Legislature(2013 - 2014)SENATE FINANCE 532

02/12/2013 09:00 AM FINANCE

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09:02:57 AM Start
09:03:06 AM SB18
09:08:04 AM Department Overview: Department of Labor and Workforce Development
09:29:25 AM Department Overview: Department of Transportation and Public Facilities
10:32:42 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Heard & Held
Department Overviews
Dept. of Labor & Workforce Development
Dept. of Transportation & Public Facilities
Bills Previously Heard/Scheduled
                 SENATE FINANCE COMMITTEE                                                                                       
                     February 12, 2013                                                                                          
                         9:02 a.m.                                                                                              
9:02:57 AM                                                                                                                    
CALL TO ORDER                                                                                                                 
Co-Chair Meyer  called the Senate Finance  Committee meeting                                                                    
to order at 9:02 a.m.                                                                                                           
MEMBERS PRESENT                                                                                                               
Senator Pete Kelly, Co-Chair                                                                                                    
Senator Kevin Meyer, Co-Chair                                                                                                   
Senator Anna Fairclough, Vice-Chair                                                                                             
Senator Click Bishop                                                                                                            
Senator Mike Dunleavy                                                                                                           
Senator Lyman Hoffman                                                                                                           
MEMBERS ABSENT                                                                                                                
Senator Olson                                                                                                                   
ALSO PRESENT                                                                                                                  
Brynn  Keith,  Acting  Deputy  Commissioner,  Department  of                                                                    
Labor  and  Workforce  Development; Paloma  Harbour,  Acting                                                                    
Administrative  Services  Division Director,  Department  of                                                                    
Labor  and Workforce  Development;  Pat Kemp,  Commissioner,                                                                    
Department  of Transportation  and  Public Facilities;  Jeff                                                                    
Ottesen,   Director,   Division  of   Program   Development,                                                                    
Department  of Transportation  and  Public Facilities;  Mike                                                                    
Coffey,  Chief  of  Statewide  Maintenance  and  Operations,                                                                    
Department  of Transportation  and Public  Facilities; Roger                                                                    
Maggard,   Transportation   Planner,   Statewide   Aviation,                                                                    
Department  of Transportation  and  Public Facilities;  Mike                                                                    
Vigue,  Division  of   Program  Development,  Department  of                                                                    
Transportation and Public Facilities;                                                                                           
SB 18     BUDGET CAPITAL                                                                                                        
          SB 18 was HEARD and HELD in committee for further                                                                     
DEPARTMENT OVERVIEWS:                                                                                                           
          Department of Labor and Workforce Development                                                                         
          Department of Transportation and Public                                                                               
SENATE BILL NO. 18                                                                                                            
     "An  Act   making  appropriations,   including  capital                                                                    
     appropriations   and   other   appropriations;   making                                                                    
     appropriations to  capitalize funds; and  providing for                                                                    
     an effective date."                                                                                                        
9:03:06 AM                                                                                                                    
^DEPARTMENT  OVERVIEW:  DEPARTMENT  OF LABOR  AND  WORKFORCE                                                                  
BRYNN  KEITH,  ACTING  DEPUTY  COMMISSIONER,  DEPARTMENT  OF                                                                    
LABOR AND  WORKFORCE DEVELOPMENT (DLWD),  introduced herself                                                                    
for the  record and discussed DLWD's  four capital projects,                                                                    
which totaled just over $9.1 million.                                                                                           
PALOMA  HARBOUR,  ACTING  ADMINISTRATIVE  SERVICES  DIVISION                                                                    
DIRECTOR,  DEPARTMENT OF  LABOR  AND WORKFORCE  DEVELOPMENT,                                                                    
introduced herself for the record  and began to speak to the                                                                    
department's capital requests.                                                                                                  
RN 48826                                                                                                                        
Heavy  Equipment Shop/Diesel  Shop/Pipe Welding  Relocation-                                                                    
Phase 1 of 3                                                                                                                    
Brief Summary and Statement of Need:                                                                                            
This request  will fund  the first of  three phases  for the                                                                    
Alaska   Vocational   Technical   Center's   (AVTEC)   Heavy                                                                    
Equipment Shop/Diesel Shop/Pipe  Welding Relocation project.                                                                    
This project  is necessary to  replace an  existing facility                                                                    
with known  life, safety, code  and ADA  deficiencies. Phase                                                                    
one  will include  site preparation  and utilities  hook-up,                                                                    
construction  of  an  8,000 square  foot  Diesel  shop,  and                                                                    
relocation  of the  Pipe Welding  program  from the  current                                                                    
deficient facility to the vacated Diesel space. This will                                                                       
co-locate  the  Pipe  Welding program  with  the  Structural                                                                    
Welding  program; allowing  both  programs to  use the  same                                                                    
grinding room  and providing  sufficient pipe  storage space                                                                    
for the Pipe Welding program.                                                                                                   
Ms. Harbour  related that  all three  phases of  the project                                                                    
totaled $15 million.                                                                                                            
RN 56561                                                                                                                        
AVTEC Maritime  Simulator Ice Navigation  Upgrade -  Phase 1                                                                    
of 3                                                                                                                            
Brief Summary and Statement of Need:                                                                                            
This project  will fund  phase one of  three to  upgrade the                                                                    
Alaska   Vocational   Technical  Center   (AVTEC)   maritime                                                                    
simulator.  These  upgrades  are necessary  to  provide  ice                                                                    
navigation  and  arctic  operations  training  to  mariners.                                                                    
AVTEC's  Maritime  Training  Center is  uniquely  poised  to                                                                    
offer training  operations in a safe  environment to prepare                                                                    
mariners  who will  be  operating vessels  at  or above  the                                                                    
Arctic  Circle  through  rapidly  changing  ice  conditions.                                                                    
Currently,  mariners  must travel  to  Europe  to learn  ice                                                                    
Ms.  Harbour stated  that all  three phases  of the  project                                                                    
totaled  $1,050,000 and  that the  upgrades would  bring the                                                                    
simulator's bridge  controls to the latest  standards. Phase                                                                    
1  would  fund the  largest  of  AVTEC's three  full-mission                                                                    
bridge simulators.                                                                                                              
RN 56893                                                                                                                        
Mobile Mine Machine Simulator                                                                                                   
Brief Summary and Statement of Need:                                                                                            
The  Department  of  Labor and  Workforce  Development  will                                                                    
enter  into  an  agreement  with the  University  of  Alaska                                                                    
allowing them  to purchase a  mobile mine  machine simulator                                                                    
and  appropriate machine  inserts.  The University's  Mining                                                                    
and  Petroleum   Training  Service  program  will   use  the                                                                    
simulator  to  provide  mechanized mining  job  training  to                                                                    
prospective  Alaskan miners  in rural  and other  regions of                                                                    
the state. It  is anticipated the demand  for employees will                                                                    
increase significantly in 2014 and  2015, and beyond, due to                                                                    
new mines  scheduled to  become operational  including Bokan                                                                    
Mountain  and  Niblack  in  Ketchikan,  Tower  Hill  in  the                                                                    
Interior and Donlin Gold in  western Alaska among others yet                                                                    
in development.                                                                                                                 
9:08:04 AM                                                                                                                    
RN 48821                                                                                                                        
Deferred Maintenance, Renewal, Repair and Equipment - AVTEC                                                                     
Ms. Harbour  stated that  the funding  would allow  AVTEC to                                                                    
continue  to  make  progress  on  its  deferred  maintenance                                                                    
backlog.  She  pointed out  that  AVTEC  had 16  state-owned                                                                    
facilities, which  were all rather  old. She  concluded that                                                                    
although  AVTEC  had  been  able to  make  progress  on  its                                                                    
backlog through  the governor's initiative, there  was still                                                                    
more work to be done.                                                                                                           
Co-Chair  Kelly noted  that he  was  experienced at  dealing                                                                    
with deferred maintenance with the  University of Alaska and                                                                    
that deferred  maintenance was very  important issue  to the                                                                    
state.  He   mentioned  AVTEC's  deferred   maintenance  and                                                                    
inquired  if there  were other  facilities within  DLWD that                                                                    
had a backlog  that needed to be dealt with.  He requested a                                                                    
