Legislature(2009 - 2010)HOUSE FINANCE 519
02/04/2009 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB81 || HB83 | |
| Commerce, Community and Economic Development | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 81 | TELECONFERENCED | |
| += | HB 83 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
HOUSE BILL NO. 81
"An Act making appropriations for the operating and
loan program expenses of state government, for certain
programs, and to capitalize funds; making supplemental
appropriations; and making appropriations under art.
IX, sec. 17(c), Constitution of the State of Alaska;
and providing for an effective date."
HOUSE BILL NO. 83
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; and providing for
an effective date."
1:38:42 PM
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
LEO VON SCHEBEN, COMMISSIONER, DEPARTMENT OF TRANSPORTATION
AND PUBLIC FACILITIES (DOT/PF), introduced department staff
present at the meeting and discussed the departmental
structure of DOT (Copy on File).
1:40:18 PM
Commissioner von Scheben listed accomplishments within the
department during 2008. He spoke of a strategic plan
developed by the department and highlighted five business
goals within the plan that the department hopes to achieve:
· Improve the safety of the transportation system
· Develop a transportation system that supports and
promotes economic development
· Improve individual and collective performance
· Conduct business in an open and honest manner
· Promote career growth and safety for all staff
Commissioner von Scheben believed that the newly developed
goals were realistic.
1:42:18 PM
Commissioner von Scheben was excited about the nearly
completed Alaska Marine Highway Systems (AMHS) analysis. He
stated that the department is discussing the gasline
infrastructure. He listed other departments that DOT/PF will
work with in a coordinated effort concerning gasline
infrastructure needs.
1:44:14 PM
Co-Chair Stoltze asked Commissioner von Scheben to outline
the distribution of safety responsibilities between the
department and the railroad. He was particularly interested
in public safety at grade crossings.
FRANK RICHARDS, DEPUTY COMMISSIONER OF HIGHWAYS & PUBLIC
FACILITIES, DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES, answered that the Alaska Railroad was
established before DOT/PF roadways. Because of this the
responsibility falls on DOT/PF to pay the railroads for
repairs and upgrade of grade crossings. For safety, separate
crossings for railway traffic and highway traffic have been
implemented where possible.
1:46:13 PM
Co-Chair Stoltze asked whether the department would have
sole responsibility for the capital infrastructure. Mr.
Richards replied that the department is still in the process
of negotiating with the railroad to determine which entity
shoulders the cost of different safety needs.
1:48:27 PM
Commissioner von Scheben cited the Glenn Highway and Bragaw
Interchange as major accomplishments of the department. He
was excited about the completion of internet service at the
Fairbanks International Airport terminal. He listed
accomplishments from FY08:
· Transferred ownership of five docks and harbors to
communities.
· Maintenance and Operations crews covered 1,563,794
linear feet of highways with surface crack seal
treatment or re-leveling depressed roadway surfaces by
"banding".
· Paved 33 lane miles of gravel roads.
· Reconstructed 31 lane miles of roads.
· Performed 529 bridge inspections.
· Completed 9,748 commercial vehicle inspections during
FY08.
· Conducted airport pavement condition inspections on one
third of all paved airports in the state.
· Between 2006 and 2008, fatal and major injury crashes
dropped by 77 percent on the Seward Highway and 37
percent on the Parks Highway, Alaska's two designated
safety corridors.
· Provided surface maintenance of either gravel or paved
runways for 31 airports.
· Performed repairs on 34 bridges.
· 17 percent reduction in square footage of structurally
deficient bridges (2007-2008).
· Replaced over 41 failing culverts, some over six feet
in diameter.
· The Ted Stevens Anchorage International Airport, South
Terminal Seismic and Security Retrofit Project,
Concourse A was completed.
· In 2008 both AMHS passenger and vehicle ridership
showed an increase in numbers from those of 2007.
· AMHS on-time departures were at 93 percent for 2008.
1:51:23 PM
Representative Salmon wondered about accomplishments
pertaining to the AMHS. Commissioner von Scheben referred to
the systems analysis. He felt that vessels arriving and
departing according to schedule should be considered an
accomplishment. He added that the ferry schedule had been
approved early in the year to ensure that out-of-state
travelers could plan travel with the ferry system during the
summer tourist season. The department has set aside $60
million for vessel replacement. He relayed that he is
receiving less complaints from the public than in the past.
He suggested providing a list of AMHS accomplishments for
the committee at a later date.
1:53:35 PM
Representative Gara asked about the possibility of a river
highway system. He wondered what the state spends in
providing transportation on the Yukon and Kuskoquim rivers.
