Legislature(2011 - 2012)SENATE FINANCE 532
03/01/2012 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB160 | |
| Department of Revenue | |
| Department of Transportation and Public Facilities | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 160 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
SENATE FINANCE COMMITTEE
March 1, 2012
9:01 a.m.
9:01:35 AM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 9:01 a.m.
MEMBERS PRESENT
Senator Bert Stedman, Co-Chair
Senator Lyman Hoffman, Co-Chair
Senator Lesil McGuire, Vice-Chair
Senator Johnny Ellis
Senator Dennis Egan
Senator Donny Olson
Senator Joe Thomas
MEMBERS ABSENT
None
ALSO PRESENT
Jerry Burnett, Director, Administrative Services,
Department of Revenue; Jeff Ottesen, Director, Program
Development, Department of Transportation and Public
Facilities; Mike Lukshin, State Ports & Harbors Engineer,
Department of Transportation and Public Facilities; Roger
Maggard, Rural System Airport Development Manager,
Department of Transportation and Public Facilities; Michael
Vigue, Planning Chief, Department of Transportation and
Public Facilities; Mike Coffey, Chief, Statewide
Maintenance, Department of Transportation and Public
Facilities
PRESENT VIA TELECONFERENCE
Joe Dubler, Vice President & Chief Financial Officer,
Alaska Gasline Development Corporation; Dan Fauske,
President, Alaska Gasline Development Corporation; Les
Campbell, Budget Director, Alaska Housing Finance
Corporation
SUMMARY
SB 160 BUDGET: CAPITAL
SB 160 was HEARD and HELD in committee for
further consideration.
SENATE BILL NO. 160
"An Act making and amending appropriations, including
capital appropriations and other appropriations;
making appropriations to capitalize funds; and
providing for an effective date."
9:02:44 AM
^DEPARTMENT OF REVENUE
9:02:44 AM
JERRY BURNETT, DIRECTOR, ADMINISTRATIVE SERVICES,
DEPARTMENT OF REVENUE, introduced himself.
RN 54532
Child Support Services Case Management System Modernization
Plan
$1,637,000
Mr. Burnett explained that the project is the initial
planning phase to determine the most efficient and cost
effective way to modernize the current Child Support
Services Division (CSSD) case and financial management
system known as Northern Support through Automated
Resources (NSTAR). The goal of the entire modernization
effort is to provide a system that will enhance the
division's ability to meet the child support services needs
of the citizens of Alaska. The modernized system will
better meet the functional needs of users within the
division. This phase of the modernization effort will have
two primary areas of focus. One area relates to the
business aspect of the new system and includes identifying
business requirements and any redesign of business
processes that are required. The other area will define a
technical architecture suitable for meeting these business
requirements throughout the coming years.
RN 51503
Child Support Services Computer Replacement Project Phase 3
$204,000
Mr. Burnett stated that this is Phase three of a five-year
replacement cycle of the computer, server and printer
replacement project. The agency objective is to replace
personal computers, printers, servers, network attached
storage and supporting devices such as Uninterruptible
Power Supplies (UPS) that have exceeded their useful life.
With 274 computers in use within the division, a five year
replacement plan allows for the replacement of 55 computers
annually as well as several servers and duplex printers.
Co-Chair Hoffman asked if the replacement computers would
cover all regions of the state. Mr. Burnett responded that
the computers would be available across the entire.
9:05:43 AM
RN 54531
Child Support Services Interactive Voice Response System
Replacement
$230,000
Mr. Burnett explained that the Child Support Services
Division will replace the Interactive Voice Response (IVR)
solution currently in use with a system that is integrated
into the call center and is actively supported by the
vendor. The system replacement will also enable the
division to enhance the capabilities of the call center to
better serve the public. If the current IVR solution is not
replaced in FY13, it will be running in a non-supported and
non-maintained environment.
RN 54819
Permanent Fund Corporation Office Space Rewiring
$50,000
Mr. Burnett stated that replacement of all the Cat-5 wiring
with Cat-6 from the server room to the user workstations.
Cat-6 wiring has substantially more bandwidth and is the
current standard in other state office buildings. Our
servers, workstations, and switches are capable of better
performance, but the building wiring is the limiting
factor. Future network performance will remain limited if
this wiring is not replaced.
RN 51753
Alaska Gasline Development Corporation - Year 3 In-State
Gas Project
$21,000,000
JOE DUBLER, VICE PRESIDENT & CHIEF FINANCIAL OFFICER,
ALASKA GASLINE DEVELOPMENT CORPORATION (via
teleconference), explained that the Alaska Gasline Project
utilizes State general funds (GF) to complete Front End
Loading (FEL) segments 2 and 3. The Alaska Stand Alone Gas
Pipeline (ASAP) Project Plan is now complete, and serves as
a plan for designing, financing, and building the project
and making it operational. In developing the plan, AGDC
refined engineering and cost analyses and wrote a Plan of
Development for the proposed route. Work is continuing with
permitting agencies for rights-of-way and environmental
impact statement (EIS) activities. The ASAP Project Plan
proposes a deliberate approach to defining the project by
means of thorough "front-end loading" to make sure that the
project is viable before pipe is ordered or ground is
turned.
Co-Chair Stedman asked how the item synergized with the
Alaska Gasline Inducement (AGIA) project. Mr. Dubler
responded that there was work with Alaska Pipeline Project
(APP) staff to ensure that there was synergy between the
projects. There was an issue of confidentiality between the
two groups, because there was a concern that a third party
could obtain the data for free.
