Legislature(1997 - 1998)

02/19/1998 01:32 PM Senate TRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
           SENATE TRANSPORTATION COMMITTEE                                     
                  February 19, 1998                                            
                      1:30 p.m.                                                
                                                                               
MEMBERS PRESENT                                                                
                                                                               
Senator Jerry Ward, Chairman                                                   
Senator Gary Wilken, Vice Chair                                                
Senator Lyda Green                                                             
Senator Rick Halford                                                           
Senator Georgianna Lincoln                                                     
                                                                               
MEMBERS ABSENT                                                                 
                                                                               
None                                                                           
                                                                               
COMMITTEE CALENDAR                                                             
                                                                               
SENATE BILL NO. 263                                                            
"An Act relating to secondary roads; and providing for an effective            
date."                                                                         
     HEARD AND HELD                                                            
                                                                               
SENATE BILL NO. 264                                                            
"An Act relating to aid for municipal road maintenance; and                    
providing for an effective date."                                              
     HEARD AND HELD                                                            
                                                                               
PREVIOUS SENATE ACTION                                                         
                                                                               
SB 263 - No previous Senate committee action.                                  
                                                                               
SB 264 - No previous Senate committee action.                                  
                                                                               
WITNESS REGISTER                                                               
                                                                               
Senator John Torgerson                                                         
Alaska State Capitol                                                           
Juneau, Alaska   99801-1182                                                    
POSITION STATEMENT: Sponsor of SB 263 and SB 264                               
                                                                               
Tom Bodecker, Manager                                                          
City of Soldotna                                                               
177 North Birch Street                                                         
Soldotna, AK  99669                                                            
POSITION STATEMENT:  Supports SB 263 and SB 264                                
                                                                               
Boyd Brownfield                                                                
Deputy Commissioner                                                            
Department of Transportation & Public                                          
  Facilities                                                                   
3132 Channel Drive                                                             
Juneau, Alaska  99801-7898                                                     
POSITION STATEMENT: Commented on SB 263 and SB 264                             
                                                                               
Jim Swing                                                                      
Public Works Director                                                          
Matanuska-Susitna Borough                                                      
350 East Dahlia Ave.                                                           
Palmer, Alaska  99645-6488                                                     
POSITION STATEMENT:  Stated support of the Matanuska-Susitna                   
Borough Administration for SB 263 and SB 264                                   
                                                                               
Ocie Adams                                                                     
Mat-Su Road Advisory Board                                                     
HC 30 Box 200                                                                  
Wasilla, Alaska  99654                                                         
POSITION STATEMENT:  Commented on SB 263 and SB 264                            
                                                                               
Dennis Pouchard                                                                
Special Assistant                                                              
Department of Transportation & Public                                          
  Facilities                                                                   
3132 Channel Drive                                                             
Juneau, Alaska  98901-7898                                                     
POSITION STATEMENT: Commented on SB 263 and SB 264                             
                                                                               
Pat Poland, Director                                                           
Division of Municipal & Regional Assistance                                    
Department of Community & Regional Affairs                                     
333 W 4th Avenue, Suite 220                                                    
Anchorage, Alaska  99501-2341                                                  
POSITION STATEMENT:  Supports SB 263 and SB 264.                               
                                                                               
Tim Rogers, Chairman                                                           
Transportation, Utilities & Environment Subcommitte                            
Alaska Municipal League                                                        
P.O. Box 196650                                                                
Anchorage, AK  99519-6650                                                      
POSITION STATEMENT:  Supports SB 264                                           
                                                                               
Kevin Ritchie                                                                  
Executive Director                                                             
Alaska Municipal League                                                        
217 Second St., Suite 200                                                      
Juneau, Alaska  99801                                                          
POSITION STATEMENT:  Supports SB 263 SB 264.                                   
                                                                               
