Legislature(2009 - 2010)HOUSE FINANCE 519
02/22/2010 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB325 || HB326 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 325 | TELECONFERENCED | |
| += | HB 326 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
February 22, 2010
1:38 p.m.
1:38:33 PM
CALL TO ORDER
Co-Chair Stoltze called the House Finance Committee meeting
to order at 1:38 p.m.
MEMBERS PRESENT
Representative Mike Hawker, Co-Chair
Representative Bill Stoltze, Co-Chair
Representative Bill Thomas Jr., Vice-Chair
Representative Allan Austerman
Representative Mike Doogan
Representative Anna Fairclough
Representative Neal Foster
Representative Les Gara
Representative Mike Kelly
Representative Woodie Salmon
MEMBERS ABSENT
Representative Reggie Joule
ALSO PRESENT
James Armstrong, Staff, Co-Chair Stoltze; Karen Rehfeld,
Director, Office of Management and Budget, Office of the
Governor; Leslie Houston, Director, Division of
Administrative Services, Department of Corrections; Dan
Spencer, Director, Division of Administrative Services,
Department of Public Safety; Frank Richards, Deputy
Commissioner, Highways & Public Facilities, Department of
Transportation and Public Facilities; Laura Baker, Director,
Division of Administrative Services, Department of
Transportation
PRESENT VIA TELECONFERENCE
Susan Colligan, Director, Division of Administrative
Services, Military and Veterans Affairs; Chris Christensen,
Deputy Administrative Director, Alaska Court System
SUMMARY
HB 325 APPROP: DEFERRED MAINTENANCE/REPLACEMENT
HB 326 SUPPLEMENTAL/CAPITAL/OTHER APPROPRIATIONS
1:38:40 PM
HOUSE BILL NO. 325
"An Act making capital appropriations for deferred
maintenance projects, equipment replacement, and
emergency repairs; and providing for an effective
date."
HOUSE BILL NO. 326
"An Act making supplemental appropriations, capital
appropriations, and other appropriations; amending
appropriations; repealing appropriations; making
appropriations to capitalize funds; and providing for
an effective date."
1:38:58 PM
JAMES ARMSTRONG, STAFF, CO-CHAIR STOLTZE, explained the
handouts for the committee (FY2010 Supplemental Requests, HB
326, pages 1-24; Governor's FY2010 Capital Deferred
Maintenance Supplemental Budget HB 325/SB 253 Amendments; FY
2010 Supplemental Deferred Maintenance Funding HB 325/SB
253, pages 1-38, copies on file).
KAREN REHFELD, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
OFFICE OF THE GOVERNOR, addressed several committee concerns
about deferred projects. She defined deferred maintenance as
those items for renovation or repair for existing
facilities, not new construction. She added that to the
extent possible the funds should be contracted out. The
governor's goal would be to repair and renovate existing
assets and to get the funding on the street to provide jobs
in the small and mid-range construction companies. She
continued that the proposed projects to be funded were
incorporated in the backup materials of the amended budget
and the 38 page spreadsheet that lists the proposed projects
within each department. She explained that those departments
that have not had the opportunity to testify would be first.
Ms. Rehfeld began with the first handout and noted that the
Department of Fish and Game and the Department of Natural
Resources made specific amendments in the deferred
maintenance package. The Department of Fish and Game had
original requests that included the replacement and
construction of housing, but these items have been backed
out and the money reallocated into very specific items. Ms.
Rehfeld reported that the new allocations included upgrades
and/or repairs to the Kodiak Warehouse/Compound, the
Fairbanks Regional Office, and the Yakutat Compound. She
added there were also new allocations for upgrades to the
statewide boiler and heating systems and repairs and
upgrades to statewide access parking, drainage, and
statewide bunkhouses.
1:45:00 PM
Vice-Chair Thomas inquired who was liable for the
maintenance on the hatcheries that the Department of Fish
and Game turned over to the regional nonprofits. Ms. Rehfeld
responded that she would research and provide the
information to Vice-Chair Thomas.
Representative Gara asked if these were the only changes to
deferred maintenance. Ms. Rehfeld agreed that these were the
only changes in the actual bill, but some of the backup had
been updated.
Representative Gara reiterated his earlier concern that too
much was being spent on housing, the sausage making machine,
and other items. He noted that the governor removed those
items, but added new projects equaling the same amount of
money. He wondered why these new projects should be
considered by the committee. Ms. Rehfeld responded that the
amendments were designed to clarify that the funding
available would be used for repair and renovation of
existing facilities, not for new construction or equipment
replacement. It was not the intention of the governor to
reduce the $100 million maintenance request.
