HOUSE FINANCE COMMITTEE March 24, 2009 1:33 p.m. 1:33:46 PM CALL TO ORDER Co-Chair Stoltze called the House Finance Committee meeting to order at 1:33 p.m. MEMBERS PRESENT Representative Mike Hawker, Co-Chair Representative Bill Stoltze, Co-Chair Representative Bill Thomas Jr., Vice-Chair Representative Allan Austerman Representative Harry Crawford Representative Anna Fairclough Representative Richard Foster Representative Les Gara Representative Reggie Joule Representative Mike Kelly Representative Woodie Salmon MEMBERS ABSENT None ALSO PRESENT Joanna Wassillie, White Mountain; John MacKinnon, Executive Director, Associated General Contractors of Alaska; Tom Bryce, Alaska District Council of Labors; PRESENT VIA TELECONFERENCE Rick Gifford, Manager of Kodiak Island Borough; Marv Smith, Manager, Bristol Bay Borough; Gary Hennigh, City Administrator, King Cove; Amy Titus, City Clerk, White Mountain; Dan Harrilson, Mayor, White Mountain; Aves Thompson, Executive Director of Alaska Trucking Association; Governor Bill Sheffield, Anchorage; Tony Johansen, Great Northwest Contractor, Fairbanks; Bruce Carr, Director of Strategic Planning, Alaska Railroad; ^GENERAL SUBJECT(S): Public Testimony - HB 154 The following overview was taken in log note format. Handouts will be on file with the House Finance Committee through the 26th Legislative Session, contact 465-6814. After the 26th Legislative Session they will be available through the Legislative Library at 465-3808. TIME SPEAKER DISCUSSION  1:33:51 PM Co-Chair Indicated that the public testimony Stoltze would only concern the DOT Surface Transportation portion of the stimulus bill.  1:35:09 PM JOANNA Spoke in support of the White Mountain WASSILLIE, Public Safety Building. She WHITE acknowledged the need for the facility MOUNTAIN, for the White Mountain Volunteer Fire Department, Village Public Safety Officer and equipment. The community has received $800,000 in Community Development Block Grants funds that is contingent on legislative support.  1:37:30 PM Representative Asked who gave the $800,000 in funds to Austerman the community.  1:37:46 PM Representative Asked what the amount of the request to Joule the legislature.  1:38:06 PM Joanna Indicated she was not sure but will get Wassille that to the committee. She remarked the amount could be emailed to the committee. She related the importance of the facility within the community.  1:40:38 PM JOHN Spoke in support of HB 154. The MACKINNON, association represents 650 members EXECUTIVE across the state. He urged rapid DIRECTOR, passing of this bill to start awaiting ASSOCIATED projects. He noted that delays keep GENERAL projects from moving forward in CONTRACTORS OF Alaska's short construction season. He ALASKA, related several projects that are ready for bid.  1:43:32 PM Vice-Chair Revealed concern that his community Thomas will not see any stimulus projects. He noted four projects for his community and wanted to be assured that local hire policies would be followed. He wanted to know what to do to make sure contractors hire locally.  1:44:39 PM John MacKinnon Noted that earlier higher budgets had been good for construction and outside bidders expressed interest. He reported that the national stimulus money would probably keep out-of-state contractors working in their own states. He said that there are those in the state monitoring resident hire.  1:45:56 PM Vice-Chair Reported that often employment is from Thomas out of town when locals are capable of  doing this work.  1:46:38 PM Representative Acknowledged that the state can not Gara mandate local hire, but a contractor or union can themselves select local hire to compete for these jobs.  1:47:50 PM John MacKinnon Agreed with Representative Gara that many contractors have a good record for local hire and some do not.  1:48:32 PM Representative Stressed that a substantial amount of Gara government money is received by contractors and the government should look more favorably on those who do resident hire.  1:49:36 PM John MacKinnon Reported that his contractors do work toward local hire.  1:50:00 PM TOM BRYCE, Asked for support for Mr. MacKinnon and ALASKA urged support for HB 154. DISTRICT  COUNCIL OF LABORS,   1:51:45 PM RICK GIFFORD, Spoke in support of HB 154 and the MANAGER OF Kodiak resurfacing project outlined by KODIAK ISLAND DOT as shovel ready.  BOROUGH testified via teleconference , 1:53:15 PM Representative Asked if the resurfacing project was a Fairclough higher priority than the chemical storage building.  1:53:44 PM Rick Gifford Noted that that the DOT airport project was also important but the community would like to see the resurfacing done.  1:54:10 PM Representative Asked for priority list of projects Fairclough from Kodiak.  1:54:28 PM Rick Gifford Declared that road resurfacing was more important.  1:54:40 PM Representative Thought that the airport stimulus funds Gara were separate from road money and it was not an either or situation.  Co-Chair Agreed that Representative Gara was Stoltze correct.  1:55:27 PM AT EASE  1:59:35 PM RECONVENED  1:59:51 PM MARV SMITH, Spoke in support of funding for MANAGER, expansion of the port of Bristol Bay. BRISTOL BAY He indicated the borough has submitted BOROUGH a request of $3.1 million for this testified via project. He thanked the legislature of teleconferenceearlier funding. The local community , has contributed $1 million. The community has also received funding  from the Denali Commission and BBDC through local company. The community has total commitment for this project. The project is shovel ready and $2.8 million needed to finalize second part of project.  2:03:45 PM GARY HENNIGH, Spoke of a program need to be added to CITY the stimulus package. He requested $1.5 ADMINISTRATOR, million to finish a 5-year, $9 million KING COVE local project. He noted this final testified via phase of asphalt paving is ready to be teleconferencecompleted. Urged support for DOT to add , this project to the stimulus funds.  