Legislature(2021 - 2022)BELTZ 105 (TSBldg)
03/18/2021 01:30 PM Senate TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| SB74 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 74 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE TRANSPORTATION STANDING COMMITTEE
March 18, 2021
1:36 p.m.
MEMBERS PRESENT
Senator Robert Myers, Chair
Senator Mike Shower, Vice Chair
Senator Peter Micciche
Senator Jesse Kiehl
MEMBERS ABSENT
Senator Click Bishop
COMMITTEE CALENDAR
SENATE BILL NO. 74
"An Act providing for and relating to the issuance of general
obligation bonds for the purpose of paying the cost of state
infrastructure projects, including construction, communications,
major maintenance, public safety, and transportation projects;
and providing for an effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 74
SHORT TITLE: G.O. BONDS: STATE INFRASTRUCTURE PROJECTS
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
02/05/21 (S) READ THE FIRST TIME - REFERRALS
02/05/21 (S) TRA, FIN
02/25/21 (S) TRA AT 1:30 PM BELTZ 105 (TSBldg)
02/25/21 (S) -- MEETING CANCELED --
03/02/21 (S) TRA AT 1:30 PM BELTZ 105 (TSBldg)
03/02/21 (S) Heard & Held
03/02/21 (S) MINUTE(TRA)
03/09/21 (S) TRA AT 1:30 PM BELTZ 105 (TSBldg)
03/09/21 (S) Heard & Held
03/09/21 (S) MINUTE(TRA)
03/11/21 (S) TRA AT 1:30 PM BELTZ 105 (TSBldg)
03/11/21 (S) Heard & Held
03/11/21 (S) MINUTE(TRA)
03/18/21 (S) TRA AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
CAROLINE SCHULTZ, Chief Policy Analyst
Office of Management and Budget (OMB)
Office of the Governor
Juneau, Alaska
POSITION STATEMENT: Answered questions on behalf of OMB on
proposed amendments to GO Bond projects in SB 74.
HEIDI TESHNER, Director
Finance and Support Services
Department of Education and Early Development (DEED)
Juneau, Alaska
POSITION STATEMENT: Answered questions on DEED's capital
improvement project Major Maintenance Grant Fund list during the
hearing on SB 74.
MICHAELLA ANDERSON, Staff
Senator Robert Myers
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Answered questions on school projects in
Amendment 3 to SB 74, on behalf of Senator Myers.
STEPHANIE RICHARD, Director
Division of Administrative Services
Department of Military and Veterans Affairs (DMVA)
Anchorage, Alaska
POSITION STATEMENT: Answered questions on DMVA's GO Bond
projects in SB 74.
JOHN BINDER, Executive Director
Alaska International Airport System (AIAS)
Department of Transportation and Public Facilities (DOTPF)
Anchorage, Alaska
POSITION STATEMENT: Answered questions on the Aviation projects
in SB 74.
CHRISTOPHER MCCONNELL, Director
Facilities Planning & Construction
University of Alaska Anchorage
Anchorage, Alaska
POSITION STATEMENT: Answered questions on UAA Building Energy
Performance Upgrades project in SB 74.
ACTION NARRATIVE
1:36:03 PM
CHAIR ROBERT MYERS called the Senate Transportation Standing
Committee meeting to order at 1:36 p.m. Present at the call to
order were Senators Kiehl, Micciche and Chair Myers. Senator
Shower arrived shortly thereafter.
SB 74-G.O. BONDS: STATE INFRASTRUCTURE PROJECTS
1:36:32 PM
CHAIR MYERS announced the consideration of SENATE BILL NO. 74
"An Act providing for and relating to the issuance of general
obligation bonds for the purpose of paying the cost of state
infrastructure projects, including construction, communications,
major maintenance, public safety, and transportation projects;
and providing for an effective date."
CHAIR MYERS began the amendment process on SB 74. He related
that the amendments were organized by sections of the bill.
1:37:08 PM
CHAIR MYERS moved to adopt Amendment 1 to SB 74, [work order 32-
GS1716\A.14]:
32-GS1716\A.14
Marx
3/15/21
AMENDMENT 1
OFFERED IN THE SENATE BY SENATOR MYERS
TO: SB 74
Page 2, line 19, following "AS 37.07.080(e)":
Insert ", however, a reallocation may not
increase the total allocation for a project by more
than 10 percent"
Page 2, line 30, following "AS 37.07.080(e)":
Insert ", however, a reallocation may not
increase the total allocation for a project by more
than 10 percent"
Page 3, line 16, following "AS 37.07.080(e)":
Insert ", however, a reallocation may not
increase the total allocation for a project by more
than 10 percent"
Page 3, line 29, following "AS 37.07.080(e)":
Insert ", however, a reallocation may not
increase the total allocation for a project by more
than 10 percent"
Page 4, line 14, following "AS 37.07.080(e)":
Insert ", however, a reallocation may not
increase the total allocation for a project by more
than 10 percent"
Page 4, line 26, following "AS 37.07.080(e)":
Insert ", however, a reallocation may not
increase the total allocation for a project by more
than 10 percent"
Page 6, line 11, following "AS 37.07.080(e)":
Insert ", however, a reallocation may not
increase the total allocation for a project by more
than 10 percent"
SENATOR MICCICHE objected for discussion purposes.
