SENATE TRANSPORTATION COMMITTEE March 2, 2000 1:39 p.m. MEMBERS PRESENT Senator Jerry Ward, Chairman Senator Drue Pearce, Vice Chair Senator Mike Miller Senator Rick Halford Senator Georgianna Lincoln MEMBERS ABSENT None COMMITTEE CALENDAR PORT OF BELLINGHAM PRESENTATION SENATE BILL NO. 235 "An Act authorizing the exchange of land between the Alaska Railroad Corporation and Eklutna, Inc., between the Alaska Railroad Corporation and the United States Department of the Army and the United States Department of the Air Force, between the Alaska Railroad Corporation and Chugach Alaska Corporation, and between the Alaska Railroad Corporation and the Municipality of Anchorage; and providing for an effective date." MOVED CSSB 235(TRA) OUT OF COMMITTEE SENATE JOINT RESOLUTION NO. 38 Expressing support for a cooperative United States-Canada feasibility study on extending the North American rail system through British Columbia and the Yukon Territory to Alaska. MOVED SJR 38 OUT OF COMMITTEE EXECUTIVE ORDER 101 - RELOCATE HIGHWAY SAFETY PLANNING PREVIOUS SENATE ACTION SB 235 - No previous Senate action. SJR 38 - No previous Senate action. WITNESS REGISTER Jim Darling Executive Director Port of Bellingham 355 Harris Avenue Bellingham, Washington 98227 POSITION STATEMENT: Member of Port of Bellingham Presentation Ginny Benton President of the Board of Commissioners Port of Bellingham 355 Harris Avenue Bellingham, Washington 98227 POSITION STATEMENT: Member of Port of Bellingham Presentation Scott Walker, Commissioner Port of Bellingham 355 Harris Avenue Bellingham, Washington 98227. POSITION STATEMENT: Member of Port of Bellingham Presentation John Carter Director of Finance and Marine Terminals 355 Harris Avenue Bellingham, Washington 98227 POSITION STATEMENT: Member of Port of Bellingham Presentation Mike Stoner Port Environmental Manager 355 Harris Avenue Bellingham, Washington 98227 POSITION STATEMENT: Member of Port of Bellingham Presentation Mr. Tom Brigham, Director Statewide Planning Services Department of Transportation and Public Facilities 3132 Channel Drive Juneau, AK 99801-7898 POSITION STATEMENT: Presented and supports Executive Order 101 Ms. Kara Moriarty Aide to Senator Wilken Alaska State Capitol Juneau, Alaska 99801-1182 POSITION STATEMENT: Presented SJR 38 Ms. Pam LaBolle, Executive Director Alaska State Chamber of Commerce 217 2nd St. Juneau, Alaska 99801 POSITION STATEMENT: Supports SJR 238 Senator Loren Leman Alaska State Capitol Juneau, Alaska 99801-1182 POSITION STATEMENT: Sponsor of SB 235 Mr. Mike Pauley Aide to Senator Leman Alaska State Capitol Juneau, Alaska 99801-1182 POSITION STATEMENT: Described the changes made in CSSB 235(TRA) Bill Stoltz Aide to Senator Halford Alaska State Capitol Juneau, Alaska 99801-1182 POSITION STATEMENT: Presented a proposed amendment to SB 235 Ms. Wendy Lindskoog Alaska Railroad Corporation PO Box 107500 Anchorage, Alaska 99510-7500 POSITION STATEMENT: Supports Senator Halford's amendment to SB 235 ACTION NARRATIVE TAPE 00-02, SIDE A CHAIRMAN WARD called the Senate Transportation Committee meeting to order at 1:39 p.m. Present were Senators Halford, Miller, and Ward. Chairman Ward announced that the first item on the agenda was a presentation by members of the Port of Bellingham. MR. JIM DARLING, Executive Director, Port of Bellingham, introduced Ginny Benton, elected Port Commissioner and President of the Board, Scott Walker, Port Commissioner and immediate past president, Mike Stoner, Port Environmental Manager, and John Carter, Director of Marine Terminals and CFO. Mr. Darling noted this is his tenth trip to Juneau to update Alaska Marine Highway System officials and the Legislature. The Port of Bellingham is about ready to begin the second decade of its contract with the State of Alaska. That contract is more than just a vendor relationship - the Port of Bellingham views the arrangement as a partnership. The community of Bellingham has invested in its new transportation terminal, in capital dollars, about half of the cost of one of the new proposed fast vehicle ferries. Most of those investment dollars have come from taxes. Bellingham considers itself Alaska's "front porch." About one percent of the students at Western Washington University (WWU) are from Alaska. The Port of Bellingham