total   figure  of   the   deferred   maintenance  in   DWLD                                                                    
facilities.  Ms.   Harbor  responded  that  AVTEC   was  the                                                                    
division within  DLWD that  had state-owned  facilities, but                                                                    
that   the   total    deferred   maintenance   backlog   was                                                                    
approximately $15 million.                                                                                                      
Co-Chair  Kelly  inquired  if DLWD's  other  buildings  were                                                                    
owned by  the administration. Ms. Harbor  responded that the                                                                    
department leased  the majority  of its  buildings. Co-Chair                                                                    
Kelly  inquired   if  the  leasing  was   done  through  the                                                                    
administration. Ms. Harbour responded in the affirmative.                                                                       
Co-Chair  Meyer pointed  out  that he  did  not like  phased                                                                    
projects and noted  that there were two on  the DLWD's list.                                                                    
He  discussed the  two phased  projects in  the department's                                                                    
budget; he  inquired if it  made sense  to ask for  the full                                                                    
funding  now and  why the  projects were  being phased.  Ms.                                                                    
Harbor  replied that  the reason  the department  had phased                                                                    
the heavy equipment  shop project was because  it required a                                                                    
facility to  be constructed  before programs could  be moved                                                                    
in. She stated  that the smaller project,  which was AVTEC's                                                                    
maritime simulator  upgrade, was phased because  it could be                                                                    
phased; there were three full-mission  bridges at AVTEC that                                                                    
could be upgraded one at a time.                                                                                                
Co-Chair Meyer inquired what would  happen to AVTEC's phased                                                                    
projects if there  was no capital budget the  next year. Ms.                                                                    
Harbor responded  that if  that were  the case,  AVTEC could                                                                    
run one  of its three  simulators; however, it would  not be                                                                    
ideal because  one of the  benefits of having  three bridges                                                                    
was that they were able to interact with each other.                                                                            
Vice-Chair Fairclough spoke to  the first project and stated                                                                    
that she  had toured the  AVTEC facilities. She  pointed out                                                                    
that  an engineer  had indicated  that there  was a  problem                                                                    
with  the roof  and inquired  if  the problem  was with  the                                                                    
structural   framework.  Ms.   Harbor  responded   that  the                                                                    
structure of  the roof was  the problem. She  explained that                                                                    
the roof  leaked and that  because of a lack  of insulation,                                                                    
it shed  its ice and  posed a  hazard. She relayed  that the                                                                    
frame was not  sufficient hold an improved roof  and that as                                                                    
a result, the insulation could not be improved.                                                                                 
9:13:00 AM                                                                                                                    
Vice-Chair  Fairclough queried  how old  the existing  AVTEC                                                                    
building  was. Ms.  Harbour replied  that she  did not  have                                                                    
that information with her.  Vice-Chair Fairclough noted that                                                                    
Senator Bishop  had stated  that it was  built in  1969, but                                                                    
requested confirmation of the structure's age.                                                                                  
Senator Bishop  pointed to the request  for AVTEC's maritime                                                                    
ice  navigation  simulator and  inquired  if  the SHELL  Oil                                                                    
Company  and  others had  been  continuing  a dialogue  with                                                                    
AVTEC on training. Ms. Harbour  responded in the affirmative                                                                    
and  related that  it  was  still an  area  of interest  for                                                                    
training. She concluded that given  the level of anticipated                                                                    
growth in  the Arctic,  it was important  for the  pilots to                                                                    
know how to navigate in ice conditions.                                                                                         
Co-Chair Meyer inquired  if the Coast Guard  was involved in                                                                    
the ice  navigation simulator  process. Ms.  Harbour replied                                                                    
in the affirmative and relayed  that AVTEC currently trained                                                                    
Coast Guard staff.                                                                                                              
Co-Chair Meyer  queried if the  Coast Guard  was financially                                                                    
contributing to the simulator  process. Ms. Harbour believed                                                                    
that  the Coast  Guard contributions  were on  the operating                                                                    
side; the  Coast Guard supported  the training  programs and                                                                    
paid for students' tuition fees.                                                                                                
Co-Chair Meyer  inquired why the  mobile mine  simulator was                                                                    
being purchased  for the University  of Alaska.  Ms. Harbour                                                                    
replied  that  DLWD  saw  the  simulator  as  a  partnership                                                                    
opportunity  in  a   high  growth  area  and   that  it  was                                                                    
partnering with the  University of Alaska to  meet a demand.                                                                    
Co-Chair  Meyer further  inquired if  the university  wanted                                                                    
the mine  simulator. Ms. Harbour  responded that  the Mining                                                                    
and Petroleum Training Program wanted it.                                                                                       
Senator   Bishop  discussed   an  initiative   that  created                                                                    
"centers  of excellence"  to  cut  out duplication  requests                                                                    
that  came into  state  government. The  centers had  worked                                                                    
closely with  the University of  Alaska so that it  would be                                                                    
the  expert  in  mine  training. He  recalled  that  he  had                                                                    
directed  people  to the  University  for  mine training  in                                                                    
order to  eliminate duplicative funding. He  inquired if the                                                                    
simulator request  would finish  out the  underground mobile                                                                    
mine  training simulator  "package"  for  maps. Ms.  Harbour                                                                    
replied  that  the request  was  for  surface mine  training                                                                    
Senator Hoffman queried if the  University of Alaska had the                                                                    
funds  to operate  all  nine of  the  mining simulators.  He                                                                    
expressed  concern regarding  a lack  of funding  to operate                                                                    
the  simulators.  Ms.  Harbor  stated  that  the  university                                                                    
believed it had the  existing funds, faculty, and resources,                                                                    
but that ideally, it would  like an additional instructor to                                                                    
support the simulation program.                                                                                                 
9:18:22 AM                                                                                                                    
Vice-Chair Fairclough believed  that there was a  cut to the                                                                    
University  of Alaska's  mining  program  and indicated  she                                                                    
would look into  the matter further. She  addressed the mine                                                                    
simulator  request for  $1.8 million  and inquired  when the                                                                    
last time  there was a  software upgrade to the  system. Ms.                                                                    
Harbour  responded that  the request  did  not represent  an                                                                    
existing  system  with  a software  upgrade,  but  that  the                                                                    
maritime simulator had not seen  a software upgrade since it                                                                    
was purchased in 2000.                                                                                                          
Vice-Chair Fairclough  wondered how  many students  over the                                                                    
lifecycle of  the software had  benefited from  the program.                                                                    
She related  that she  was attempting  to do  a cost-benefit                                                                    
analysis for the investment. She  inquired how long the $1.8                                                                    
million would  last and  how many  students it  would serve.                                                                    
Ms.  Harbour   responded  that   she  had   some  additional                                                                    
information that  provided a useful  lifespan, but  that she                                                                    
was unable  to find it.  She furthered that the  mobile mine                                                                    
simulator  was  expected to  train  400  individuals a  year                                                                    
without  additional  instructors,  but  that  if  additional                                                                    
instructors were  added, the number  could increase  to 1200                                                                    
per year.  She offered  that she could  get the  useful life                                                                    
and  how many  total  individuals the  mine simulator  would                                                                    
serve, but  that she could  not find the information  at the                                                                    
Vice-Chair  Fairclough requested  the  useful  life and  how                                                                    
many total individuals  would be trained to  be provided for                                                                    
the  marine simulator  ice navigator  and  the mine  machine                                                                    
simulator.  She appreciated  that the  mine simulator  could                                                                    
move  throughout  the  state  and  understood  why  the  ice                                                                    
navigation simulator was not mobile;  however, she wanted to                                                                    
understand the cost-benefit of the programs.                                                                                    
Co-Chair  Meyer requested  that the  information that  Vice-                                                                    
Chair  Fairclough asked  for  be routed  to  his office  and                                                                    
indicated  that he  would distribute  the  materials to  the                                                                    
committee  members. Ms.  Harbour  interjected  that she  had                                                                    
found  some  of  the  requested information  and  that  with                                                                    
proper maintenance and service,  the expected useful life of                                                                    
the mobile mine simulator was 10 to 15 years.                                                                                   
