Legislature(2001 - 2002)
03/20/2001 09:04 AM Senate FIN
| Audio | Topic |
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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
March 20, 2001
9:04 AM
TAPES
SFC-01 # 48, Side A
SFC 01 # 48, Side B
SFC 01 # 49, Side A
CALL TO ORDER
Co-Chair Pete Kelly convened the meeting at approximately 9:04 AM.
PRESENT
Senator Dave Donley, Co-Chair
Senator Pete Kelly, Co-Chair
Senator Jerry Ward, Vice Chair
Senator Gary Wilken
Senator Alan Austerman
Senator Lyman Hoffman
Senator Donald Olson
Senator Lyda Green
Also Attending: SENATOR JOHN TORGERSON; 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;
HAROLD MOESER, State Harbor Engineer, Division of Statewide Design
and Engineering Services, Department of Transportation and Public
Facilities;
Attending via Teleconference: [NOTE: Teleconference testifiers
were at two off-net sites in Anchorage and Fairbanks.] DAVE EBERLE,
PE, Regional Director, Central Region, Department of Transportation
and Public Facilities; TOM MITTENDORF, Planner, Alaska
International Airport System, Department of Transportation and
Public Facilities, testified via teleconference; JENNIE KUENTZEL,
Planner, Alaska International Airport System, Department of
Transportation and Public Facilities; BILL O'LEARY, Controller,
Alaska International Airport System, Department of Transportation
and Public Facilities; ROGER MAGGARD, Airport Development Manager,
Department of Transportation and Public Facilities
SUMMARY INFORMATION
SB 137-ALASKA HUMAN RESOURCE INVESTMENT COUNCIL
The Committee heard from the sponsor. The bill moved from
Committee.
SB 29-REAPPROPRIATIONS & CAPITAL APPROPRIATIONS
The Committee heard from the Department of Transportation and
Public Facilities. The bill was held in Committee.
SENATE BILL NO. 137
"An Act relating to the allocation of money appropriated to
the Alaska Human Resource Investment Council; and providing
for an effective date."
This was the second hearing for this bill in the Senate Finance
Committee.
SENATOR JOHN TORGERSON presented the fiscal note, pointing out
$3,051,046 is appropriated to the University of Alaska and $500,918
is appropriated to the Kotzebue Technical Center and $1,001,836 is
appropriated to the Alaska Vocational Technical Center (AVTC).
Senator Austerman commented that the purpose of similar legislation
introduced the prior session, was to provide funds to assist the
University in reaching a goal of a $16 million budget increase. He
asked SB 137 would accomplish this.
Senator Torgerson noted this legislation provides funds to the
University.
Senator Wilken offered a motion to report CS SB 137 (FIN) from
Committee.
There was no objection and the bill MOVED from Committee.
SENATE BILL NO. 29
"An Act making capital appropriations and capitalizing funds;
making appropriations under art. IX, sec. 17(c), Constitution
of the State of Alaska, from the constitutional budget reserve
fund; and providing for an effective date."
MANAGEMENT REPORTING SYSTEM EFFICIENCY - ANALYSIS AND
DEVELOPMENT
$250,000
Reference No.: 33938
AP/AL: Appropriation
Category: Transportation
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2001 - 06/30/2006
The department needs a thorough analysis of all information
systems being used by the department, including a review of
what information is being collected from them, how it is being
collected, and how the information is being used. This review
should suggest ways of improving the efficiency of the
departments information management by streamlining processes,
by changing or improving systems, and by improving reporting
processes.
NANCY SLAGLE, Director, Division of Administrative Services,
Department of Transportation and Public Facilities, listed the
Airport Information Management System and the Equipment Management
System as some of the many different systems the Department
operates.
Senator Hoffman asked about the possibility of funding a portion of
this project with federal funds.
Ms. Slagle was unsure that this could be done because this project
is not specific to a federal highway program.
Senator Ward asked if the intent is to contract this project to a
private entity that has performed this service in other states.
Ms. Slagle affirmed.
