Legislature(2007 - 2008)CAPITOL 17
03/27/2008 01:00 PM House TRANSPORTATION
| Audio | Topic |
|---|---|
| Start | |
| HB106 | |
| HB294 | |
| HB322 | |
| HB314 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 294 | TELECONFERENCED | |
| += | HB 106 | TELECONFERENCED | |
| += | HB 314 | TELECONFERENCED | |
| += | HB 322 | TELECONFERENCED | |
HB 314-G.O. BONDS FOR TRANSPORTATION PROJECTS 2:45:18 PM CHAIR JOHANSEN announced that the final order of business would be 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." [Chair Johansen passed the gavel to Vice Chair Neuman.] FRANK RICHARDS, Deputy Commissioner of Highways & Public Facilities, Office of the Commissioner, Department of Transportation & Public Facilities (DOT&PF), explained that the primary goals of the general obligation bond projects are to increase safety, promote economic development, reduce congestion, and preserve existing assets. He directed attention to the Powerpoint entitled "Alaska Department of Transportation & Public Facilities-GO Bond Projects-". He described the first project listed, slide 2, "Dowling Road: Old Seward Highway to Minnesota Drive", which is a $22.1 million congestion relief project. He explained that this project is part of the Anchorage Municipality's long range transportation plan, the Alaska State Transportation Improvement Plan (STIP), and the Anchorage Metropolitan Area Transportation Solutions (AMATS) transportation improvement plan. He reported that the funding will come from federal, state, and local funds. MR. RICHARDS referred to slide 3 which reflects the two phases of the project. He allowed that the general obligation bond will pay for Phase 1. He further explained the project and the ways it will relieve congestion. 2:48:40 PM REPRESENTATIVE DOOGAN mentioned that no one has discussed this project with him even though it is in his district. VICE CHAIR NEUMAN made the same observation. MR. RICHARDS asked if the committee would prefer an overview of HB 314, instead of a project specific review. VICE CHAIR NEUMAN agreed. 2:49:55 PM MR. RICHARDS said that this bill identifies $121.1 million for DOT&PF transportation projects, $10 million for a Department of Commerce, Community, and Economic Development (DCCED) project to expand the Port of Anchorage, and $8.9 million to the Department of Natural Resources (DNR) to fund the South Denali Access Road Design and Construction project. 2:50:32 PM [Vice Chair Neuman returned the gavel to Chair Johansen.] MR. RICHARDS explained that this bill is a bond package that will be presented to the voters this fall. He noted that the goal of the bill is to allow the voters to approve the projects, and that the capital budget will not be increased by the total bill package request of $140 million. REPRESENTATIVE DOOGAN posed that if a specific project is removed from the bill and put into the capital budget, would the bond request be reduced by that amount. MR. RICHARDS replied that these projects are only on this bond list, and not in the capital budget. He offered his belief that the intent is to separate these projects into a bond proposal and not to include them in the capital budget. REPRESENTATIVE DOOGAN asked to clarify that if a specific project in this bill is dropped, would the bond amount be reduced by that amount. MR. RICHARDS offered his belief that the bill is project specific. REPRESENTATIVE DOOGAN wanted to clarify how the money would be allocated if the projects change. MR. RICHARDS expressed his belief that the bill is project specific. 2:53:59 PM REPRESENTATIVE NEUMAN asked if the money would come from FY 2008 funds. NANCY SLAGLE, Director, Division of Administrative Services, Department of Transportation & Public Facilities (DOT&PF), said that the bond proceeds would be put into a transportation fund entitled "2008 transportation project fund." She clarified that the fund is from the bond proceeds. She explained that the process will be to ask the voters for approval, offer the bonds for sale, place the proceeds into the "2008 transportation project fund," and allocate the money for the specific projects. CHAIR JOHANSEN clarified that the fund is titled "2008 transportation project fund." MS. SLAGLE agreed. 2:57:07 PM CHAIR JOHANSEN offered his belief that having a date in the fund title creates confusion. REPRESENTATIVE DOOGAN asked how these specific projects are selected. MR. RICHARDS explained that DOT&PF looks at the list of statewide projects that reflect the four primary goals mentioned earlier, and presents to the governor's office a list of projects that can be accomplished with either bond or general fund proceeds in a timely and cost effective manner. 2:58:04 PM REPRESENTATIVE DOOGAN expressed his belief that some of the projects are specific and some are very general, and that it is unclear what is proposed for the general projects. MR. RICHARDS said that there are specific projects for each of those broad categories. REPRESENTATIVE DOOGAN replied that this is not clear in the information. MR. RICHARDS responded that this information is not included in the presentation, but that he will supply it. 3:00:07 PM REPRESENTATIVE SALMON asked if it is possible to change these projects. MR. RICHARDS replied that the legislature has the authority to present projects. REPRESENTATIVE SALMON asked if there is another list. MR. RICHARDS replied that there is a substantial list of needed projects and he will make the list available. REPRESENTATIVE SALMON expressed his belief that the list only reflects a few select projects in a small area of the state. 3:01:37 PM CHAIR JOHANSEN asked if there is a larger list that was submitted to the governor. MR. RICHARDS replied that there is a larger list. CHAIR JOHANSEN said that the committee would like to see the list. REPRESENTATIVE NEUMAN asked if the projects can be changed after the bond vote. MR. RICHARDS said that the voters will be voting on a specific list of projects, so there can not be a change after that vote. 3:03:09 PM REPRESENTATIVE NEUMAN related his understanding that once the voters have voted on a project, it cannot be changed. MS. SLAGLE explained that once the legislature passes a bill for general obligation bonds, the governor can only veto the entire bill, but not any of the specific projects. She reported that after the vote by the people, there is not any option for veto or change. REPRESENTATIVE NEUMAN asked for the road mile specifics of the "Parks Highway: Weight Restriction Elimination" project. He asked if DOT&PF has followed its list of goals for prioritizations when making these project recommendations. MR. RICHARDS said that the Parks Highway project includes miles 72-90. 3:06:42 PM REPRESENTATIVE NEUMAN repeated his earlier question regarding the prioritization for project recommendations. MR. RICHARDS responded that these were followed. REPRESENTATIVE NEUMAN asked how these are compared to each other. CHAIR JOHANSEN remarked that the "Southeast Alaska: Pavement Rehabilitation" project seems to be an odd project for a general obligation bond. MR. RICHARDS replied that preservation is one of the primary criteria for project selection. He explained that maintenance is much cheaper than reconstruction. 3:09:16 PM REPRESENTATIVE DOOGAN expressed his belief that the traditional use of general obligation bonds is to build new projects, so this project does not meet that criteria. He asked if there is a problem with regional balancing in the bill, and that this project helps to address that. MR. RICHARDS replied that the department looks at the project needs in SE Alaska and what can be accomplished with the funding, while allowing for some geographical distribution. REPRESENTATIVE DOOGAN asked if the bill project selections would have been different without geographical distribution. He posed that new projects might have been proposed for the bond funding, while the maintenance projects could have been paid for through another funding source. MR. RICHARDS explained that the selection process factors in the public-expressed needs, and includes projects that rely solely on a STIP that is not available in the near term. He reported that utilizing bond funds allows the department to accomplish a lot of the work in a more expeditious manner than having to follow the federal regulations. The department identifies a list and the governor's office selects the projects to include in the bill. REPRESENTATIVE SALMON asked why these projects are not proposed in the capital budget. REPRESENTATIVE NEUMAN observed that the state will sell general obligation bonds and pay for them through the general fund. He commented that he has not had any representatives from the DOT&PF ever come to his office to talk with him about any of these bills. [HB 314 was held over.]
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