1:37:15 PM
CHAIR MYERS explained that the appropriation from the 2021 state
infrastructure project fund to the department allows for
reallocation between projects. First, he reminded members that
this funding was [general obligation (GO) bond] debt. Second,
the authorization for the GO bond projects required voter
approval. It is important to tell the voters which projects will
be funded. However, sometimes projects come in under or over
budget. Amendment 1 would limit the amount for reallocation by
10 percent, automatically limiting any decreases. He stated that
this would bring transparency and accountability related to
specific projects and project costs to the legislative process.
1:38:55 PM
SENATOR MICCICHE asked if the administration could speak to
whether this will meet the bond proposal's objectives.
1:39:21 PM
CAROLINE SCHULTZ, Chief Policy Analyst, Office of Management and
Budget (OMB), Office of the Governor, Juneau, Alaska, stated
that OMB does not have any objection to Amendment 1. It would
allow some natural deviation of project costs while still
preserving the list of projects and amounts that the voters have
approved.
1:39:47 PM
SENATOR MICCICHE removed his objection.
There being no further objection, Amendment 1 was adopted.
1:40:11 PM
SENATOR KIEHL moved to adopt Amendment 2 to SB 74 [work order
32-GS1716\A.4]:
32-GS1716\A.4
Marx
3/13/21
AMENDMENT 2
OFFERED IN THE SENATE BY SENATOR KIEHL
Page 1, line 10:
Delete "$356,405,952"
Insert "$345,752,952"
Page 2, lines 8 - 13:
Delete all material.
Renumber the following bill sections accordingly.
Page 3, line 26:
Delete "$38,079,000"
Insert "$35,979,000"
Page 3, line 31, through page 4, line 2:
Delete all material.
Page 6, line 21:
Delete "$1,773,164"
Insert "$1,720,164"
Page 6, line 28:
Delete "secs. 3 - 11"
Insert "secs. 3 - 10"
Page 7, line 11:
Delete "$356,405,952"
Insert "$345,752,952"
Page 7, line 14:
Delete "$356,405,952"
Insert "$345,752,952"
SENATOR MICCICHE objected for discussion purposes.
1:40:12 PM
SENATOR KIEHL explained that Amendment 2 would remove the West
Susitna Access Road Access Project and the Arctic Strategic
Transportation and Resource (ASTAR) Project. He offered his view
that these projects did not meet the constitutional definition
of a capital improvement because this phase includes planning,
assessing and survey but no capital improvement remains once the
work is done.
1:40:59 PM
SENATOR MICCICHE related that since project preparation was
often included in capital budgets, he disagreed that including
these projects would be unconstitutional. He stated he was not
familiar with the West Susitna Road project. However, the ASTAR
project is an important one for resource development.
1:42:16 PM
At ease
1:42:44 PM
CHAIR MYERS reconvened the meeting.
1:42:55 PM
SENATOR KIEHL remarked that Amendment 2 was not about the value
of the two projects. He explained that Amendment 2 was about the
constitutional language limiting what could be considered as
capital improvements. The legislature has a statute that
describes what can be considered as capital projects. However,
the Alaska Constitution has a hard and fast limit. He stated
that the Alaska Supreme Court has ruled several times and the
Department of Law has provided guidance. Capital improvements
require something durable and tangible must remain. However,
identifying material sites and water sources does not fit that
standard.
1:44:42 PM
SENATOR MICCICHE maintained his objection.
1:44:45 PM
At ease
1:45:36 PM
CHAIR MYERS reconvened the meeting.
1:45:43 PM
A roll call vote was taken. Senators Shower, Kiehl, and Meyers
voted in favor of Amendment 2 and Senator Micciche voted against
it. Therefore, Amendment 2 passed by a 3-1 vote.
CHAIR MYERS announced that Amendment 2 passed by a vote of 3
yeas, 1 nay.
1:46:33 PM
CHAIR MYERS moved to adopt Amendment 3 to SB 74 [work order 32-
GS1716\A.2]:
32-GS1716\A.2
Marx
3/13/21
AMENDMENT 3
OFFERED IN THE SENATE BY SENATOR MYERS
TO: SB 74
Page 1, line 10:
Delete "$356,405,952"
Insert "$356,404,812"
Page 2, line 17:
Delete "$41,882,000"
Insert "$41,880,866"
Page 2, lines 21 - 24:
Delete all material and insert:
"Anderson K-12 School partial roof replacement $1,070,088
Birchwood Elementary School roof replacement 1,870,053
Blackwell K-12 School fire alarm upgrades 79,975
Craig Middle School rehabilitation 4,883,525
Eagle River Elementary School improvements 5,255,747
Galena Interior Learning Academy composite 5,722,672
building renovation
Houston Middle School replacement 9,000,000
Kake schools heating upgrades 193,821
Mt. Edgecumbe High School repairs 7,882,000
Nenana K-12 School flooring and asbestos abatement 399,039
Sayeik Gastineau Community School partial roof 1,007,500
replacement
West High School roof replacement 4,516,446"
Page 6, line 21:
Delete "$1,773,164"
Insert "$1,773,158"
Page 7, line 11:
Delete "$356,405,952"
Insert "$356,404,812"
Page 7, line 14:
Delete "$356,405,952"
Insert "$356,404,812"
SENATOR MICCICHE objected for discussion purposes.
1:46:45 PM
CHAIR MYERS explained that Amendment 3 would provide
transparency by removing the "Major Maintenance Grant Fund for
School Major Maintenance" language and replacing it with a list
of specific projects. He related the process used to develop the
list. The projects were taken from the priority list and each
project was deducted from the $25 million allocation. When
projects were in excess of the remaining amount, the next
project that fell within the remaining allocation was included.