SAFETY INSPECTION OF STATE OWNED HIGH RISK FACILITIES
$400,000
Reference No.: 33855
AP/AL: Appropriation
Category: Health/Safety
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2001 - 06/30/2006
Field inspection of 50 high-risk buildings. This will include
structural analysis of each facility to determine if they may
be subject to catastrophic failure.
Ms. Slagle testified this project utilizes general funds and is
proposed as a result of recent incidents including one involving
the structural integrity of the Cascade Maintenance Building in the
Central Region. She added that due to the age of the buildings,
asbestos is expected and would have to be addressed. She said this
appropriation would allow inspections of ten to 15 buildings.
Senator Austerman requested a list of the 50 buildings.
Ms. Slagle said she would provide the list.
Senator Wilken asked if this project could be funded from the state
building fund established in the previous legislative session.
Ms. Slagle responded the buildings proposed for this project are
not included in the public building program. She explained the
public building fund addresses state-owned buildings that are
leased to other state agencies.
Senator Wilken requested a list of the ten - 15 buildings planned
for inspection in FY 02.
Senator Leman noted the project plans to use a structural engineer
and an environmental engineer and he asked if these services would
be done with Department staff or through a private contractor(s).
Ms. Slagle expected the engineers would be employed from outside of
the Department.
Ms. Slagle answered Senator Ward's question by explaining the
intent of this project is to determine whether the department has
liability for catastrophic failure of the identified facilities.
She gave heavy snowfall causing a roof collapse as one of the
scenarios the inspections would focus on.
MATERIAL STOCKPILES: DALTON - ELLIOT HIGHWAY
$500,000
Reference No.: 33853
AP/AL: Appropriation
Category: Transportation
Location: Dalton Highway
Election District: Rural Interior
Estimated Project Dates: 07/01/2001 - 06/30/2006
Pay for crushing materials used for maintenance that is not
reimbursable by federal funding. Materials stockpiles will be
contracted in conjunction with major federal-aid highway
projects on the Dalton Highway.
Ms. Slagle testified the "drivability" of the Dalton Highway is
difficult and that on-going routine maintenance is necessary. She
detailed that use of the road, along with wind conditions, have
caused the top layer of the road surface to blow away. She stated
that stockpiling materials along the route is required to enable
this preventative maintenance to occur. She also noted this expense
is not eligible for federal reimbursement.
Co-Chair Kelly asked whether this maintenance could be eligible for
federal funding.
TOM BRIGHAM, Director, Division of Statewide Planning, Department
of Transportation and Public Facilities, explained the general
criteria for federal eligibility. He said if a project were
"programmatic" maintenance, it would be eligible; he gave
resurfacing a road as an example. However, filling potholes,
plowing snow, sanding icy roads, etc. is not eligible, he stated.
Co-Chair Kelly was unsure the difference between preventative and
routine maintenance.
Mr. Brigham responded that most preventative maintenance, such as
applying chip seal where asphalt is beginning to wear, is
"programmatic".
Ms. Slagle continued this project would involve stockpiling surface
materials in four locations along the highway: Sag River, Happy
Valley, Milepost 274 and Milepost 86. She noted it is expensive to
transport materials north of the Brooks Range.
Senator Austerman asked the total capital expenditures requested
for the Dalton Highway.
Mr. Brigham responded $30 million is "earmarked" for activities in
the upcoming summer, with a portion planned for the summer of 2002.
In addition to this amount, he noted an on-going program of
approximately $10 to $15 million a year to rebuild the highway. He
stated the department has projected undertaking one major project
per year, although some years would include smaller projects, such
as a bridge.
Senator Austerman asked the driving force behind keeping the road
in operation.
Mr. Brigham replied the Dalton Highway is "the surface lifeline to
Prudhoe Bay" and that a significant amount of materials is
transported over this road. He detailed the damage caused by
snowplowing and permafrost heaves. He then shared the repairs
would involve building the road level higher in hopes that the wind
would blow snow off the road, thus reducing the need for plowing
and therefore minimizing future damage. He also explained that a
harder, "VSP application" surface would be installed on the
repaired areas.