Senator  Bishop encouraged  continued participation  between                                                                    
DLWD, the University  of Alaska, and the  mining industry to                                                                    
continue to increase Alaskan hires in the mines.                                                                                
Vice-Chair Fairclough stated  that she was in  charge of the                                                                    
University of Alaska's budget and  expressed concern that it                                                                    
contained an operational decrement that lost an instructor.                                                                     
9:22:34 AM                                                                                                                    
AT EASE                                                                                                                         
9:25:52 AM                                                                                                                    
^DEPARTMENT  OVERVIEW:  DEPARTMENT   OF  TRANSPORTATION  AND                                                                  
PUBLIC FACILITIES                                                                                                             
PAT  KEMP, COMMISSIONER,  DEPARTMENT  OF TRANSPORTATION  AND                                                                    
PUBLIC  FACILITIES, introduced  himself  and  staff for  the                                                                    
record. He stated that the  Department of Transportation and                                                                    
Public Facilities' (DOT) budget  was about $200 million less                                                                    
in  general funds  than it  was the  prior year.  He related                                                                    
that  regarding  federal  aid,   the  budget  reflected  the                                                                    
effects of  the highway bill  "MAP-21" and the  new aviation                                                                    
bill that passed. He shared  that there were some changes to                                                                    
the  makeup  of  the  "bill"  and  that  there  would  be  a                                                                    
transition from the local community  projects and the Alaska                                                                    
Highway  System to  the national  highway  system. He  noted                                                                    
that under MAP-21, 58 percent  of Alaska's federal aid would                                                                    
be diverted to 18 percent of the state's highway use.                                                                           
Vice-Chair Fairclough  noted that  there were  a substantial                                                                    
amount of  requests in the  DOT's budget and  requested that                                                                    
the page numbers  be used instead of  reference numbers when                                                                    
a   specific  project   was  referenced.   She  additionally                                                                    
requested  that the  presenters  pause if  they were  moving                                                                    
multiple pages ahead.                                                                                                           
JEFF  OTTESEN, DIRECTOR,  DIVISION  OF PROGRAM  DEVELOPMENT,                                                                    
DEPARTMENT   OF   TRANSPORTATION  AND   PUBLIC   FACILITIES,                                                                    
introduced  himself and  discussed  the  structure that  the                                                                    
presentation would follow.                                                                                                      
MIKE COFFEY, CHIEF OF  STATEWIDE MAINTENANCE AND OPERATIONS,                                                                    
DEPARTMENT   OF   TRANSPORTATION  AND   PUBLIC   FACILITIES,                                                                    
discussed  the department's  requests and  related that  the                                                                    
first group of projects fell under the safety heading.                                                                          
RN 54164                                                                                                                        
9:29:25 AM                                                                                                                    
RN 52034                                                                                                                        
Alaska Aviation Safety Program                                                                                                  
Mr. Coffey related that this  program was a partnership with                                                                    
the Medallion Foundation and that  the funding would provide                                                                    
for a  3D mapping simulation  of the Iditarod  flying route;                                                                    
it was a multi-year project  to increase pilot safety around                                                                    
the state.                                                                                                                      
Vice-Chair Fairclough  clarified that  the $5.5  million was                                                                    
on  page 1  and inquired  if that  was accurate.  Mr. Coffey                                                                    
responded   in   the  affirmative.   Vice-Chair   Fairclough                                                                    
inquired if  the $5.5 million  was a "rollup" of  the safety                                                                    
projects instead of  an addition. Mr. Coffee  replied in the                                                                    
RN 45197                                                                                                                        
Measurement  Standards  and Commercial  Vehicle  Enforcement                                                                    
Equipment Replacement                                                                                                           
Mr.  Coffey  discussed  the  funding  and  related  that  it                                                                    
provided  for an  800 gallon  volumetric  prover, which  was                                                                    
vital  equipment  for  measuring  and  certifying  pumps  on                                                                    
docks,  fuel  delivery  trucks,  etc.  He  shared  that  the                                                                    
current prover  in South-Central  Alaska was  inoperable and                                                                    
that  bringing  another  online would  increase  efficiency.                                                                    
Part of  the project would  also provide for a  forklift and                                                                    
HVAC system for the metrology lab.                                                                                              
RN 41394                                                                                                                        
Statewide Anti-Icing Program                                                                                                    
Mr.  Coffey  stated that  the  anti-icing  project was  very                                                                    
important  and that  DOT had  been implementing  a proactive                                                                    
way  of maintaining  the state's  highways. DOT  had already                                                                    
implemented  the anti-icing  program in  several cities  and                                                                    
the funding would allow DOT  to expand the project to Kodiak                                                                    
and  the  Mat-Su  Valley.  He  explained  that  the  project                                                                    
involved  proactively  putting  chemicals  on  the  road  to                                                                    
prevent  the  ice and  snow  from  bonding to  the  highway;                                                                    
nationally, it was a major  way to reduce accidents and save                                                                    
RN 42072                                                                                                                        
Statewide Rural Airport Safety Improvements                                                                                     
Mr. Coffey  related that this  project provided  benefits to                                                                    
several  rural airports  and allowed  DOT to  perform gravel                                                                    
resurfacing,  pavement  repairs,   electrical  repairs,  and                                                                    
provide  windsocks. He  added that  the  project would  fund                                                                    
smaller projects at numerous airports in Rural Alaska.                                                                          
9:33:25 AM                                                                                                                    
RN 54165                                                                                                                        
Asset Management                                                                                                                
Mr.  Coffey  stated  that   the  asset  management  projects                                                                    
allowed the department to extend  the life of a facility. He                                                                    
pointed out  that doing routine preventative  maintenance on                                                                    
highways,  airports, ferries,  buildings, etc.  would enable                                                                    
the state to get more life from its initial investment.                                                                         
RN 33853                                                                                                                        
Aggregate Surfacing Materials                                                                                                   
Mr. Coffey  related that this  project would  provide gravel                                                                    
resources stock  piles on several  of Alaska's  major gravel                                                                    
highways, such  as the Taylor  Highway, the  Dalton Highway,                                                                    
the Denali Highway, McCarthy Road,  and the Nebesna Road. He                                                                    
shared that  DOT liked to  have strategically  located stock                                                                    
piles that allowed  them to continue doing  maintenance on a                                                                    
routine basis.                                                                                                                  
RN 30634                                                                                                                        
Emergency and Non-Routine Repairs                                                                                               
Mr.  Coffey  stated that  the  project  would allow  DOT  to                                                                    
respond  quickly  to  natural  disasters  or  the  aging  of                                                                    
infrastructure. He  shared that the funding  would allow the                                                                    
department to be proactive in  repairing a culvert before it                                                                    
damaged and closed down a  major highway. He stated that the                                                                    
department had used funding in  the current year in the Mat-                                                                    
Su Valley  on the  old Glenn Highway  next to  the Matanuska                                                                    
River; the  river was encroaching  on the highway  and would                                                                    
take out  the highway  without further action.  He concluded                                                                    
that  the  funding  was  allowing DOT  to  be  proactive  in                                                                    
providing shore protection  to keep the river  away from the                                                                    
Senator Hoffman directed the presentation back page 13.                                                                         
RN 30624                                                                                                                      
Alaska Marine Highway System - Vessel and Terminal Overhaul                                                                     
and Rehabilitation                                                                                                              
Senator Hoffman  noted that the community  of Metlakatla had                                                                    
completed  its road  and  was  in the  process  of making  a                                                                    
shorter ferry  run from Annette Island  to "hopefully Saxman                                                                    
if  that  gets  worked  out or  the  present  terminal."  He                                                                    
related  that   he  had  recently  visited   Metlakatla  and                                                                    
expressed  that there  were concerns  in the  community that                                                                    
"this run" was  one of the very few that  was profitable. He                                                                    
stated that  the rumors in  Metlakatla were that  the number                                                                    
