and off-season parts of the year. TAPE 99-12, SIDE B Number 2920 PETER JENKINS, MLA from Klondike, testified that not opening the Taylor Highway would cut 15-20 days from the placer miners season. Not being able to haul fuel in from North Pole would mean the miners would have to pay another 30 cents per gallon. REPRESENTATIVE DYSON briefly discussed the on-going efforts in Whitehorse among the members of the Alaska-Yukon Legislative Exchange, the reason he and Representative Harris were in Whitehorse. REPRESENTATIVE JOULE asked a question regarding tourism dollars connected with the Taylor Highway. REPRESENTATIVE HARRIS asked a question regarding the money in the supplemental budget adopted by the House Finance Committee. Number 2640 LISA VONBARGEN, Valdez Convention and Visitors Bureau, echoed concerns being expressed about tours being sold worldwide for late May travel. PETER JENKINS, MLA, discussed the number of visitors crossing the border, saying the road closure would cost between $55,000 and $100,000. He said there are typically 1000 visitors between Alaska and Yukon during the last half of May. DANA ULVI, Eagle resident, said he is a 6-year DOT maintenance crew worker who works seasonally on the Taylor Highway. The decision is not a safe one in his view. PATRICIA SANDERS, Eagle resident, stated that loss of life on the Taylor, such as happened in a bus wreck in 1988 is not "minimal impact." JEANNE TETANGELO, Eagle resident, read a statement discussing the impact on rural communities. Number 2030 CO-CHAIRMAN HALCRO, in response to a testifier, stated that it was the DOT, not the Legislature, that had made the budget cut and decision not to open the roads. BARRY WESTPHAL, Eagle resident, stated that many in his community had made extensive plans around the opening of the road and that they would not be able to obtain the materials necessary to live their lives if the road does not open on time. REPRESENTATIVE MORGAN echoed Mr. Westphal's complaint, saying that it is customary for him and his family to buy some commodities only once or twice a year. JEAN WOODALL, Eagle resident, said that not just the miners would be effected by the road closure, that it would be the end of her small business. She then read a statement from Joanne Beck, 2nd Chief of Eagle Village, regarding the impact on the building season and jobs in her area. Number 1350 REPRESENTATIVE JOULE asked if Eagle residents were aware that the money for the Taylor Highway had been put back into the budget. In response to Co-Chairman Halcro's earlier comment, Representative Joule stated that the budget cut came about because the Majority in the Legislature had insisted that Governor Knowles could not get supplemental funding he needed until he showed them some cuts. BRETT CARLSON, Fairbanks, spoke as Chair of the Alaska Visitors Association Transportation Committee. He summed up the five issues the committee had identified that will be impacted by DOT's decision: 1) short season that is trying to be extended into shoulder seasons; 2) strong marketing relationship between Alaska and Yukon; 3) pre-booked reservations cannot be changed; 4) major investment by tour company in the $4 million ferry from Dawson City; 5) Is Alaska really open for business? KEN BECHTEL, Fairbanks, spoke for Holland-America/WestTours, saying 220 passengers per day could be effected. KATHY HELFRICK, AVA Fairbanks Chapter President, said the decision would have a real impact on Fairbanks businesses. CHARLES REX, Fairbanks, spoke in opposition to the DOT decision. FRANK ROSE, Fairbanks, chair of Fairbanks Convention and Visitors Bureau, expressed concern over negative press, saying we don't want tourists to delay their visits because of this issue. TAPE 99-13, SIDE A Number 0135 ED ZEINE, Mayor of Cordova, discussed the impact of not plowing the Copper River Highway. It could be disastrous for the Copper River fishery all the way to the Chitna dipnetters if ADF&G is not able to install its fish counter at the end of the highway. DAN SHARP, Cordova, said he is the area biologist. He reiterated that if the sonar is not installed in the Copper River at the Million Dollar Bridge by mid-May it could result in a loss of fishing time for all the area fisheries. JOHN HANDELAND, Mayor of Nome, spoke against the DOT decision, saying that saving money by not plowing will simply defer maintenance problems to next year. JERRY JERNIGAN, Tok, spoke against the DOT decision, saying it would have a negative impact on tourism throughout the industry. GARY KRANNENBERG, Tok, spoke against the DOT decision, citing border crossing figures from Poker Creek Border Station. He also discussed the problem of getting maintenance done at the school in Eagle if the road is not opened on time. JERRY MCCUNE, Juneau, spokesman for Cordova District Fisheries United, spoke against the DOT decision, saying the economic engines in rural Alaska don't start up until spring and would be hurt. He also noted the impact of not getting the sonar fish counter in the Copper River in time. ALAN LEMASTER, Gakona, spoke against the DOT decision, noting that miners in Kennicott have the same problem with fuel, maintenance and supplies as those in the 40 Mile district. They need to get across the McCarthy River while it is still frozen solid. RON HOLMSTROM, Paxson, spoke against the DOT decision on behalf of his brother, who owns Tangle Lakes Lodge on the Denali Highway. The late decision with little notice "snookers all the businesses." COMMISSIONER PERKINS made a short closing statement, thanking the committee for taking up the issue. CO-CHAIRMAN HALCRO adjourned the House Community & Regional Affairs Committee meeting at 10:04 a.m.