and WWU have a program to track the future occupations of those students and will report that information to the Legislature. WWU's sense is that most students are returning to Alaska after they have completed their degrees. The Port of Bellingham also has a connection with Peace Health, which is a medical organization based in the Seattle area. Peace Health operates St. Joe's hospital in Bellingham and it has a relationship with the hospital in Ketchikan. Number 269 CHAIRMAN WARD announced the arrival of Senator Pearce. MR. JOHN CARTER discussed terminal enhancements. A number of years ago, Amtrak service was made available 100 yards from the terminal. That service has been so successful, the State of Washington and the federal government, who funded that effort, have added a second train. The ultimate goal is to have four trains running to and from Seattle every day. Interstate bus service is provided in that same terminal, as well as Bellingham's commercial airfield, which offers 17 flights per day to the Seattle area. At the ferry terminal itself, other vessels are providing services to the San Juan Islands and providing adventure trips, such as kayaking. The Port of Bellingham has just begun some building renovations on the terminal, expected to cost about $1 million over the next 12 months. Those renovations will accommodate the facility's increasing popularity as a place to hold wedding receptions and other community events. Last, the Port of Bellingham has started an initiative to increase fiber optics and conductivity for telecommunications. MR. DARLING pointed out that the ferry terminal in Bellingham is an icon for the community that attracts many visitors. The Port is very active: it operates the airport, it has increased charter service to the sunbelt from Bellingham, and it is discussing attracting charter flights to Alaska. The Port has also begun a waterfront development project named "Bellwater on the Bay" across the bay from the ferry terminal. It is a new destination hotel and office with high technology and fiber optics connections for job improvements in Whatcom County. MR. DARLING commented that the Port is faced with two challenges. First, salmon has been listed as an endangered species, which will impact waterfront development projects in Whatcom County. Second, I-695 passed. That initiative reduced the car registration fee to $30. That will not affect the Port's funding because it gets no funding from the State of Washington. However, as a municipality, Bellingham may be affected because that initiative requires that any new fees, charges or taxes will have to be voted on by the public. The municipality is now sorting through the legal translation of that provision to determine whether it will apply to landing fees, moorage rates, rents, etc. MR. DARLING informed committee members that the Port of Bellingham is managing one of the keynote projects for the year 2000 through the Puget Sound Ports Group, a working group of the seven deep- water ports in Washington. MR. SCOTT WALKER, a member of the Puget Sound Ports Group, recounted a story about the Port of Tacoma. The Port of Tacoma wanted to recruit new business with Hyundai, a car manufacturing company, but was unable to make any workable arrangement because of tax situations surrounding the port. The Port of Tacoma had historical tribal lands in the area. It sold part of the Port's land to a local tribe who, because of its tribal status, has certain powers that enabled it to negotiate and come to an agreement with Hyundai. He noted that ports and tribes are alike in many ways. Tribes have special federal powers; ports were given special powers through state enabling legislation passed in 1920. Both have land. The Puget Sound Ports Group is hosting the first port-tribal cooperation seminar next fall to learn about each other and ways they can cooperate in economic development. CHAIRMAN WARD noted that Senator Lincoln was present. MR. DARLING distributed the Port of Bellingham's annual newsletter. He stated that things are going well between the Port and the Alaska Marine Highway System. Rider numbers are up and the intermodal nature of the terminal makes it more valuable to the traveling public. He thanked committee members for their time. Number 960 EO 101 - RELOCATE HIGHWAY SAFETY PLANNING AGENCY MR. TOM BRIGHAM, Director of the Division of Statewide Planning, Department of Transportation and Public Facilities (DOTPF), stated Executive Order 101 addresses three main reasons why the Highway Safety Planning Agency is a good fit with DOTPF. First, under ISTEA and T 21, sanctions are provided in the law that relate to compliance with safety programs. Those sanctions affect the federal funding received by DOTPF for highway programs. Second, DOTPF already collects a fair amount of accident and safety data required by the Federal Highway Administration. DOTPF believes it makes sense to combine its data collection and reporting activities with those of the Highway Safety Planning Agency. Third, DOTPF also sponsors safety initiatives. DOTPF would like to coordinate all of the safety related programs within DOTPF. The relocation will not create any changes in terms of personnel costs. SENATOR LINCOLN asked if personnel will transfer over to DOTPF but that no costs will be involved. MR. BRIGHAM said that is correct. SENATOR LINCOLN asked how many people will transfer. MR. BRIGHAM replied three people. There were no further questions about EO 101, therefore the committee took up SJR 38. SJR 38-ALASKA CANADA RAIL FEASIBILITY STUDY MS. KARA MORIARTY, legislative aide to Senator Wilken, sponsor of SJR 38, explained that the measure expresses support for a cooperative United States-Canada feasibility study on extending the North American rail system through British Columbia and the Yukon to Alaska. SJR 38 came about as a result of a conference held in Vancouver in January, sponsored by Representative Jeanette James who has sponsored companion legislation in the House, HJR 51. At the conference, government officials from both the United States and Canada, business leaders, mining and transportation specialists and other consultants met to discuss the concept of extending the North American rail system through Canada to Alaska. They discussed the benefits of a safe, reliable, cost-efficient and environmentally friendly railroad link and formulated support for the completion of a feasibility study to look over the costs and effects of this project. The feasibility study is the first step in beginning the process of connecting the North American rail system to Alaska. Senator Frank Murkowski supports a bilateral commission made up of representatives from both the United States and Canada to provide an in-depth study that would talk about the best route, engineering and construction costs, and other potential freight and passenger loads. Senator Murkowski has drafted legislation to authorize the bilateral commission, which should be introduced in Congress within one to two weeks. If it passes, it will then go to the Canadian government for approval. The Fairbanks Industrial Development Corporation supports SJR 38, as does the Alaska Railroad Corporation (ARRC). MS. PAM LABOLLE, President of the Alaska State Chamber of Commerce, stated support for SJR 38. The State Chamber helped host the conference in Vancouver. Participants were very enthusiastic about the potential economic development that may occur in Alaska, British Columbia, and the Yukon should this project come to fruition. The State Chamber is very committed to any project that will further economic development in Alaska, and asks the Legislature to support this resolution. There being no further discussion or questions, SENATOR MILLER moved SJR 38 out of committee with individual recommendations. There being no objection, the motion carried. SB 235-APPROVING TRANSFER OF RAILROAD LAND SENATOR LOREN LEMAN, sponsor of SB 235, informed committee members that SB 235 authorizes the ARRC to enter into several land exchanges needed for a railroad track upgrade and realignment project between the Port of Anchorage and Wasilla. The first phase of the project will upgrade tracks as far as the Eagle River bridge and includes lands held by the military on Elmendorf Air Force Base and Ft. Richardson, the Municipality of Anchorage, and Eklutna, Inc. One other parcel to be exchanged, north of Seward, is held by the State of Alaska. The benefits of the track upgrade project, which ARRC estimates to cost $45 to $60 million, will be decreased travel time between Anchorage