ACTION NARRATIVE                                                               
                                                                               
TAPE 98-2, SIDE A                                                              
                                                                               
CHAIRMAN WARD called the Senate Transportation Committee meeting to            
order at 1:32 p.m.  Present were Senators Ward, Halford and Green.             
The first order of business before the committee was SB 263.                   
                                                                               
                    SB 263 - SECONDARY ROADS                                   
                                                                               
SENATOR JOHN TORGERSON, sponsor of SB 263, gave the following                  
summary of the measure.  SB 263 recognizes secondary roads as a                
separate category eligible for federal transportation funds for                
road maintenance.  Funds would be placed directly into that                    
category and then be disbursed according to a ranking system                   
developed by the Department of Transportation and Public Facilities            
(DOTPF). DOTPF's current ranking system is inadequate; secondary               
roads do not score high enough on the list of maintenance                      
priorities to be paved.  Examples of this problem can be seen in               
every district in the state.  DOTPF's continual response to                    
requests for maintenance of secondary roads is that when they score            
high enough, they will be repaired, however the ranking system                 
prevents those roads from reaching the top of the list.  Secondary             
roads are defined in SB 263 as dirt and gravel roads.  Although the            
bill does not address any dollar amount, it reflects an                        
appropriation of about $20 million.  SB 263 contains a sunset                  
provision after five years, therefore the five year cost will total            
$100 million.  After SB 263 sunsets, gravel roads will be ranked               
amongst each other instead of against other highways and uses in               
the state.                                                                     
                                                                               
Number 053                                                                     
                                                                               
SENATOR HALFORD asked how chip-sealed roads are categorized, since             
they are not actually paved.                                                   
                                                                               
SENATOR TORGERSON said he considered writing standards into the                
bill, but current secondary road standards seem to evade everyone,             
are hypothetical at best, and can be changed at the discretion of              
DOTPF staff.  To illustrate the problem, Senator Torgerson said a              
road in his district was slated to have a chip-seal covering,                  
estimated to cost an additional $150,000 to a current project.                 
Because of disputes and other factors, the cost escalated to $1.1              
million.  He felt everyone needs to know what a secondary road is              
and said that if he knew all of the technical terms for chip-seal              
or high-float, he would have included them in the bill. He                     
maintained that his constituents want to drive on a hard surface,              
they do not care about the bells and whistles that go along with a             
fully fledged large federal highway project.  He noted the                     
definition of secondary road in the bill includes dirt and gravel              
roads only.                                                                    
                                                                               
CHAIRMAN WARD noted Senator Lincoln's presence.                                
                                                                               
Number 091                                                                     
                                                                               
SENATOR GREEN asked whether SB 263 will supersede any other                    
projects and who will be sharing their pot of money to fund it.                
                                                                               
SENATOR TORGERSON stated if the amount of federal funds does not               
increase, he will advocate a reduction of an equal amount from                 
three appropriations currently made by the Legislature (the                    
National Highway System, the TRAC, and the Community Road Program).            
He has already devised a formula to raise the $20 million.  Alaska             
might get an additional federal appropriation due to the                       
reauthorization of ISTEA.  He estimated that DOTPF exceeded last               
year's appropriation by about $280 million.   He would like to see             
some of those projects reclassified to free up $20 million for                 
gravel road paving.  He stated he has not designed a ranking system            
at this time.                                                                  
                                                                               
SENATOR GREEN asked if most of these roads would be DOTPF                      
construction projects, or whether the boroughs would receive funds             
from DOTPF and do the work.                                                    
                                                                               
SENATOR TORGERSON replied SB 263 applies to state highways.  He                
added that if projects such as the Juneau access road, the road to             
Whittier, the Dalton Highway, the Denali Highway, and the Kashwitna            
(ph) project are given a higher priority, the cost will be $700                
million.  He stated he does not oppose building new roads but                  
believes it is more important to fix existing roads.                           
                                                                               
Number 133                                                                     
                                                                               
SENATOR LINCOLN commented that she receives repeated complaints                
about the dust control problem on gravel roads in her district,                
because of resulting health problems.  It is especially problematic            
for smaller communities because gravel is removed from the riverbed            
and the sediment creates a very fine dust.  She asked if that                  
concern is addressed in SB 263.                                                
                                                                               
