Legislature(1997 - 1998)
04/15/1997 08:10 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
15 April 1997
8:10 a.m.
TAPES
SFC-97, #110, Side 1, (000 - 591)
110, Side 2, (591 - 000)
111, Side 1, (000 - 590)
111, Side 2, (590 - 451)
CALL TO ORDER
Senator Bert Sharp, Co-chairman, convened the meeting at
approximately 8:10 a.m.
PRESENT
In addition to Co-chairman Sharp, Senators Donley,
Torgerson, Parnell and Adams were present when the meeting
was convened. Senators Phillips and Pearce arrived
respectively thereafter.
ALSO ATTENDING: Tom Wright, staff to Representative Ivan
Ivan; Lamar Cotten, Deputy Commissioner, Department of
Community and Regional Affairs; Nancy Slagle, Director,
Division of Administrative Services, Department of
Transportation and Public Facilities; Tom Brigham, Director,
Division of Statewide Planning, Department of Transportation
and Public Facilities; Mike Greany, Director, Division of
Legislative Finance; aides to committee members and other
legislators.
via teleconference: Paul Bowers, Director, Division of
Statewide Aviation, Department of Transportation and Public
Facilities; Morton Plumb, Manager, Anchorage International
Airport, Department of Transportation and Public Facilities;
Doyle Ruff, Manager, Fairbanks International Airport,
Department of Transportation and Public Facilities; Jim
Florenzi, Fairbanks Airport, Department of Transportation
and Public Facilities; John Unger, Systems Controller,
Alaska International Airports, Department of Transportation
and Public Facilities; Ron Simpson and Sharon Daboin, FAA
representatives.
SUMMARY INFORMATION
Senator Sharp convened the meeting and called HB 86.
HOUSE BILL NO. 86
"An Act relating to the payments in lieu of taxes
program for cities in the unorganized borough; and
providing for an effective date."
(Due to teleconference problems the beginning portion of
tape #110 was not properly recorded.)
Senator Torgerson voiced his objection to HB 86. Tom
Wright, staff to Representative Ivan Ivan was invited to
join the committee. He briefly explained the bill.
Senator Adams indicated that the Legislature may not control
these funds. Communities pay a sales tax and there is a
dumping fee.
Lamar Cotten, Deputy Commissioner, Department of Community
and Regional Affairs was invited to join the committee. He
explained the appropriate code. All cities in unorganized
boroughs are treated the same.
Co-chair Sharp at this point appointed a subcommittee
consisting of Senator Pearce, chair; Senator Torgerson and
Senator Adams. He requested a response from this
subcommittee by next Friday. HB 86 was held in committee.
HOUSE BILL NO. 18
"An Act extending to certain partnerships and
corporations the 10 percent procurement preference
currently given to certain sole proprietorships who are
Alaska bidders and owned by persons with disabilities."
Co-chair Sharp asked HB 18 be waived from Senate Finance
Committee and without objection it was waived.
HOUSE BILL NO. 26
"An Act relating to big game tags for wolves; and
providing for an effective date."
Co-chair Sharp asked HB 26 be waived from Senate Finance
Committee and without objection it was waived.
SENATE BILL NO. 17
"An Act creating the crime of criminal transmission of
human immunodeficiency virus (HIV)."
Co-chair Sharp asked SB 17 be waived from Senate Finance
Committee. Senator Adams objected saying testimony needed
to be taken regarding the bill. Co-chair Sharp said he
would reschedule a hearing for next week.
CS FOR SENATE BILL NO. 105(FIN)
"An Act relating to legislative and executive branch
ethics; relating to campaign finances for candidates for
the legislature; relating to the conduct and regulation of
lobbyists with respect to public officials; relating to
the filing of disclosures by certain state employees and
officials; making a conforming amendment to the
definition of `public official' for employment security
statutes; and providing for an effective date."