Co-Chair Stedman surmised that the State was purchasing the
data redundantly. Mr. Dubler responded that as soon as a
confidentiality agreement was met with APP, they could
share the data. He stressed that there was no intent to
duplicate studies.
Co-Chair Stedman wondered why there was no funding in FY14.
DAN FAUSKE, PRESIDENT, ALASKA GASLINE DEVELOPMENT
CORPORATION (via teleconference), stated that there was an
anticipation of funding from other current legislation.
9:10:54 AM
Co-Chair Stedman surmised that there was $200 million
currently set aside, and this request was for $21 million.
He wondered why the plan's expense was $400 million. Mr.
Fauske replied that the project would need $400 million,
and furthered that the $200 million from the prior year was
reserved but not appropriated. The request for $21 million
represented the final piece of the project, if the $200
million becomes available that was needed for the pre-
engineering phase. He noted that there was currently
legislation that held aspects and pieces of the project
funding. He also referred to some bills that dealt with
confidentiality agreements.
Co-Chair Stedman queried why $21 million did not come out
of the $200 million that was already set aside. Mr. Dubler
stated that there was an attempt to receive enough funding
to complete the front-end loading stage 2 portion of the
project, and added that $200 million and $21 million
combined would be enough to complete.
Co-Chair Stedman indicated that he would like to have a
discussion with OMB regarding the "burn rate", and exactly
when the funds would be needed, and how quickly the funds
would be utilized
Co-Chair Hoffman wondered if there was an assumption that
the legislature would pass HB 9. He asked why there would
be references in the appropriation to legislation that had
not yet passed. Mr. Fauske responded that he never assumed
anything, but was attempting to explain how they might get
the $400 million.
Co-Chair Hoffman wondered why there was a reference to ASAP
in the appropriation. Mr. Fauske replied that ASAP should
really be referred to as the Alaska Gasline Development
Corporation.
Senator McGuire stated that the ASAP terminology was
created by her office. She furthered that the allocation
was still directed to the Alaska Gasline Development
Authority and declared that the terminology was simply
referencing the completion of the ASAP plan.
9:16:39 AM
Co-Chair Hoffman stated that he identified ASAP with
current legislation. He felt that any pending legislation
should only be referred to in a proposed project after the
legislation was passed.
Senator McGuire agreed with Co-Chair Hoffman, but stated
that HB 369 identified the group and did not assume the
passage of HB 9, but were merely using terminology that was
used in the legislative process.
Senator Thomas wondered if the gas line would still be
reasonable to build, if there was a potential for exporting
of gas, based on a potential discovery of more gas in Cook
Inlet. Mr. Fauske replied that during the interim. There
were some announcements made about potential gas
discoveries in Cook Inlet. Any gas that is discovered would
be considered for use in the pipe line, but the job was to
specifically address Prudhoe Bay, because those zones
already have available gas. He felt that they were at least
three years from any completed data on the size, validity,
and flow rates of the Cook Inlet gas. He stressed that if
gas was discovered and useable in Cook Inlet, it could flow
in the pipe line either north or south.
9:22:55 AM
Senator Thomas stated that his concern was with the concept
of waiting three years for the evaluation. He wanted the
purpose of the pipe line to be inspected to determine the
overseas potential regarding import and exporting. Mr.
Fauske responded that there were ongoing discussions held
in EIS hearings. He stressed that the work was continuing
and the project was moving forward.
Co-Chair Stedman thought there were many things to discuss
on the project and hoped that in that in the future,
representatives of the Alaska Gasline Development
Corporation would be there in person to speak to the
appropriations. Mr. Fauske remarked that he was embarrassed
that there was not representation present.
RN 54796
AHFC Domestic Violence Housing Assistance Program
$1,328,400
LES CAMPBELL, BUDGET DIRECTOR, ALASKA HOUSING FINANCE
CORPORATION (via teleconference), explained that Domestic
Violence Rental Assistance utilizes State General Funds to
address the needs of homeless or near-homeless families who
are victims of domestic violence or sexual assault. These
same families might otherwise qualify economically for the
federal Housing Choice Voucher program. However, because
demand for vouchers far exceeds the supply, the targeted
families are unlikely to receive assistance in time to
address their immediate needs. The AHFC will administer the
funds through essentially the same mechanism and same
locations as the federal Housing Choice Voucher program.
9:28:57 AM
Co-Chair Stedman stated that he would like to have AHFC to
postpone their explanations of the projects, and give their
presentations in person at a later date.
^DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
JEFF OTTESEN, DIRECTOR, PROGRAM DEVELOPMENT, DEPARTMENT OF
TRANSPORTATION AND PUBLIC FACILITIES, introduced himself.
RN 48310
Alaska Marine Highway System - Alaska Class Ferry
$60,000,000
Mr. Ottesen explained that the Alaska Class Ferry will be
the next generation of ferries for the Alaska Marine
Highway System (AMHS). The design will incorporate state-
of-the-art safety features and data gleaned from past
projects. As replacements for certain existing vessels,
these new vessels will be added to the fleet to operate on
routes within Alaska's inside-waters. These new vessels
will be an important step in the continuing goal of AMHS to
maintain a safe, reliable and modern fleet of ferries. This
project contributes to the Department's Mission by reducing
injuries, fatalities and property damage and by improving
the mobility of people and goods.