of routes and the price would  stay the same even though the                                                                    
time was  being reduced  by two-thirds.  He inquired  if the                                                                    
department could examine  the issue and get back  to him. He                                                                    
noted that the  area was now in  Senator Stedman's district,                                                                    
but that he  had taken a keen interest in  the issue. He was                                                                    
interested in  what the department  was doing  regarding the                                                                    
route  in Metlakatla.  He  expressed  an additional  concern                                                                    
that Metlakatla's afternoon ferry  schedule did not coincide                                                                    
with connecting Alaska Airlines  flights and that people had                                                                    
been unable to make the  connection from the ferry to Alaska                                                                    
Airlines  as a  result. He  opined that  a 30  or 45  minute                                                                    
adjustment  to  the  route  could  address  the  issue  with                                                                    
connecting   flights.  Mr.   Ottesen  replied   that  Deputy                                                                    
Commissioner Yost  would attempt  to get  answers to  all of                                                                    
Senator Hoffman's  questions and related that  the questions                                                                    
were largely operational in nature.                                                                                             
Co-Chair  Meyer noted  that although  he had  requested that                                                                    
the questions be held till the  end of the meeting, it would                                                                    
be  appropriate  to  take  a  break  for  questions  as  the                                                                    
presentation got through various sections.                                                                                      
9:39:27 AM                                                                                                                    
RN 54169                                                                                                                        
Regulatory Compliance                                                                                                           
Mr. Coffey  related that this  grouping of  projects allowed                                                                    
DOT  to stay  compliant  with  new Environmental  Protection                                                                    
Agency (EPA) mandates and regulations.                                                                                          
RN 50874                                                                                                                        
Central Region - Sand Storage Buildings                                                                                         
Mr. Coffey stated that the department was required by its                                                                       
Municipal Separate Storm Sewer System (MS4) Permit to have                                                                      
covered sand storage in Anchorage, Girdwood, and Birchwood.                                                                     
Vice-Chair Fairclough  inquired if  the project was  for the                                                                    
Anchorage Road  and Drainage Service Area  (ARDSA) group and                                                                    
noted that  the Chugiak,  Birchwood, Eagle River  Rural Road                                                                    
Service Area (CBERRRSA) group  was included under Birchwood.                                                                    
She thought  she recalled giving an  appropriation the prior                                                                    
year  for covered  sand storage  in the  Chugiak/Eagle River                                                                    
area.  Mr. Coffey  responded  that he  was  unaware of  what                                                                    
Vice-Chair Fairclough  was referring  to and that  the first                                                                    
project that  the department had completed  was in Girdwood,                                                                    
which now had  covered sand storage; the $2  million was for                                                                    
the  Birchwood sand  storage. Vice-Chair  Fairclough pointed                                                                    
out  that  she  would  look   into  the  matter  because  an                                                                    
appropriation had  been altered  the previous year  in order                                                                    
to make "this"  the higher priority. She added  that she was                                                                    
not  sure  if  the  appropriation was  for  this  particular                                                                    
location,  but  that  one  facility in  the  area  had  been                                                                    
addressed with funding.                                                                                                         
RN 50790                                                                                                                        
Environmental     Protection    Agency     Injection    Well                                                                    
Compliance/Remediation Project                                                                                                  
Mr.  Coffey  related  that  this  project  was  another  EPA                                                                    
enforcement action  that was  taken against  the department.                                                                    
He explained that DOT had about  40 of the class 5 injection                                                                    
wells,  which   were  simply   oil-water  separators   in  a                                                                    
maintenance shop.  The class 5  injection wells  were banned                                                                    
in 2005 and the funding would  represent the first year of a                                                                    
two year project to decommission  the wells in compliance in                                                                    
EPA mandates.                                                                                                                   
RN 56603                                                                                                                        
Environmental  Protection  Agency Mandated  Airport  Deicing                                                                    
Conversation to Potassium Acetate                                                                                               
Mr. Coffey  stated that this  project reflected  another EPA                                                                    
Mandate in which the use of  urea had been banned for use in                                                                    
airports. Urea  had been the number  one anti-icing/de-icing                                                                    
agent that  was used on  the majority of DOT's  airports. He                                                                    
added that  the project affected Kodiak,  Bethel, Sitka, and                                                                    
Barrow. He  explained that  urea was  a solid  chemical, but                                                                    
that  potassium acetate,  which was  the alternative,  was a                                                                    
liquid  chemical; the  funding  would  provide for  storage,                                                                    
pumping,  and  other  things  in  order  to  facilitate  the                                                                    
conversion to potassium acetate.                                                                                                
9:43:33 AM                                                                                                                    
Co-Chair  Meyer  inquired  if the  conversion  to  potassium                                                                    
acetate represented  a federal mandate without  any funding.                                                                    
Mr. Coffey responded in the affirmative.                                                                                        
Vice-Chair  Fairclough stated  that  her  staff had  checked                                                                    
into  her  questions regarding  RN  50874  and related  that                                                                    
"what we  had was a city  sand storage issue versus  a state                                                                    
sand storage issue."                                                                                                            
RN 49780                                                                                                                        
Municipal Harbor Facility Grant Fund                                                                                            
Mr. Ottesen  stated that every year,  DOT sought nominations                                                                    
from  communities  and  that   essentially,  the  state  was                                                                    
agreeing to  pay half of the  cost of upgrading a  harbor in                                                                    
return for  the community taking  the harbor over.  He added                                                                    
that  there was  a chart  that showed  how many  requests in                                                                    
dollars the  department had over  the years, as well  as how                                                                    
many dollars had  been appropriated by year.  He shared that                                                                    
in the current year,  $14,713,000 had been appropriated. The                                                                    
budget request  was for two  of the four projects  that were                                                                    
in the request for "just a  little less than $9 million." He                                                                    
offered that  the program had  been very successful  and was                                                                    
ongoing; DOT was  proposing to fund the  Homer and Ketchikan                                                                    
projects this  year and to  defer the projects in  Sitka and                                                                    
RN 42968                                                                                                                        
Community Harbor and Transfer Program                                                                                           
Mr. Ottesen  shared that this  program was  somewhat related                                                                    
to  the  last  appropriation,   but  was  for  much  smaller                                                                    
facilities such as  boat ramps or small  floats; the funding                                                                    
would  go  towards two  projects  in  Ketchikan and  one  in                                                                    
RN 41670                                                                                                                        
Juneau Access                                                                                                                   
Mr. Ottesen  related that the  request was for  starting the                                                                    
Juneau  Access Project;  the plan  was to  try building  the                                                                    
project  with  roughly half  federal  funds  and half  state                                                                    
funds in  order to  accomplish the project  without reducing                                                                    
the  federal  program  to  other  areas  of  the  state.  He                                                                    
explained  that the  reason  the money  was  needed now  was                                                                    
because it  was a large project  in the eyes of  the Federal                                                                    
Highway Administration (FHWA). He  explained that the Juneau                                                                    
Access Project was over $100  million and that projects over                                                                    
that size  had to  have a  detailed financial  plan prepared                                                                    
and updated annually. He furthered  that one of the rules in                                                                    
"that  whole  process"  is  that   you  have  to  present  a                                                                    
realistic funding  source; the  state needed  to demonstrate                                                                    
that the money would be forthcoming.                                                                                            
Co-Chair Meyer stated that the  committee had some questions                                                                    
on  the Juneau  Access  Project, but  would  wait until  Mr.                                                                    
Ottesen was finished with his presentation.                                                                                     
9:47:14 AM                                                                                                                    
RN 56677                                                                                                                        
Knik Arm Bridge and Toll Authority (KABATA) Project                                                                             
Mr.  Ottesen   related  that  this  project   was  meant  to                                                                    