SENATOR TORGERSON replied the qualifications apply to any gravel               
road irregardless of community size which would then be ranked by              
DOTPF.                                                                         
                                                                               
SENATOR LINCOLN questioned whether villages could also participate             
in the municipal transfer provision under this legislation.                    
SENATOR TORGERSON said any gravel road qualifies and DOTPF would be            
required to rank those roads higher if a local government wishes to            
take ownership of the road.                                                    
                                                                               
SENATOR LINCOLN stated that as a member of the Deferred Maintenance            
Task Force, she was glad to see the transfer provision.                        
                                                                               
SENATOR TORGERSON indicated that a substantial savings will occur              
"down the road" if some of the roads are upgraded and then                     
transferred to local governments.   He maintained he is taking a               
leap of faith by believing that DOTPF will devise a fair ranking               
system, but he believes it will, which is why he did not establish             
a ranking system in the legislation itself.                                    
                                                                               
Number 185                                                                     
                                                                               
SENATOR GREEN asked what SB 263 accomplishes that cannot be                    
accomplished right now without legislation.  SENATOR TORGERSON                 
stated the same thing could be done without legislation if the                 
Administration was willing to recognize that there are gravel roads            
in the state that need paving.  The Administration has recognized              
the problem just this year, but only to the tune of $800,000 in                
what is named the "Secondary Road Transfer Program."                           
                                                                               
SENATOR GREEN asked if the unimproved secondary road definition in             
SB 263 is in statute elsewhere.  SENATOR TORGERSON stated that he              
created that definition.                                                       
                                                                               
SENATOR LINCOLN asked if, according to the definition in SB 263,               
Senator Torgerson's list of secondary roads needing improvement is             
compatible with DOTPF's list.  SENATOR TORGERSON did not know                  
whether DOTPF has a list, but repeated it would apply to any gravel            
road.  He explained that there are paved roads in the state that               
are considered to be secondary roads, but SB 263 would set aside               
money to pave gravel roads.                                                    
                                                                               
Number 214                                                                     
                                                                               
MR. TOM BODECKER, City Manager of Soldotna, testified via                      
teleconference.  He said the City of Soldotna generally supports SB
263 because it addresses a problem with gravel roads that has                  
resulted from the current system.  Under the current standard, when            
a request is made of DOTPF  to pave a gravel road, a cost estimate             
is completed and that number is plugged into the formula.  In some             
rural areas, the cost estimates encompass a grand scheme plan to               
improve several roads.  The high cost then lowers the project's                
ranking, and nothing gets done.                                                
                                                                               
[MR. BODECKER'S TESTIMONY WAS INTERRUPTED BY POOR TRANSMISSION.]               
                                                                               
MR. BOYD BROWNFIELD, Deputy Commissioner of DOTPF, stated DOTPF                
generally supports the concept of SB 263, but believes several                 
areas need clarification.  Section 1(a) begins by establishing the             
adoption of regulations formalizing secondary roads as a category              
within Alaska's highway system.  The section also contains a                   
subcategory that pertains to unimproved secondary roads, and                   
instructs DOTPF to formulate a ranking system for those roads.                 
Section 1(b) then relates to secondary roads again, and aims toward            
the ownership of a municipality or local authorities, and then                 
instructs that a priority shall be given to unimproved secondary               
roads if a local request for transfer is made.  He requested a                 
chance to work with the sponsor to clarify the language.                       
                                                                               
MR. BROWNFIELD explained that Section 1(d) defines unimproved                  
secondary roads as dirt and gravel roads.  DOTPF feels a road does             
not have to be dirt or gravel to be unimproved and suggests the                
definition include roads that may have some asphaltic treatment on             
it.  The asphaltic treatment is also referred to as chip sealed and            
high float.  Those types of roads in disrepair should be qualified             
as unimproved roads.  He noted DOTPF is already in the process of              
establishing a separate local roads category in its project                    
evaluation board process which should address this same issue.                 
                                                                               