He stated that one project not included was the Administrative
Center in Fairbanks on the basis that this funding should be as
close to the classroom as possible.
1:48:32 PM
SENATOR KIEHL expressed concern that Amendment 3 did not hold to
the priority of the list. He stated that this list related to
equity issues about what schools were fixed was litigated many
years ago. Although he said he did not believe that these
projects violated any equity matter, he maintained his concern
that the prioritized projects were disregarded.
1:49:47 PM
SENATOR MICCICHE asked if the only project removed was the
administration building in Fairbanks. He asked what connection
the administration building had to the operation of schools in
Fairbank and if he had queried the dean how this project would
affect the university.
CHAIR MYERS answered that he removed the project based on the
backup information, provided indicating it would replace air
conditioning units and several other items that sounded like
comfort rather than health and safety issues.
1:51:04 PM
HEIDI TESHNER, Director, Finance and Support Services,
Department of Education and Early Development (DEED), Juneau,
Alaska, asked Chair Myers to repeat the question.
SENATOR MICCICHE asked if removing the administrative building
project would adversely affect students in the schools.
MS. TESHNER said she was unsure what effect not including this
project would have on students. She noted that seven projects
were skipped to arrive at the list in Amendment 3.
1:52:24 PM
At ease
1:54:30 PM
CHAIR MYERS reconvened the meeting.
1:54:46 PM
MICHAELLA ANDERSON, Staff, Senator Robert Myers, Alaska State
Legislature, Juneau, Alaska, reviewed the School Projects for
proposed $25,000,000 appropriation to the Major Maintenance
Grant Fund:
Project Amount
1.Galena Interior Learning Academy Composite $5,700,000
Building Renovation
2.Craig Middle School Rehabilitation $4,883,525
3.Eagle River Elementary School Improvements $5,255,747
4.Kake Schools Heating Upgrades $ 193,821
5.West High School Roof Replacement $4,516,446
6.Anderson K-12 School Partial Roof Replacement $1,070,088
Skipped projects:
7.Chenga Bay K-12 School Renovation $5,582,962
8.Tatitlek K-12 School Renovation $6,785,033
Funded project:
9.Sayeik: Gastineau Community School Partial Roof $1,007,500
Replacement
Skipped project:
10. Administrative Center Air Conditioning and $ 912,931
Ventilation Replacement
Skipped project:
11.Service High School Health and Safety $3,113,507
Improvements
Funded project:
12.Birchwood Elementary School Roof Replacement $1,870,053
Skipped projects:
13. Sandpoint K-12 School Major Maintenance $1,870,287
14. Sheldon Point K-12 School Foundation School $3,338,662
and Repairs
15. East High School Gym Improvements $5,098,584
Funded:
16. Nenana K-12 School Flooring and Asbestos $ 399,039
Abatement
Skipped:
17. David-Louis Memorial K-12 School HVAC Control $ 115,058
Upgrades
Funded:
18. Blackwell K-12 School HVAC Control Upgrades $ 79,975
32-GS1716\A.6
Marx
3/13/21
AMENDMENT 5
OFFERED IN THE SENATE BY SENATOR KIEHL
TO: SB 74
Page 1, line 10:
Delete "$356,405,952"
Insert "$343,504,264"
Page 3, line 14:
Delete "$14,029,500"
Insert "$1,192,000"
Page 3, lines 18 - 20:
Delete all material.
Page 6, line 21:
Delete "$1,773,164"
Insert "$1,708,976"
Page 7, line 11:
Delete "$356,405,952"
Insert "$343,504,264"
Page 7, line 14:
Delete "$356,405,952"
Insert "$343,504,264"
CHAIR MYERS objected for discussion purposes.
1:59:17 PM
SENATOR KIEHL explained that Amendment 5 would remove two
projects: the Alaska Public Safety Service System Upgrades to
maintain the Alaska Land Mobile Radio (ALMR) infrastructure and
the Alcantra Armory and Arc-Flash Improvements. He said these
projects consist of ordinary maintenance ones that are not
eligible for GO bonds but could be funded in the capital budget.
CHAIR MYERS maintained his objection.
2:01:02 PM
A roll call vote was taken. Senator Kiehl voted in favor of
Amendment 5 and Senators Micciche and Myers voted against it.
Therefore, Amendment 5 failed by a 1:2 vote.
CHAIR MYERS announced that Amendment 5 failed.
2:01:29 PM
CHAIR MYERS moved to adopt Amendment 6 [work order 32-
GS1716\A.26].
32-GS1716\A.26
Marx
3/16/21
AMENDMENT 6
OFFERED IN THE SENATE BY SENATOR MYERS
TO: SB 74
Page 1, line 10:
Delete "$356,405,952"
Insert "$356,255,202"
Page 3, line 14:
Delete "$14,029,500"
Insert "$13,879,500"
Page 3, line 22:
Delete all material.
Page 6, line 21:
Delete "$1,773,164"
Insert "$1,772,414"
Page 7, line 11:
Delete "$356,405,952"
Insert "$356,255,202"
Page 7, line 14:
Delete "$356,405,952"
Insert "$356,255,202"
SENATOR MICCICHE objected for discussion purposes.
2:01:43 PM
CHAIR MYERS would remove the Summit Lake Foundation Repairs. He
expressed concern that the project also included a study without
knowing the project's full cost.
2:03:13 PM
SENATOR MICCICHE asked if he discussed this project with the
Department of Military & Veterans Affairs (DMVA).