establish a  reserve fund  for years  when the  toll revenue                                                                    
was   not  sufficient   to   reimburse  the   public-private                                                                    
partnership that  was building  the project. He  shared that                                                                    
the  project was  a  matter  of showing  good  faith to  the                                                                    
markets and the FHWA. FHWA had  the ability to bestow on the                                                                    
project  a type  of funding  known as  "TIFIA," which  was a                                                                    
very low-interest  patient capital that was  willing to wait                                                                    
last  to be  repaid. He  shared that  Congress had  recently                                                                    
increased the amount of TIFIA  funds that were available, as                                                                    
well as the  amount of TIFIA funding that  could be bestowed                                                                    
on one project.                                                                                                                 
RN 54136                                                                                                                        
Project Acceleration Account                                                                                                    
Mr.  Ottesen stated  that  the department  had  asked for  a                                                                    
similar amount the prior year,  but that the legislature had                                                                    
enlarged the  request from  $3 million  to $4.5  million. He                                                                    
explained that federally funded  projects could sometimes go                                                                    
quicker  with added  state money  added to  the project  and                                                                    
offered that this way, tasks  could be done out of sequence,                                                                    
which federal funds would not  permit. He offered that using                                                                    
state funds to supplement  federal projects could often save                                                                    
a year or two off a  project's timeline. He pointed out that                                                                    
a  lot  of  projects  had benefited  from  the  acceleration                                                                    
account. He mentioned  that one of the reasons  the fund was                                                                    
enlarged the previous year was to  get a start on several of                                                                    
the GO  Bond projects. A list  of GO Bond projects  had been                                                                    
approved by the legislature in  the budget the prior spring;                                                                    
however, it did not go to  the voters until November and the                                                                    
bonds for  the GO funded  projects had not been  sold. There                                                                    
were no dollars yet to  start the GO Bond projects; however,                                                                    
due to  project acceleration funds, several  of the projects                                                                    
were underway  with field and  design work. He  offered that                                                                    
the acceleration fund had saved substantial time.                                                                               
9:50:25 AM                                                                                                                    
RN 39356                                                                                                                        
Resource Roads Program                                                                                                          
Mr.  Ottesen   mentioned  that  the  request   was  for  the                                                                    
administrative and small project  amount for the program. He                                                                    
discussed the roads to Ambler and  Umiat, as well as work on                                                                    
the Shelter Cove Road and  the Klondike Highway; the funding                                                                    
would  cover  staff  time  and  "early  investigations."  He                                                                    
recalled meeting  with the department's consultant,  who was                                                                    
working on a  West-Susitna access project. He  shared that a                                                                    
dock study was  currently under way to see if  the IFA ferry                                                                    
could  serve as  a  crew  delivery vessel  to  the mine  and                                                                    
discussed the benefits of the potential ferry use.                                                                              
RN 50770                                                                                                                        
Statewide Digital Mapping Initiative Elevation Component                                                                        
Mr. Ottesen stated that the project  was a request by DOT on                                                                    
behalf of several  other state agencies and  was intended to                                                                    
modernize Alaska's maps. He related  that Alaska's maps were                                                                    
very old and depicted inaccuracies in the terrain.                                                                              
RN 54074                                                                                                                        
United States Army Corps of Engineers-Arctic Ports Study                                                                        
Mr. Ottesen related  that this project was  an ongoing study                                                                    
with the Army Corps of  Engineers to identify port sights on                                                                    
the  Arctic Coast  in order  to enable  the state  to better                                                                    
benefit  from  offshore  oil  and gas,  as  well  as  Arctic                                                                    
RN 6764                                                                                                                         
Statewide Federal Programs                                                                                                      
RN 52032                                                                                                                        
Alaska    Mobility   Coalition-    Public   and    Community                                                                    
Transportation State Match                                                                                                      
Mr.  Ottesen  related  that this  appropriation  would  help                                                                    
communities provide match to their bus systems.                                                                                 
RN 34752                                                                                                                        
Commercial Vehicle Enforcement Program                                                                                          
Mr. Ottesen stated that this  request was ongoing to receive                                                                    
federal money  for insuring that  the trucking  industry was                                                                    
operating  safely  on  our highways,  but  that  there  were                                                                    
several subprograms that were listed through page 47.                                                                           
9:54:11 AM                                                                                                                    
RN 31375                                                                                                                        
Cooperative Reimbursable Projects                                                                                               
Mr.  Ottesen shared  that this  project gave  the state  the                                                                    
ability to send its money  to another federal agency to have                                                                    
them help Alaska or vice versa.                                                                                                 
RN 31376                                                                                                                        
Federal Contingency Projects                                                                                                    
Mr.  Ottesen  relayed  that  this  request  was  essentially                                                                    
federal authority to receive federal  funds when DOT did not                                                                    
have the  named authority in  the budget; furthermore,  if a                                                                    
project's budget  was larger than the  authority received in                                                                    
the  budget,  the department  took  some  of the  contingent                                                                    
authority, which allowed the project  to proceed in the same                                                                    
RN 38424                                                                                                                        
Federal Emergency Projects                                                                                                      
Mr.  Ottesen stated  that this  funding  gave DOT  authority                                                                    
when  there was  a declared  emergency  such as  a flood  or                                                                    
forest   fire;  in   an  emergency   where  some   of  DOT's                                                                    
transportation assets  were harmed, the funding  would allow                                                                    
the department  to start work immediately  and perform long-                                                                    
term repairs.                                                                                                                   
RN 30643                                                                                                                        
Federal Transit Administration Grants                                                                                           
Mr. Ottesen  stated that  this federal  funding was  for bus                                                                    
systems for  all communities of  the state  except Anchorage                                                                    
and  Fairbanks.  He  added   that  Anchorage  and  Fairbanks                                                                    
receive  their transit  funding  directly  from the  Federal                                                                    
Transit  Administration, while  Juneau,  Sitka, Bethel,  and                                                                    
many  others   were  receiving  their  money   through  this                                                                    
RN 33485                                                                                                                        
Highway Safety Grant Program                                                                                                    
Mr. Ottesen stated this was  federal money that was received                                                                    
from National Highway  Transportation Safety Administration.                                                                    
He  related that  this program  was largely  focused on  the                                                                    
behavioral side of  safety and did not build  things or make                                                                    
the road safer  in a physical sense; the  program focused on                                                                    
education  and enforcement.  He concluded  that the  program                                                                    
was ongoing and did really good things.                                                                                         
RN 41923                                                                                                                        
Other Federal Program Match                                                                                                     
Mr. Ottesen related  that this match amount was  for all the                                                                    
federal programs that he just covered.                                                                                          
RN 34018                                                                                                                        
Statewide Safety Program                                                                                                        
Mr. Ottesen  pointed out  that every  year part  of Alaska's                                                                    
federal highway  money was sanctioned because  the state had                                                                    
two  laws  that  did  not  meet  federal  requirements.  The                                                                    
federal government took  some funding away and  gave it back                                                                    
to the state as safety dollars.                                                                                                 
Co-Chair  Meyer noted  that there  appeared to  be a  lot of                                                                    
federal money  in DOT's budget  and inquired what  the spilt                                                                    
