Legislature(1997 - 1998)

04/15/1997 08:10 AM FIN

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

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