2:03:25 PM
STEPHANIE RICHARD, Director, Division of Administrative
Services, Department of Military and Veterans Affairs (DMVA),
Anchorage, Alaska, answered that she would need to request the
Office of Public Safety Communication Services to figure out how
much of $150,000 was for engineering or repairs. She related
that the department had attempted repairs, but engineering was
necessary to determine the best way to fix it. She offered to
research this and report back to the committee on the breakdown.
2:04:33 PM
SENATOR MICCICHE asked what the impacts would be if the building
failed. He asked if these repairs could wait and be funded in
the capital budget.
MS. RICHARD said the problem was that as the shelter continues
to sink, it leans and crushes the walkway and ice bridge between
their shelter and a Chugach Electric shelter, which may damage
both shelters. In addition, further movement of the structure
would damage the feed lines and result in an outage of services
on the Kenai Peninsula.
2:05:45 PM
CHAIR MYERS withdrew Amendment 6.
2:06:19 PM
SENATOR SHOWER moved to adopt Amendment 7 [work order 32-
GS1716\A.15]:
32-GS1716\A.15
Marx
3/15/21
AMENDMENT 7
OFFERED IN THE SENATE BY SENATOR SHOWER
TO: SB 74
Page 1, line 10:
Delete "$356,405,952"
Insert "$354,295,452"
Page 3, line 26:
Delete "$38,079,000"
Insert "$35,979,000"
Page 3, line 31, through page 4, line 2:
Delete all material.
Page 6, line 21:
Delete "$1,773,164"
Insert "$1,762,664"
Page 7, line 11:
Delete "$356,405,952"
Insert "$354,295,452"
Page 7, line 14:
Delete "$356,405,952"
Insert "$354,295,452"
Page 1, line 10:
Delete "$356,405,952"
Insert "$354,295,452"
Page 3, line 26:
Delete "$38,079,000"
Insert "$35,979,000"
Page 3, line 31, through page 4, line 2:
Delete all material.
Page 6, line 21:
Delete "$1,773,164"
Insert "$1,762,664"
Page 7, line 11:
Delete "$356,405,952"
Insert "$354,295,452"
Page 7, line 14:
Delete "$356,405,952"
Insert "$354,295,452"
2:06:26 PM
CHAIR MYERS objected for discussion purposes. He offered his
belief that this was addressed earlier by Senator Kiehl's
amendment.
SENATOR SHOWER withdrew Amendment 7.
2:07:00 PM
CHAIR MYERS moved to adopt Amendment 8 to SB 74 [work order 32-
GS1716\A.27]:
32-GS1716\A.27
Marx
3/17/21
AMENDMENT 8
OFFERED IN THE SENATE BY SENATOR MYERS
TO: SB 74
Page 1, line 10:
Delete "$356,405,952"
Insert "$345,094,174"
Page 3, line 26:
Delete "$38,079,000"
Insert "$26,823,500"
Page 4, line 6:
Delete all material and insert:
"Statewide Firebreak New Construction
8,744,500"
Page 6, line 21:
Delete "$1,773,164"
Insert "$1,716,886"
Page 7, line 11:
Delete "$356,405,952"
Insert "$345,094,174"
Page 7, line 14:
Delete "$356,405,952"
Insert "$345,094,174"
SENATOR MICCICHE objected for discussion purposes.
2:07:14 PM
CHAIR MYERS explained that Amendment 8 would reduce the
Statewide Firebreak Construction Program from $25 million to
$8.7 million. This would separate the new firebreak construction
and maintenance and remove the maintenance funds due to
constitutional concerns. He related his understanding that the
state has $5 million left over from last year's firefighting
fund. This means some of the maintenance will be performed, but
it would not be through this bond.
2:08:32 PM
SENATOR MICCICHE removed his objection.
There being no further objection, Amendment 8 was adopted.
2:08:50 PM
SENATOR SHOWER moved to adopt Amendment 9 to SB 74 [work order
32-GS1716\A.16]:
32-GS1716\A.16
Marx
3/15/21
AMENDMENT 9
OFFERED IN THE SENATE BY SENATOR SHOWER
TO: SB 74
Page 1, line 10:
Delete "$356,405,952"
Insert "$320,247,057"
Page 3, line 26:
Delete "$38,079,000"
Insert "$2,100,000"
Page 4, lines 3 - 8:
Delete all material.
Page 6, line 21:
Delete "$1,773,164"
Insert "$1,593,269"
Page 7, line 11:
Delete "$356,405,952"
Insert "$320,247,057"
Page 7, line 14:
Delete "$356,405,952"
Insert "$320,247,057"
CHAIR MYERS objected for discussion purposes.
2:08:58 PM
SENATOR SHOWER spoke generally to all of his amendments. The
committee raised issues about potential constitutional issues
for projects related to the definition of capital projects for
GO Bond proposals. He recalled that the administration's
attorney previously testified that some projects fell into a
gray area, which was a bit disconcerting. He explained that the
amendments related to projects that lacked sufficient
explanation to justify the projects.
SENATOR SHOWER referred to page 4, lines 3 to 8 of SB 74, to the
list of projects, including the Fairbanks to Seward Multi-Use
Recreation Trail Construction, Statewide Park Sanitation
Facilities Upgrades, [Statewide Firebreak Construction Program,
Wildland Fire Engine Replacement and Wildland Firefighting
Aircraft Replacement].