1:54:09 PM
JIM BEEDLE, DEPUTY COMMISSIONER OF MARINE OPERATIONS, MARINE
HIGHWAY SYSTEM, DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES, answered that AMHS does not have vessels built
for travel on rivers. Representative Gara asked the
department to consider river travel. He felt that the need
for a freshwater system was strong. Commissioner von Scheben
responded such an endeavor would be of high cost to the
state.
1:55:25 PM
Commissioner von Scheben continued with the FY09 status
report. A 2008 management system upgrade on the AMHS vessel
MV Aurora saved the department $120,000. The same system
upgrade is being done on the MV Tustumena and MV Matanuska
and savings to the state should be evident within two years.
Co-Chair Hawker stated that the FY08 allocation for fuel
from the governor's budget had been based on higher fuel
prices. He wondered if the drop in the price of fuel had
left the department with an excess fuel allotment.
1:57:05 PM
NANCY SLAGLE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES,
explained that the department used the fuel cost savings to
cover increased costs for fuel and utilities for highways
and aviation facilities that had not seen the same drop in
fuel cost because of the timing of annual procurements. The
department had already purchased most of the fuel prior to
the price drop. Rural areas are experiencing a slower
response to dropping fuel prices. The department is
continuing to review the AMHS fuel needs.
Co-Chair Hawker asked for an accounting reconciliation of
fuel costs for FY09 and comparisons and projections for
FY10. He felt this would give the committee a basis to
examine what might be needed in discussing the continuation
of the fuel subsidy program. Commissioner von Scheben
replied that the department would provide the information as
soon as possible.
1:58:47 PM
Representative Crawford asked if any thought had been given
to capital requests for the building of more fuel storage
facilities. He suggested stockpiling fuel in anticipation of
rising fuel costs. Commissioner von Scheben wondered where
the storage facilities might be built and if the stored fuel
would be specifically for AMHS. Representative Crawford
suggested building in Ketchikan, Wrangall, Juneau, and
possibly Haines, and clarified the fuel would be for use by
the AMHS. Commissioner von Scheben answered that he would
take the idea into consideration.
2:00:25 PM
Representative Gara thought that the cost of importing fuel
from Washington State was less expensive per gallon and that
the price is inflated in Alaska. He felt that a larger
storage capacity in the state was comparable to having
another refinery. He thought that this was a possible way to
look at lowering fuel costs throughout the state.
Representative Foster pointed out the plan could work
against the state. Representative Gara maintained that the
fuel storage plan could save rural Alaskan's $0.60 to $0.70
per gallon. Co-Chair Hawker suggested discussing the issue
with the Department of Commerce, Community, and Economic
Development.
2:03:19 PM
Commissioner von Scheben spoke of the effect of the hiring
freeze on the department. The department has a vacancy of
275 full-time positions and 100 seasonal positions. This
amounts to 10 percent of its workforce. Waivers have been
requested for the continuation of construction programs,
road maintenance, airport maintenance, continued safe
operations of AMHS, and international airports. He informed
the committee that the federal stimulus package was a major
topic of discussion within the department and has prompted
the department to prepare a Statewide Transportation
Improvement Program (STIP) amendment.
2:04:26 PM
Commissioner von Scheben specified that the STIP amendment
would be ready by February 6, 2009.
Co-Chair Hawker asked Commissioner von Scheben to talk about
how the federal stimulus plan would affect the department.
Commissioner von Scheben understood that the federal
stimulus funding the department would receive would not
require a state match. The department would be required to
use 50 percent of the funding within 90 to 180 days,
depending on which version of the plan is passed.
2:05:47 PM
Commissioner von Scheben estimated that the amount of money
that his department could receive was between $300 to $500
million. He informed that discussions are ongoing concerning
the use of stimulus funds.
2:07:02 PM
Commissioner von Scheben felt that more would be known once
President Obama signed a stimulus bill. The STIP process
takes 90 days. The department began the STIP process early
in order to be project-ready when the stimulus funds become
available.
Co-Chair Hawker asked how the department will determine
which projects will receive stimulus dollars.
FRANK RICHARDS, DEPUTY COMMISSIONER OF HIGHWAYS & PUBLIC
FACILITIES, DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES, stated that the money would be spent on projects
that have been on the STIP and approved by the legislature.
2:09:24 PM
Mr. Richards stressed that congress is adamant that stimulus
dollars will be pulled and distributed to other states with
bid-ready projects if the dollars are not spent in the time
allotted. He asserted that a list of projects had been made
that could use the money provided they receive legislative
approval. The department must first complete the STIP
amendment to highlight projects going into the construction
phase. The amendment should be going out on February 6, 2009
concurrent with the department's request for appropriation.
The hope is to have the projects begin as quickly as
possible. Another emphasis Congress has placed on the
stimulus money is that it be used in areas of economic
distress; this equates to 60 percent of the proposed
projects for highways and transit. All areas of the state
qualify as economically distressed except The North Slope,
Anchorage, Fairbanks, Juneau, Sitka, and Ketchikan.
