Legislature(2007 - 2008)HOUSE FINANCE 519
04/04/2008 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB422 | |
| HB314 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 314 | TELECONFERENCED | |
| + | HB 422 | TELECONFERENCED | |
| + | SB 196 | TELECONFERENCED | |
| + | TELECONFERENCED |
3:01:02 PM HOUSE BILL NO. 314 An Act providing for and relating to the issuance of general obligation bonds for the purpose of paying the cost of state transportation projects; and providing for an effective date. NANCY SLAGLE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES, spoke to the bill, which is the Governor's legislation regarding the authorization of issuance and sale of the General Obligation (GO) bonds. The Governor's original request was $140 million dollars. Ms. Slagle pointed out that the committee substitute (CS) from the House Transportation Committee (HTC) increased the amount to $170 million dollars. If that amount is ratified by a majority of the State's qualified voters, the legislation will provide authorization and the "full faith credit and resources" of the State would be pledged toward the principle. Ms. Slagle stated that Section 2 establishes the FY2008 Transportation Project Fund, which takes the proceeds of the bonds and places it into the fund. Sections 3-5 appropriates from the fund, the amount of $121.1 million dollars to the Department of Transportation and Public Facilities; the amount was changed to $151 million dollars in the CS. HB 314 provides funding for an appropriation from the General Fund to the State Bond Committee to pay for expenses incident to the sale and issuance of the bonds. 3:05:04 PM Co-Chair Meyer referenced Line 20, the northern access to the University medical districts study and wondered if it should be included in the bond package. Ms. Slagle said that it was an appropriate placement. The study will provide information on how to approach the intersection traffic relief in development areas. Co-Chair Meyer noted a change made in the HTC to the Gravina access. Ms. Slagle acknowledged it had been included, pointing out that highway-paving projects were included. Some projects were removed and the $45 million dollars was placed in for the Gravina access project. Co-Chair Meyer asked if the Administration supports the change. Ms. Slagle reported that the Administration is neutral. Representative Hawker asked if the reference was to the "bridge to no-where". Ms. Slagle did not comment on the specifics of the project. Co-Chair Meyer interjected that a new CS was forthcoming and asked members to submit deletions or additions to the projects included. 3:08:08 PM Representative Gara inquired about the $45 million dollars. Ms. Slagle explained that the $45 million would not be enough to fund building a bridge. The funding would be used for an environmental study. She stated that the money has no impact on what the Department is doing. Representative Gara requested design information before committing money to the project. Co-Chair Meyer agreed. 3:09:46 PM Vice-Chair Stoltze inquired the costs associated with the Sunny Point intersection project in Juneau. Ms. Slagle offered to research that information, indicating it is a federal project. 3:10:08 PM SHELBY BOOTH, PRESIDENT, BRISTOL BAY ASSEMBLY, NAKANAK, testified via teleconference, indicated that the Borough was attempting to secure State funding for assistance in the dock repair. He discussed the amount of cargo that passes through Bristol Bay, noting that Bristol Bay has been working on the dock for five years. He related the amount already invested in the project, commenting on the rising costs associated with construction. He testified in support of the bill as a source of revenue for the project. Co-Chair Meyer asked the specific amount requested. Mr. Booth said they were requesting $3 million dollars and that completion of all phases of the project will cost $15 million dollars. Phase 1 alone should cost $7 million dollars. 3:13:46 PM STEVE RIBUFFO, DEPUTY PORT DIRECTOR, PORT OF ANCHORAGE, testified via teleconference, stated that the Port of Anchorage is truly Alaska's port, servicing over 90% of the State and receiving over 80% of the goods and services. He pointed out the declining condition of the Port and the associated needs. He reminded the Committee that previous Governor Sheffield would like to see a long-term solution for the Port and to be given $100 million dollars over the next five years. 3:16:31 PM Co-Chair Meyer referred to Governor Sheffield's request for the expansion and repair of the Port. He asked if the request had been increased to $20 million dollars. Mr. Ribuffo recommended consulting Governor Sheffield for his opinion; he understood the request was for $10 million. Co-Chair Meyer inquired if there would be a docking at the Port of Anchorage ferry terminal. Mr. Ribuffo explained that the Port of Anchorage was working with the Mat-Su Borough to find a docking spot. The preference would be the south end of the Port for managing security issues. He discussed the relationship with the Mat-Su Borough on the issue. Co-Chair Meyer supported working with the Mat-Su delegation. 