Co-chair Sharp introduced SB 105. He noted there was a new
work draft in the file. Senator Donley requested the bill
be held in committee. Senator Phillips moved to rescind
action in reporting out CSSB 105(FIN) and without objection
the action was rescinded. Co-chair Sharp held the bill in
committee.
SENATE BILL NO. 107
"An Act making and amending capital and other
appropriations and to capitalize funds; and providing
for an effective date."
Co-chair Sharp continued to SB 107. Nancy Slagle and Tom
Brigham, Department of Transportation and Public Facilities
were invited to join the committee. Senator Donley
commented that Tudor Road was the worst traffic nightmare.
Co-chair Sharp referred to the Corp of Engineers on page 19
and 20. Mr. Brigham said the Corps had its' priorities.
Ms. Slagle said there were various factors to be taken into
consideration on specific projects. Co-chair Sharp said he
wanted an idea of the priorities to see what could be done.
Ms. Slagle said she would provide that requested list.
Senator Torgerson also concurred. He referred to page 29,
Unalaska small boat harbour.
The meeting then continued on with Co-chair taking testimony
via teleconference.
Morton Plumb, Manager, Anchorage International Airport
testified via teleconference. All projects had to be
approved by the airline committee. It would take a two-
third disapproval to stop a project. Ms. Slagle explained
the planning and selection process for projects and how
their priority was selected.
Paul Bowers, Director, Statewide Aviation testified via
teleconference. He further explained the planning and
selection process. A project evaluation board, consisting
of six members made up an ACIP list. The highest ranked
program was performed first.
Co-chair Sharp indicated his concern for rural airports.
Mr. Bowers said there were more needs to be identified than
funding available. The more easy, less expensive projects
have been addressed. He said it was never known how much
federal funding would be available and when it would be made
available. At this point some $60 million was to be made
available and one-third of it could be used at the state's
discretion. Co-chair Sharp also asked about snow removal
equipment and/or buildings at the airports. Mr. Bowers said
there was a 6-1/4% match available. Senator Pearce asked
about the landing fees at the Anchorage and Fairbanks
airports.
John Unger, Systems Controller, Alaska International
Airports testified via teleconference. He said the landing
fees would go down to 67% on 1 July. There was a work
increase of cargo flights.
Doyle Ruff, Manager, Fairbanks International Airport
testified via teleconference. He explained necessary runway
repair.
In response to a question by Senator Pearce regarding
allocation between landing fees and terminal rent Mr. Unger
said $7.2 million was for Runway C repair. He assured the
committee that the monies were for Runway C repair and not
for repair on any buildings.
Co-chair Sharp asked about the technical committee and who
they were. Mr. Plumb said the committee was made up of
regional and international carriers. Mr. Unger noted there
was approximately $3 million previous funds plus $7 million
on request for site preparation, runway repairs, etc.
Co-chair Sharp thanked the individuals testifying via
teleconference. There was a brief at ease.
Ms. Slagle and Mr. Brigham commenced a review of the
Statewide Programs as outlined in the bill. Mr. Brigham
noted that the state match for federal aid airport projects
at lines 8 - 9, page 19 would utilize AIDEA funds. The
following sections on page 19, lines 8 - 16 were reviewed
briefly for the committee: State Match for Federal Aid
Airport Projects; Federal Transit Administration Grants;
Cooperative Reimbursable Projects; State Equipment Fleet
Replacement Program; Engineering Equipment Replacement;
Emergency Federal Projects; Federal Contingency Funds; and
Alaska Marine Highway System Improvements and Overhaul. At
this point, Senator Pearce asked about the ferry Malaspina.
Mr. Brigham responded that the Malaspina was a special case.
It had no rehaul for several years and was no longer in
compliance with international safety standards. Senator
Torgerson asked the funding source and Mr. Brigham responded
it was from the State. He also noted that only minor,
general funded overhaul had been done to the vessel. Ms.
