Legislature(2003 - 2004)

05/07/2004 02:03 PM CRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
    SENATE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE                                                                  
                          May 7, 2004                                                                                           
                           2:03 p.m.                                                                                            
TAPE (S) 04-16                                                                                                                
                                                                                                                              
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Bert Stedman, Chair                                                                                                     
Senator Thomas Wagoner, Vice Chair                                                                                              
Senator Gary Stevens                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Kim Elton                                                                                                               
Senator Georgianna Lincoln                                                                                                      
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CS FOR HOUSE BILL NO. 561(FIN)                                                                                                  
"An Act  providing for  and relating to  the issuance  of general                                                               
obligation  bonds  in  a  principal   amount  of  not  more  than                                                               
$93,280,000  for  the  purpose  of   paying  the  cost  of  state                                                               
transportation projects; and providing for an effective date."                                                                  
     MOVED SCS CSHB 561(CRA) OUT OF COMMITTEE                                                                                   
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 561                                                                                                                  
SHORT TITLE: G.O. BONDS FOR TRANSPORTATION PROJECTS                                                                             
SPONSOR(s): FINANCE                                                                                                             
                                                                                                                                
04/29/04       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/29/04       (H)       FIN                                                                                                    
04/30/04       (H)       FIN AT 8:30 AM HOUSE FINANCE 519                                                                       
04/30/04       (H)       Heard & Held                                                                                           
04/30/04       (H)       MINUTE(FIN)                                                                                            
05/04/04       (H)       FIN RPT CS(FIN) NT 6DP 1NR                                                                             
05/04/04       (H)       DP: MEYER, HAWKER, CHENAULT, FATE,                                                                     
05/04/04       (H)       FOSTER, WILLIAMS; NR: STOLTZE                                                                          
05/04/04       (H)       TRANSMITTED TO (S)                                                                                     
05/04/04       (H)       VERSION: CSHB 561(FIN)                                                                                 
05/04/04       (H)       FIN AT 8:30 AM HOUSE FINANCE 519                                                                       
05/04/04       (H)       Moved CSHB 561(FIN) Out of Committee                                                                   
05/04/04       (H)       MINUTE(FIN)                                                                                            
05/05/04       (S)       READ THE FIRST TIME - REFERRALS                                                                        
05/05/04       (S)       CRA, FIN                                                                                               
05/07/04       (S)       CRA AT 2:00 PM FAHRENKAMP 203                                                                          
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
James Armstrong                                                                                                                 
Aide to Representative Bill Williams                                                                                            
Alaska State Capitol                                                                                                            
Juneau, AK  99801-1182                                                                                                          
POSITION STATEMENT:  Introduced CSHB 561(FIN)                                                                                 
                                                                                                                                
John MacKinnon                                                                                                                  
Deputy Commissioner of Transportation                                                                                           
Department of Transportation &                                                                                                  
  Public Facilities                                                                                                             
3132 Channel Dr.                                                                                                                
Juneau, AK  99801-7898                                                                                                          
POSITION STATEMENT:  Commented briefly on CSHB 561(FIN)                                                                       
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 04-16, SIDE A                                                                                                            
                                                                                                                                
CHAIR  BERT  STEDMAN called  the  Senate  Community and  Regional                                                             
Affairs Standing Committee meeting to  order at 2:03 p.m. Present                                                               
were Senators Wagoner, Gary Stevens, and Chair Stedman.                                                                         
                                                                                                                                
      CSHB 561(FIN)-G.O. BONDS FOR TRANSPORTATION PROJECTS                                                                  
                                                                                                                              
CHAIR BERT STEDMAN  announced HB 561 to be  up for consideration.                                                               
He asked Mr. Armstrong to come forward.                                                                                         
                                                                                                                                
JAMES  ARMSTRONG, aide  to Representative  Bill Williams,  stated                                                               
that the  bill closely  mirrors a  proposal the  2002 Legislature                                                               
adopted  authorizing  $226  million in  general  obligation  (GO)                                                               
bonds. This  bill would authorize  $93.28 million in GO  bonds to                                                               
pay for state transportation projects.                                                                                          
                                                                                                                                
CHAIR STEDMAN asked whether he had an amendment to offer.                                                                       
                                                                                                                                
MR. ARMSTRONG distributed copies of the sponsor's amendment 1:                                                                  
                                                                                                                                
                          Amendment 1                                                                                         
                                                                                                                              
Delete                                                                                                                        
Page 2, Line 16-17                                                                                                              
Anchorage - Abbott Loop Road Upgrade (68 Avenue                                                                                 
     15,000,000                                                                                                                 
to Abbott Road)                                                                                                                 
                                                                                                                                
Insert                                                                                                                        
Page 2, Line 16                                                                                                                 
                                        th                                                                                      
Anchorage - Abbott Loop Road Upgrade (68 Avenue                                                                                 
     11,000,000                                                                                                                 
to Abbott Road)                                                                                                                 
                                                                                                                                
Delete                                                                                                                        
Page 3, Line 25                                                                                                                 
Jewel Lake Road and Strawberry Road signalization                                                                               
     1,100,000                                                                                                                  
                                                                                                                                
Insert                                                                                                                        
Page 3, Line 25                                                                                                                 
Anchorage - Jewel Lake Road and Strawberry Road signalization                                                                   
     2,000,000                                                                                                                  
                                                                                                                                
Insert                                                                                                                        
After Line 27                                                                                                                   
Anchorage - Dowling Road Upgrade (Laurel Street to Abbott                                                                       
     3,100,000                                                                                                                  
Loop Road)                                                                                                                      
                                                                                                                                