3:19:54 PM Representative Gara asked about funding requests and sources for funding for the Port project. He questioned the amount of public oversight on the plans to date. Mr. Ribuffo did not know. He understood that an environmental assessment was available to the public, which resulted in no objection for the project proceedings. He highlighted the Anchorage Assembly's involvement with the financing. Representative Gara emphasized that there had been no oversight connected to the most efficient design for the project and that the scope of project keeps increasing as funds are available. Mr. Ribuffo disagreed. He opined that the scope of the project has not grown, but rather the price increase is due to higher costs for raw materials & fuels. 3:23:11 PM Representative Gara reviewed the history of the Port expansion as a $100 million dollar project, which currently, has increased to a $700 million dollar project. He argued that prices have not increased that much. Mr. Ribuffo did not know. Representative Gara reviewed the history of the request for the ferry, which lacks a business plan. He questioned the economic justification of the project. Mr. Ribuffo addressed the validity of the service to the Mat-Su Borough & the City of Anchorage. The Port's involvement is with the design and landing dock on the Anchorage side. A small amount of engineering would be needed for an alternative landing. Representative Gara questioned if the addition should be built if there is no business plan established yet. Mr. Ribuffo replied that not until the Municipality of Anchorage is satisfied, should the project proceed. Mr. Ribuffo added there is no money coming out of the Port expansion budget for the project. He could not speak for the Mat-Su Borough. He added that there are plans for the ferry to make trips to the Kenai. Discussion continued between Mr. Ribuffo and Representative Gara regarding the Port expansion. 3:28:13 PM Representative Gara agreed with the need for the Port expansion, however, found it difficult to accept the project without a long-range scope and expanded plan. Vice-Chair Stoltze voiced support for the Port expansion priority. Co-Chair Meyer asserted that the Mayor of Anchorage has stipulated the importance of the project expansion. 3:31:52 PM JAMES KING, DIRECTOR, DIVISION OF PARKS, DEPARTMENT OF NATURAL RESOURCES, ANCHORAGE, testified via teleconference, directed comments to building a new visitor Center in Denali State Park on Curry Ridge. The construction project would open up the park for greater access allowing it to be open in the winter. There has become an increased demand in the area for all seasons for visitors. The project would improve access and provides economic benefits. He pointed out public and industry support for the legislation, emphasizing that the $8.9 million dollar funding is critical to initiate the project. 3:36:41 PM Vice-Chair Stoltze commented on the Legislature's process in attempting to assemble a bond package. He inquired if Mr. King had dealt in the public process and if that would affect the bonding package. Mr. King explained that the process has been long and drawn out while attempting to determine the best solution. He thought that most everyone was either supportive or in agreement to not fight the process. There have been concerns voiced that the project be done correctly, to not destroy any of the alpine. 3:38:45 PM Representative Gara questioned the viability of the Denali access road. He wanted to make sure that there was community buy-in for the project before the dollars are spent. He understood that the request was for the road only in anticipation that someday, there would be a visitor center. Mr. King addressed the funding strategy, including the five targeted funding sources: • The State of Alaska • The Centennial Initiative through the National Park Service, which would be matching dollars from the State's contribution of $9 million dollars. • The National Park Service has also approached the Washington D.C. delegation, who have indicated that if the Alaska Legislature appropriates, the delegation would be willing to finish the rest of the project and build the visitor center. • Private industry, specifically the tourism industry, has requested financial support for the construction of the center. • Researched the Scenic By-Ways Program, who have indicated support. Mr. King concluded that the monies for building a visitor center are hinged on the appropriations for the road construction. 3:42:49 PM Representative Gara wanted to guarantee that there is a comprehensive project plan in place before money is spent on building a road. He encouraged legislative discussion of the project infrastructure, staffing, & associated costs. He encouraged adding contingency language. Mr. King acknowledged the concern; however, pointed out that the project has been addressed for the past ten years and that there has been a lot of planning already gone into it & the funding concerns. Representative Gara reiterated his previous concerns and suggested incorporating contingency language. 3:50:13 PM AVES THOMPSON, DIRECTOR, ALASKA TRUCKING ASSOCIATION (ATA), ANCHORAGE, testified via teleconference, noted support for the proposed project. [testimony inaudible]. 3:53:34 PM JERRY MCCUTCHEON, ANCHORAGE, testified via teleconference, directed his comments to a ferry for the Kenai Peninsula, which he did not believe would be in competition with the bridge. Mr. McCutcheon added, he does not support building the road to Curry Ridge. He recommended that project be undertaken by the Alaska Railroad. 3:56:36 PM PUBLIC TESTIMONY CLOSED Co-Chair Chenault stated the bill would be HELD in Committee for further consideration. 3:57:09 PM HB 314 was HELD in Committee for further consideration.
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