2:10:04 PM
CHAIR MYERS pointed out that Amendment 9 would remove the
Statewide Firebreak Construction Program, which Amendment 8
addressed.
CHAIR MYERS moved to adopt Conceptual Amendment 1 to Amendment 9
to address the Statewide Firebreak Construction Program.
2:10:41 PM
SENATOR MICCICHE expressed concern that the specific firebreak
projects were not identified. He suggested it was important to
do so for the record.
2:11:01 PM
CHAIR MYERS withdrew Conceptual Amendment 1 to Amendment 9.
CHAIR MYERS explained that Amendment 9 would remove five
projects, including the Fairbanks to Seward Multi-Use Recreation
Trail Construction, Statewide Park Sanitation Facilities
Upgrades, [Statewide Firebreak Construction Program, Wildland
Fire Engine Replacement and Wildland Firefighting Aircraft
Replacement].
2:11:39 PM
SENATOR MICCICHE related his familiarity with bond projects. He
asked who determined that new firefighting equipment was not
bondable.
2:12:04 PM
SENATOR SHOWER responded that he was unsure whether this project
qualified for GO bonding. He reiterated that the concern was the
method to fund some projects lacked sufficient explanation.
2:13:00 PM
SENATOR MICCICHE suggested that the committee obtain additional
information for proposed projects before making determinations
and amending the bill. He offered his support for some of the
amendments but was unsure this approach was best for some of
these projects.
2:13:49 PM
SENATOR SHOWER related his understanding that the intention was
to move the bill.
SENATOR MICCICHE offered his view that the committee has time to
review the bill. He suggested that the committee obtain more
information on projects, especially the firefighting equipment.
2:14:37 PM
SENATOR SHOWER offered his willingness to not offer more
amendments and take more time to consider this bill.
2:15:28 PM
At ease
2:18:50 PM
CHAIR MYERS reconvened the meeting.
2:19:01 PM
SENATOR SHOWER withdrew Amendment 9.
CHAIR MYERS rolled Amendments 10, 11 and 12 to the bottom of the
amendments.
2:19:42 PM
CHAIR MYERS moved to adopt Amendment 13 to SB 74 [work order 32-
GS1716\A.28]:
32-GS1716\A.28
Marx
3/17/21
AMENDMENT 13
OFFERED IN THE SENATE BY SENATOR MYERS
TO: SB 74
Page 1, line 10:
Delete "$356,405,952"
Insert "$355,400,952"
Page 4, line 23:
Delete "$175,658,488"
Insert "$174,658,488"
Page 4, line 29:
Delete all material.
Page 6, line 21:
Delete "$1,773,164"
Insert "$1,768,164"
Page 7, line 11:
Delete "$356,405,952"
Insert "$355,400,952"
Page 7, line 14:
Delete "$356,405,952"
Insert "$355,400,952"
2:20:07 PM
MS. SCHULTZ explained that Amendment 13 would remove the
Whittier Tunnel from the projects funded. The DOTPF has provided
additional information to OMB. She offered her belief that the
funding amount listed in the GO Bond is not sufficient to
complete the project. OMB recommends removing this project, she
said.
2:20:32 PM
SENATOR MICCICHE removed his objection.
CHAIR MYERS found no further objection, so Amendment 13 was
adopted.
2:20:55 PM
CHAIR MYERS moved to adopt Amendment 14 to SB 74 [work order 32-
GS1716\A.29]:
32-GS1716\A.29
Marx
3/17/21
AMENDMENT 14
OFFERED IN THE SENATE BY SENATOR MYERS
TO: SB 74
Page 1, line 10:
Delete "$356,405,952"
Insert "$352,137,717"
Page 4, line 23:
Delete "$175,658,488"
Insert "$171,411,488"
Page 4, line 30:
Delete all material.
Page 6, line 21:
Delete "$1,773,164"
Insert "$1,751,929"
Page 7, line 11:
Delete "$356,405,952"
Insert "$352,137,717"
Page 7, line 14:
Delete "$356,405,952"
Insert "$352,137,717"
SENATOR MICCICHE objected for discussion purposes.
2:21:11 PM
MS. SCHULTZ explained that Amendment 14 would remove the Bethel
Airport Construction and Rehabilitation Project from the list.
This airport was not on the AIP [Airport Improvement Program]
list until the federal fiscal year 2024. She said since there is
interest in completing this project earlier, OMB recommends its
removal.
2:21:34 PM
SENATOR MICCICHE removed his objection.
There being no further objection, Amendment 14 was adopted.
2:21:56 PM
CHAIR MYERS moved to adopt Amendment 15 to SB 74 [work order 32-
GS1716\A.30]:
32-GS1716\A.30
Marx
3/17/21
AMENDMENT 15
OFFERED IN THE SENATE BY SENATOR MYERS
TO: SB 74
Page 1, line 10:
Delete "$356,405,952"
Insert "$352,770,867"
Page 4, line 23:
Delete "$175,658,488"
Insert "$172,041,488"
Page 4, line 31:
Delete all material.
Page 6, line 21:
Delete "$1,773,164"
Insert "$1,755,079"
Page 7, line 11:
Delete "$356,405,952"
Insert "$352,770,867"
Page 7, line 14:
Delete "$356,405,952"
Insert "$352,770,867"
SENATOR SHOWER objected for discussion purposes.
2:22:29 PM
MS. SCHULTZ said the Cordova airport is not slated for AIP work
for several years.
2:22:50 PM
SENATOR SHOWER removed his objection.
There being no further objection, Amendment 15 was adopted.