2:11:13 PM
Representative Austerman asked for a definition of
transportation projects.
Deputy Richards answered that there are three initial
formula funds mentioned: the federal highway administration
funds, the federal transit administration funds, and federal
aviation funds. Under the federal highway program, the
department uses funds for enhancement of transportation
projects such as bikeways, pedestrian facilities, and
waysides. The House and Senate bills currently being debated
on the federal level have differing definitions of what
constitutes a transportation project.
Vice-Chair Thomas asked if a requirement for organized labor
was in the stimulus plan. Deputy Richards answered that he
did not think it was a requirement. Vice-Chair Thomas
expressed concern that contracts in rural Alaska would be
given to large companies instead of local contractors. He
felt that the contracts should be bid out on a small scale
for the stimulus package funds to help rural Alaskans.
2:15:08 PM
Representative Fairclough wondered if a dollar number could
be given for differed maintenance for the department's
facilities, highways, and airports. Deputy Richards answered
that the department's dollar numbers for differed
maintenance are ever-increasing.
2:17:45 PM
Representative Fairclough wondered how the department was
planning on addressing the issue of rising deferred
maintenance numbers. She felt that some stimulus dollars
could be used for deferred maintenance projects, rather than
funding new projects. She spoke of poor road conditions
throughout the state, particularly in rural areas and along
the Glenn Highway. She questioned weather the department had
plans to use stimulus dollars to repair roads in those
areas. Deputy Richards replied that Glenn Highway rut
repairs are on the list of projects.
2:19:51 PM
Mr. Richards added that culverts on 62 miles of road on the
Dalton Highway will be replaced. He stressed that the
department has every intention of using some stimulus
dollars for deferred maintenance in the areas of highways
and aviation.
Representative Fairclough asked if the Glenn Highway repairs
were in the STIP amendment and, if so, when would they be
completed. Deputy Richards replied that the project
timelines are listed on the departments website.
2:21:40 PM
Representative Gara asked if airport upgrades in rural
Alaska go through the STIP amendment. Commissioner von
Scheben replied no. Representative Gara expressed concern
that stimulus dollars would not be used for rural community
projects.
2:23:17 PM
Commissioner von Scheben shared that a list of Airport
Improvement Programs (AIP) is currently being compiled.
Representative Gara felt that local hire needed to be
enhanced throughout the state. He wondered if the department
would be diligent about local hire. Commissioner von Scheben
replied that DOT/PF has a Disadvantaged Business Enterprise
(DBE) program. He added that between the aviation and
highway projects there is potential for local hire. Mr.
Richards added that the price of the projects have a wide
range. He spoke of different groups that DOT/PF is
collaborating with in order to put Alaskans to work.
2:27:21 PM
Representative Austerman stated he was concerned with
contract overload. He thought outside contractors would be
necessary. Commissioner von Scheben communicated that the
increase in workload would be 30 percent. He felt that the
Alaskan workforce would not be overburdened.
2:28:56 PM
Co-Chair Stoltze relayed that the Glenn Highway is a state
highway and its Eagle River Bridge is the most used bridge
in the state. He asked that the ownership of the Birchwood
Airport remain with the state.
2:30:45 PM
Commissioner von Scheben replied that he was not aware of
any change of ownership concerning the Birchwood Airport.
Co-Chair Stoltze stated for the record that Birchwood
Airport is the only rural airport that is not in debt and
that the municipality would like to retain it as a source of
revenue.
2:32:31 PM
Representative Fairclough noted that Commissioner von
Scheben reached out to committee members and invited them to
view the Dalton Highway and see the challenges firsthand.
She felt the experience had been informative. She thought
that there were consequences to be expected for accepting
stimulus money and cautioned the department to plan ahead.
2:34:13 PM
Representative Foster reported that Northwest Alaska has 152
state employees; two in Saint Mary's, two in Unalakleet, and
148 in Nome. Half of the Nome employees were born in
villages and have a knowledge of the needs in rural Alaska.
| Document Name | Date/Time | Subjects |
|---|---|---|
| COMMERCE 10 year plan.pdf |
HFIN 2/4/2009 1:30:00 PM |
HB 81 |
| DOT&PF Org Chart .pdf |
HFIN 2/4/2009 1:30:00 PM |
HB 81 |
| TRANSPORTATION 10 year plan 2009.02.04 HFC.pdf |
HFIN 2/4/2009 1:30:00 PM |
HB 81 |
| Historical Construction Expenditures.pdf |
HFIN 2/4/2009 1:30:00 PM |
HB 81 |
| M&O GF Auth.pdf |
HFIN 2/4/2009 1:30:00 PM |
HB 81 |