Senator Wilken addressed Senator Austerman's question by stating
the Dalton Highway "is the lifeline to what amounts to our
permanent fund" and the development of resources. On a more human
scale, he expressed, there are no longer a lot of rich truckers in
Fairbanks, Anchorage or Kenai, due to high-paying contracts with
the oil companies, but there are those making a living. He relayed
how the road conditions cause substantial wear and tear on the
trucks. He asserted the reason for using federal and state funds to
maintain the Dalton Highway is to make that road passable and safe
for those people making a living. He stated the current process of
addressing twenty or thirty miles of the road each year is
accomplishing this.
Co-Chair Kelly agreed with Senator Wilken that the road conditions
are hard on vehicles and the companies that must maintain them.
However, he noted physical injuries are caused from repetitive
driving on the rough roads.
Senator Austerman did not dispute the amount of money spent on this
road is important, but wanted to make a point that the fuel tax
should be increased. He opined that the commercial trucking
industry should be paying some of the cost of maintaining this
road. He compared this to the construction of a launch facility in
Kodiak and 40 miles of road leading to the location.
Senator Wilken informed that an effort was underway to organize a
tour for legislatures to ride the Dalton Highway.
Senator Ward asserted that there are important projects all over
the state. He spoke of roads in his district that need maintenance.
He commented that commercial drivers are claiming their contracts
are no longer viable because they have to absorb the cost of wear
and tear on their vehicles. As a result, he stated, the legislature
is pressured to expend funds to maintain roads for commercial
operators, when other roads are causing damage to the general
public.
VALDEZ - HARBORVIEW DEVELOPMENT CENTER
$261,300
Reference No.: 32476
AP/AL: Appropriation
Category: Health/Safety
Location: Valdez
Election District: Delta, Prince William Sound
Estimated Project Dates: 07/01/2001 - 06/30/2006
This will cover final mothballing of the portion of this
Valdez facility previously used by Health and Social Services.
Ms. Slagle noted this appropriation consists of general funds and
statutory designated program receipts (SDPR) from the City of
Valdez. She stated the Department was given responsibility for this
facility a few years past with no additional funds to maintain it.
She informed the general funds requested in this item would be used
for shut down the unused portion of the facility and the SDPR would
be used to pay utility costs until the facility is closed. She
assured this project would not impact the portion of the facility
currently used as a hospital.
Senator Austerman pointed out that this project has been
continually classified as a one-time project. He asked where the
SDPR would come from.
Ms. Slagle answered, "We're hoping from the City."
WEIGHTS AND MEASURES TESTING UNIT REPLACEMENT
$260,000
Reference No.: 32605
AP/AL: Appropriation
Category: Transportation
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2001 - 06/30/2006
The Weights and Measures vehicle fleet is aging and is at the
point where a number of the vehicles are due for replacement.
Currently, vehicles that are well beyond their projected
economic useful life (some nearly 30 years old) are still in
use.
Ms. Slagle stated this appropriation would be used to purchase two
testing units. She detailed $60,000 of the funds would be used to
purchase a 100-gallon petroleum testing unit used for testing fuel
meters, such as those in home heating oil delivery trucks. She
stated this unit would replace one in the Northern Region that is
over 30 years old and is not longer safe to operate. She continued
the remaining funds would purchase a large-scale unit for testing
trucks, contractor, freight and fishing scales and would replace a
unit located in the Southeast Region that is over 20 years old and
no longer safe to use.
Alaska Marine Highway System: Overhaul, Rehabilitation, and
Mandatory Training
$4,800,000
Reference No.: 30624
AP/AL: Appropriation
Category: Transportation
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2001 - 06/30/2006
Annual maintenance and overhaul on vessels and at terminals,
particularly component or system failures, which will impact
service in the short term.
Ms. Slagle detailed this annual request is to allow inspections of
all sea valves, hull coating, inspections and repairs of propulsion
systems, repairs to diesel generators, sewage systems, etc., as
well as maintenance and repair to terminal facilities.
Ms. Slagle noted that approximately $620,000 of this amount would
be used to pay for STCW training, which is required by the
International Maritime Organization and the US Coast Guard. She
explained all crewmembers must have received this training by
February 1, 2002. She noted most of the training is eligible for
federal funding and this appropriation reflects the amount not
covered.
