Legislature(2001 - 2002)
04/30/2002 03:08 PM House FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
GENERAL OBLIGATION BONDS
Co-Chair Mulder noted that there were $1.4 billion dollars
in general obligation (GO) bond requests. The attorneys
indicated that they could not be included in one ominous
bond bill. The intent was to use as few vehicles as possible
and identify consistent themes. He observed that HB 524
contains GO bonds for new schools and university
construction. House Bill 525 contains GO bonds for deferred
maintenance of public facilities. Bond debt reimbursement
was used for projects that did not fit into a GO bond
package, because they were previously leveraged [HB 528].
Representative Lancaster's energy bill [HB 175] was utilized
for the final component. House Bill 524 and HB 525 would
appear on the November general election ballot.
Co-Chair Mulder observed that projects were prioritized. The
priority lists were strictly used with one exception. In new
school construction, out of the first six schools: three
were in [Representative Kaspner's] district and three were
in Representative Foster's district. The proposed committee
substitute took the first two [in Representative Kaspner's
district] and the first two from Representative Foster's.
HOUSE BILL NO. 525
"An Act relating to the issuance of general obligation
bonds for the purpose of paying the cost of deferred
maintenance of public facilities; and providing for an
effective date."
Co-Chair Mulder provided members with proposed committee
substitute, work draft LS1735\C, dated 4/29/02 (copy on
file.) The proposal, totaling $203,744,270, provides for
repair of: schools, University of Alaska facilities, state
owned docks and harbor facilities, and state owned
buildings.
The proposal provides $121,269,770 dollars for 90 school
projects around the state. The list includes those schools
approved by the department of Education and Early
Development for major maintenance.
The $5,560,000 dollars designated for the University of
Alaska includes repair to facilities on campuses in Valdez,
Palmer, Ketchikan, Kodiak, Fairbanks, Kotzebue, Nome, and
Bethel.
The 31,887,500 dollars allocated for docks and harbors will
refurbish facilities in Whittier, Seldovia, Juneau,
Ketchikan, Sitka, Cordova, Wrangell, Yakutat and Kiawock.
In addition there is $48,500,000 dollars for dire
maintenance needs throughout the state. He observed that the
governor introduced a bill for Certificate of Participations
deferred maintenance for state facilities at approximately
$200 million dollars. He explained that he was concerned
that a straight state facilities deferred maintenance
general obligation bond would fail to be pass by the public.
The intent was to create a category that could satisfy the
most urgent concerns. He observed that the list could
change. The Administration indicated that there might be
items that are higher in the prioritization. The list
provided by the state director was used to compile the
legislation and might change as a response to submissions by
the Governor's Office.
Co-Chair Mulder added that funding for the Juneau Douglas
High school remodel was added. Representative Hudson
observed that the low bid was $3 million dollars higher
[than the previously appropriated amount].
Representative Croft noted that the list was followed to
item 81 and Anchorage, Kenai, Juneau and Nome were picked
up. He referred to item 51, Kenai school fire alarm upgrade.
He questioned the funding level. There were some life health
and safety code violation concerns. The funds for the
Juneau-Douglas High school would complete the project.
Co-Chair Mulder reviewed section 4 and noted that it
contains deferred maintenance projects as brought forward by
the University.
Co-Chair Mulder referred to section 5. He observed that a
bond debt reimbursement for ports and harbors, which many
communities did not want to participate in had been passed
in a previous year. They are included as general obligation
bonds under deferred maintenance. Ports and harbor projects
fail into two categories. He explained that projects for
existing ports and harbors are listed under deferred
maintenance. Other ports and harbors in the debt
reimbursement package are for new design and planning.
Representative Croft observed that the state had offered to
turn certain ports and harbors to local communities, which
did not want to assume responsibility because they had not
been maintained. This raised the issue of how they could be
raised to a level where the municipalities could take them
over. Co-Chair Mulder clarified that there are a variety of
mechanisms that could be used. He stressed that there is
nothing more important to economic development in costal
communities than ports and harbors. The intent is to be
sympathetic to fishing communities that are having tough
times.
Vice-Chair Bunde referred to subsection (4) in section 6:
Mt. Edgecumbe High School and Alaska Vocational Technical
Center major deferred maintenance. Co-Chair Mulder explained
that the Department of Transportation and Public Facilities
manages the deferred maintenance program. State rankings
were taken, but projects were listed alphabetically.
Representative Hudson clarified that the Alaska Vocational
Technical Center is in Seward; both are state facilities.
Co-Chair Mulder noted that section 6, statewide ADA
compliance might need to be modified.
Representative John Davies asked if the maintenance stations
had been addressed. Co-Chair Mulder did not know. He stated
that they would be considered. The intent is to stay below
$400 million dollars.
Representative John Davies observed that there was a public
facility in Ketchikan with major maintenance concerns. Co-
Chair Mulder thought that it had been included.
HB 525 was heard and HELD in Committee for further
consideration.
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