Representative Gara commented that the charge was to remove
those items that were not priorities, not add new projects.
1:48:51 PM
Co-Chair Stoltze asked Ms. Rehfeld if these requests were in
line with the governor's $100 million spending for the next
five years. Ms. Rehfeld explained that the governor's
overall goal was to put forward a list of projects to catch
up with the deferred maintenance on existing facilities.
Ms. Rehfeld reported that the Mt. McKinley Meat Plant
equipment replacement from the Department of Natural
Resources was removed and the money reallocated to deferred
maintenance needs.
Ms. Rehfeld cited the five remaining department deferred
maintenance requests. She presented the order starting with
the Department of Corrections, followed by the Department of
Military & Veterans Affairs, the Department of Public
Safety, the Court System, and the Department of
Transportation & Public Facilities. She referred to the 38
page spreadsheet handout (FY 2010 Supplemental Deferred
Maintenance Funding SB 253/HB 325, pages 1-38, copy on
file).
1:51:56 PM
Representative Austerman referred to the earlier Department
of Natural Resources. He asked for clarification where the
deleted $190,000 allocation shows up again. Ms. Rehfeld
proposed to add the $190,000 to the plant material center's
deferred maintenance.
1:52:53 PM
LESLIE HOUSTON, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF CORRECTIONS, referred to the
department's requests listed on page 5, lines 1-11. She
explained each of the eleven requested items totaling $6.5
million.
Ms. Houston listed the first three items located at the
Anvil Mountain Correctional Center in Nome. The projects
include replacing the security control station, constructing
a new utilidor and replacing the failing septic tank at the
waste water treatment plant. The Palmer Correctional Center
project, line 4, consists of replacing the fire pump and
fixing the sprinkler piping.
Co-Chair Stoltze interjected that line 4, Palmer location,
should read Election District 12 instead of 13.
Ms. Houston indicated that in Kenai, line 5, it was
necessary to replace the roofing system at Building #55 at
the Wildwood Correctional Center. She continued that the
Spring Creek Correctional Facility in Seward, line 6, would
analyze the security control system and perimeter security.
The Ketchikan Correctional facility, line 7 and 8, is for
analysis, design, and construction of the perimeter
lighting. At the Palmer Correctional Center, line 9, the
project is to replace obsolete fire alarm panels in the
medical, administration, warehouse and maintenance shop
buildings.
Co-Chair Stoltze mentioned that at a town meeting there was
discussion regarding the inadequacy of the facility. He
asked if there had been any discussion regarding the medical
portion of the facility.
2:00:35 PM
Ms. Houston replied that there is a maintenance upgrade
need, but it is not in the top eleven priorities this year.
Representative Gara inquired what would happen if the design
and installation of outside lighting, on line 7 and 8 was
not funded. He also asked if there had been competitive bids
on the project. Ms. Huston replied that the existing system
is not energy efficient. She indicated she would have to
research the information concerning competitive bids.
Representative Gara addressed lines 7 and 8, again and noted
that one of reasons to utilize energy efficient lighting is
that the savings tends to pay back quickly. He inquired if
there had been an analysis to see if this project would pay
for itself quickly. Ms. Huston responded that the energy
efficiency will be addressed in the initial analysis and
design; the results will not be known until it has been
tried. Representative Gara asked if $50,000 has to be spent
before it can be determined if the project is worth it. Ms.
Huston responded yes.
2:03:46 PM
Representative Fairclough asked if a safe method was being
used to dispose of the old lightening systems. Ms. Huston
replied that she would research methods used in other areas.
Ms. Rehfeld interjected that the Department of
Transportation could give better answer.
Ms. Huston continued on line 10, the Hiland Mountain
Correctional Center in Eagle River, with the request to
replace and expand the exterior freezer.
2:05:53 PM
Representative Fairclough asked if the Eagle River fence
replacement was on the list. Ms. Huston replied that the
fence was on the list, but it could not be acted upon
because of unresolved land transfers. Representative
Fairclough asked if there was any funding for a new fence.
Ms. Huston replied no.
Representative Austerman remarked that he was still having a
problem separating capital and deferred maintenance
projects. He believed the separation needs to be cleared up
in the future.
2:08:52 PM
Ms. Rehfeld responded that the system upgrade replacements
are important in 24 hour operations for life safety issues.
