SB 118: "An Act relating to the issuance of certificates of participation to finance deferred maintenance and construction projects for certain public harbor facilities; giving notice of and approving the entry into, and the issuance of certificates of participation in, lease-financing agreements for those public harbor facility projects; repealing a provision relating to the financing of construction and renovation of facilities for certain ports and harbors; and providing for an effective date."
00 SENATE BILL NO. 118 01 "An Act relating to the issuance of certificates of participation to finance deferred 02 maintenance and construction projects for certain public harbor facilities; giving notice 03 of and approving the entry into, and the issuance of certificates of participation in, lease- 04 financing agreements for those public harbor facility projects; repealing a provision 05 relating to the financing of construction and renovation of facilities for certain ports and 06 harbors; and providing for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 09 to read: 10 FINDINGS; INTENT. (a) Except for the harbors and docks in Nome and Adak, the 11 facilities described in sec. 2 of this Act are currently owned by the state and are in need of 12 substantial investment in capital maintenance and upgrades. The City of Nome is in need of 13 additional money for a capital project at the Nome harbor and dock. The Adak harbor and
01 dock facilities are currently in federal ownership but will pass to local Alaska interests in the 02 fall of 2001. 03 (b) The legislature intends to provide for the required investment, and intends transfer 04 of ultimate ownership of and responsibility for the state-owned harbor facilities to local 05 municipalities. 06 (c) The legislature intends to provide public investment in the Adak harbor and dock 07 facilities under this Act if the ownership of the harbor and dock facilities is ultimately vested 08 in the City of Adak. 09 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 10 read: 11 HARBOR FACILITIES LEASES AUTHORIZED. (a) The Department of 12 Transportation and Public Facilities is authorized and directed to develop a plan for 13 improvement and financing of the state-owned harbor facilities listed in (b) of this section and 14 for the transfer of ownership and responsibility for the improved facilities, subject to the 15 limitations set out in this Act, to the municipalities listed in (b) of this section. The 16 Department of Transportation and Public Facilities is authorized to lease the harbor facilities 17 from the municipalities listed in (b) of this section, including the City of Nome, under the 18 authority of AS 35.10.110. 19 (b) The Department of Transportation and Public Facilities shall allocate the net 20 proceeds derived from the lease-financing agreements authorized in sec. 6 of this Act for 21 capital maintenance and upgrade projects, including the City of Nome's project and the Adak 22 project, to the following harbor facility projects, in the amount allocated for each facility: 23 FACILITY/PROJECT ALLOCATION 24 (1) Whittier - Whittier Small Boat Harbor $2,449,000 25 (2) Valdez - Valdez Small Boat Harbor 3,212,000 26 (3) Seldovia - Seldovia Small Boat Harbor 2,628,000 27 (4) Petersburg - North Harbor, Middle Harbor, South Harbor 3,729,000 28 (5) Juneau - Auke Bay Harbor, Aurora Harbor, Harris Harbor, 29 Douglas Harbor and Dock, North Douglas Launch 30 Ramp, Taku Harbor 7,119,000 31 (6) Ketchikan - Thomas Basin Harbor, Ryus Float, Bar Harbor
01 South, Bar Harbor North, Hole in the Wall Harbor, 02 Knudson Cove Harbor 7,876,000 03 (7) Sitka - Thomsen Harbor, Crescent Harbor, 04 Sealing Cove Harbor 4,469,000 05 (8) Cordova - Cordova Harbor 4,876,000 06 (9) Klawock - Klawock Harbor and Seaplane Float 896,000 07 (10) Yakutat - Yakutat Harbor 526,000 08 (11) Wrangell - Standard Harbor, Reliance Harbor, Inner Harbor 09 Fish and Game Dock, Shoemaker Harbor 3,492,000 10 (12) Nome - Nome Harbor and Dock 1,000,000 11 (13) Adak - Adak Boat Harbor 500,000 12 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 13 read: 14 DELEGATION OF AUTHORITY FOR LEASE-FINANCING AGREEMENTS. The 15 Department of Transportation and Public Facilities is delegated the Department of 16 Administration's authority under AS 36.30.085 to enter into lease-financing agreements for 17 the harbor facility projects described in sec. 2 of this Act. 18 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 19 read: 20 PROVISIONS REGARDING