Legislature(2007 - 2008)HOUSE FINANCE 519

05/09/2007 08:30 AM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 85 EXTEND STATE MEDICAL BOARD TELECONFERENCED
Moved Out of Committee
+ SB 105 REIMBURSEMENT FOR MUNICIPAL HARBOR DEBT TELECONFERENCED
Moved Out of Committee
+ HB 22 EXTEND BOARD OF GOVERNORS ABA TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 177 NATURAL GAS PIPELINE PROJECT TELECONFERENCED
Heard & Held
SENATE BILL NO. 105                                                                                                           
                                                                                                                                
     An  Act relating  to reimbursement  to municipalities  by                                                                  
     the Department  of Transportation  and Public  Facilities                                                                  
     for  debt incurred  by those  municipalities for  certain                                                                  
     capital projects; and providing for an effective date.                                                                     
                                                                                                                                
JOHN  WEISE, STAFF,  SENATOR  LYMAN  HOFFMAN,  noted that  the                                                                  
Legislature  passed HB 528 in  2002 as debt reimbursement  for                                                                  
certain capital  projects.  Included  in the list  of projects                                                                  
was a small  boat harbor in  Unalaska approved for  $5 million                                                                  
dollars   debt  reimbursement   through   the  Department   of                                                                  
Transportation  & Public Facilities.  It has been  delayed due                                                                  
to the exhaustive  permitting requirements, a  process started                                                                  
in 1996 and completed in 2006.                                                                                                  
                                                                                                                                
The Corps  of Engineers  Civil Branch  is responsible  for the                                                                  
construction  and maintenance  of  the outer  breakwaters  for                                                                  
the project  and the City is  responsible for construction  of                                                                  
the inner  harbor improvements,  providing  utilities for  the                                                                  
project.  The Corps  undertook and completed an  Environmental                                                                  
Impact  Statement (EIS)  in 2004  but the  Record of  Decision                                                                  
was  not  signed   until  six  months  ago  due   to  staffing                                                                  
retirements  in Washington  D.C.   The  total permitting  cost                                                                  
was over $3 million dollars.                                                                                                    
                                                                                                                                
The City of  Unalaska is prepared  to move forward as  soon as                                                                  
the  Corps  of   Engineers  receives  funding,   however,  the                                                                  
deadline  for the debt  reimbursement  is June  30, 2007.   SB
105  allows  the City  to  complete  the design,  prepare  bid                                                                  
documents  and  obligate  the  funds  in time  to  finish  the                                                                  
project.                                                                                                                        
                                                                                                                                
8:56:47 AM                                                                                                                    
                                                                                                                                
Co-Chair Chenault  asked about the fencing around  the project                                                                  
was because  it was close to the  airport.  Mr. Weise  did not                                                                  
think the airport was nearby.                                                                                                   
                                                                                                                                
8:57:37 AM                                                                                                                    
                                                                                                                                
CHRIS   HLADDICK,   (TESTIFIED   VIA   TELECONFERENCE),   CITY                                                                  
MANAGER, UNALASKA,  spoke in support  of the bill,  commenting                                                                  
that the  process has been  long and drawn  out.  The  City of                                                                  
Unalaska is waiting for a federal appropriation.                                                                                
                                                                                                                                
Co-Chair Chenault  asked about the fencing around  the harbor.                                                                  
Mr. Hladdick  explained  that the  harbor it  is not near  the                                                                  
airport but rather closer to the bridge.                                                                                        
                                                                                                                                
Representative  Kelly  asked if  the  delay could  affect  the                                                                  
funding.  Mr. Weise  acknowledged the funding  was capped; all                                                                  
other  small   boat  harbors   from  the  original   bill  are                                                                  
complete.   The  only one  not yet  complete  is in  Anchorage                                                                  
because they did not want to bond.                                                                                              
                                                                                                                                
PUBLIC TESTIMONY CLOSED                                                                                                       
                                                                                                                                
9:01:19 AM                                                                                                                    
                                                                                                                                
Representative  Foster MOVED to REPORT CS SB 105  (TRA) out of                                                                  
Committee  with   individual  recommendations   and  with  the                                                                  
accompanying  zero notes.   There being  NO OBJECTION,  it was                                                                  
so ordered.                                                                                                                     
                                                                                                                                
CSSB  105 (TRA)  was  reported  out of  Committee  with a  "do                                                                  
pass" recommendation  and with zero note #1 by  the Department                                                                  
of Community  & Economic Development  and zero note #2  by the                                                                  
Department of Transportation & Public Facilities.                                                                               
                                                                                                                                
9:02:24 AM                                                                                                                    

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