Co-Chair Kelly asked the balance of the Marine Highway fund and
what were the restrictions on how those funds could be spent.
Ms. Slagle estimated the balance at the end of the previous year
was $16 million. She stated it is predicted the fund would be
depleted this year.
Co-Chair Kelly clarified this fund is not an endowment.
Ms. Slagle explained the fund was "seated with one year's Marine
Highway revenue" of approximately $41 million. She did not know the
exact year.
Co-Chair Kelly read from the capital budget summary, "Our deferred
maintenance items have begun to accumulate and year by year, we opt
not to perform all prudent preservation." He understood that if
maintenance is addressed early, the repair costs are lower in the
long term. He was concerned that the fund has not been used to
address maintenance items and instead has been allocated to
operating expenses.
Ms. Slagle responded the Marine Highway fund has been used to
stabilize the operation of the Marine Highway System to allow
management to predict the level of service that could be provided
in the upcoming year. She told of the efforts required to
establish, publish and distribute schedules. She noted the
maintenance projects in the past have been paid with general funds.
Senator Austerman requested the Department provide a history of how
this fund has been used. He referenced the capital budget summary
showing the inclusion of software expenses in the STCW component
and asked if this is a one-time expense.
Ms. Slagle replied the software in question is a one-time expense
and is eligible for federal funding reimbursement. She clarified
the state is responsible for the expense of the basic safety
training and instructor-assisted training. She assured this request
would be the last for this project.
Senator Austerman referenced a report making recommendations on how
the Marine Highway System could benefit from increased marketing
efforts and a new fee structure. [Copy not provided.] He asked if
the fee structure has been implemented.
Ms. Slagle answered a new fee structure would go into effect the
upcoming summer.
Senator Austerman explained how travelers are charged a toll for
traveling on the Alaska Marine Highway System, and suggested
travelers could be charged a toll for driving the Dalton Highway.
Senator Hoffman noted this project shows funding requests
anticipated through FY 06 and asked if the Marine Highway fund
would have assets to cover these appropriations.
Ms. Slagle responded the fund contains no funds that have not been
committed. She detailed there are vessels currently in overhaul
status and the Department is working to keep nine vessels
operational. In fact, she stressed, more funds are needed.
FACILITIES DEFERRED MAINTENANCE AND CRITICAL REPAIRS
$1,500,000
Reference No.: 30632
AP/AL: Appropriation
Category: Transportation
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2001 - 06/30/2006
To address the most urgent, critical repairs on state
buildings.
Ms. Slagle gave examples of projects that would be addressed with
this appropriation: electrical repairs to the Tudor Road Complex,
roof replacement for the Sitka Court and Office Building, roof
replacement for the Kenai Court House, roof replacement for the
Southeast Region Complex; roof, siding and window replacements for
the Kodiak Regional Office Building, exterior wall surface and
window replacement for the Nome State Building; and roof and door
replacement Ketchikan Maintenance Station. She asserted the
Department has approximately $40 million worth of deferred
maintenance projects on state-owned facilities alone and this
request would address the highest priorities.
EMERGENCY AND NON-ROUTINE REPAIRS
$1,000,000
Reference No.: 30634
AP/AL: Appropriation
Category: Transportation
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2001 - 06/30/2006
Repairs to transportation facilities needed because of natural
disasters, such as floods, snow, wind, earthquakes, etc. These
repairs would be ineligible for federal funds. Also used to
meet imminent failure needs caused by deferred maintenance.
Ms. Slagle gave some examples of repairs undertaken with these
funds in the past as electrical, roof repairs, avalanche control
and highway rockwork. She stated these are repairs that must be
undertaken quickly.
Senator Austerman requested a list of projects addressed with the
funds appropriated in FY01.
Ms. Slagle replied she would provide such a list. She noted all of
the funds have not been committed yet since the fiscal year is
still in progress.
CORP OF ENGINEERS - HARBORS PROGRAM
$1,248,000
Reference No.: 7091
AP/AL: Appropriation
Category: Transportation
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2001 - 06/30/2006
Participation with the Corps of Engineers and local
governments in harbor breakwaters, dredging, feasibility
studies, and program assistance.