Representative Austerman argued that he believed it would be
just as important as a capital request.
Representative Kelly thought it was important to know how
determinations are made.
2:10:36 PM
Representative Gara understood the need for deferred
maintenance, but he wanted to know what was actually needed
and what constitutes a wish list. He requested, in writing,
more information on lines 7 and 8. He maintained that he had
never heard of spending $50,000 to see if a lighting upgrade
saves money. Ms. Huston indicated she would follow up on his
inquiry.
Ms. Houston reported the final item on the list, line 11, at
the Wildwood Correctional Facility in Kenai was to replace
the fire alarm system.
Ms. Rehfeld referred to the Department of Correction's two
capital supplemental request items in HB 326. (FY 2010
Supplemental Requests, page 10-11, lines 58-59, copy on
file).
Mr. Huston continued with the capital request of a renewal
and replacement of the Hiland Mountain Correction Center
fire alarm system. The housing units I, II, and III have all
experienced complete or partial failure of the system
requiring immediate replacement, per the state fire
marshal's office. The failure to replace the system would
require the relocation of 380 incarcerated women.
2:15:02 PM
Co-Chair Hawker questioned the priority decisions. He noted
that HB 325 was supposed to be the fast track capital budget
with immediate deferred maintenance money for the most
pressing projects. He asked why the freezer never rose to
the top of the priority list in a previous capital budget.
He added that the department was using the slower track
capital budget for an item that seemed critical to the
Hiland Mountain Correctional Center. He questioned why this
did not make the faster track budget. Ms. Huston replied
that it was put in the capital requests because the work is
ongoing and the capital request replaces the money already
spent.
Co-Chair Hawker recapped the value of truth in budgeting. He
stated it would have been better to state that the money has
been spent from another source and now needs to be replaced.
Ms. Rehfeld contended that there are a number of projects
that departments needed to move on quickly that had not been
expected. Co-Chair Hawker reiterated that it should have
been disclosed in the public document.
2:18:41 PM
Representative Gara questioned if the supplemental deferred
maintenance bill, HB 325, was for projects the governor
believed there was a need to be out on the street a month
earlier than the rest. Ms. Rehfeld responded that the
governor did not propose the deferred maintenance bill as an
emergency bill. He wanted to get the approval of the
legislature so that the projects could get started and the
contractors could be employed this construction season
instead of waiting for a July 1 appropriation.
Representative Gara reiterated was HB 325 was for projects
that needed approval first for contracting issues. Ms.
Rehfeld noted that the governor's interest was to accelerate
the funding so that it would not have to wait until July 1
effective date in the FY 2011 capital bill. The earlier the
funding is approved, the earlier the funding would be
available to state agencies to bid those contracts and put
people to work.
Representative Gara remarked that many of the projects do
not seem like emergency projects. Ms. Rehfeld restated that
these projects are not emergencies only deferred from the
past. These projects will make a difference in the long term
function of the facility. The governor wanted approval of
the funding in this current year to start this summer.
2:22:01 PM
Ms. Huston continued on Page 11, line 59, with the renewal
and replacement of the Fairbanks Correctional Center heating
system. This is a new project request.
Co-Chair Stoltze voiced his concern about the early deferred
maintenance and asked if earlier effective dates would
accomplish the governor's goals. Ms. Rehfeld agreed it would
meet the goals.
Co-Chair Stoltze reminded that the end of session, April 18,
is not that far away so there could be a May 1 effective
date.
2:24:50 PM
Representative Doogan voiced his concern over the
supplemental deferred maintenance bill, a supplemental
capital budget and the regular capital budget in the future.
He contended he was having a hard time telling the two
supplemental documents apart. He added it was not clear to
him how the projects should be rated because it looks like
two capital budgets. He asked if there is a way to tell them
apart.
Ms. Rehfeld responded that there are two bills because the
governor had initially proposed the deferred maintenance
$100 million five-year plan for FY 2011. His goal of a
separate bill was so that it could be acted upon early to
get the funding available before this construction season.
2:29:24 PM
Representative Doogan appreciated her comments, but the
situation of concern was that it was hard to tell what the
most important projects were to begin with. He voiced
concern that all the projects seemed to be capital projects.
He pointed out the list seemed undifferentiated and there
needed to be a better way of determining what is important.