2:23:37 PM
SENATOR SHOWER withdrew Amendment 17 to SB 74 [work order 32-
GS1716\A. 20].
2:23:57 PM
At ease
2:25:42 PM
CHAIR MYERS reconvened the meeting.
2:25:55 PM
SENATOR SHOWER moved to adopt Amendment 16, [work order 32-
GS1716\A.19]:
32-GS1716\A.19
Marx
3/15/21
AMENDMENT 16
OFFERED IN THE SENATE BY SENATOR SHOWER
TO: SB 74
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CHAIR MYERS objected for discussion purposes.
2:26:03 PM
SENATOR SHOWER explained that this airport project would be
removed and considered in future years based on his discussions
with the administration.
2:26:15 PM
SENATOR MICCICHE said he spoke earlier about the inefficiency of
bonding for projects with very high federal match since it does
not make any sense economically. He explained that these airport
projects were still scheduled and would happen. However,
including them in the GO Bond proposal may not be the most
efficient method.
2:27:08 PM
SENATOR SHOWER echoed Senator Micciche's point. He reiterated
that the administration did not oppose these projects and will
do these airport projects in future years.
2:27:43 PM
CHAIR MYERS solicited comments from Ms. Schultz.
2:27:57 PM
MS. SCHULTZ agreed. She said she misspoke earlier concerning the
Bethel Airport when she said it would be funded in FY 2024. The
Bethel Airport is fully funded by federal AIP funds. Further,
these airport projects are all scheduled and will continue on
the regular AIP list, she said.
2:28:49 PM
CHAIR MYERS removed his objection.
There being no further objection, Amendment 16 was adopted.
2:29:09 PM
SENATOR SHOWER moved to adopt Amendment 17, [work order 32-
GS1716\A.20, which was previously withdrawn]:
32-GS1716\A.20
Marx
3/15/21
AMENDMENT 17
OFFERED IN THE SENATE BY SENATOR SHOWER
TO: SB 74
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[The committee treated it as though Chair Myers had objected for
the purpose of discussion.]
2:29:22 PM
SENATOR SHOWER explained that this airport project would be
constructed in the future on the regular AIP project list.
CHAIR MYERS removed his objection.
There being no further objection, Amendment 17, was adopted.
2:30:11 PM
SENATOR SHOWER moved to adopt Amendment 18 to SB 74 [work order
32-GS1716\A.21]:
32-GS1716\A.21
Marx
3/15/21
AMENDMENT 18
OFFERED IN THE SENATE BY SENATOR SHOWER
TO: SB 74
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SENATOR KIEHL objected for discussion purposes.
2:30:03 PM
SENATOR SHOWER stated the justification was the same as for
Amendment 17, such that the airport project would be constructed
in the future via the regular AIP project list.
2:30:04 PM
CHAIR MYERS stated that Amendment 18 covered the Hyder Float
Breakwater Replacement project.
SENATOR KIEHL objected for discussion purposes.
2:30:18 PM
SENATOR KIEHL asked for clarification that the Hyder Float would
be federally funded.
2:30:44 PM
JOHN BINDER, AIAS Executive Director, Alaska International
Airport System, Department of Transportation and Public
Facilities (DOTPF), Anchorage, Alaska, stated he was unsure that
this project would fall under statewide aviation. Still, he
would confirm it with his team.
2:31:11 PM
MS. SCHULTZ explained that the Hyder Float was a municipal-owned
harbor. The presumption is that DOTPF would contract out this
work. She stated that no one was online that could speak to the
project. She elaborated that the Hyder Harbor has been going
through dredging and reconstruction over the last several years.
It was determined to be a high need area to allow residents to
have seaplane and boat access. This project was deemed worthy of
investment.
2:32:13 PM
SENATOR MICCICHE asked if the maker of the amendment would
consider tabling it until the next meeting.
SENATOR SHOWER remarked the motion was still under objection.
2:32:31 PM
SENATOR KIEHL removed his objection.
CHAIR MYERS solicited a motion to table Amendment 18.
SENATOR SHOWER moved to table Amendment 18.
There being no further objection, Amendment 18 was tabled.
2:32:53 PM
CHAIR MYERS moved to adopt Amendment 19 to SB 74 [work order 32-
GS-1716\A.31]:
32-GS1716\A.31
Marx
3/17/21
AMENDMENT 19
OFFERED IN THE SENATE BY SENATOR MYERS
TO: SB 74
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SENATOR SHOWER objected for discussion purposes.
CHAIR MYERS asked whether this followed the same pattern as
other airports.
MS. SCHULTZ agreed that the Klawock Airport would follow the
same pattern.
2:33:30 PM
SENATOR MICCICHE asked her to confirm that the Klawock Airport
is scheduled.
MS. SCHULTZ replied that the Klawock Airport was on the approved
project list and would be done on the normal schedule.
2:34:02 PM
SENATOR SHOWER removed his objection.
There being no further objection, Amendment 19 was adopted.
2:34:16 PM
CHAIR MYERS moved to adopt Amendment 20 to SB 74 [work order 32-
GS1716\A.32]:
32-GS1716\A.32
Marx
3/17/21
AMENDMENT 20
OFFERED IN THE SENATE BY SENATOR MYERS
TO: SB 74
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SENATOR SHOWER objected for discussion purposes.
2:34:28 PM
CHAIR MYERS stated that this was for the Kotzebue Cape Blossom
Road Project.
MS. SCHULTZ explained that the state match was achieved through
third-party funding, so this project has been funded and would
move forward.