RN 43056
Anchorage - Midtown Traffic Congestion Relief
$10,000,000
Mr. Ottesen stated that the Midtown Congestion Relief
project will extend the controlled access portion of the
Seward Highway through the busiest 4-way intersection in
the state (36th Avenue). Traffic along this corridor is
expected to roughly double in the next twenty to thirty
years, and without dramatic improvements, congestion will
significantly increase especially in the midtown region. It
is estimated that the congestion at 36th Avenue creates
approximately 250 driver hours of delay every weekday
afternoon. Currently, all signalized intersections on this
stretch of the highway are at level of service E or F on a
scale of A to F. These intersections also include some of
the highest accident locations in Anchorage and the State
of Alaska. This project will eliminate the at-grade turning
conflicts, and greatly improve safety on this corridor.
This project contributes to the Department's Mission by
reducing injuries, fatalities and property damage and by
improving the mobility of people and goods.
RN 50770
Statewide Digital Mapping Initiative
$15,936,168
Mr. Ottesen explained that the project will advance the
data acquisition and development of the Digital Elevation
Model (DEM) which is a fundamental component of the
Statewide Digital Mapping Initiative (SDMI). The FY2013
funding will be targeted towards Northwest Alaska and the
Arctic. The DEM is a foundational to all infrastructure
development. United States Geological Service (USGS)
topographic maps are over 50 years old, and are out of
date. Alaska lacks a statewide digital elevation dataset of
any kind. Accurate elevation is foundational to
infrastructure development and greatly enhances economic
development, the preservation of human life (disaster
response, mitigation and recovery), and the advancement of
physical science.
RN 52103
Fairbanks Metropolitan Area Transportation System (FMATS) -
Transportation Improvement Program
$7,500,000
Mr. Ottesen stated that the project will supplement
existing federal funding to fund projects within the
approved FMATS Transportation Improvement Program (TIP) and
continued funding to support the operations of the FMATS
Coordinator's office. This project is of primary importance
to the FMATS Policy Committee.
RN 54074
United States Army Corps of Engineers - Arctic Ports Study
$1,500,000
Mr. Ottesen explained that the capital request is to fund
year two of the Arctic Ports Study in conjunction with the
United States Army Corps of Engineers (USACE). The purpose
of this study is to identify potential Arctic deepwater
port sites (minimum of -35 feet) that would be a long-term
vital asset to national security and to the State's
economy.
RN 50862
Umiat - Airport Survey and Property Plan
$250,000
Mr. Ottesen stated that the project would survey the Umiat
Airport and update the Umiat Airport Property Plan. The
runway centerline at the Umiat Airport is not monumented
and the airport boundaries are not clearly identified.
Thus, aviation lease lots are undocumented, making it
difficult to deal with leaseholder issues.
RN 52497
Northern Region Material Site Reconnaissance
$250,000
Mr. Ottesen explained that the material site property lines
throughout the Northern Region have not been land-surveyed
(confirmed with monumentation) in years and the exact
boundaries of almost every site in the region are unknown.
This project would provide for a site survey of various
essential material sites throughout the region and field
staking so corners can be found well into the future. This
information is critical for the future development of
maintenance and operations (M&O) crushing contracts that
serve both federal preventative maintenance projects and
M&O's routine maintenance activities.
9:34:53 AM
RN 54136
Project Acceleration Account
$2,500,000
Mr. Ottesen stated that the account is intended to
accelerate projects and realize efficiencies in two
distinct manners: 1) to ensure the completion of non-
federal funded projects stalled for reasons of insufficient
funding and 2) to fund steps within federally funded
projects that can significantly accelerate the completion
of such projects in a manner not possible with federal
funds alone.
Co-Chair Stedman remarked that two years prior, the Senate
Finance Committee had removed "excess cash" from the DOT?PF
system. He surmised that DOT/PF planned to have more
flexibility and report back to the legislature annually.
Mr. Ottesen replied that an annual report was in the plan.
RN 54091
Statewide- Community Bridge Rehabilitation/Replacement
$3,000,000
Mr. Ottesen explained that there were numerous off-system
bridges - those not located on the higher level roads known
as the Federal-Aid system - located in Ketchikan and the
Matanuska-Susitna, Kenai Peninsula, Fairbanks-North Star,
Juneau Boroughs, and other locations that are in poor
condition. This funding would work toward correcting or
replacing bridges using a priority based on the structural
rating and other factors of these bridges.
Senator Olson wondered how far geographically the plan
extended, specifically the deteriorated bridge in Ambler.
Mr. Ottesen responded that the plan included funding for
exactly that type of project.
RN 54164
Safety
$32,530,000
Mr. Ottesen declared that projects with predictable safety
benefits that are realistically described and documented.
This would include projects within Highway Safety
Corridors, as identified in the strategic Highway Safety
Plan and other areas, intersections or corridors where
safety factors are more intense than typical. For aviation,
it would address community airports that are substandard in
terms of field dimensions, approaches, or the absence of
lighting. The goal is to address those key projects that
really can make a difference in outcomes.
RN 52034
Alaska Aviation Safety Program
$2,500,000
Mr. Ottesen explained that this project seeks to reduce
aviation accidents, focusing on air charter operations in
Alaska. Project sponsors developed a real-world software
based pilot training product for use in aviation simulators
to help pilots train in a real-world simulated environment.
The advanced training program depicts terrain, faithfully
depicts regional weather conditions, and evaluates a
pilot's decision making ability. This request seeks to
expand initial success to other air corridors identified by
the air service industry.