Ms. Rehfeld continued to the Department of Military and
Veterans Affairs on page 13 of the spreadsheet. She noted
three allocations for $892,000 for Army Guard Facilities,
$2.1 million for Armory Facilities deferred maintenance, and
$1 million for the Alaska Military Youth Academy.
2:31:45 PM
SUSAN COLLIGAN, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, MILITARY AND VETERANS AFFAIRS (via
teleconference), reviewed the three groupings. The Army
Guard Facilities projects were in Fairbanks, Kotzebue,
Wasilla, Nome, Ft. Richardson and Juneau. Most of the
projects include repair and replacement of items such as
boilers, doors, roofing, flooring and siding. The second
group, the armories, has federal funding involved with them
and they are requesting the $2,108,000 of general funds with
a federal match of $6.3 million. These repair and
maintenance projects are located in Jewel Lake, Sitka,
Kenai, and Ft. Richardson. The final group is $1 million for
the Alaska Military Youth Academy to replace insulation and
windows, repair restrooms, and replace interior fire rated
doors.
2:33:56 PM
DAN SPENCER, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF PUBLIC SAFETY, referred to the Department of
Public Safety requests, page 17, lines 1-5. He indicated the
deferred maintenance projects at the hangers in Anchorage,
Bethel, and Kodiak. There are also repairs and work in
Fairbanks and Ketchikan. The Anchorage projects consist of
replacing the existing parking apron, leveling the floor for
safer movement of aircraft, and replacing windows. He
referred to needs in Fairbanks to replace the air fan and
electrical systems, add insulation above the ceiling and
improve environmental controls. He continued that the Kodiak
hanger has existing exterior metal rusting that needs to be
replaced and the Ketchikan post needs added insulation. Mr.
Spencer interjected that it is expensive to design projects
and have experts evaluate the department's facilities. He
added that he cannot go to bid without an appropriation and
the prospect of moving forward with the work is limited
without the reasonable expectation of receiving the money.
There is some liability involved if they go through the bid
process than not receive the funds. Mr. Spencer emphasized
that priority projects can change quickly as emergencies
happen and what may be deferred today can become a priority
tomorrow. He emphasized the five listed projects reflected
work that can be put out to bid immediately to start the
work.
2:40:43 PM
CHRIS CHRISTENSEN, DEPUTY ADMINISTRATIVE DIRECTOR, ALASKA
COURT SYSTEM (via teleconference), referred to the original
list of nine projects in need of maintenance funds (Deferred
Maintenance Projects List, Court, copy on file). He defined
deferred maintenance as ordinary maintenance that has been
deferred due to lack of funding or attention beyond the
expected useful life of a building system or building
component. He noted that in the FY2011 Capital Budget lists
non-deferred maintenance items are for things approaching
the end of their expected useful life, but have not yet
exceeded it. He indicated that the Ketchikan Court and
Office Building need to replace a failing manual control
system and the heating/cooling system. It also needs
replacement of deteriorating finishes, damaged ceiling and
dim light fixtures. Mr. Christensen continued with the
deferred maintenance needs of the Anchorage Boney
Courthouse.
Representative Doogan noted that the $5 million request for
deferred maintenance was for buildings not owned by the
courts. Mr. Christensen responded that the original request
was for $14,932,000 for buildings not owned by the courts,
but all that has been inserted is $2.5 million.
Representative Doogan inquired if the Ketchikan Court
Building received the money requested, would the courts run
the project or would it be given to someone else to run. Mr.
Christensen replied that those projects done exclusively in
court space would be done by the courts. The rest of the
building would be a cooperative agreement with the other
tenants.
2:47:07 PM
Co-Chair Hawker asked if the occupancy leases specified who
was responsible for repair and maintenance. Mr. Christensen
replied that the courts occupy 44 buildings and own six.
Most of the buildings are private lease buildings and the
leases specify who is responsible for maintenance. None of
the deferred maintenance money in the master list actually
goes to anything other than state owned buildings. Co-Chair
Hawker questioned if the $14.9 million was on the master
list. He queried if this does not contradict the answer to
Representative Doogan. Mr. Christensen clarified that none
of the money is being put into buildings not owned by the
state of Alaska.