was  between   federal  and   state  funding.   Mr.  Ottesen                                                                    
responded that the  split varied, but that  each category of                                                                    
federal  funding  was somewhere  between  80  percent to  20                                                                    
percent and 91 percent to 9  percent. He shared that even in                                                                    
the federal  highway program, not every  category of funding                                                                    
had the same percentage ratio.                                                                                                  
9:58:52 AM                                                                                                                    
Co-Chair Meyer requested a copy  of the project acceleration                                                                    
list. Mr.  Ottesen responded in  the affirmative  and stated                                                                    
that the  list was well  over a dozen projects;  the funding                                                                    
did  a variety  of things  that  were not  allowed to  occur                                                                    
under federal rules.  He added that federal  rules were very                                                                    
procedural and  that the acceleration  list had  allowed DOT                                                                    
to skip some steps.                                                                                                             
Senator  Hoffman  pointed  out  that he  had  two  areas  of                                                                    
concern   and  expressed   appreciation   for  the   project                                                                    
acceleration  account.   He  mentioned  an   Aleknagik  bond                                                                    
project that  had been  funded years  prior and  inquired if                                                                    
Mr. Ottesen  had heard of  the project. Mr.  Ottesen replied                                                                    
that the project was in design  and was scheduled to go to a                                                                    
construction bid in April; however,  the project was waiting                                                                    
for a  permit from  the Coast  Guard to  put the  bridge in.                                                                    
Senator  Hoffman  noted that  he  had  been working  on  the                                                                    
project for  20 years and  that it would  be good to  see it                                                                    
Senator  Hoffman pointed  to  page 42  and  the Arctic  Port                                                                    
Study.  He expressed  concern about  the  St. George  harbor                                                                    
project that had  been funded the last two  years. He opined                                                                    
that  the  harbor should  be  included  in the  Arctic  Port                                                                    
Study.   He   noted   that  the   project   had   been   the                                                                    
responsibility  of the  small community  of  St. George  and                                                                    
queried if the  project should be the  responsibility of the                                                                    
DOT,  given that  the city  transferred the  design and  the                                                                    
work to  the department  anyway. Mr. Ottesen  responded that                                                                    
the  Arctic Port  Study had  shortlisted  several ports  for                                                                    
further  study  and   that  two  of  the   ports  that  were                                                                    
identified  were  Nome and  Port  Clarence.  He stated  that                                                                    
Crowley   Maritime  had   already   chosen   to  start   its                                                                    
operational  base in  Port  Clarence and  that  Nome was  an                                                                    
existing harbor that was close  to infrastructure. He shared                                                                    
that the  state's policy for  over 20  years was to  get DOT                                                                    
out of  the harbor  business. He  added that  the department                                                                    
was happy to  do work that was funded and  came its way, but                                                                    
that the  it had  been instructed to  shed those  assets for                                                                    
over  20  years   and  get  them  into  the   hands  of  the                                                                    
Senator Bishop  noted that he  had some  questions regarding                                                                    
the commercial vehicle  section on page 46,  but stated that                                                                    
he could meet with the department after the meeting.                                                                            
10:03:03 AM                                                                                                                   
Vice-Chair  Fairclough pointed  to page  59. She  noted that                                                                    
Mr. Ottesen had referred to two  laws that the state was not                                                                    
in compliance  with and  queried what  those laws  were. Mr.                                                                    
Ottesen replied that the one of  the laws in question was an                                                                    
open   container  law.   Alaska's  law   allowed  for   open                                                                    
containers in recreational  vehicles and in a side  bag of a                                                                    
motorcycle; this  did not meet the  federal requirements. He                                                                    
offered that the other law had  to do with what happens to a                                                                    
vehicle that was impounded. He  recalled that there had been                                                                    
a  question as  to whether  an impounded  vehicle should  be                                                                    
taken away  from a  driver. He  opined that  the legislature                                                                    
had felt like taking the vehicle  away was a punitive act to                                                                    
rest  of   the  family  and   chose  not  to  make   that  a                                                                    
requirement. He added that the  sanction was not as harsh as                                                                    
one  might think,  but  that  it could  be  spent on  safety                                                                    
projects.  He discussed  various potential  safety projects.                                                                    
He pointed  out that DOT  had to take the  approximately $20                                                                    
million and  spend it  on projects that  it could  show were                                                                    
safety related.                                                                                                                 
Co-Chair Meyer observed  that there was $7.5  million in the                                                                    
budget for the  Dalton Highway and inquired  it was eligible                                                                    
for  any federal  funding. He  offered that  the legislature                                                                    
had  always  "piecemealed" that  road,  but  that it  was  a                                                                    
critical highway to the state.  Mr. Ottesen replied that DOT                                                                    
did all of  its major reconstruction projects  on the Dalton                                                                    
Highway with federal funding, but  that the $7.5 million was                                                                    
for  activities  that  were   not  federally  eligible;  the                                                                    
largest task  that was  completed with  the funding  was the                                                                    
production of  the resurfacing aggregate. He  furthered that                                                                    
major  reconstruction  such  as   a  widening  or  a  bridge                                                                    
replacement was all done with federal funds.                                                                                    
Mr. Ottesen  stated that the  presentation was  entering two                                                                    
very large sections and that  DOT would highlight the bigger                                                                    
Co-Chair Meyer noted that a  lot of the funding remaining in                                                                    
the presentation was federal.                                                                                                   
10:07:08 AM                                                                                                                   
ROGER MAGGARD,  TRANSPORTATION PLANNER,  STATEWIDE AVIATION,                                                                    
DEPARTMENT   OF   TRANSPORTATION  AND   PUBLIC   FACILITIES,                                                                    
introduced himself and discussed the department's budget.                                                                       
RN 7470                                                                                                                         
Airport Improvement Program                                                                                                     
Mr.  Maggard related  that this  program  was 93.75  percent                                                                    
federally funded with 6.25 percent  in non-federal match. He                                                                    
explained that DOT obtained grants  for projects, which were                                                                    
then   put  into   construction.  He   furthered  that   the                                                                    
department  could   pay  its   construction  costs   and  be                                                                    
reimbursed by the federal government.  He concluded that the                                                                    
program was a cost reimbursement program.                                                                                       
Mr. Maggard  related that there  were four themes,  known as                                                                    
the "four cornerstones," that were  primary with the Federal                                                                    
Aviation  Administration (FAA)  for  Alaska's rural  airport                                                                    
system.  The   first  theme  was  the   Runway  Safety  Area                                                                    
Expansion Program. He stated that  Congress had passed a law                                                                    
that required  that all runway safety  areas on certificated                                                                    
Part  139  airports, which  were  the  airports that  served                                                                    
aircraft with over  30 seats, be brought up  to standards by                                                                    
2015; the FAA was pushing this as their top priority.                                                                           
RN 56963                                                                                                                        
Adak- Runway Safety Area Improvements                                                                                           
RN 49163                                                                                                                        
Kodiak- Airport Improvements                                                                                                    
Mr. Maggard  stated that the  second "cornerstone"  that the                                                                    
FFA  was pushing  was improving  the pavement  conditions at                                                                    
airports.  He related  that DOT  liked to  have the  runways                                                                    
meeting a  pavement condition index  of 70 and  the taxiways                                                                    
to  meet  an index  of  60.  He  shared  that there  was  an                                                                    
inspection  program   and  that   each  paved   airport  was                                                                    
inspected once  every three years.  He stated  that pavement                                                                    
normally deteriorated at three points  per year and that the                                                                    
department  tried  to  extend the  life  of  pavements  with                                                                    
pavement preservations. He  added that pavement preservation                                                                    
was a major expense.                                                                                                            
10:11:11 AM                                                                                                                   
RN 49104                                                                                                                        
Haines-Airport Drainage Improvement  and Taxiway, Runway and                                                                    
Apron Rehabilitation, and Fencing                                                                                               