and Wasilla which could result in commuter travel between the two cities, and a safer track. Some of the existing track has very sharp curves which the train must take at a slower speed. The track upgrade is also expected to reduce maintenance costs and could eventually result in reduced traffic on the Glenn Highway. All parties are working together to come to an agreement on the land transfer and he has encouraged them to work out any remaining minor differences so that the project can proceed. SENATOR LEMAN noted that the Alaska Visitors' Association, the Chambers of Commerce of Palmer and Wasilla, the City of Wasilla, the Anchorage Economic Development Corporation, the Matanuska- Susitna Commission and Visitors Bureau, and the Anchorage Convention and Visitors Bureau support the bill. He proposed a committee substitute that contains a few technical changes in the land descriptions. SENATOR PEARCE moved to adopt CSSB 235 (TRA) in lieu of the original bill. SENATOR LINCOLN objected and asked for a description of the changes made in the committee substitute. MR. MIKE PAULEY, aide to Senator Leman, explained that the first change is on page 2, lines 1-5. New language was inserted after the word "Eklutna, Inc." to more accurately describe the specific lands that will be exchanged between ARRC and Eklutna. The initial legislation was not specific and the language as written could have authorized a transfer of any land owned by Eklutna, Inc. to ARRC. The second change was made on page 2, line 18. The amount of acreage was increased from 225 acres to 227 acres as the result of a reassessment which indicated that 227 acres was the more accurate figure. CHAIRMAN WARD noted that representatives from ARRC and Eklutna, Inc. were available via teleconference for questions. CHAIRMAN WARD asked Bill Stoltz to present the amendment proposed by Senator Halford. MR. BILL STOLTZ, legislative aide to Senator Halford, noted Senator Halford's amendment deals with three property owners in the Birchwood Loop area whose concerns were presented through the Birchwood Community Council. Two of the property owners are considered pioneer residents in Birchwood who moved there about the time the road was built. The third property owner is a long time resident. According to ARRC personnel, if land is not transferred to these individuals, it will revert to BLM. CHAIRMAN WARD asked if Senator Halford's amendment is supported by ARRC and acknowledged that ARRC staff were nodding in agreement. SENATOR LINCOLN asked if anyone else had signed up to testify to the amendment. CHAIRMAN WARD said no one has signed up. WENDY LINDSKOOG, ARRC, verified that ARRC supports Senator Halford's amendment. SENATOR PEARCE moved to adopt Senator Halford's amendment (labeled I.2) which reads as follows. "APPROVAL OF THE TRANSFER OF CERTAIN REAL PROPERTY WITHIN THE MUNICIPALITY OF ANCHORAGE. (a) Contingent upon the approval of the conveyance of affected municipal park land by the voters of the Municipality of Anchorage, the Alaska Railroad Corporation is authorized to convey the corporation's entire interest in (1) approximately 4.5 acres of railroad utility corridor between railroad mileposts 133 and 134, within Township 15 North, Range 2 West, Sections 13 and 24, Seward Meridian, to the Municipality of Anchorage in exchange for the conveyance of approximately 13.6 acres of land in the same vicinity to the corporation by the Municipality of Anchorage; (2) approximately 5.1 acres of railroad utility corridor between railroad mileposts 133 and 134, within Township 15 North, Range 2 West, Sections 13 and 24, Seward Meridian, to Richard and Carol Drebert, Harry and Simone Thomson, and Richard Moore or their personal representatives, successors, or assigns; each to receive that portion of the railroad utility corridor immediately adjacent to their respective parcels of land." There being no objection, Senator Halford's amendment was adopted. SENATOR MILLER moved CSSB 235(TRA) from committee with individual recommendations. SENATOR LINCOLN asked if anyone else signed up to testify. CHAIRMAN WARD said there is not. There being no objection, the motion to moved CSSB 235(TRA) from committee carried. There being no further business to come before the committee, CHAIRMAN WARD adjourned the meeting.