MR. BROWNFIELD pointed out DOTPF has a regulation that defines                 
secondary roads (17AAC.05.030).  He concluded by saying in any                 
event, DOTPF supports the concept of SB 263.                                   
                                                                               
SENATOR GREEN referred to language on page 1, line 7, which reads:             
"Standards adopted for secondary roads under this subsection need              
not conform to those adopted by the American Association of State              
Highway and Transportation Officials"  and asked if that language              
applies to improvements to secondary roads now.                                
                                                                               
MR. BROWNFIELD answered DOTPF has the ability to create new                    
standards now that would be accepted by the Federal Highway                    
Administration (FHA).  If federal funding is used, DOTPF has to                
touch base with the FHA somewhere along the line first.                        
                                                                               
Number 294                                                                     
                                                                               
MR. BODECKER continued his testimony via teleconference.  One                  
problem that prevents secondary road paving is that secondary roads            
tend to be designed for paving at a very high standard which                   
results in a cost-benefit ratio that leaves those roads low on the             
list.  He thought the idea of establishing a construction standard             
for secondary roads is important.  He maintained that although the             
problem could be resolved through DOTPF's regulatory process, it               
has never occurred.                                                            
                                                                               
Number 314                                                                     
                                                                               
SENATOR GREEN informed committee members she prepared an amendment             
that includes gravel, chip sealed, or inadequately paved roads in              
SB 263.                                                                        
                                                                               
CHAIRMAN WARD asked SENATOR TORGERSON if he wished to respond to               
the comments made by Deputy Commissioner Brownfield.                           
                                                                               
SENATOR TORGERSON felt Deputy Commissioner Brownfield raised three             
issues of substance.  In response to any confusion about secondary             
roads versus unimproved secondary roads in Section 1(a), a                     
definition of unimproved secondary roads is included in the bill.              
Senator Torgerson said this issue goes to the heart of the problem.            
DOTPF says it has defined secondary roads in regulation, but if the            
room were filled with city managers and people in the road                     
construction business, no one could say what a secondary road is if            
asked to build one because the description is discretionary to                 
DOTPF.  The Legislature could adopt the standards used in the                  
regulation, but the problem is the discretion DOTPF uses. Local                
governments cannot have an engineer visit their localities to                  
review a project request, inform the local governments they are                
getting one thing, and then have the plan change completely.                   
                                                                               
Regarding the asphalt and chip seal roads, SENATOR TORGERSON said              
he does not object to including both, but the object of SB 263 is              
to take care of roads that have never been paved.  He pointed out              
his Borough has no paved secondary roads.  He was not sure how many            
roads are chip sealed, but he assumed their inclusion will divide              
the pot up further.                                                            
                                                                               
SENATOR TORGERSON stated DOTPF's Commissioner said DOTPF was                   
looking at other ways to rank secondary roads several years ago.               
He felt if SB 263 spurs DOTPF along, that is fine, but he did not              
give that statement much credence.                                             
                                                                               
SENATOR TORGERSON said DOTPF's ability to create new regulations is            
what scares him about the process and is the reason he wants to put            
standards in statute.  He said he talked this over with federal                
officials. Alaska would have to go through a process to amend the              
STIP, which requires a public hearing process and other things.                
Senator Torgerson pointed out that during previous DOTPF testimony             
he was told that federal money could not be used to upgrade gravel             
roads with more gravel, but federal officials said otherwise.                  
                                                                               