RN 56966                                                                                                                        
King Salmon- Runway Pavement Reconstruction                                                                                     
RN AMD 56954                                                                                                                    
Nome Airport- Runway Apron Pavement Rehabilitation                                                                              
RN 40294                                                                                                                        
Ted   Stevens   Anchorage   International   Airport-Airfield                                                                    
Pavement and Maintenance                                                                                                        
Mr. Maggard  relayed that the  third theme was  rural access                                                                    
and stated  that 82 percent  of Alaska's communities  had no                                                                    
road  access;   airports  provided   the  primary   or  only                                                                    
practical all-season access to these communities.                                                                               
RN 56965                                                                                                                        
Hooper Bay- Airport Improvements                                                                                                
RN 56955                                                                                                                        
Kiana-  Airport  Improvements  and  Snow  Removal  Equipment                                                                    
RN 56950                                                                                                                        
Saint Michael- Airport Improvements                                                                                             
Mr. Maggard shared that the  fourth "cornerstone" was safety                                                                    
improvements,  which covered  a  wide  variety of  potential                                                                    
RN 40555                                                                                                                        
Cold Bay-Airport Rescue and Firefighting Building Expansion                                                                     
RN 56961                                                                                                                        
Cold Bay- Approach Lighting System Replacement                                                                                  
RN 56956                                                                                                                        
Ketchikan Airport-  Airport Rescue and Fire  Fighting (ARFF)                                                                    
Building Remodel                                                                                                                
RN 51627                                                                                                                        
Fairbanks    International    Airport-    Aircraft    Rescue                                                                    
Firefighting Facility Upgrade                                                                                                   
Senator  Hoffman  pointed  to  page  70  and  requested  the                                                                    
department to  reclassify the locations of  the new election                                                                    
districts. Mr.  Ottesen responded that the  department would                                                                    
work on it.                                                                                                                     
10:15:25 AM                                                                                                                   
Mr.  Ottesen related  that the  Federal Highway  Program was                                                                    
the largest  individual portion of the  department's capital                                                                    
budget and was funded largely by the FHWA.                                                                                      
MIKE VIGUE,  DIVISION OF PROGRAM DEVELOPMENT,  DEPARTMENT OF                                                                    
TRANSPORTATION    AND   PUBLIC    FACILITIES,   began    his                                                                    
presentation of the department's requests.                                                                                      
RN 32610                                                                                                                        
Surface Transportation Program                                                                                                  
RN 32609                                                                                                                        
Federal-Aid Highway State Match                                                                                                 
Mr.  Vigue  responded to  an  earlier  question by  Co-Chair                                                                    
Meyer  and stated  that  the vast  majority  of the  Federal                                                                    
Highway  Program  was  split at  about  91  percent  federal                                                                    
funding to 9  percent match. He pointed out  that there were                                                                    
a few programs with an 80 percent to 20 percent split.                                                                          
Co-Chair Meyer  stated that the  department did not  need to                                                                    
go through each item  individually. Mr. Vigue responded that                                                                    
he would not go through  each project, but would highlight a                                                                    
couple of  the projects  and provide information  on several                                                                    
of the metropolitan planning organization projects.                                                                             
RN 39100                                                                                                                        
Anchorage   Metropolitan   Area   Transportation   Solutions                                                                    
(AMATS)-   Air  Quality   Public   and  Business   Awareness                                                                    
Education Campaign                                                                                                              
RN 56933                                                                                                                        
Anchorage   Metropolitan   Area   Transportation   Solutions                                                                    
(AMATS)- Municipalty of  Anchorage Long Range Transportation                                                                    
RN 56932                                                                                                                        
Anchorage   Metropolitan   Area   Transportation   Solutions                                                                    
(AMATS)-Freight Mobility Study                                                                                                  
RN 51556                                                                                                                        
Anchorage   Metropolitan   Area   Transportation   Solutions                                                                    
(AMATS)-O'Malley Road Reconstruction                                                                                            
RN 40396                                                                                                                        
Anchorage   Metropolitan   Area   Transportation   Solutions                                                                    
(AMATS)- Ridesharing and Transit Marketing                                                                                      
Mr.  Vigue stated  that these  projects were  prioritized by                                                                    
the metropolitan  planning organization in  Anchorage, which                                                                    
was  Anchorage  Metropolitan Area  Transportation  Solutions                                                                    
(AMATS).  He related  that AMATS  received an  allocation of                                                                    
about  $22  million  per  year and  stated  that  the  above                                                                    
projects were what AMATS had  in its transportation plan for                                                                    
the upcoming year.  He pointed out that  the largest project                                                                    
in this group was the O'Malley road reconstruction.                                                                             
RN 41699                                                                                                                        
Central  Region- National  highway  System and  Non-National                                                                    
Highway System Pavement and Bridge Refurbishment                                                                                
RN 41700                                                                                                                        
Northern  Region- National  highway System  and Non-National                                                                    
Highway System Pavement and Bridge Refurbishment                                                                                
RN 41701                                                                                                                        
Southeast Region-  National highway System  and Non-National                                                                    
Highway System Pavement and Bridge Refurbishment                                                                                
Mr.  Vigue  stated  that  these   three  projects  were  for                                                                    
preventative  maintenance and  were aimed  at extending  the                                                                    
life  of  the   facility.  The  funds  would   be  used  for                                                                    
activities such  as chip  sealing, pavement  overlays, crack                                                                    
sealing,  restoration   of  drainage  systems,   and  bridge                                                                    
10:20:07 AM                                                                                                                   
RN 57060                                                                                                                        
Palmer-Wasilla   Highway-   Pavement   Preservation-   Parks                                                                    
Highway to Knik-Goose Bay Road                                                                                                  
RN 49144                                                                                                                        
Parks Highway-  Milepost 43.5  to 52.3  Reconstruction Lucas                                                                    
Road to Big Lake Cutoff                                                                                                         
RN 54161                                                                                                                        
Parks    Highway-   Milepost    194-Broad   Pass    Railroad                                                                    
Mr.  Vigue  related  that  the two  projects  on  the  Parks                                                                    
Highway were fairly substantial  and stated that the highway                                                                    
was  a  designated  highway  safety  corridor;  it  was  the                                                                    
department's intent  to get these  two projects "out  in the                                                                    
Mr. Vigue  related that there  were a fair amount  of bridge                                                                    
projects on  the list and  relayed that under  MAP-21, there                                                                    
would  be a  performance measure  on structurally  deficient                                                                    
bridges; as a  result, DOT had been making an  effort to try                                                                    
to get  the bridges to  a better condition. He  related that                                                                    
if the  state did not  work on  the bridges, there  would be                                                                    
penalties  to  the  state.   He  explained  that  designated                                                                    
funding  would have  to  be  used on  bridges  and that  the                                                                    
federal share  on a project could  go down if the  state did                                                                    
not meet the federal performance measures.                                                                                      
Senator  Bishop inquired  if the  department had  its matrix                                                                    
laid out regarding the order  of what bridges the state need                                                                    
to  improve.  Mr.  Vigue  replied  in  the  affirmative  and                                                                    
explained  that  DOT had  a  bridge  management system  that                                                                    
required them  to conduct inspections  on the  bridges every                                                                    
two years.  He furthered that the  department collected data                                                                    
on the  bridges and assigned  them a score, which  was known                                                                    
as a "sufficiency rating." He  concluded that the department                                                                    