9:38:48 AM
RN 54751
Highway Safety Corridor - Knik-Goose Bay Road Safety
Corridor Improvements
$10,000,000
Mr. Ottesen stated that the project funding will be used
for design and construction of safety improvements along
the Knik-Goose Bay Road Corridor; one of four designated
highway safety corridors in the state.
Senator McGuire stated that she had worked on an initiative
with the Alaska Moose Federation to address the moose
collision problem. She stated that there was an idea to
move the some moose to locations in Alaska where there was
a decline in food supply. She wondered if there had been an
examination of the impact of moose collisions and possible
preventative measures. Mr. Ottesen replied that they had
worked quite a bit with the Alaska Moose Federation, and
there was an analysis of locations where moose collisions
often occur. In order to prevent moose collisions,
vegetation was cut far back away from the road.
RN 54158
Highway Safety Corridor - Seward Highway at Alyeska Highway
Intersection Improvements
$5,000,000
Mr. Ottesen explained that funding would be used to
construct a divided intersection on the Seward Highway at
the Alyeska Highway to allow queuing for left-turning
vehicles. Cost savings are realized by eliminating 1.5
years of federally mandated environmental work and two
years inflation for construction and utilities. Project
would eliminate the potential for further commercial access
on the inlet side of this intersection potentially
exacerbating access problems and turning movement conflicts
at the junction of this State Highway Safety Corridor and
the Alyeska Highway. Needed ROW could be acquired early in
the design process using state funds; this would not be
possible using federal funds. Protective ROW purchase
limits future commercial development; development of this
property could make it cost prohibitive to purchase in the
future. The use of state funds avoids the need to
reevaluate the approved federal environmental document.
Project is first step toward improving Safety Corridors as
4-lane divided highways.
RN 54398
Highway Safety Corridor - Seward Highway - Widening to
Address Congestion
$10,000,000
Mr. Ottesen explained that the project funding will be
applied to the Windy Corner section (MP 105 to 107) to
address safety issues and provide tourist and recreational
amenities on a tightly curved portion of the Seward Highway
that has a high percentage of the total accidents between
Anchorage and Bird Point along the Turnagain Arm. Total
cost of this project is likely to approach $80 million, and
thus it will be pursued in stages. Stage 1 will relocate
the railroad to a revised alignment. Stage 2 will build the
southbound lanes. Stage 3 will complete the northbound
lanes and a major scenic turnout. In addition to these
costs there will additional costs for design and right-of-
way.
RN 50762
Highway Safety Corridor - Sterling Highway - Sterling to
Soldotna Widening
$1,730,000
Mr. Ottesen explained that the project will widen the
Sterling Highway between Sterling and Soldotna. This
facility is a designated highway safety corridor due to the
high incidence of fatal and major injury crashes. A 4- lane
divided highway provides the greatest safety benefits by
physically separating opposing lanes of traffic and is the
preferred solution, though other solutions will be
considered depending on site conditions. Sufficient right-
of-way exists to accommodate the widening.
9:43:43 AM
Co-Chair Hoffman asked if the plan covered all the safety
projects. He noted that he did not see any safety issues
from rural Alaska. He wondered if there were any projects
for trail markings in rural Alaska. Mr. Ottesen responded
that they had done several trail marking projects but that
the federal land management agencies struggled about
whether the projects were allowed. He agreed to provide
further information.
Co-Chair Hoffman observed that there were regional and
tribal entities that could be contracted to work on the
issues with the federal government.
RN 54399
Kenai - Kalifornsky Beach Road and Bridge Access Road
Pedestrian Paths
$3,000,000
Mr. Ottesen stated that the project will construct a
pathway along Kalifornsky Beach Road from the termini of
the existing pathway (just east of Mallard Road) to Cannery
Road, a distance of 1.9 miles. Portions of the pathway will
be separated, but the majority will be attached to existing
roadway. Project will also provide preconstruction work for
a pathway along Bridge Access Road between the Kenai Spur
Highway and Kalifornsky Beach Road.
RN 33855
Statewide - Structural Inspection of State Owned Facilities
$300,000
Mr. Ottesen explained that this appropriation will support
the Department of Transportation and Public Facilities'
(DOT/PF) compliance with AS 35.10.050's requirement to
examine existing public buildings and report on their
condition. Many of DOT/PF's buildings are approaching the
end of their design life and will require either renovation
and/or replacement. This funding will provide for
inspection and reporting on facilities that DOT/PF has
concerns about the building's structural integrity. This
will identify the scope of any structural deficiencies and
allow for the prioritization of future work on these
facilities.
9:47:11 AM
MIKE LUKSHIN, STATE PORTS & HARBORS ENGINEER, DEPARTMENT OF
TRANSPORTATION AND PUBLIC FACILITIES, introduced himself.
RN 49780
Municipal Harbor Facility Grant Fund (AS 29.60.800)
$23,093,100
Mr. Lukshin explained that the 50/50 harbor grant program
continues to show strong local interest. Ten municipalities
from across the state submitted applications requesting a
total of $23,093,066 in matching state funds for FY13. This
represents a 9.5 percent increase in state funding requests
as compared to last year. If fully funded by the Governor
and the Legislature, the department can take credit in
providing over $46 million towards local "construction
ready" harbor projects. The harbor projects are locally
managed and therefore require minimal department staff
resources.
Senator Olson observed that there were only requests for
FY13, and queried the plan for subsequent years. Mr.
Lukshin stated that the program would be fully funded in
the current year, and hopefully fill the need for the
subsequent year.
