SENATE TRANSPORTATION March 2, 1995 1:36 p.m. MEMBERS PRESENT Senator Steve Rieger, Chairman Senator Robin Taylor, Vice Chair Senator Lyda Green Senator Al Adams Senator Georgianna Lincoln MEMBERS ABSENT All members present. COMMITTEE CALENDAR Presentation by the Port of Bellingham. SENATE BILL NO. 86 "An Act relating to issuance of special request commemorative gold rush motor vehicle license plates." PREVIOUS SENATE ACTION SB 86 - No previous action to record. WITNESS REGISTER Jim Darling, Executive Director Port of Bellingham Bellingham, WA POSITION STATEMENT: Reviewed the history of the ferry terminal and addressed the community support of the Gateway to Alaska. Bob Hilport, Director Marine Terminals Port of Bellingham 625 Cornwall Avenue Bellingham, WA 98276 POSITION STATEMENT: Discussed the multi-modal transportation facility. Mike Brennan, President Port of Bellingham Bellingham Chamber of Commerce 1801 Roeder Avenue, #140 Bellingham, WA 98225 POSITION STATEMENT: Addressed the Fairhave Passport pamphlet. Dave Bell, Executive Director Fourth Corner Economic Development Group 1203 Cornwall Street Bellingham, WA 98225 POSITION STATEMENT: Informed the committee of the pivotal location of Whatcom County. Cam Toohey Staff to Senator Sharp State Capitol Juneau, Alaska 99801-1182 POSITION STATEMENT: Discussed SB 86. Juanita Hensley Department of Public Safety Division of Motor Vehicles P.O. Box 20020 Juneau, Alaska POSITION STATEMENT: Suggested deleting language in order to decrease the fiscal note of SB 86. Senator Sharp State Capitol Juneau, Alaska 99801-1182 POSITION STATEMENT: Prime sponsor to SB 86. ACTION NARRATIVE TAPE 95-5, SIDE A Number 004 CHAIRMAN RIEGER called the Senate Transportation meeting to order at 1:36 p.m. He invited the Port of Bellingham presenters to come forward for their presentation. JIM DARLING, Executive Director for the Port of Bellingham, said that the formal relationship between the Port of Bellingham and Alaska began in 1989 when the southern terminus of the ferry system moved from Seattle to Bellingham. The community, at that time, made an approximately $12 million investment in the port. Since that time the ridership of the ferry has remained the same or increased a bit. He noted that at present, the ferry system is handling approximately 42,000 passengers a year which is a slight increase from the numbers when the terminal was in Seattle. There is also a multi-modal marine link which transports passengers to the Vancouver and San Juan Islands, under 14,000 passengers per year. Mr. Darling explained that although they have a 20 year contract with Alaska for the terminal use and a two year ticket contract, the port considers themselves to be in a partnership agreement with Alaska. The ferry terminal extends the other transportation businesses in the area which includes aviation. He stated that they were exploring more direct air transport from Bellingham to Southeast Alaska. He pointed out that the port is one of the largest real estate holders in Whatcom county. Another strong tie to Alaska are the marinas, in particular, those for commercial fishing vessels in the area. Mr. Darling said that they would present new developments at the Fairhaven Terminal and the new $4 million multi-modal facility. Number 081 BOB HILPORT, Director of Marine Terminals for the Port of Bellingham, handed out packets to the committee members. The multi-modal facility will be completed in July and will cost approximately $4 million of which $1 million will come from the Washington Department of Transportation and federal highway funds. He informed the committee that Greyhound, Trailways, Amtrack, a Bellingham airport connection, and a shopper tram to downtown will all be in the multi-modal facility. He pointed out that they have co-oped advertising with the Alaska Marine Highway System. He reviewed the information in the packet he gave to committee members. Mr. Hilport viewed the multi-modal facility as a gateway to Alaska and British Columbia. They will be promoting pocket cruises into the San Juan Islands, the Puget Sound, and perhaps, to Vancouver Island. He noted that the port is a member of the Southeast Alaska Chamber Committee and the Board of the Alaska State Chamber of Commerce. He offered to answer any questions. Number 152 JIM DARLING restated the importance of the reinstatement of passenger rail service in the multi-modal facility. He noted that from their perspective this would be more than merely a Southeast Alaska issue. Amtrak is interested in promoting themselves in the Northwest Corridor. He said that Amtrak is interested in joint advertising and promotion with Alaska through the Port of Bellingham. He mentioned that the multi-modal facility will be housed in a turn of the century building, formerly the Pacific America Fisheries corporate headquarters. The history of the fishing industry of Alaska will be preserved through displays within the facility. MIKE BRENNAN, Director and President of the Bellingham Chamber of Commerce, discussed the cooperation between the port districts and the public and private sectors; an example of this cooperation is the Fairhaven Passport. This booklet is a directory of services for the area which benefits Bellingham and ferry travelers. A Whatcom County Passport is the next project for the