2:34:44 PM
SENATOR SHOWER removed his objection.
There being no further objection, Amendment 20 was adopted.
2:35:01 PM
SENATOR KIEHL moved to adopt Amendment 21, [work order 32-
GS1716\A.5]:
32-GS1716\A.5
Marx
3/13/21
AMENDMENT 21
OFFERED IN THE SENATE BY SENATOR KIEHL
TO: SB 74
Page 4, following line 31:
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"Cordova South Harbor 5,000,000"
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"Juneau Aurora Harbor 2,000,000"
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"Sand Point Harbor 3,560,000
Seward Harbor 1,729,988"
Page 5, following line 30:
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"Sitka Eliason Harbor 1,760,000"
CHAIR MYERS objected for discussion purposes.
2:35:04 PM
SENATOR KIEHL explained that Amendment 21 would not change any
of the projects but it comports with the law requiring bond
projects to identify projects being funded. He related that this
language lists projects that the governor's office proposed.
SENATOR MICCICHE asked about the list of harbors.
2:35:51 PM
SENATOR KIEHL related that this listed the projects in
alphabetical order. He was unsure whether the backup information
contained the whole list. He said the critical thing was that
the governor proposed the exact dollar amount for these
projects.
CHAIR MYERS removed his objection.
There being no further objection, Amendment 21 was adopted.
2:36:54 PM
SENATOR SHOWER moved to adopt Amendment 22 to SB 74 [work order
32-GS1716\A.22]:
32-GS1716\A.22
Marx
3/15/21
AMENDMENT 22
OFFERED IN THE SENATE BY SENATOR SHOWER
TO: SB 74
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CHAIR MYERS objected for discussion purposes.
2:37:25 PM
MS. SCHULTZ explained that the Nome Airport does not have any
scheduled construction projects in the short term.
CHAIR MYERS advised that this was being removed for a lack of
any project.
CHAIR MYERS removed his objection.
2:37:54 PM
SENATOR SHOWER remarked he was surprised at the number of
projects in the bill in which work was not yet scheduled.
There being no further objection, Amendment 22 was adopted.
2:38:24 PM
CHAIR MYERS moved to adopt Amendment 23 to SB 74, [work order
32-GS12716\A.33]:
32-GS1716\A.33
Marx
3/17/21
AMENDMENT 23
OFFERED IN THE SENATE BY SENATOR MYERS
TO: SB 74
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SENATOR SHOWER objected for discussion purposes.
2:38:46 PM
MS. SCHULTZ explained that the Parks Highway Little Goldstream
Creek Bridge project has already gone out for contract, so it
could be removed from this list.
2:38:53 PM
SENATOR SHOWER removed his objection.
There being no further objection, Amendment 23 was adopted.
2:39:25 PM
SENATOR SHOWER moved to adopt Amendment 24, [work order 32-
GS1716\A.23:
32-GS1716\A.23
Marx
3/15/21
AMENDMENT 24
OFFERED IN THE SENATE BY SENATOR SHOWER
TO: SB 74
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CHAIR MYERS objected for discussion purposes.
MS. SCHULTZ said the Utqiaguik Airport does not have programmed
construction in the near term.
2:39:40 PM
SENATOR SHOWER reiterated his comments were related to airport
projects still on the AIP list for future projects.
CHAIR MYERS removed his objection.
There being no further objection, Amendment 24 was adopted.
2:40:14 PM
SENATOR SHOWER moved to adopt Amendment 25 [work order 32-
GS1716\A. 24:
32-GS1716\A.24
Marx
3/15/21
AMENDMENT 25
OFFERED IN THE SENATE BY SENATOR SHOWER
TO: SB 74
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CHAIR MYERS objected for discussion purposes.
2:40:23 PM
MS. SCHULTZ explained that the Wasilla Airport was not a state-
owned airport.
2:40:31 PM
SENATOR KIEHL asked if the project qualified for federal AIP
funds.
MS. SCHULTZ deferred to Mr. Binder.
MR. BINDER responded that the DOTPF confirmed that the Wasilla
Airport does not have any current projects programmed.
CHAIR MYERS removed his objection.
There being no further objection, Amendment 25 was adopted.
2:41:37 PM
SENATOR SHOWER moved to adopt Amendment 26 to SB 74 [work order
32-GS1716\A.25:
32-GS1716\A.25
Marx
3/15/21
AMENDMENT 26
OFFERED IN THE SENATE BY SENATOR SHOWER
TO: SB 74
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CHAIR MYERS objected for discussion purposes.
2:41:50 PM
SENATOR SHOWER explained Amendment 26 related to the UAA
[University of Alaska] Building Energy Performance Upgrades.
Members raised questions earlier about the appropriateness of
including some projects as GO Bond projects. He suggested that
this might not be the most appropriate way to pay for these
upgrades.
2:42:15 PM
CHAIR MYERS recalled earlier testimony on the GO Bond savings
compared to expenditures. He related his understanding that this
was a 20-year bond, but it would take 36 years to achieve the
savings on these upgrades.
2:42:58 PM
SENATOR KIEHL made remarks that pertained to a different
project.
2:43:36 PM
CHAIR MYERS clarified that Amendment 26 related to UAA Building
Energy Upgrades.
SENATOR KIEHL acknowledged his remarks pertained to a different
project.
2:44:06 PM
SENATOR KIEHL asked how much of the $10.9 million was for major
maintenance and how much was for new insulation or other items.