9:50:01 AM
RN 54165
Asset Management
$44,500,000
Mr. Lukshin explained that projects that fulfill our
obligation to keep the existing system in a good condition,
and reverse the increase in unfunded maintenance. Strong
reliance should be given to existing performance measures
and management systems (maintenance, pavement, bridge) to
identify key investment targets and strive to reduce our
tendency to focus on "worst first". Reliability is a major
consideration, given that many areas of the state lack
reliable transportation links. When a ferry or bridge is
not in service, one or more communities can be stranded.
This includes projects that improve the reliability and
long term availability of the transportation route or
asset.
RN 33853
Aggregate Surfacing Materials
$2,000,000
Mr. Lukshin stated that this project makes available
crushed aggregate surfacing materials that can be used for
maintenance on state-funded rural highways across the
state. Doing this in conjunction with large federal-aid
highway projects achieves significant savings. Surfacing
materials will be a bid item in major projects on the
Taylor, Elliott, Denali, Tok Cutoff, Steese, Glenn,
Richardson, and Alaska Highways. This material is used as
surface course on gravel roads and as cover coat in high
float patches on asphalt highways.
Co-Chair Stedman noted that there were some areas of the
state that had intense snow removal issues, and he wondered
if those communities needed more deicing materials. Mr.
Ottesen stated that it had been a big year for deicing
materials and the state had experienced a big snow year.
They had moved operators around the state, and they were
trying to use their assets as necessary.
Co-Chair Stedman declared that the committee would be
interested in seeing that DOT/PF was fully equipped to
handle rough winters.
RN 30624
Alaska Marine Highway System - Vessel and Terminal Overhaul
and Rehabilitation
$10,000,000
Mr. Lukshin stated that the Alaska Marine Highway System
(AMHS) requires annual maintenance and overhaul on vessels
and at terminals, particularly component or system failures
which will impact service in the short term. Annual
overhaul of vessels is necessary to pass United States
Coast Guard (USGS) inspections and obtain a Certificate of
Inspection necessary to operate.
RN 50785
Dalton Highway Corridor Surface Repairs
$7,500,000
Mr. Lukshin explained that the Dalton Highway is a heavily
used highway running adjacent to the northern half of the
Alyeska pipeline. It is imperative to pipeline and oil
field operations, as well as for continued revenue to the
State, to continue to improve and maintain this important
state asset. This funding will provide heavy maintenance
for the highway and aviation facilities in the Dalton
Corridor. The continued surface maintenance on the Dalton
Highway includes resurfacing and raising grades, dust
palliative, drainage repairs, guardrail repair/replacement,
and stockpiling material.
RN 54157
Seward Highway - Milepost 75 - 90 Bridge Replacements
$10,000,000
Mr. Lukshin stated that the funding would be used to
replace up to eight bridges on the Seward Highway from
milepost (MP) 75 to MP 90.
9:54:56 AM
RN 30628
State Equipment Fleet Replacement
$15,000,000
Mr. Lukshin explained that the money would be used for the
replacement and/or refurbishment of equipment and vehicles
which have reached the end of their useful life cycles and
all extension periods, and continued conversion of vehicles
to alternate fuel and related alternate fuel program
expenses.
RN 48798
Central Region - Sand Storage Buildings
$1,000,000
Mr. Lukshin stated that additional funding was required to
meet the minimum requirements of the Environmental
Protection Agency (EPA) Municipal Separate Storm Sewer
System (MS4) Permit, which requires the State to have
covered sand storage facilities. If the funding is not
provided the Department is at risk for being fined for
Notice of Violations from EPA for not being in compliance
with the MS4 permit. Fines could potentially exceed $30,000
per day.
RN 30634
Emergency and Non-Routine Repairs
$2,000,000
Mr. Lukshin explained that these funds can also be used to
meet imminent failure needs caused by extended deferred
maintenance or in assets that are well past their design
life and where failure is imminent. Examples would be the
replacement of a major highway cross culvert where failure
is imminent and the failure could result in a prolonged
closure of a major highway. Other examples of an imminent
failure include imminent slope failures and/or areas of
accelerated erosion adjacent to a highway, airport, or
building that requires immediate stabilization to prevent
damage to the state's asset.
RN 34752
Commercial Vehicle Enforcement Program
$1,750,000
Mr. Lukshin announced that the funding would be used to
reduce the number and severity of accidents involving
commercial vehicles through safety inspections, educational
programs, and compliance reviews.
RN 31375
Cooperative Reimbursable Projects
$17,000,000
Mr. Lukshin explained that reimbursable work is done for
specialized services provided to federal and other non-
state agencies. Federal Reimbursable authority may also be
used for projects approved for the Denali Commission
Transportation Program.
RN 31376
Federal Contingency Projects
$20,000,000
Mr. Lukshin explained that the proposal was for special
national discretionary funding for highways, ferries or
airports may be accepted through this appropriation. These
funds are also used when project costs have increased, a
revised program is not feasible and immediate additional
funding is required to avoid project delays.
RN 38424
Federal Emergency Projects
$10,000,000
Mr. Lukshin announced that emergency federal funds are
available from the Federal Highway Administration for
declared emergencies. Money spent within 180 days of a
declared emergency are funded at 100 percent federal; after
the 180th day, about 9 percent state match is required.
This appropriation may be used to address issues of an
emergency nature with federal airport or highway formula
funds.
RN 30643
Federal Transit Administration Grants
$9,000,000
Mr. Lukshin explained that the funding would be used for
competitive grants from the Federal Transit Administration
that are administered by the department for transit
vehicles for elderly and handicapped transportation and
capital and operating expenses of transit operators.