Ms. Slagle spoke to this annual request. She referenced the
proposed projects and amounts included in the capital budget
summary.
HARBOR DEFERRED MAINTENANCE
$1,000,000
Reference No.: 7090
AP/AL: Appropriation
Category: Transportation
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2001 - 06/30/2006
To address backlogged deferred maintenance for state-owned
harbors.
SFC 01 # 48, Side B 09:51 AM
Ms. Slagle noted the significant deferred maintenance needs of the
76 state-owned harbors and that this is an annual request.
Co-Chair Kelly asked if these repairs are scheduled in preparation
for transferring ownership to the local communities.
Ms. Slagle answered no, that these repairs are necessary to keep
the harbor facilities operational.
Senator Austerman asked if projects have been identified for the
entire appropriation.
Ms. Slagle affirmed and listed the amounts.
AT EASE 9:54 AM/9:56 AM
Senator Austerman asked for further details on the Department of
Fish and Game, Division of Sport Fish access and aviation seaplane
replacement projects. He wanted to know why general funds instead
of Fish and Game funds are requested.
HAROLD MOESER, State Harbor Engineer, Division of Statewide Design
and Engineering Services, Department of Transportation and Public
Facilities, testified the Department of Fish and Game has funds
from a past appropriation for a launching ramp facility in Hyder.
The Department of Transportation and Public Facilities has a
seaplane float project underway in Hyder, he said, and dredging is
necessary to make the entrance accessible to both projects. He
noted US Federal Aviation Administration funds are proposed for the
seaplane project. The intent, he stated, is to combine the project
to allow federal fund to pay a portion of the dredging expenses.
AIRPORT DEFERRED MAINTENANCE
$1,000,000
Reference No.: 30633
AP/AL: Appropriation
Category: Transportation
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2001 - 06/30/2006
To repair the backlog of maintenance items that cannot be done
through the operating budget funding levels. Typical items are
pavement repairs, lighting repairs, fencing repairs, and bird
and animal controls.
Ms. Slagle pointed out this annual request is for deferred
maintenance projects in rural airports. She informed that $39.7
million in deferred maintenance project were identified in the
Department's Fall 99 survey. She described projects undertaken
during the current fiscal year including brush cutting, bird
control, weed control, runway repair and erosion repair in various
locations across the state.
HIGHWAY DEFERRED MAINTENANCE
$1,500,000
Reference No.: 30631
AP/AL: Appropriation
Category: Transportation
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2001 - 06/30/2006
To address some of the needs that have not been handled
through the operating budget maintenance funds. Typical items
are surface and embankment repairs, drainage culverts and
ditch repairs, marking and sign repairs, and brushing.
Ms. Slagle indicated that this is another annual request. She
listed brush cutting for site improvement along roadways in the
Central Region and Northern Region, guardrail repairs in the same
regions, storm drain cleanouts and bridge repair in Southeast
Region, etc., as some of the projects addressed with the FY 01
appropriation.
STATE EQUIPMENT FLEET REPLACEMENT
$11,800,000
Reference No.: 30628
AP/AL: Appropriation
Category: Transportation
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2001 - 06/30/2006
Replacement and/or refurbishment of equipment and vehicles
which have reached the end of their useful life cycle and all
extension periods and for the continued conversion of vehicles
to alternate fuel and related alternate fuel expenses.
Ms. Slagle explained this item is authorization to receive and
expend funds from the Highway Working Capital fund to replace
vehicles in the 4,400-unit state equipment fleet. She noted this
does not include the Alaska Railroad, the University of Alaska, or
the Alaska Housing Finance Corporation (AHFC).
Senator Hoffman asked if this project has a backlog.
Ms. Slagle answered there is a backlog that is being addressed. She
informed the Department secured $9 million in financing for road
graders and snowplows.
Senator Ward asked if efforts were in progress to obtain vehicles
that utilize alternative fuel.
Ms. Slagle stated the Department owns about 30 vehicles that
operate on natural gas fuel.