2:49:13 PM
FRANK RICHARDS, DEPUTY COMMISSIONER, HIGHWAYS & PUBLIC
FACILITIES, DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES, identified page 18 as the start of the
department's deferred maintenance needs. He stated that the
allocation to the Department of Transportation is $25
million divided into 193 projects. Sub allocations were made
for the various deferred maintenance needs within the
department for aviation facilities, harbors, highways and
the marine highway. Mr. Richards continued that when looking
at the infrastructure the projects were grouped into brush
cutting, gravel repair and replacement, signals and signs,
safety related items, and drainage issues. The aviation
identified needs were life safety issues, gravel surface
repairs, fencing and gates, drainage improvements, asphalt
repairs, electrical repairs, and vegetation management. The
primary needs in the marine highway system, were for fire
protection and prevention, emergency response, and SOLAS in
the older vessels. SOLAS is listed on page 21 and refers to
Safety of Life At Sea, an international safety code that
must be complied with because the vessels transit
international waters.
Co-Chair Stoltze inquired if there was a reason that the
allocations were broken down the way they were. Commissioner
Richards responded that the department wanted to break down
the maintenance needs by individual vessels.
Mr. Richards continued that on the marine highway, the work
efforts are contracted out. He reported that on the aviation
side, there is a combination of contracted efforts and state
forces.
2:53:13 PM
Mr. Richards moved to the facilities deferred maintenance on
the 700+ buildings that are the responsibility of the
Department of Transportation. He noted on page 27 the
prioritized 12 projects. The work will primarily be on
elevator upgrades, roofs, heating systems repair and
replacement, power generation at remote facilities, and
hoist replacement. He remarked that the harbor maintenance
work on page 28 consisted on the inner float at Port
Alexander.
Mr. Richards explained that the largest need within the
department was on the highways. He noted that the major
areas, starting on page 28, were vegetation management;
gravel surfacing, asphalt surface, guard rail repair,
traffic signals and signs, bridge maintenance, and high
tower repairs. The focus of the department's efforts will be
a combination of contracting efforts and in-house state
forces, although approximately 80 percent will be contracted
out. He added that in the rural system, the benefit of an
earlier appropriation is procuring materials and get the
contracts underway to achieve a summer of 2010 work product.
2:56:11 PM
Co-Chair Stoltze asked for the latest spring date that an
appropriation would be effective for early contracting. Mr.
Richards replied March or April. Co-Chair Stoltze asked for
a follow up on a more specific date. Mr. Richards reported
that the earlier the better particularly in rural areas
Representative Salmon described the Taylor Highway near 40
Mile as one of the worst highways in the world. Mr. Richards
asked if he was referring to the highway just outside of
Chicken. Representative Salmon replied the area close to 40-
mile. Mr. Richards referred to page 29, priority number 1
that lists gravel surface stabilization on the Steese,
Denali, and Taylor Highways. Representative Salmon asked
when the area would be repaired. Mr. Richards responded that
it has been a challenge to maintain these areas in the past,
but he was not sure on the specific work planned for the
area, but would research and provide an answer.
3:00:23 PM
Representative Fairclough asked why on page 32, line 3,
under traffic signs and signals the costs have increased
sevenfold. Mr. Richards responded there has been a
significant increase in aluminum sheeting and reflective
materials placed on the signs. One of the challenges in the
northern climates is the deterioration of sign sheeting with
the ultraviolet light. Representative Fairclough mentioned
that the price of steel has been cut in half and asked if
aluminum was not falling into this same trend. Mr. Richards
responded that he did not have that information.
Representative Fairclough asked if the department knew what
California was using. Mr. Richards responded that California
is also going to the new sheeting.
Representative Austerman noticed that about 80 percent of
the marine highway projects seemed to refer to the Taku. Mr.
Richards responded that all the ships go into dry dock for
annual refurbishment, but the Taku has significant issues
with the SOLAS.
Representative Austerman asked why the cracks in roads were
only attended to every four years. Mr. Richards responded
there are two crews, one in the peninsula district and the
Matsu district. The crack sealing effort has been deferred
to federal highway funds. Representative Austerman suggested
a revaluation of the funding source on how to make the roads
last longer. Mr. Richards noted that the deferred
maintenance list refers to extensive needs for highway
repairs. Representative Austerman asked where the Kodiak
state parking lot falls in the deferred maintenance list.
Mr. Richards responded that he would have to look through
the lists in the regions to determine where it appears.
Representative Austerman interjected that he wanted to know.
Mr. Richards answered that if there was specific capital
budget designation for Kodiak airport parking, then it would
go to them.
3:06:53 PM
Ms. Rehfeld moved to supplemental requests in HB 326 for the
Department of Transportation, page 11, line 61 (FY2010
Supplemental Requests, page 1-24, copy on file).