Slagle outlined money needed for general maintenance or
anticipated repairs. She then continued on at line 18,
Harbor Deferred Maintenance. Senator Phillips asked if this
included Prince Rupert and Mr. Brigham indicated it did not.
Under Emergency and Non Routine Repairs Ms. Slagle said this
was not for federal emergency but included repairs needed to
prevent a loss. Mr. Brigham continued on lines 20 - 23,
Highway Deferred Maintenance; Energy Cost Savings
Improvements for State Owned Facilities; Facility Deferred
Maintenance and Critical Repairs.
Ms. Slagle indicated that under Airport Deferred Maintenance
the Anchorage facility needed roof repairs.
Co-chair Sharp noted Corps of Engineers Program at line 26,
page 19 had been previously covered. Senator Phillips at
this point asked about the Glenn Highway. Mr. Brigham said
a piece of the Glenn Highway was done each year including
bridges. Senator Pearce also asked about the Glenn Highway.
Mr. Brigham said the repairs were always done under PE
(preliminary engineering) designation. Senator Phillips
asked if the Tok Highway had been deleted. Mr. Brigham
noted the PE designation for 1998, approximately $20 million
for Northway Junction to Tok. Senator Pearce said she added
all the PE's and the total was only $16 million. Mr.
Brigham explained that $20 million was an approximate
amount. She said it did not make sense to overdesign.
There was an excess in design monies. Mr. Brigham said he
would have to look at the design program. Senator Pearce
said she concurred with Senator Torgerson, chairman of the
transportation subcommittee and felt the entire committee
was frustrated.
Senator Parnell referred to items 3, 4, and 5 listed on page
1, of the Highways Deferred Maintenance list. Mr. Brigham
indicated these projects were all funded last year. The
department was not asking for budget authority; they were
just listed as ongoing projects. They were in design work
this year. Senator Torgerson asked about projects approved
in 1997. Mr. Brigham explained these projects. Senator
Torgerson felt the 1997 projects should not be listed. Mr.
Brigham explained rehabilitation of Edgerton Highway.
Senator Phillips also referred to page 1 and asked about the
Glenn Highway - Palmer - Wasilla portion. Mr. Brigham
indicated that it included federal authority being
requested. Senator Torgerson further referred to pages 9
and 10 and asked why planning went from $6 million to $8
million. He said he would be happy with any details at this
point. Mr. Brigham explained the funds were used in
planning. Funds used for planning and research could not be
used for construction. Senator Pearce asked who decided
allocations of federal funds. Mr. Brigham said it was
decided by federal statute. There followed a short
discussion between Senator Pearce and Mr. Brigham regarding
comments of Senator Stevens, U.S. Senator. He said $26
million federal funds was not enough for Alaska. Mr.
Brigham said he would bring further details for the
committee. He did not know why they were contemplating more
money from Washington. He further commented on the 1988
requests.
Senator Phillips asked if the department would consider
having the October workshop as previously done. He felt
that since this was no longer being done there was a
continuing communication problem. Senator Torgerson also
felt there should be some research into what was happening
in Washington D.C. He also said he would resubmit
amendments if he had all the necessary information and
correct details.
Co-chair Sharp asked Mr. Brigham to continue his review on
page 29, lines 11, 12 and 13. Those items were: Clean-up
of State Owned Contaminated Sites; Weigh Stations
Renovations (Glennallen and Valdez); and Unalaska Small Boat
Harbour (AIDEA). Ms. Slagle also reviewed lines 4 and 5:
Statewide Aviation Preconstruction and Statewide Aviation
System Planning.
Mr. Brigham also noted that the department was doing data
collection which was a federal requirement. Accident
reporting and statewide planning was also a federal
requirement.
Co-chair Sharp indicated at this point that the review of
the Department of Transportation and Public Facilities was
complete. He thanked Ms. Slagle and Mr. Brigham.
ADJOURNMENT
Co-chair Sharp recessed the meeting until 8:00 a.m.
tomorrow.
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