Sponsor Statement for SB 27

Ten years ago, Acres International, a Canadian firm contracted to study the Alaska Marine Highway System, reported what it termed "an extraordinary degree of mistrust between ship and shore that has its root in the overall relationship between management and staff".

Acres stated flatly that "ship systems and operations cannot function in isolation from the shore, both are interdependent. There must therefore be an effective dialogue between the two, outside contract negotiations. Planning forums for the ship to understand management's prerogatives, and the shore to respond to ongoing needs of each vessel are essential".

In the decade since the Acres Report, little has happened to end the isolation between ship and shore and many believe the situation described 10 years ago is worse today.

SB 27 has been called a "jobs grab", intended to help Ketchikan's ailing economy. Such charges are untrue. Senate Bill 27 is intended to end the isolation between the fleet and the administration. Locating some or all of the administrative offices on state-owned property adjacent to the Ketchikan terminal would end that isolation and put the administration within walking distance of the fleet.

It is apparent the administration of the Marine Highway feels threatened by even consideration of this move. At the end of November, in reaction to media reports that a bill would be introduced addressing this issue, the Marine Highway director prepared a request for proposals. That RFP called for an economic analysis of relocated the AMHS administrative office to Ketchikan.

The RFP had an ambitious timeline. It was released on December 2, 1996 with a proposal deadline three days later, on December 5. The RFP originally called for completion of this $25,000 study by January 15. That deadline has now been extended and a draft report is due by March 15.

The system director told the Finance Sub-Committee on DOT/PF that he has received an initial draft, which has been returned to the contractor for further review. AMHS has declined to provide the Senate Transportation Committee with a copy of that draft.

The relocation of some or all of the administrative offices to Ketchikan is not a new idea and was not prompted by concerns over the Ketchikan economy. It was prompted by a valid concern over the continued isolation of the Marine Highway administration from the very fleet they are hired to manage.