Ms. Slagle noted this concluded presentations on the general fund
requests. The following items involve federal funds.
Mr. Brigham stated the Department has a total of 102 aviation
projects utilizing approximately $155 million federal Aviation
Improvement Program funds. He noted that $43.5 million of this is
derived from international airport revenues and $113.2 is aviation
bonds. He stated the Department is requesting $7.3 million general
funds to leverage as matching funds.
Mr. Brigham continued the Department has a total of 156 surface
projects totaling $486 million federal receipts. He stated the
Department is requesting $41 million general funds to leverage as
matching funds.
Mr. Brigham pointed out there are numerous projects and suggested
addressing only those the Committee members had questions about.
Senator Austerman asked the amount of federal transportation
receipts appropriated over the past several years.
Mr. Brigham estimated an average of $350 million to $400 million
per year in recent years and $250 million in preceding years.
Senator Austerman pointed out there is an additional $86 million
secured for FY 02.
Mr. Brigham explained the "total project value" of the "basic
program" has grown to between $360 and $370 million in federal and
matching general funds. He remarked the state has been fortunate in
receiving "a number of congressional earmarks" in the past two
years.
Senator Austerman clarified the increase has been for specific
programs. He noted items were consistently removed from the
Department's list of planned projects. In his opinion, there is
more money appropriated to fewer projects.
Mr. Brigham responded the FY 02 proposed budget contains
approximately $100 million in "earmark" projects and $360 to $380
million in regular programs. He pointed out there is an increase in
the amount appropriated to regular projects. He noted the reduction
in the number of projects is the result of underestimation of
project costs and the "uncertainties of delivering a project" with
respect to right-of-way complications. Because of these problems,
projects get moved farther down the priority list and also displace
other projects. He stated that the Statewide Transportation
Improvement Plan (STIP) is actually a "snapshot" of the project
development at a given point of time rather than a budget.
Senator Hoffman reminded of a bridge project that has been delayed
several years. He was told the delay was due to a right-of-way
issue, but had heard from residents that the real problem was
because of poor site selection. He surmised this is not a "project
slippage" but rather a "project forgotten". He told of students
traveling to school in the winter over the lake in open skiffs. He
questioned the health, life and safety priority assigned to this
project.
Mr. Brigham responded that funding for this project was requested
approximately four years prior, but was not funded. He noted the
Department then began the development process, and admitted the
site selection process has been complicated.
[Note: Teleconference interference from off-net sites.]
DAVE EBERLE, PE, Regional Director, Central Region, Department of
Transportation and Public Facilities, testified via teleconference
from Anchorage, affirmed the construction funds were excluded from
the budget several years, although the engineering process had
begun. He stated the development process is done entirely with
federal funds, but could take another year to 18 months to complete
the design process before the right-of-way process could begin.
Senator Austerman agreed with Senator Hoffman's concerns, relaying
a Marine Highway dock project Kodiak had been on the STIP project
list for about ten years, but not on the list this year. He
remarked he attributed this to poor communication from the
Department.
Senator Hoffman asked the cost to build the new facility at the Ted
Stevens International Airport. He wanted to know why the proposed
budget contains new appropriations for this facility. He noted
several projects relate to the airfield, but questioned those
specifically related to the terminal.
TOM MITTENDORF, Planner, Alaska International Airport System,
Department of Transportation and Public Facilities, testified via
teleconference testified to the projects that maintain the airfield
and address environmental issues. He told of information technology
projects to provide airport planning and design, conduct terminal
operations, and provide flight information for passengers. He noted
that approximately 62 percent of the cost for this airport are for
maintenance repair and other related projects and approximately 25
percent are for regulatory requirements.
Senator Ward asked about the advanced parking design study.
Mr. Mittendorf replied that every year, preliminary engineering
begins for projects planned for the following year. He stated
parking is one of many projects that would be funded from the
advanced funding budget request.
Senator Ward asked if the parking project is related to the
location of the Alaska Railroad terminal at the airport.
Mr. Mittendorf responded the parking lot expansion is related to
the railroad terminal. He explained the parking lot project would
potentially provide additional rental car parking, covered parking
for the general public as well as improved facilities for cruise
ship passengers arriving at the airport via the railroad.