RN 33485
Highway Safety Grants Program
$8,000,000
Mr. Lukshin explained that the Alaska Highway Safety Office
coordinates highway safety programming through federally
funded grants directed toward public outreach and
education; enforcement; promotion of new safety technology;
integration of public health strategies; collaboration with
safety and private sector organizations; and cooperation
with state and local governments.
RN 41923
Other Federal Program Match
$900,000
Mr. Lukshin explained that the request was for a state
match required for federal programs funded by the National
Highway Transportation Safety Administration, the Federal
Motor Carrier Safety Administration and the Federal Transit
Administration.
RN 52032
Public Transit Programs State Match
$1,000,000
Mr. Lukshin announced that the request would provide
funding to match local funds in order to encourage local
government support for public transportation systems.
9:59:28 AM
Senator Ellis complimented DOT/PF for this request. He
queried the success of the first phase of the project, and
asked for more detail regarding the current request. Mr.
Ottesen stated that DOT/PF was able to use about one-tenth
of the requested money, but remarked that the recipients
felt that any funding was helpful. He stressed that buses
were extremely important to Alaska, because of the high
cost of living. Gas prices were very high, and pointed out
that 60 to 70 percent of Costco employees commuted to work
via bus.
RN 34018
Statewide Safety Program
$20,000,000
Mr. Lukshin explained that the funding would be used for a
statewide program for safety education or highway
improvements funded from incentives for .08 percent blood
alcohol limit laws and by sanctions for not having repeat
offender and open container laws. Funding is 100 percent
federal. Allocation of funds to specific needs will follow
the Alaska Strategic Highway Safety Plan.
ROGER MAGGARD, RURAL SYSTEM AIRPORT DEVELOPMENT MANAGER,
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES,
introduced himself.
RN 6896
Federal-Aid Aviation State Match
$11,700,000
Mr. Maggard explained that a state match was required to
pursue about $174 million in federal Aviation Improvement
Program funds and provide one-half of the match required
for about $30 million in federal funds for local sponsors'
airports. The match will be used for Rural Airport System
airports (not Anchorage or Fairbanks). The non-federal
match share is 5 percent. These funds may also be used for
advanced acquisition of Right-of-Way (ROW) parcels for
projects that are eligible for federal funding. This ROW
can be used in lieu of the state matching funds on a
federally funded project.
Co-Chair Stedman requested an introduction of the aggregate
amount, and stated that there would be individual inquiries
for the airport proposals.
RN 7470
Airport Improvement Program
$230,038,158
Mr. Maggard explained that the funding would be used for
federal airport improvements as outlined in the Airport
Improvement Program and the International Airports Program.
Co-Chair Stedman surmised that the airport allocations
aligned with federal guidelines. Mr. Maggard affirmed.
10:04:59 AM
Co-Chair Hoffman noted that DOT/PF had requested $31
million in general funds to address highway transportation
safety. He wondered if there was an airport safety issue in
rural Alaska that could be addressed. Mr. Maggard replied
that DOT/PF had identified $3.5 million of deferred
maintenance funding, which could be related to safety. He
furthered that there were currently no other general fund
appropriations related to rural airport safety.
Co-Chair Stedman requested broader information regarding
the perspective of DOT/PF regarding the need for airport
safety improvements.
Senator McGuire wondered how often the International
Airport Construction Bond Authority was used, and how much
of the Bond Authority would be given in a year: general
fund allocations or state/federal match. Mr. Maggard agreed
to provide that information.
RN 49130
Kotzebue - Airport and Runway Safety Area Improvements
$4,415,000
Senator Olson asked if there were plans to upgrade or
maintain the gravel pit at the Kotzebue Airport. Mr.
Maggard replied that there was a project identified to
rehabilitate the gravel runway; however that project was
not included in this allocation. This allocation was
specifically intended for the runway safety area expansion.
10:09:17 AM
Senator Olson wondered which direction they would extend
the runway. Mr. Maggard replied that the runway would be
extended 200 feet to the east, with some coverts installed
to replace the channel in the lagoon. There would be
excavation on the high terrain toward the east of the
runway safety area expansion.
Senator Olson wondered if Mr. Maggard knew about the
elimination of jet service to rural Alaska. Mr. Maggard
replied that they had met with Alaska Airlines and that
they had indicated they had no plans to bring the Q400
planes to rural Alaska.
RN 47757
Barrow - Airport Master Plan
$500,000
Senator Olson stated that millions of dollars had been
spent to relocate the runway, and wondered what the intent
of the allocation would be. Mr. Maggard stated that the
airport master plan recommended that all apron and future
expansion of the apron be done on the north side of the
runway. With the potential for off-shore development, a
native corporation had expressed interest in commercial
apron space to service oil companies.
Senator Olson stressed that there were many facilities on
the south side of the runway, including a rapidly expanding
cemetery.
Co-Chair Hoffman wondered what conversations had occurred
regarding the development of the apron in the Cold Bay
Airport. Mr. Maggard replied that Cold Bay had contacted
DOT/PF about the building of an apron to provide access to
the terminal. The recommendation was considered and
evaluated, and was currently ranked as a lower priority
related to other safety needs. The FAA had specific
requirements to upgrade the conditions of the pavement
surfaces, and maintain them at a higher standards. Much of
the current funding would go into the runway surface safety
area expansion and the FAA's mandate for improved pavement
condition.