Mr. Richards referred to the FY2010 supplemental request on
line 61 for the Alaska Marine Highway System Vessel and
Terminal overhaul and rehabilitation. This is necessary to
keep the vessels in compliance with Coast Guard regulations.
Co-Chair Stoltze asked if any of these was in the SOLIS
category. Mr. Richards replied it was for a variety of
things including the SOLIS.
Vice-Chair Thomas asked if this would be the place to make
an amendment regarding the road ramp at the Tenekee
terminal. Mr. Richards suggested handling this through the
regular capital budget.
3:10:16 PM
Representative Doogan asked why $4 million more was being
requested to work on vessels. Mr. Richards responded that
the level of funding appropriated last year was $4 million
shy of what is needed to keep the vessels operating.
3:11:27 PM
Mr. Richards mentioned that on page 11, line 62 for the
airport improvement program the department is seeking $5.2
million of federal funds and $15 million in other funds.
Line 63 is for debt defeasance on international airports.
LAURA BAKER, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF TRANSPORTATION, explained that the debt
defeasance is based on a recommendation from the aviation
bond council. They have an excess of receipts that can be
applied to some of their capital bonding balance that would
reduce debt in the future.
Representative Fairclough noted that there has been a
request for funding the volcano observatory and questioned
the amount of money in the international airport revenue.
Ms. Baker responded she would need to get the balance to the
committee, but noted that funding the volcano observatory
would be in non compliance to federal regulations.
3:13:45 PM
Representative Fairclough asked for the landing fees at
international airports compared to other landing fees across
the country. Ms. Baker stated the department would need to
follow up. Representative Fairclough asked if Ms. Baker
could guess if it was lower or higher. Ms. Baker stated she
could not. Mr. Richard answered that landing fees are lower
than other airports in the United State. Representative
Fairclough asked if it would be fair to say the fees were
some of the lowest in the nation. Mr. Richards responded
that he was not sure.
Mr. Richards continued with line 64, the request for
legislative authority to receive and expend federal aviation
funds for Gustavus Airport for runway safety and line 65 for
the King Cove fencing project. Mr. Richards moved to line 66
for the Kodiak Chemical Storage building, line 67 for the
Nulatot Airport improvements and line 68 for the Unalaska
Chemical Storage building.
Representative Fairclough asked if these were tied in with
other project improvements for local airports from last
session's American Recovery and Reinvestment Act (ARRA)
funding. Mr. Richards replied that the projects appropriated
for the ARRA funding were specific. Originally the plan was
to use airport improvement funds for those projects, but
since they were ready to go out to contract for bidding,
authority was received from the legislature to use ARRA
funds instead. Representative Fairclough asked if this was
for some of the same the airports receiving additional
funding. Mr. Richards recalled that ARRA funding went to
Anchorage, Fairbanks, Quzinkie, Akuchak, Merrill Field,
Kenai, but not Gustavus, King Cove or Unalaska.
3:17:39 PM
Representative Doogan questioned line 62 that increases the
appropriation to $20 million, but line 63 wants to defeat
debt in the amount of $15 million. He asked if these were
linked in any way. Ms. Baker said the $15 million could
stand alone, but the proposals were grouped as they were all
aviation related.
Representative Doogan asked why there was $20 million more
in appropriation. Ms. Baker responded that of the $20
million, $15 million is the debt defeasance request to pay
down the bonds for previous aviation work. Representative
Doogan asked what happens to rest of money that is not part
of the debt. Ms. Baker replied that the money is direct
federal funding receipts coming in for aviation
transportation from federal aviation.
Representative Doogan reiterated the question of what it
will be used for. Ms. Baker answered it was for the previous
projects that Mr. Richards listed. Mr. Richards repeated for
the Gustavus Airport runway safety, King Cove airport
fencing and Kodiak Chemical storage building.
3:20:13 PM
Representative Gara referred to line 63 and asked if they
were raising or changing the rates and fees structure. Ms.
Baker responded the department has held back some of the
fees being charged due to the economic situation to make
sure air carriers still come into the airports at Anchorage
and Fairbanks. The expenditures could be used to not pay
down the debt, but then there would be the need to increase
the fees to carriers to pay down the debt.
Representative Gara noted that it seems like a major policy
decision was being made. He needed further information on
how this decision was made and if it is the right one. Ms.
Baker needed to follow up later with more detailed
information.