chamber. He noted that the Fairhaven Passport had won an award for Best New Product. Number 215 DAVE BELL, Economic Development Council for Bellingham and Washington, passed out a directory of all the manufacturers in Whatcom County. Whatcom County has a population of 147,000 and continues to grow. He pointed out that the most important aspect of Whatcom County is its pivotal location which has access to approximately 5 million people; Whatcom County is midway between Vancouver, B.C. and Seattle. He explained that historically, Whatcom County's economy resembled that of Alaska's; logging and fishing industries were important to both economies. Whatcom County has experienced much growth in diversified manufacturing and services. The county also has a lot of travelers coming through, approximately 25-30 million Canadian border crossings per year. He noted that Whatcom County has a lot of educational resources. MIKE BRENNAN introduced Dan Robbins who is a member of the Chamber Board of Directors for Bellingham. Mr. Robbins is also the only announced candidate for mayor in Bellingham. SENATOR LINCOLN asked if the port could advertise more about Alaskan services. MIKE BRENNAN reiterated that joint marketing had been done in the ferry schedule, however, more could be done. Mr. Brennan commented that the port did have a contract last year with their chamber and their visitor and convention bureau in which a series of workshops were held in Bellingham. The workshops attempted to help individuals make connections in Alaska from a commercial and business respect. SENATOR LINCOLN inquired as to how the seminars went. MIKE BRENNAN stated that 40 people attended the first series and 50-60 people attended in later sessions. People attending were interested in tourism travel while others were local retailers who were interested in Alaskan products. Number 305 BOB HILPORT noted that the port has been attempting to dispel the notion that Alaskans are foreigners. The new multi-modal facility which is dedicated to transportation would help end that notion. He suggested that an Alaska state trade office in the multi-modal facility would be beneficial to bridging the gap. In response to Senator Lincoln, Mr. Hilport pointed out the new multi-modal facility and pertinent information within her packet. CHAIRMAN RIEGER inquired as to who publishes the Fairhaven Passport pamphlet and who charges and makes a profit from the pamphlet. MIKE BRENNAN said that the pamphlet is a private publication designed with small advertisers in mind; it just broke even. CHAIRMAN RIEGER asked what the ferries traveling to Vancouver Island would look like. BOB HILPORT explained that they were foot ferries which would offer day service to the islands. JIM DARLING noted that the port had discussed with the state of Washington a ferry connection with the Alaska ferry which would go out to the islands. JIM DARLING reiterated that the community has made a substantial investment in the ferry system, and the Gateway to Alaska through their tax dollars. The community will be investing $1 million in the multi-modal facility, the state of Washington will be investing over $2 million. He specified that the multi-modal facility would not receive state and federal funding if the ferry system was not located in Bellingham. SENATOR TAYLOR informed the committee that the ferry system operated out of Seattle in the past; the situation was not comfortable. Seattle did not attempt to enhance Alaska's operation there nor did they encourage people to visit Alaska. He expressed appreciation to Bellingham for all that they had done. The difficulty will be in continuing the operations of the Alaskan ferry that currently arrives in Bellingham. Number 378 SENATOR TAYLOR pointed out that the ferry terminal in Bellingham is used for various activities such as weddings; it is a beautiful facility. SENATOR LINCOLN asked if there was any more Alaska could do in this partnership in order to have a better relationship while achieving productivity for Alaska. JIM DARLING reiterated the suggestion of an Alaskan trade office in the new facility. There should be aggressiveness with the promotion of trade and commerce. Mr. Darling commented that they were impressed with the new commissioner and director of the marine highway system with regard to more cooperative approaches to the promotion of trade and commerce. BOB HILPORT stated that the port has a large real estate division. He discussed the overseas investors who have approached the port; if these potential investors do not know about Washington then they definitely know nothing about Alaska. This could open up great potential for Alaskan business. JIM DARLING noted that the personal presence would be important. CHAIRMAN RIEGER thanked the Port of Bellingham for their presentation. SHES - 3/2/95 SB 86 COMMEMORATIVE GOLD RUSH LICENSE PLATES  Number 420 CHAIRMAN RIEGER introduced SB 86 as the next order of business before the committee. He recognized that the Department of Public Safety was present for questions. CAM TOOHEY, staff to Senator Sharp, stated that SB 86 is similar to the legislation of last year; SB 86 does have a minor change. SB 86 would allow individuals to celebrate the Gold Rush with the purchase of a commemorative license plate. The license plate would be designed