Senator Olson referenced the request for $2.6 million for de-icing
systems and asked for further detail.
Mr. Mittendorf told of the De-Icing Task Force comprised of airport
staff and airline representatives charged with identifying methods
to collect and possibly treat de-icing chemicals at the airport. He
noted that currently, the waste is deposited in Lake Hood. He
informed that the task force should issue final recommendations the
upcoming Fall and that the funds requested are included in the
budget with the assumption that drainage and collections systems
would be established.
Senator Olson asked how the chemical would be separated from the
water in the storm drains.
Mr. Mittendorf replied that the issue is still in the planning
phase, but that one possibility is to reroute the drainage using
spigots during the winter months so the chemicals do not drain into
Lake Hood.
Senator Olson thought $2.6 million is a significant amount to spend
on spigots.
Mr. Mittendorf responded the system would probably encompass
underground containment of the de-icing materials and special
aircraft parking areas where the de-icing activity would occur.
Senator Leman asked for an explanation of the North Terminal Water
Line Replacement item. He asked where the line originates and
whether the existing system is aging.
JENNIE KUENTZEL, Planner, Alaska International Airport System,
Department of Transportation and Public Facilities, testified via
teleconference, told of the conversion of water systems and the
need to replace water fixtures throughout the terminal.
Senator Leman clarified that the lines are located inside the
terminal building.
Ms. Kuentzel affirmed.
Senator Austerman referred to the parking design and asked if the
Department had consulted the private sector to learn if there is an
interest in a privately constructed and operated parking facility.
Mr. Mittendorf said that there has been interest and that the
Department is considering such an option. He elaborated that if a
private facility were constructed the Department would oversee
planning, construction and operation because the airport would
ultimately have ownership of the facility.
Senator Austerman asked about the requests for $14.5 million for
terminal rehabilitation and $5 million for terminal relocation.
Ms. Kuentzel replied these are annual requests for funds to
undertake major maintenance in the terminal facilities.
Senator Austerman assumed these projects are in the existing
portion of the terminal.
Ms. Kuentzel affirmed the projects are located in the main terminal
and the North terminal. She detailed the projects address federal
fire code and health/safety requirements, such as lighting,
furnishing, plumbing, electrical, etc.
Senator Austerman how about the relocation for 5 million.
Ms. Kuentzel explained the $5 million terminal relocation request
is to cover costs of relocating airlines within the terminal.
Senator Olson asked for justification of the almost $5 million
requested for Airfield Safety and Blast Protection.
Mr. Mittendorf told the Committee of the completion of a Pavement
Management Program and the resulting phased project to upgrade
pavement. He listed pavement maintenance, blast protection and
electrical systems as services that would be addressed at the same
time. He explained that jet blasts from heavy aircraft cause runway
degradation, which could also result in debris sucked into jet
engines. He noted some large runway rehabilitation projects are
planned in the next several years.
Senator Olson asked the repairs planned for Runway 1432.
Mr. Mittendorf answered it would be resurfaced and lighting
upgrades would be installed.
Ms. Kuentzel added some areas on this runway are deteriorating.
Mr. Mittendorf noted runways that receive the heaviest use are
resurfaced and reconstructed every seven to ten years. This
project, he said, is normal scheduled rehabilitation for this
runway.
Co-Chair Kelly asked how much of this project utilizes general
funds versus federal funds.
Mr. Mittendorf answered no general funds would be used and that
International Airport Revenue funds would be used as matching funds
to secure the federal funding.
Senator Wilken referenced the $147 million bonding Five-Year Plan
for the Ted Stevens Anchorage International Airport that the
Department presented to the Senate Transportation Committee. He
asked if these projects are included in the five-year plan or if
they are "over and above".
BILL O'LEARY, Controller, Alaska International Airport System,
Department of Transportation and Public Facilities, testified via
teleconference that these projects are included in the legislation
containing a bond package to fund projects at the Fairbanks
International Airport and the Ted Stevens Anchorage International
Airport. He noted the matching funds necessary to secure federal
funding would be provided through bonds.