2:44:48 PM
CHRISTOPHER MCCONNELL, Director, Facilities Planning &
Construction, University of Alaska Anchorage, explained that
this project would reduce liability on three facilities
constructed in the early 70s. He explained that this project
includes upgrades to boilers and air handlers, LED lighting and
converting outdated pneumatic controls to DDC controls for
energy efficiency. The estimated savings were conservative
figures. The UAA system failure costs totaled $3 million last
year. He anticipated those costs were on track to be about the
same for this year. He recapped that this would be a timely and
critical investment in the university's infrastructure that will
allow it to maintain business continuity.
2:46:32 PM
CHAIR MYERS asked for the life expectancy of the buildings.
MR. MCCONNELL replied he did not have the explicit life
expectancy of the facilities. He offered to provide the
committee with a current facility condition index.
CHAIR MYERS asked if he had a better annual savings estimate
than the $300,000 per year.
MR. MCCONNELL responded that he would have additional figures
next month.
2:47:58 PM
SENATOR SHOWER remarked that most projects were necessary
infrastructure, upgrades, or repairs. While it seems as though
the committee does not support these projects, it is more about
how to fund them appropriately. He said he was willing to table
or withdraw Amendment 26.
2:48:52 PM
SENATOR MICCICHE preferred to table Amendment 26 to allow the
UAA to provide additional information.
2:49:23 PM
SENATOR SHOWER moved to table Amendment 26.
There being no further objection, Amendment 26 was tabled.
2:49:40 PM
At ease
2:51:50 PM
CHAIR MYERS reconvened the meeting.
2:51:55 PM
SENATOR KIEHL moved to adopt Amendment 11 to SB 74 [work order
32-GS1716\A.7:
32-GS1716\A.7
Marx
3/13/21
AMENDMENT 11
OFFERED IN THE SENATE BY SENATOR KIEHL
TO: SB 74
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CHAIR MYERS objected for discussion purposes.
2:52:10 PM
SENATOR KIEHL indicated Amendment 11 contained a mistake.
2:52:22 PM
SENATOR KIEHL moved to adopt Conceptual Amendment 1 to Amendment
11 to reinstate the Unalaska Harbor project funding. He
explained that he did not mean to pull the project out.
[The committee treated it as though someone objected for
discussion purposes.]
2:52:38 PM
CHAIR MYERS related his understanding that Conceptual Amendment
1 would reinstate the Unalaska Harbor project rather than
include it in this amendment.
SENATOR MICCICHE asked him to identify it in the bill.
2:53:05 PM
SENATOR KIEHL referred to page 6, line 3 of SB 74, Version A, to
the Unalaska Harbor at $9.3 million.
CHAIR MYERS restated that Conceptual Amendment 1 would reinstate
Unalaska Harbor on page 6, line 3 of SB 74.
2:53:22 PM
There being no further objection, the Conceptual Amendment 1 to
Amendment 11 was adopted.
2:53:41 PM
SENATOR KIEHL explained that Amendment 11, as amended, would
remove the remaining highway and bridge projects that were STIP
projects or AIP projects. Fundamentally, as Senator Micciche
mentioned earlier, it is an inefficient way to use bond funds.
He offered his support for bond funding to build transformative
projects. However, borrowing general fund match each year to
receive FHWA funding does not make fiscal or project sense. He
stated that these projects were scheduled and planned. He has
never seen the state not match federal projects. It would be a
different question if including these projects in the bond would
bring more federal funds or speed up projects. However, it would
not do so. This language will leave the state bond capacity for
projects that could move the state forward.
2:55:24 PM
SENATOR MICCICHE referred to page 4, line 23 of SB 74. He asked
for an explanation of the $25 million that remains.
2:55:53 PM
CHAIR MYERS related his understanding that this would remove
most DOTPF projects except Craig Harbor and the Hyder Float
Breakwater. He stated that Wasilla Airport was not on the list
of deleted projects, although an earlier amendment addressed it.
In response to Senator Kiehl, he added the Harbor Matching Grant
Fund to the list. The effect was that it would increase slightly
by retaining the Unalaska Harbor.
2:56:51 PM
SENATOR KIEHL agreed. The overall effect was to make room for
other projects by removing scheduled projects from the list.
CHAIR MYERS removed his objection.
2:57:17 PM
SENATOR MICCICHE objected. He explained that some items needed
to be shifted in Amendment 11. He suggested he may support
Amendment 11 but he would be more comfortable with a clean
amendment. He suggested that the committee take this up at the
next meeting after sorting through the changes.
CHAIR MYERS agreed that the committee made numerous changes.
SENATOR KIEHL deferred to the Chair.
SENATOR SHOWER offered support to table the amendment until the
next meeting.
2:58:33 PM
SENATOR KIEHL made a motion to table Amendment 11.
There being no further objection, Amendment 11 was tabled.
2:59:23 PM
SENATOR MICCICHE remarked that he appreciated the support to
address SB 74 later to ensure that the process flowed smoothly.
He suggested that the committee further discuss the philosophy
of bonding at the next meeting.
[SB 74 was held in committee.]
2:59:54 PM
There being no further business to come before the committee,
Chair Myers the adjourned the Senate Transportation Standing
Committee meeting at 2:59 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB74 Amendments 1-26 as of 3.18.21.pdf |
STRA 3/18/2021 1:30:00 PM |
SB 74 |
| SB74 Amendment Actions 3.18.21.pdf |
STRA 3/18/2021 1:30:00 PM |
SB 74 |