Legislature(1997 - 1998)
04/15/1997 08:10 AM FIN
* first hearing in first committee of referral
= bill was previously heard/scheduled
= 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.