Number 356                                                                     
                                                                               
JIM SWING, Public Works Director of the Matanuska-Susitna Borough,             
testified on behalf of the Borough administration and the                      
Department of Public Works.  The Mat-Su Assembly has not had the               
opportunity to review either SB 263 or SB 264.  The Road Advisory              
Board will be reviewing both bills tonight.  The Borough                       
administration is in favor of SB 263 but would like to see chip                
sealed or inadequately paved roads, that do not meet the standards             
established under this section, included in the definition.  The               
Borough administration is interested in SB 263 from the standpoint             
of quality of life regarding paving state roads, and is also                   
interested in taking ownership of some state roads, if improved to             
acceptable standards which SB 263 allows and encourages.  He                   
suggested soliciting local government participation when                       
establishing standards because most local governments have                     
standards of their own and could be of assistance.                             
                                                                               
MR. OCIE ADAMS, Secretary of the Local Road Service Advisory Board             
for the Matanuska-Susitna Borough, stated he agreed with Mr. Swing             
regarding the definition of an unimproved road, and expressed                  
concern that no standards are actually addressed in SB 263.  He                
questioned whether state or local standards would be enforced.  He             
stated the Advisory Board would be discussing the bill tonight and             
would provide the Legislature with written communication in the                
form of a resolution.                                                          
                                                                               
CHAIRMAN WARD stated he would hold SB 263 in committee to allow                
Senators Green and Torgerson to work on a committee substitute,                
including Senator Green's proposed amendment.                                  
                                                                               
SENATOR GREEN maintained she is not trying to interfere with                   
Senator Torgerson's purpose, however she believes it is important              
that attention be given to those roads that were sealed 20 or 25               
years ago and are now essentially bare.                                        
                                                                               
Number 422                                                                     
                                                                               
SENATOR LINCOLN referred to the definition of unimproved secondary             
road, and asked if roads that were asphalt or chipsealed but have              
been washed out would be classified as secondary roads rather than             
unimproved secondary roads.                                                    
                                                                               
SENATOR TORGERSON replied that paved roads can be secondary roads.             
He said his definition only includes dirt or gravel roads because              
including asphalt roads will increase the pieces of the pie.  He               
would oppose including chip-sealed roads if their inclusion means              
gravel roads will not get paved which was his primary purpose in               
introducing SB 263.  CHAIRMAN WARD agreed with Senator Torgerson.              
                                                                               
SENATOR HALFORD pointed out the issue is further confused by the               
fact that primary roads can be gravel roads, such as the Haul Road.            
SENATOR TORGERSON added the word "unimproved" is in the eyes of the            
beholder also.                                                                 
                                                                               
CHAIRMAN WARD repeated his request that Senator Green work with the            
sponsor to prepare a committee substitute.                                     
                                                                               
          SB 264 - AID FOR MUNICIPAL ROAD MAINTENANCE                          
                                                                               
SENATOR TORGERSON, sponsor of SB 264, gave the following overview              
of the legislation.  SB 264 takes funds for road maintenance out of            
the revenue sharing program and creates a stand alone program.  The            
funds would come from a portion of the 8 cent per gallon fuel tax.             
Over the years, the municipal road maintenance revenue sharing                 
portion decreased from $2500 per mile to $700 per mile because this            
program was incorporated into the larger revenue sharing program               
that is subject to reductions and the road money was never                     
identified.  SB 264 will increase the total appropriation to this              
program: currently $2.6 million is being shared with local                     
governments, the bill will increase the amount to $8 million.  The             
intent of SB 264 is to increase the amount to local governments for            
road maintenance to $1,000 per mile, which constitutes a 40 percent            
increase.   A $3.5 million surplus will be used for two purposes:              
to continue with paving and upgrade for the road transfer program;             
and to provide a pot of money to equalize the funding so that if a             
new road was taken over by a local government, the entire pot would            
not be reduced by that amount of road miles.  In essence, it would             
keep the $1,000 per mile constant even though new roads would be               
added to the system.  Any remaining balance will be used for road              
construction and transferred to local governments.                             
                                                                               