ESTABLISHMENT OF THE CITY OF ADAK AND 21 THE ADAK HARBOR AND DOCK FACILITIES. (a) Adak is a naval air station that has 22 closed. The Adak Reuse Corporation has developed, with financial assistance from the 23 federal government, a reuse plan for the redevelopment of the former naval air station and its 24 facilities to support fishing operations in the North Pacific Ocean and the Bering Sea. In the 25 fall of 2001, the Adak Reuse Corporation will receive title to the former naval air station from 26 the federal government. The Adak community is presently not incorporated as a municipality 27 under state law. The Local Boundary Commission has approved the community's application 28 to establish a second class city at Adak. The division of elections has scheduled for April 3, 29 2001, a local election in Adak to approve its incorporation as a second class city. 30 (b) The commissioner of transportation and public facilities is authorized to enter into 31 a lease with the Adak Reuse Corporation for the Adak harbor and dock facilities, under the
01 terms the commissioner determines appropriate, so long as title to the harbor and dock 02 facilities is vested in the City of Adak at the end of the lease term. 03 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 04 read: 05 LEASE-FINANCING PAYMENTS. (a) The lease payments owed under lease- 06 financing agreements executed under sec. 3 of this Act are subject to annual appropriation by 07 the legislature. 08 (b) The legislature intends that the marine motor fuel tax under collected under 09 AS 43.40.010 will provide enough revenue to the general fund to make all lease payments; 10 however, if that revenue source is insufficient, the payments may be made from any other 11 valid revenue source, subject to appropriation. 12 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 13 read: 14 NOTICE OF THE ENTRY INTO AND FINANCING OF LEASE-FINANCING 15 AGREEMENTS. (a) Subject to annual appropriation, the Department of Transportation and 16 Public Facilities is authorized to enter into lease-financing agreements for the harbor facility 17 projects described in sec. 2 of this Act. 18 (b) The state bond committee is authorized to provide for the issuance of certificates 19 of participation in one or more series in the aggregate principal amount of $43,680,000 for the 20 cost of the projects described in sec. 2 of this Act. The estimated total cost of construction, 21 acquisition, and equipping the projects is $43,680,000. The estimated annual amount of rental 22 obligations under the lease-financing agreements is $4,525,000. The estimated total lease 23 payments for the full term of the lease-financing agreements is $66,335,500. In this 24 subsection, "costs of construction" includes credit enhancement and underwriting expenses, 25 rating agency fees, bond counsel fees, financial advisor fees, printing fees, trustee fees, 26 capitalized interest, and interest earnings used for lease payments. 27 (c) Under terms approved by the Department of Transportation and Public Facilities, 28 the leasehold interests of the state in projects described in sec. 2 of this Act that are financed 29 under this section may terminate following the payment and retirement of the certificates of 30 participation or at another later date as considered reasonable by the Department of 31 Transportation and Public Facilities. The plan prepared by the Department of Transportation
01 and Public Facilities under sec. 2 of this Act may provide for the transfer of title to some or all 02 of the state-owned harbor facilities to the municipalities identified in sec. 2 of this Act, with a 03 leaseback to the department, as long as the title to the state-owned facilities transfers to 04 municipal ownership no later than the final payment and retirement of all certificates of 05 participation issued to finance the respective projects. 06 (d) The state bond committee may contract for credit enhancement, underwriting, 07 credit ratings, bond counsel, financial advisor, printing, and trustee services that the 08 committee considers necessary in financing the projects described in sec. 2 of this Act. 09 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 10 read: 11 NOTICE AND APPROVAL OF AGREEMENTS. Section 6 of this Act constitutes 12 the notice and approval of the lease-financing agreements described in sec. 2 this Act that is 13 required by AS 36.30.085. 14 * Sec. 8. AS 29.60.700 is repealed 15 * Sec. 9. This Act takes effect July 1, 2001.