would  use the  data to  determine which  bridges would  get                                                                    
capital improvements.                                                                                                           
Mr.  Ottesen followed  up that  DOT had  published a  bridge                                                                    
report in  2005 and relayed  that it contained  the mainline                                                                    
and  the "off-system"  bridges that  needed work.  He stated                                                                    
that  the  department  had been  focusing  on  the  mainline                                                                    
bridges  because  of  the  prospect  of  gas  pipelines  and                                                                    
because they  impeded commerce for oversized  and overweight                                                                    
Co-Chair Meyer  inquired how the intermixing  of federal and                                                                    
general fund  money worked. He assumed  the department would                                                                    
continue  expanding   O'Malley  "up   the  hill"   with  the                                                                    
additional money in the GO  Bond. He expressed concerns that                                                                    
using  federal  money  could  slow  down  the  project.  Mr.                                                                    
Ottesen replied  that DOT  could get  back to  the committee                                                                    
with  an answer,  but  that the  department  was mindful  to                                                                    
apply  the type  of funding  that  made the  project go  the                                                                    
fastest.  Co-Chair  Meyer  noted  that the  issue  could  be                                                                    
pursued outside of the meeting.                                                                                                 
10:24:18 AM                                                                                                                   
Vice-Chair  Fairclough  directed the  committee's  attention                                                                    
back to  pages 149  and 150  and discussed  RN 56913  and RN                                                                    
54306. She inquired if the  two projects would be inside the                                                                    
Anchorage area. Mr. Ottesen replied  that he was not certain                                                                    
of the  answer and would have  to get back to  the committee                                                                    
with a response.  He pointed out that  the Anchorage signals                                                                    
were managed  by the Municipality of  Anchorage; AMATS would                                                                    
provide funding  for Anchorage signal projects.  He believed                                                                    
that the projects were for  the signal systems in Mat-Su and                                                                    
Vice-Chair  Fairclough  pointed   out  the  Municipality  of                                                                    
Anchorage was  taking care of  the signals and that  she did                                                                    
not want  the state to reach  in and compete with  them. Mr.                                                                    
Ottesen responded  that DOT was  not competing and  was very                                                                    
cooperative with  AMATS and  the Municipality  of Anchorage.                                                                    
He added  that the department  had signal systems  in Mat-Su                                                                    
and Kenai that were fully the responsibility of DOT.                                                                            
Vice-Chair Fairclough  referenced RN  56913 and  requested a                                                                    
breakdown of  where the new  school zone devices  were being                                                                    
Senator Hoffman directed  the presented back to  RN 51320 on                                                                    
page 226. He  noted that the department  had identified over                                                                    
$725,000,000  in  deferred  maintenance needs  in  aviation,                                                                    
harbors, statewide  facilities and highways, and  the Alaska                                                                    
Marine Highway  System; he inquired if  the department could                                                                    
provide  him with  a  list of  those  projects. Mr.  Ottesen                                                                    
replied  in the  affirmative and  replied that  next section                                                                    
would cover the projects.                                                                                                       
RN 51320                                                                                                                        
Deferred Maintenance, Renewal, Repair, and Equipment                                                                            
Mr. Coffey related that the  funding was valuable to DOT. He                                                                    
reiterated  that  there   was  federal  airport  improvement                                                                    
funding  and  Federal  Highway  Administration  preventative                                                                    
maintenance funding,  but that the two  funding sources were                                                                    
limited  and  could  only  be  used  for  certain  types  of                                                                    
projects.  He  stated  that the  approximately  $725,000,000                                                                    
backlog represented projects that  were deferred because the                                                                    
department did not  have the resources to address  them in a                                                                    
timely fashion.                                                                                                                 
RN 51383                                                                                                                        
Aviation Deferred Maintenance                                                                                                   
Mr.  Coffey stated  that these  projects allowed  DOT to  do                                                                    
repairs  primarily  to  the   rural  airports  for  lighting                                                                    
repairs, leveling of the  airport, surface aggregates, brush                                                                    
cutting, segmented  circles, windsock repair, etc.  He added                                                                    
that this funding covered a  wide range of typically smaller                                                                    
projects and  would not  qualify for  a federal  "full blown                                                                    
type project."                                                                                                                  
10:28:35 AM                                                                                                                   
RN 51539                                                                                                                        
Highways Deferred Maintenance                                                                                                   
Mr. Coffey  related that there  were 30 or 40  projects that                                                                    
were allocated  out of this  funding source. He  stated that                                                                    
the   allocations   were   broken   down   into   vegetation                                                                    
management,  gravel resurfacing,  dust control,  and asphalt                                                                    
repairs.  He  pointed  out  that  the  deferred  maintenance                                                                    
funding had  allowed DOT  to do  tremendous work  on asphalt                                                                    
repairs in  the Anchorage,  Mat-Su, and Kenai  areas; rather                                                                    
than a  federal aid  project that  covered miles  of paving,                                                                    
the  department  was  able   to  strategically  hit  smaller                                                                    
segments.  He  stated that  the  funds  were also  used  for                                                                    
luminaire and  traffic signal  repairs and  upgrades, bridge                                                                    
repairs,  and  culvert  replacement.  He  added  that  these                                                                    
projects  tended  to  be  smaller  in  scale,  but  did  not                                                                    
generally qualify  for federal funds. He  concluded that the                                                                    
funding was a great way for  the department to try to reduce                                                                    
its backlog of deferred maintenance projects.                                                                                   
Senator Hoffman reiterated that he  would like a list of the                                                                    
$725,000,000  in  deferred maintenance  projects  statewide.                                                                    
Mr. Ottesen  replied that the  department would  provide the                                                                    
requested information.                                                                                                          
Senator  Bishop inquired  if vegetation  management referred                                                                    
to hydro-axing, brushing, and  clearing on the right-of-way.                                                                    
Mr.  Coffey responded  in  the  affirmative. Senator  Bishop                                                                    
complimented  DOT on  its  increased  efforts at  vegetation                                                                    
management  and offered  that it  represented a  safety-zone                                                                    
improvement on moose strikes.                                                                                                   
Senator  Dunleavy  requested  that  the  project  list  that                                                                    
Senator  Hoffman had  asked for  be provided  to the  entire                                                                    
committee. Mr. Ottesen responded in the affirmative.                                                                            
Co-Chair  Meyer interjected  that the  information would  be                                                                    
routed through  the chairman's office  to be  distributed to                                                                    
committee members.                                                                                                              
Mr. Ottesen responded that there  were lists of the projects                                                                    
behind each  of the categories  in the budget. He  asked Mr.                                                                    
Coffey if  the list in  the budget included the  entirety of                                                                    
the  $725,000,000 in  deferred maintenance  projects in  the                                                                    
categories  of aviation,  harbors, statewide  facilities and                                                                    
highways, and  the Alaska Marine Highway  System. Mr. Coffey                                                                    
responded that  the lists  in the  budget only  included the                                                                    
2014 proposed allocations.                                                                                                      
Mr. Ottesen stated that DOT  would provide the complete list                                                                    
of  the $725,000,000  in deference  maintenance projects  to                                                                    
the committee.                                                                                                                  
Senator  Dunleavy inquired  if the  list of  $725,000,000 in                                                                    
deferred  maintenance  projects  would  be  broken  down  by                                                                    
election  district. Mr.  Ottesen replied  that the  list was                                                                    
prepared prior  to the  district change  and that  DOT would                                                                    
have  to go  through  it  to make  sure  the districts  were                                                                    
10:32:08 AM                                                                                                                   
SB  18  was   HEARD  and  HELD  in   committee  for  further                                                                    
Co-Chair Meyer discussed the  following meeting's agenda and                                                                    
noted that  on Tuesdays  and Thursdays, the  committee would                                                                    
try to meet until 11:00 a.m.                                                                                                    
10:32:42 AM                                                                                                                   
The meeting was adjourned at 10:32 a.m.                                                                                         

Document Name Date/Time Subjects
Senate Finance DOLWD Capital Hearing Follow-up.pdf SFIN 2/12/2013 9:00:00 AM
SB 18