SENATOR TORGERSON explained his proposed amendment to SB 264 as                
follows.  "In the revenue sharing portion currently in statute, if             
municipal governments -- once they run through the formula for                 
revenue sharing and the different formulas, if the amount that is              
to be paid to them is less than $40,000, then they would receive               
the $40,000 -- the minimum entitlement portion of this program.  If            
we just leave that constant and not make this amendment then they'd            
be paid for roads under the one program, through the formula to get            
up to the $40,000, as well as being paid separately for the roads.             
So what this does is take the road portion out of that and reduce              
the minimum entitlement share by the amount equal to the amount                
that has come out for roads, so again, to these minimum entitlement            
communities it would still be an -- it would be an increase to them            
because they are getting more money for the road miles but it does             
separate the programs and keep them entirely separate.  That's                 
something we overlooked when we drafted the bill at first."                    
                                                                               
MR. PAT POLAND, Director of the Municipal Assistance Division in               
the Department of Community and Regional Affairs (DCRA), gave the              
following testimony.  He noted Mr. Bill Ralston, program manager               
for the Revenue Sharing Program, was present in the audience, and              
could respond to technical questions.  DCRA supports the spirit in             
which this legislation is offered, that is to support local                    
governments in service delivery.  DCRA supports financial aid to               
local governments and believes they are a vital and key part of the            
public service delivery system.  The Governor's FY 99 budget                   
proposal contains no cuts to the revenue sharing program and the               
Administration supports transfer of state services to local                    
governments, which SB 264 promotes. DCRA has two fundamental                   
concerns with SB 264.  The first is dealing with revenue sharing               
local government financial support on a piecemeal basis.                       
Essentially, it peels off a pot of the money and places an isolated            
priority on it.  The second concern is that when the formula for               
the formula entitlement program is changed, winners and losers are             
created.  If the appropriation was at the full amount proposed, all            
participants would win; if the amount remains at the current level,            
the funds will shift from the smaller rural areas to the urban                 
areas.  DCRA would like to see a process that gives all of the                 
impacted communities a chance to comment and look for alternatives.            
                                                                               
TIM ROGERS, Legislative Program Coordinator for the Municipality of            
Anchorage, spoke in his capacity as the Chairman of the                        
Transportation, Utilities and Environment Subcommittee of the                  
Alaska Municipal League (AML).  AML supports passage of SB 264 for             
three reasons.  SB 264 will stabilize road maintenance funding.                
Funding through the revenue sharing program was at a level of $2500            
per mile 12 years ago, today the average is $734, and for some                 
municipalities, less than that.  AML believes it is important that             
the gasoline tax be identified as the funding source.  AML also                
believes it is important to have a mechanism for a transfer of                 
responsibility for some of the roads from the state to local                   
governments providing that the transfer has a funding mechanism for            
continued maintenance and that the roads be brought up to a                    
specific standard prior to the transfer.                                       
                                                                               
SENATOR HALFORD asked Mr. Rogers if he thought SB 264 will create              
an incentive to pass increases in gasoline taxes.  MR. ROGERS                  
thought it may.                                                                
                                                                               
Number 556                                                                     
                                                                               
SENATOR TORGERSON pointed out he had requested that 3 cents per                
gallon of the gasoline tax be used, but the legal drafters advised             
him to include a percentage.  He would have preferred to have                  
included a set amount but the 8 cents per gallon has other                     
restraints on it from prior legislation.                                       
                                                                               
SENATOR HALFORD indicated if a percentage of the total is used,                
there is an incentive to increase the tax.  SENATOR TORGERSON                  
agreed.                                                                        
                                                                               
MR. TOM BODECKER commented that he agreed with Mr. Rogers' position            
on SB 264.                                                                     
                                                                               
MR. JIM SWING indicated that the Matanuska Borough Administration              
and its Department of Public Works support SB 264.  They presented             
some graphs to the Deferred Maintenance Task Force that show the               
decrease in revenue sharing for road maintenance and the increase              
in taxes in their area.  The Department of Public Works maintains              
over 1,000 miles of road in the municipality and sees the need for             
a stable funding source for road maintenance.  The Borough has been            
negotiating with DOTPF for take over of secondary roads and                    
supports any mechanism to upgrade those roads and allow the                    
transfer.                                                                      
                                                                               