10:15:41 AM
Co-Chair Hoffman declared that the apron and access to the
terminal went far beyond the needs of Cold Bay, and
Alaska's federal delegation had spent millions of dollars
to provide medical services and needs to the people of Cold
Bay. He indicated that it was disheartening that they were
requesting tens of millions for certain projects for
federal requirements, and wanted to see more state money
for rural projects.
Senator Olson stated that the Cold Bay Airport was one of
the alternate runway sites used for heavy jets.
RN 48347
Coldfoot - Airport Improvements
$1,900,000
Senator Thomas wondered what aspect of the allocation would
go toward alleviating the difficulty related to the Koyukuk
River erosion. Mr. Maggard stated that the majority of the
money would be used for erosion protection, but could not
provide a specific dollar amount. He agreed to provide more
information.
Mr. Ottesen commented that the FAA was insistent about
maintaining pavement, and was an asset management message.
The FAA requirement would "push out" other needs that the
State felt were important, but it was imperative to pay
attention to the federal messages.
10:21:15 AM
RN 32610
Surface Transportation Program
$461,864,000
MICHAEL VIGUE, PLANNING CHIEF, DEPARTMENT OF TRANSPORTATION
AND PUBLIC FACILITIES, stated that the appropriation was
for federal surface transportation improvements as outlined
in the Statewide Transportation Improvement Program (STIP),
the Transportation Equity Act for the 21st Century (TEA-
21), and annual federal appropriations acts.
Senator Egan hoped the federal receipts would increase
substantially. He felt like $150 million was not very much
money for federal highway program matches. Mr. Ottesen
stated that they did not know what federal money the State
would receive after 2013.
Co-Chair Stedman asked if the metropolitan areas were given
more funding. Mr. Ottesen agreed to provide more
information, but felt like it was a very complicated
discussion.
Co-Chair Stedman wondered if there was a shift of focus
from the rural areas to more metropolitan areas of the
country. Mr. Ottesen replied that there had been discussion
about a shift in a prior proposal, but there was a more
rural-friendly approach to funding.
10:28:44 AM
RN 46815
Aleknagik - Wood River Bridge
$5,000,000
Co-Chair Hoffman queried the justification of the project.
Mr. Ottesen responded that the project was first funded in
the 2008 bond bill, but the cost of the project now
exceeded the bond funds. This allocation expanded the
budget to match the latest estimate for the project
Co-Chair Hoffman stressed the project was for a bridge not
a road. He stated that the justification for the bridge was
because of unsafe travel conditions during the seasonal
changes. He said strongly that it was a life and death
safety issue. He felt that a safety issue of this magnitude
should have been addressed sooner. He requested a report
from DOT/PF on the status of all the 2009 bond packages.
Co-Chair Stedman requested that the department provide a
status of the bond package. Mr. Ottesen agreed to provide
that information. He furthered that the project was held
up, because of a Native allotment. He stressed that third
party permissions slow down the projects.
10:33:24 AM
Co-Chair Hoffman stated that there was an alternate route
that had been previously identified, so if DOT/PF had
chosen to use the alternate route, the safety issue could
have been averted.
RN 52325
Alaska Marine Highway System - Fast Vehicle Ferry
Propulsion System Replacement
$22,000,000
Mr. Ottesen stated that they were in litigation with the
manufacturer regarding the replacement of the engines.
Research leading up to the engine model selection will
consider life cycle costs and maintainability within the
current regulatory and vessel performance envelope that
exists. Through a series of reports and decisions, a range
of possible engines/manufacturers will be provided that
match these parameters. Design and construction will
include work related to regulatory approval of
modifications, installations, documentation. Maintenance
plan and commissioning, including related stability tests,
trial inspections, other state overhaul work and required
dry docking were all a part of the proposal.
Co-Chair Stedman how the money would be redirected, if the
State of Alaska prevailed in the lawsuit. Mr. Ottesen
replied that DOT/PF needed to obligate the funds by
allowing the federal partners to take the money and
guarantee it for the project, to ensure the court that the
money is there, should the State lose.
Co-Chair Stedman inquired if it was new federal money. Mr.
Ottesen replied that the money was taken from the annual
federal allocation.
Co-Chair Stedman wondered why general funds were not
allocated for the project. Mr. Ottesen replied that if the
State won the lawsuit, the $20 million would go back to the
federal "pot" and would be available for another project in
the state.
Co-Chair Stedman felt that the money could be used for more
imperative projects in the state. Mr. Ottesen replied that
there were fewer restrictions on ferries, if federal
funding was used.
Co-Chair Stedman stated that he would like to have a
discussion with OMB, regarding maneuvering money for
specific projects.
10:38:40 AM
RN 54326
Alaska Marine Highway System - Intelligent Transportation
Systems Implementation Plan
$250,000
Co-Chair Stedman wondered if the title of the project
indicated that system was not currently "intelligent." Mr.
Ottesen replied that project provides for a security system
enhancement and upgrade program for the Alaska Marine
Highway System's (AMHS) security camera system located at
ten of its main ferry terminals from Homer to Ketchikan.
RN 49175
Glenn Highway - Milepost 34 to 42 Reconstruction - Parks to
Old Glenn Highway
$20,000,000
Mr. Vigue stated that the project would reconstruct the
Glenn Highway to four lanes to include pathway and
shoulders. The project will also accommodate turning
movements and add traffic and safety improvements as
necessary.
RN 49151
Juneau - Glacier Highway Reconstruction - Fritz Cove to
Seaview Avenue
$10,000,000
Senator Egan wondered if the right-of-way concerns had been
addressed. Co-Chair Stedman requested a brief description
of the project. Mr. Maggard agreed to provide more
information.