Ms. Slagle pointed out the funding source for the proposed projects
is International Airport Construction funds, which are specific to
the bond legislation. She noted if the legislations did not pass,
the funding sources would need to change.
Senator Wilken next referred to a Systems Relocation Project and an
Information Technology System. He asked for details on these
projects and an explanation on how they might relate to the
Communications Request For Proposals (RFP) the state is currently
considering.
Mr. Mittendorf was not familiar with the RFP.
Co-Chair Kelly noted the Committee would hear a presentation on the
Information Technology project at a later date.
Senator Leman asked if projects addressing blast protection include
efforts for noise abatement.
Mr. Mittendorf responded noise abatement is not part of this
particular project. He spoke of a Ground Noise Study currently
underway, which could result in recommendations for new runway
directions. If this were to occur, he noted, the runway
rehabilitation projects would address the new pathways.
Senator Austerman pointed to the $8.9 million request for the
Whittier Access Tunnel and the request for funds for the Whittier
Access Road. He understood the tunnel opening included delayed
implementation of a toll. He asked if the Department would continue
to submit requests for maintenance and operation of this road and
tunnel on an on-going basis or whether the fees collected from the
toll would cover the costs. He also wanted to know if any general
funds were requested for the Whittier Access Tunnel.
Mr. Brigham replied the revenues amounts would be unknown until the
toll is actually enacted. He stated that if the toll program is
successful, the revenues might cover all maintenance and operating
costs. However, noted the Department has the "permission" of the
Federal Highways Administration to "include a project of this
nature" on an on-going basis in the federal program and general
funds would not be necessary.
Senator Austerman repeated his question of whether general funds
are requested for the Whittier Access Tunnel in the FY 02 budget.
Ms. Slagle replied the only general funds requested in the capital
budget are for matching funds. The operating budget, she continued,
contains a request for general funds for maintenance and operations
of areas near the tunnel entrances.
Senator Austerman asked if the toll revenues would be sufficient to
cover maintenance and operation costs of the staging areas near the
tunnel.
Ms. Slagle responded it is hoped there would be enough revenue to
pay all the expenses of the tunnel and entrance areas. She pointed
out SDPR authority contained in the operating budget to utilize
toll revenues.
Senator Austerman suggested the Committee review the matter the
following session to ensure the staging areas are paid with toll
revenues since federal funds are available for the tunnel expenses.
Senator Leman referenced the Akutan Airport Master Plan, noting the
cost is "considerably" higher then other master plans.
Mr. Brigham explained the Akutan plan is "much more complicated".
ROGER MAGGARD, Airport Development Manager, Department of
Transportation and Public Facilities, testified via teleconference
the Akutan Airport Master Plan is a more expensive project. He
detailed it involves evaluation of a site that is further from the
community than other airport facilities and is in rugged terrain.
He stated $1.2 million was "earmarked" by US Senator Ted Stevens to
this project. The actual amount of funding requested is
approximately $970,000, he said.
Senator Hoffman asked if access to Akutan is still via seaplane.
Mr. Maggard affirmed.
SFC 01 # 49, Side A 10:40 AM
Senator Leman asked about fuel tax evasion.
Mr. Brigham explained a federal program the Department of
Transportation and Public Facilities and the Department of Revenue
participates in that helps fund gasoline tax evasion enforcement
efforts.
Senator Wilken noted the general fund total of the Department of
Transportation and Public Facilities budget is 6.8 percent and the
general fund total for federal match is 9.4 percent. He remarked,
"This is a transportation budget that is definitely driven by
federal money or other money."
Senator Austerman agreed Senator Wilken raised a valid point. He
cautioned that those federal funds could be greatly reduced with
the loss of one congressman [referring to US Senator Ted Stevens.]
He stressed the Legislature must discuss options to prepare the
state for this occurrence.
Senator Green appreciated these concerns but stressed federal funds
come from Alaskans. She suggested if the tax system were different
the state's situation could be different.
ADJOURNMENT
Co-Chair Pete Kelly adjourned the meeting at 10:45 AM.
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