MR. OCIE ADAMS stated he is taking no position on either piece of              
legislation but is on a fact finding mission for the Road Advisory             
Committee for its meeting tonight.  He commented that currently the            
Matanuska-Susitna Borough does not have road powers.  The taxpayers            
have resisted granting the Borough road powers for consolidation of            
road service areas.  He questioned whether SB 264 will force that              
consolidation since Section 2 requires recipients to have road                 
powers to receive funds from the motor fuel tax.                               
                                                                               
SENATOR TORGERSON said boroughs have to exercise certain powers now            
to get the money so he did not see how SB 264 would have any effect            
on the revenue sharing pot.  He emphasized it is not his intent to             
force some kind of consolidation of road service districts and he              
would be willing to add clarifying language to that effect.                    
                                                                               
MR. ADAMS said he would appreciate clarification because Section               
2(a) says that municipalities who exercise road maintenance powers             
are entitled to receive funds.  The Borough does not exercise road             
service area powers over the entire service area, only on                      
individual service areas through the appropriation of funds from               
residential taxes.  It makes sure that money goes directly back to             
that particular service area as it cannot use those funds in                   
another service area.                                                          
                                                                               
SENATOR TORGERSON explained the Borough has non-areawide powers.               
Cities have the road power so all boroughs, except unified                     
boroughs, adopted non-areawide powers through the service                      
districts.  That applies to all except unified boroughs.  He                   
repeated if the Borough is currently receiving funds, it has some              
sort of power on the books.                                                    
                                                                               
MR. ADAMS said the Borough is currently receiving money.  He noted             
the general consensus of the members of the Mat-Su Road Advisory               
Board is that SB 264 will force consolidation which they do not                
support.                                                                       
                                                                               
TAPE 98-3, SIDE B                                                              
Number 549                                                                     
                                                                               
MR. POUCHARD provided the following testimony on SB 264.  DOTPF                
unequivocally supports the objective of improving and transferring             
roads to local governments and currently has a program that has not            
proved to be very successful.  The main stumbling block has been               
that local governments do not want to pick up the costs of road                
maintenance because the current level of revenue sharing they                  
receive is not a great enough incentive.  DOTPF wants to ensure                
that the issue of road maintenance is reviewed comprehensively,                
taking into account the state's needs for state roads, so that                 
doors are not closed to future options regarding state maintenance.            
Mr. Pouchard indicated DOTPF has a few technical concerns with SB
264.                                                                           
                                                                               
SENATOR HALFORD asked if DOTPF supports the repeal of the existing             
dollars per mile provision.  MR. POUCHARD asked Senator Halford if             
he was referring to the amendment.  SENATOR HALFORD clarified he               
was referring to the repealer in Section 5.  MR. POUCHARD said he              
would not feel comfortable saying DOTPF supports the repealer; but             
it does support the concept of transferring roads to local                     
governments and seeing that local governments have adequate                    
maintenance funds.                                                             
                                                                               
KEVIN RITCHIE, Executive Director of the Alaska Municipal League,              
echoed Mr. Rogers' and Mr. Bodecker's testimony and thanked Senator            
Torgerson for his support.  AML hopes legislative support for                  
revenue sharing remains strong.                                                
                                                                               
SENATOR GREEN asked, if this money is designated for this                      
particular function, who will receive less.  SENATOR TORGERSON                 
replied there is no way to track that because the 8 cent per gallon            
goes directly into the general fund.  He added SB 264 will cost $4             
million so that money will have to come from another program which             
has not been identified.                                                       
                                                                               
CHAIRMAN WARD stated that Senator Torgerson's amendment was not                
adopted at this time.   He asked Senator Green to work with Senator            
Torgerson to prepare a committee substitute to SB 264 also.                    
There being no further business before the committee, CHAIRMAN WARD            
adjourned the meeting at 2:32 p.m.                                             

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