Senator Egan explained that the project will reconstruct
the Glacier Highway between Fritz Cove Road and Seaview
Avenue at Auke Bay to reconstruct segments of road sub-
base, widen roadway, flatten curve alignments, improve
intersections, drainage systems, resurface roadway,
lighting, and guardrail, improve bicycle and pedestrian
facilities, and add a center turn lane through the Auke Bay
business area.
10:44:03 AM
RN 51563
Juneau - Mendenhall Valley Street Dust Control
$2,000,000
Co-Chair Hoffman asked if the department had done studies
on other dust control projects and queried how DOT/PF
determined the priority of the projects in other areas of
the state. Mr. Maggard replied that the dust control
projects were generally funded with federal money for
congestion mitigation and air quality. There was a process
that DOT/PF and the Department of Environmental
Conservation (DEC) practice in order to prioritize
projects. He understood that there were several rural
projects, and stressed that this project was in place to
meet EPA regulations on particulate matter.
Co-Chair Hoffman asked if the department had done an
assessment of the need for dust control projects, or if
municipalities needed to submit proposals. Mr. Maggard
responded that the projects reflected a joint effort
between DOT/PF and DEC, and there was a document entitled
"The State Implementation Plan" that DEC controlled.
Co-Chair Hoffman surmised that if he wanted to know about a
dust problem in a particular area of the state, he could
contact DOT/PF for that information. Mr. Maggard responded
in that he believed that was possible.
Co-Chair Hoffman stated that he would like to see the
report on dust control issue across the state, and where
the specific dust problems were. He expressed concern that
if there were a dust problem, the people of Southeast
Alaska should not be advised to burn pellets and wood
stoves.
Senator Egan stated that the Mendenhall Valley was a wood-
stove ban area. He added that the allocation was a part of
the prior year's budget, but was vetoed by the governor.
RN 54332
Parks Highway - Milepost 237 - Riley Creek Bridge
Replacement and Access Improvements
$15,000,000
Senator Thomas would like more information of the project
plan for the McKinley Village Bridge. He felt like there
were many other bridges that were not "pedestrian
friendly", and stressed that there should be a focus on
those projects in a future budget.
10:49:45 AM
RN 54161
Parks Highway - Milepost 194 - Broad Pass Railroad
Overcrossing
$25,000,000
Senator Thomas alleged that the project was not in House
District 7, but rather it was located in the Matsu area.
RN 30648
MH Coordinated Transportation and Vehicles
$1,050,000
Senator Thomas stated that there were some serious
transportation safety issues around schools. Mr. Ottesen
responded that the Safe Routes to Schools program had
issued several grants to the City of Fairbanks and the
Fairbanks School District. He stated that there would be
significant changes to make walking and biking so school
much safer.
RN 51383
Aviation Deferred Maintenance
$3,500,000
Co-Chair Hoffman requested a list of the specific deferred
maintenance projects.
10:54:12 AM
MIKE COFFEY, CHIEF, STATEWIDE MAINTENANCE, DEPARTMENT OF
TRANSPORTATION AND PUBLIC FACILITIES, stated that the
aviation deferred maintenance projects spanned across the
state. The focus was mostly on the backlog of deferred
maintenance projects, and some of the funding would be used
to address many of the safety issues in the airports.
Co-Chair Stedman wondered why there were no projections for
deferred maintenance after FY13. Mr. Ottesen replied that
it was probably an oversight.
Co-Chair Stedman would like more information regarding
deferred maintenance.
Mr. Ottesen concluded that the department was trying to
build a ten year plan, because a four year plan was too
small of a time period.
Co-Chair Stedman remarked on the unique ability in Alaska
to "backfill" the potential federal funds short fall in
order to accelerate the DOT/PF construction.
10:58:25 AM
Senator Olson wondered why the federal match was staying
the same, if the federal funds were declining. Mr. Ottesen
replied that there would be a drop in federal funding in FY
14, and the match would be calculated against that amount.
Senator Olson wondered how the ice roads would be given
guaranteed funding. Mr. Ottesen responded that there had
been a little bit of residual money that had enabled them
to continue with funding ice roads, and stressed that the
community roads needed more funding.
Senator Olson wondered how the ice roads would be funded in
the current year. Mr. Ottesen responded that he was unaware
of a request for ice road money.
Senator Olson inquired how the Project Evaluation Board
(PEB) was involved with STIP. Mr. Ottesen replied that PEB
scored some of the community class projects, and a set of
12 criteria was used to rank the projects. He stated that
it was hard to compare some projects, mostly rural versus
urban. The system was set up so the roads can accurately
achieve a high score and funding.
Senator Olson stated that there was an ice road request.
Mr. Ottesen replied that he would locate that request.
Co-Chair Stedman noted some challenges in the Southeast
Alaska region about how projects were prioritized. He
remarked that one region could have less management and
control compared to other regions.
Co-Chair Hoffman wondered how quickly the responses could
be obtained. Co-Chair Stedman requested a timely response.
Mr. Ottesen replied that DOT/PF would keep the committee up
to date on when the responses would be expected.
SB 160 was HEARD and HELD in committee for further
consideration.
Co-Chair Stedman discussed the following day's agenda
ADJOURNMENT
11:04:27 AM
The meeting was adjourned at 11:04 AM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| DEED MaintenanceFinalList w-fy12 priorities.pdf |
SFIN 3/1/2012 9:00:00 AM |
SB 160 Capital Budget Overview DEED |