3:22:38 PM
Representative Fairclough understood that this is not
general funds dollars, but an appropriation that the
legislature has control of making. The airports are linked
together with Fairbanks as a backup landing destination and
so the group has gotten together although there is about $15
million in the fund that could pay down their debt which
would reduce the fees. The state does not set the landing
fees, but the board that operates this particular fund which
consists of the carriers and the state of Alaska. Mr.
Richards responded that it is the signatory carriers that
have signed onto the international operating agreement. It
was agreed last fall that the carriers paying the rates and
fees look to see the amount previously collected and then
look for ways to reduce the future expenses, such as paying
down the bond debt.
3:24:51 PM
Representative Doogan asked how the federal funds are linked
to this appropriation. Ms. Baker responded that she is not
aware that they are linked. Mr. Richards interjected that
they are not linked. There is the airport improvement
program funded by the FAA for lower airports. It is just
identified as a capital need under the appropriation level
on a common line 62.
Representative Doogan asked if this is separate types of
money, one from federal government and the other from air
carriers, why are lumped together on a single line. Ms.
Baker noted it was grouped together because it dealt with
aviation issues. It could be separated out as it is not
linked to the federal requests.
Representative Doogan noted that if they were linked the
money could not be spent on airports such as Gustavus. Mr.
Richards responded that revenues collected in Anchorage and
Fairbanks must to be spent at those two airports.
Representative Doogan responded that he just wanted to be
confident two kinds of money were not being mixed. Mr.
Richard responded that the money was not being mixed.
3:28:30 PM
Co-Chair Stoltze asked how much money goes from Fairbanks to
Anchorage on the airport international arrangement. Mr.
Richards stated he would have to get back to the committee
with those numbers.
Representative Salmon noted on page 13, line 68, it states
that this is a new project request for FY2010. He asked
where these new projects came from and why are many of them
marked as emergencies. He wondered why the Taylor Highway
cannot be listed under an emergency item.
Mr. Richards responded that specifically from line 65
through line 68 these are capital projects under development
phases. These projects are ready to go out to contract and
need legislative authority to move forward. Starting on line
69 through line 79, this is an area of emergency repairs for
specific actions such as from floods, erosion, or ice damage
that occurred during or after the start of the fiscal year.
These needs were above and beyond the approved operating
budget.
Representative Salmon asked again why the Taylor Highway is
not considered an emergency. Mr. Richard responded that
emergency repairs have not been done on the Taylor Highway
that would require them to come back to the legislature to
seek supplemental funds to cover any emergency repair work.
3:32:48 PM
Representative Fairclough asked for clarification on line 62
for $5,257,000 and asked if inside this appropriation level
it was at the discretion of the department to move those
funds around. Mr. Richards responded that they would have
legislative authority if needed to move the funds to an area
of greater need.
Representative Austerman asked for the total cost of the
Kodiak Chemical Storage building. Mr. Richards replied $1.3
million. Representative Austerman noticed that in the
capital list from last year there was $1.2 million for the
same project. Mr. Richards reported that he would need to
investigate if there was previous legislative authority that
now totals $2.5 million.
3:35:28 PM
Mr. Richards referenced on page 13, line 69, the $7,356,000
represents the projects identified starting on line 70.
These were activities that were undertaken because of
circumstances after the fiscal year. In particular, line 70
on high tower repairs. On line 71, the Dyea Road washout
repair was for erosion that occurred along the Taiya River
that arose suddenly. Mr. Richards named other erosion
projects on the Glenn Highway line 72 and line 73, as a
Glenn Highway slide and dam failure.
Mr. Richards listed the emergency repairs needed from line
74 through 79 in Haines Highway, Kodiak, Petersville road,
Salmon River road, Seward airport and Whittier access
repairs. The Whittier Access Emergency should read 400,000
cubic yards of rock instead of the 40,000 written.
3:41:11 PM
Co-Chair Stoltze commended the crews working during
emergency situations.
Mr. Richards referred back to line 46, for the legal costs
relating to the Nikishka Beach Road Case. This was entered
into with Offshore Systems Kenai for obstruction, control
and closure of public access to and through the Nikishka
Beach road.
3:42:39 PM
Mr. Richards moved to line 80, for the appropriation of
$3,021,100 for highways and facilities. On line 81 is the
Coffman Cove Maintenance Station a project for a maintenance
station to maintain that part of the road.
Representative Doogan asked for the original appropriation.