                                                                                                                                
Delete                                                                                                                        
Page 2, Line 31                                                                                                                 
Fairbanks - Steese Highway corridor safety and capacity                                                                         
     7,500,000                                                                                                                  
                                                                                                                                
Insert                                                                                                                        
Page 2, Line 31                                                                                                                 
Fairbanks - Parks Highway rehabilitation (Ester to Fairbanks)                                                                   
     7,500,000                                                                                                                  
                                                                                                                                
                                                                                                                                
Delete                                                                                                                        
Page 3, Line 18                                                                                                                 
Wrangell - Heritage Harbor renovation                                                                                           
     1,400,000                                                                                                                  
                                                                                                                                
Insert                                                                                                                        
Page 3, Line 18                                                                                                                 
Wrangell - Heritage Harbor construction                                                                                         
     1,400,000                                                                                                                  
                                                                                                                                
SENATOR GARY  STEVENS asked for  an explanation for  changing the                                                               
Wrangell project from renovation to construction.                                                                               
                                                                                                                                
JOHN   MACKINNON,   deputy    commissioner   of   transportation,                                                               
Department of Transportation &  Public Facilities, explained that                                                               
the  Wrangell   Heritage  Harbor  is  the   one  currently  under                                                               
construction.  There  is an  option  to  add  to the  project  by                                                               
including floats so it is construction and not renovation.                                                                      
                                                                                                                                
SENATOR  THOMAS WAGONER  asked  if  that is  an  option from  the                                                               
preexisting bid.                                                                                                                
                                                                                                                                
MR. MACKINNON said yes.                                                                                                         
                                                                                                                                
CHAIR STEDMAN asked if this changed the total.                                                                                  
                                                                                                                                
MR. MACKINNON said no.                                                                                                          
                                                                                                                                
SENATOR WAGONER made  a motion to adopt amendment  1. There being                                                               
no objection, it was so ordered.                                                                                                
                                                                                                                                
CHAIR STEDMAN noted there was a second amendment.                                                                               
                                                                                                                                
SENATOR GARY STEVENS made a motion to adopt amendment 2.                                                                        
                                                                                                                                
                          Amendment 2                                                                                           
                        CS HB 561 (FIN)                                                                                       
                                                                                                                              
Modifications                                                                                                                 
                                                                                                                                
Page 2, Line 14:                                                                                                                
Federal earmark match lowered from $15 million to $5 million                                                                    
                                                                                                                                
Page 3, Line 17:                                                                                                                
Petersburg Middle  Harbor renovation increased from  $1.2 million                                                               
to $2.2 million to fully fund this requirement                                                                                  
                                                                                                                                
Page 3, Line 18:                                                                                                                
Replaced  "renovation" with  "construction". Wrangell's  Heritage                                                               
Harbor project hasn't begun.                                                                                                    
                                                                                                                                
Additions:                                                                                                                    
                                                                                                                                
The following projects have been  added beginning on Page 3, Line                                                               
28 and continuing to Page 4, Line 3:                                                                                            
                                                                                                                                
     City of Seward - travel lift replacement and dock rebuild                                                                  
                  275,000                                                                                                       
     City of Soldotna - road improvements                                                                                       
     500,000                                                                                                                    
     Wrangell - Bradfield Canal Road planning and design                                                                        
             500,000                                                                                                            
     Sitka - Overlay Halibut Point Road                                                                                         
          1,000,000                                                                                                             
     Southeast regional freight consolidation/cold storage                                                                      
     construction        2,000,000                                                                                              
                                                                                                                                
Result:                                                                                                                       
                                                                                                                                
These changes  lower the total  bonding authority of the  bill by                                                               
$4,725,000 to $88,555,000  and lower the amount  allocated to the                                                               
state bond committee for expenses from $466,400 to $442,775.                                                                  
                                                                                                                              
CHAIR STEDMAN explained  the changes and noted  that the proposed                                                               
change on page  3, line 18 was already  incorporated in amendment                                                               
1.                                                                                                                              
                                                                                                                                
SENATOR GARY STEVENS  asked if he wanted a motion  to delete that                                                               
portion of the amendment.                                                                                                       
                                                                                                                                
CHAIR STEDMAN indicated that he would like a motion.                                                                            
                                                                                                                                
SENATOR  GARY STEVENS  made  a  motion to  amend  amendment 2  by                                                               
deleting:                                                                                                                       
                                                                                                                                
Page 3, Line 18:                                                                                                                
Replaced  "renovation" with  "construction". Wrangell's  Heritage                                                               
Harbor project hasn't begun.                                                                                                    
                                                                                                                              
CHAIR STEDMAN said, "Hearing no objection, that is deleted." He                                                                 
then mentioned the five projects that were added and read the                                                                   
result of the changes, which was to "lower the amount allocated                                                                 
to the state bond committee for expenses from $466,400 to                                                                       
$442,775."                                                                                                                      
                                                                                                                                
SENATOR WAGONER moved amendment 2 as amended and there was no                                                                   
objection.                                                                                                                      
                                                                                                                                
CHAIR STEDMAN asked for a motion.                                                                                               
                                                                                                                                
SENATOR GARY STEVENS made a motion to move CSSB 387(CRA) from                                                                   
committee with individual recommendations and attached fiscal                                                                   
note. There being no objection, it was so ordered.                                                                              
                                                                                                                                
CHAIR STEDMAN adjourned the meeting at 2:15 pm.                                                                                 

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