by the commissioner and the Office of Public Safety in accord with the Gold Rush Task Force. He acknowledged that the representative from the Department of Public Safety may want to address an amendment that would decrease the fiscal note. SENATOR ADAMS inquired as to what was added to this legislation when it was HB 407 which was vetoed by former Governor Hickel. CAM TOOHEY explained that HB 407 removed the need for two license plates. SENATOR ADAMS noted the $17.4 fiscal note, when stating that he had the understanding that the sale of special license plates would absorb the cost of producing them. Perhaps, the cost of these special license plates could be raised in order to cover the cost of producing them or the sale of special plates could be eliminated. JUANITA HENSLEY, the Division of Motor Vehicles, stated that in the past, the costs to produce special plates have not been recovered in their sale. She did note that the Veteran's license plate has recovered the cost to produce it. She suggested deleting the language on line 9, "and color" in order to decrease the fiscal impact of SB 86. Ms. Hensley explained that deleting this language would allow the use of their existing stock of reflective material rather than purchasing a roll for $12,500. Reflective material must be purchased by the roll and an order of 1,000 plates must be present before the order can be placed. Deleting this language would reduce the costs; the cost of the metal and the design of the plate would be the only costs. SENATOR TAYLOR asked if the Ms. Hensley had reviewed the possibility of plating license plates, a chrome or gold-plated license plate. He suggested that she investigate that option. Number 487 SENATOR ADAMS asked if the Alaska Gold Rush Centennial Task Force was in place. CAM TOOHEY replied yes; the task force which is a volunteer organization has been in existence since 1992. SENATOR LINCOLN inquired as to the cost of the Al-Can Centennial license plate because it seems parallel to this plate. JUANITA HENSLEY explained that the commemoration of the 50th year of the Alaska Highway plate was developed by private industry. Through legislation, the license plate was allowed placement on a vehicle for one year only. SENATOR LINCOLN inquired as to the difference in the process of the two plates. SENATOR SHARP felt that the Commemorative Gold Rush plates could be permanent plates; this may be one of the few manners in which to receive a new plate. JUANITA HENSLEY stated that depending on the design and the color of the license plate, the plate would replace an existing plate. She explained that this license plate would cost $30 plus the normal registration fee; this is similar to a vanity and a personalized plate. SENATOR LINCOLN asked what the fiscal note for SB 86 would be if the existing stock of reflective material was used. JUANITA HENSLEY said that the fiscal note would decrease by approximately $5,800. SENATOR LINCOLN questioned why the commissioner would determine the design of this plate; why not the Alaska Gold Rush Centennial Task Force. CAM TOOHEY informed the committee that the Division of Motor Vehicles wanted the commissioner to have the authority in order to eliminate the possibility of an expensive design or a design that would be too difficult to see by law enforcement. SENATOR ADAMS asked if there would be uniformity in the cost of this plate in relation to other specialty plates. JUANITA HENSLEY specified that a vanity plate costs $30 and a custom plate costs $50, both requiring the normal registration fees as well. She offered to share the list of all the specialty plates and their accounts with the committee. SENATOR TAYLOR agreed that the commissioner should oversee the designing process. Number 546 JUANITA HENSLEY emphasized that the reflectablility and the readability of the license plate would be important for law enforcement as well as the public. The University license plate is hard to read and its design did not have oversight by the commissioner. SENATOR TAYLOR agreed and recounted his experience with this University plate. CHAIRMAN RIEGER asked if the language needed to be deleted if the commissioner could dictate that the color would come from the existing stock of reflective materials. JUANITA HENSLEY felt that deleting the language would eliminate the possibility of using other colors. SENATOR ADAMS inquired as to Senator Sharp's opinion with regard to the deletion of the language. SENATOR SHARP stated that it would be acceptable; this suggestion would save money. SENATOR TAYLOR moved to delete the language "and color" on line 9 of SB 86. Without objection, the amendment was adopted. SENATOR LINCOLN asked if the fiscal note would reflect the amendment. CHAIRMAN RIEGER assured the committee that the deletion would be pointed out to the Finance Committee. JUANITA HENSLEY stated that the fiscal note would be re-worked. She indicated the need to have the estimated number of purchasers of this license plate, then the revenue that the department would collect could be presented as well. SENATOR ADAMS moved that CS SB 86(TRA), with its new fiscal note, be moved out of committee with individual recommendations. Without objections, it was so ordered. There being no further business before the committee, the meeting adjourned at 2:17 p.m.