Mr. Richard responded it was $900,000. Representative Doogan
asked if the department was 100 percent off. Mr. Richards
responded that is correct. At the time it was believed the
land would not have to be purchased, but the present
necessary land purchase has presented an unexpected cost.
The building cost construction was also off. Representative
Doogan responded that a lot of backup would be needed to
prove the department was off by 100 percent.
Mr. Richards continued to line 82, the Ester Weigh Station
scale replacement and line 83, for the Klawock Maintenance
station door replacement. Line 84, measurement standards and
commercial vehicle enforcement equipment replacement and,
line 85, for the retroactive asphalt material price
adjustment. Mr. Richards indicated that asphalt prices have
skyrocketed and this contact did not have an asphalt price
escalator. He indicated that line 86 was to purchase land in
Skagway where the Skagway maintenance station is situated.
Representative Salmon asked what the land on line 86 is
being used for. Mr. Richards responded it is where the
maintenance station is located.
Mr. Richards noted on line 87 a long standing need for
elevator installation for the second floor of the Southeast
region headquarters. Co-Chair Stoltze asked where the
Southeast regional headquarters was. Mr. Richards responded
in Juneau at 7 mile Glacier Highway. Representative Kelly
asked how many people work on second floor. Mr. Richards
responded that the majority of the employees work on second
floor.
3:50:30 PM
Mr. Richards noted that line 88 for state equipment fleet
vehicle lifts in Haines was a safety related issue.
Representative Fairclough queried if there are challenges in
disposing old lightening, especially in regard to mercury,
as new bulb replacements are upgraded. Mr. Richards
responded that he will get back to her.
Representative Gara noted that he had met with the
department on the rumble strip issue in certain safety
corridors. He noted that most head on collisions are caused
by inattentiveness. He wanted to know what it would cost to
put rumble strips in more high traffic areas than just the
highway safety corridors. He noted several attempts, without
success, to get an answer from the department. Mr. Richards
responded that $850,000 to install the shoulder rumble
strips on the remaining 76.7 miles of highway eligible to
receive rumble strips. There may be a need on other
highways, but if there is no shoulder for the rumble strip,
than it is not possible. He indicated that he would be able
to present a map where these areas can be shown.
Representative Gara asked for information outside the areas
that the Department of Transportation thought was important.
Mr. Richards responded that the department wanted to
investigate those areas and challenges.
3:55:52 PM
Representative Austerman expressed his curiosity regarding
the purchase of for $900,000 in Coffman Cove and the Skagway
land purchase. He asked if the money just covered the land.
Mr. Richards responded no. He was not sure of the actual
acreage, but the land would be used for the maintenance
center and other storage.
Mr. Richards moved to line 89, for the regulatory compliance
appropriation level of $1.7 million and line 90, for the
Kenai Peninsula Watershed Improvements Clean Water Act
Settlement. The department is seeking $900,000 for a non-
profit to purchase and place conservation easements over
properties that will preserve water quality and salmon
habitat. Co-Chair Stoltze asked the name of the non-profit.
Mr. Richards remarked that he was not sure, but would get
the information. He continued with line 91 and the re-
vegetation of Anchor River and Deep Creek Highway
Embankments along three sites on the Sterling Highway.
3:59:23 PM
Vice-Chair Thomas asked about the 19 mile slide area and
wondered if the EPA was preventing anything from being if
the river was doing naturally. Mr. Richards replied that
when a natural occurrence of water and debris flows down
drainage, it is considered a natural occurrence. When a man-
made object is put there to stop it, then this is an
unnatural occurrence that can be moved off site.
4:00:53 PM
Ms. Rehfeld concluded that this covered the remaining
agencies that were not able to present at the last meeting.
ADJOURNMENT
The meeting was adjourned at 4:01 PM
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB325 Deferred Maintenance Supplemental Amendments Submitted February 17 2010.pdf |
HFIN 2/22/2010 1:30:00 PM |
HB 325 |
| HB 326 Supplemental Amendments - February 17 2010.pdf |
HFIN 2/22/2010 1:30:00 PM |
HB 326 |
| HB 325 OMB Deferred Maintenance Spreadsheet Final 2-17.pdf |
HFIN 2/22/2010 1:30:00 PM |
HB 325 |
| UA FY11 priority R&R projects.pdf |
HFIN 2/22/2010 1:30:00 PM |
|
| HB325 FY11 Capital Budget Request Deferred Maint Sheet - Courts.pdf |
HFIN 2/22/2010 1:30:00 PM |
HB 325 |