2:06:42 PM Representative Asked for clarification on the King Austerman Cove project.  2:06:55 PM Gary Hennigh Replied this is a major overall and upgrade of 4.5 miles of city street system in downtown King Cove.  2:07:53 PM AMY TITUS, Spoke in support of the White Mountain CITY CLERK, Public Safety funding. She turned over WHITE MOUNTAIN testimony to the mayor of White testified via Mountain.  teleconference , 2:08:21 PM DAN HARRILSON, Spoke for support in finishing the MAYOR, WHITE White Mountain Public Safety Building MOUNTAIN project. He indicated that the design testified via phase is completed and ready to go out teleconferencefor bids. He noted that fires in the , community could be dealt with faster with this building and equipment.  2:10:10 PM Co-Chair Asked that information on this project Stoltze be sent to the committee.  2:10:24 PM AVES THOMPSON, Spoke in support of funding in HB 154. EXECUTIVE He emphasized that funding for these DIRECTOR OF projects meets urgent transportation ALASKA needs throughout the state. He believed TRUCKING this would provide meaningful, well ASSOCIATION paying jobs for Alaskans.  testified via teleconference 2:11:51 PM GOVERNOR BILL Urged the support for funding the Port SHEFFIELD, of Anchorage to be added to the ANCHORAGE stimulus bill in the amount of $20 testified via million. He reported this would add teleconferenceabout 400 jobs to the state.  , 2:13:52 PM Representative Asked about the $20 million for the Fairclough port and wondered about the readiness for the project to go forward this summer.  2:14:20 PM Bill Sheffield Reported that some work is in progress and there were other contracts that can move forward if the money is received. He stressed that the north end of the port must be completed by the end of 2010.  2:15:19 PM Representative Asked if all the funding was in place Fairclough for this years phasing to complete that task.  2:15:33 PM Bill Sheffield Replied they do not. He indicated that the $20 million would give them $40 million that would finish the projects and start on other projects in the north end.  2:16:26 PM Representative Asked again if this project was short Fairclough $40 million to complete.  2:16:40 PM Bill Sheffield Replied yes.  2:17:03 PM TONY JOHANSEN, Spoke in support of HB 154. He reported GREAT this money would mean work for Alaskan NORTHWEST contractors this summer. He affirmed CONTRACTOR, the short construction season in Alaska FAIRBANKS and delays reduce pay checks for testified via workers.  teleconference , 2:20:03 PM BRUCE CARR, Reported the railroad is the only DIRECTOR OF public transportation provider eligible STRATEGIC to receive transportation funds in two PLANNING, programs. He noted funds received by ALASKA the railroad do not diminish any funds RAILROAD received by any other transit agency in testified via Alaska or any DOT road funds. He teleconferenceindicated that the stimulus package , pushed additional funds in into regular formula programs at $25.8 million. He reported that a list of eligible projects will be presented to the Board of Directors on April 1 for review and approval.  2:24:15 PM Co-Chair Asked that the list of projects be sent Stoltze to the co-chairs office for distribution.  2:24:25 PM Representative Agreed that one part of money must go Gara to the railroad. He also understood that railroad also gets a set portion of the federal transit money. He wanted to know if that was correct.  2:24:54 PM Bruce Carr Replied that was not correct. He indicated there were two different pots of money. He indicated there are two tiers, the bus tier and fixed guide way tier of money. He noted the railroad is the only one receiving the fixed guide  way money.  2:26:01 PM Representative Asked what statute requires a portion Gara to go to the fixed guide way as opposed to the bus tier.  2:26:19 PM Bruce Carr Replied that the railroad is in the federal statute as a fixed guide way railroad operator and that is how they are funded.  2:26:35 PM Representative Asked if the fixed guide way money is Gara national money just dedicated to railroads, but is there any other money being received under the stimulus bill that is also available for other transit projects..  2:26:54 PM Bruce Carr Indicated that the railroad was only getting funds under the fixed guide way tiers.   2:27:13 PM Representative Believed he understood that federal Gara transit money was directed in a high proportion toward the railroad.  2:27:27 PM Bruce Carr Replied that the fixed guide way tier has two pieces to the formula; passenger rail miles and passenger revenue coach miles. He reported that original determination by federal transit administration included only Anchorage area for counting mileage and now entire system is eligible for the formula money.  2:28:36 PM Representative Asked if this impacts other money Gara available for other transit programs.   Bruce Carr Replied not in Alaska.  2:28:44 PM Co-Chair Asked that the railroad funding Stoltze received is its entitled formula not going to Washington DC to advocate for a separate allotment.  2:28:56 PM Bruce Carr Noted that the stimulus package is by formula only and distributed by FTA.  2:29:18 PM Representative Reported that his take on stimulus Gara package is to decrease dependence on fossil fuels. He wondered if there are any projects to enhance commuter rail.  2:29:54 PM Bruce Carr Replied that there is a project in Seward to idle down to electrical power and shut down engines. He noted that the project in Fairbanks will reduce time to get through the terminal which will reduce fuels and emissions. He indicated they are looking to DEC to apply for EPA funds to further reduce railroad emissions.  2:31:37 PM Co-Chair Indicated that public testimony was Stoltze closed.  2:31:49 PM Co-Chair Noted that city manager of Whittier Hawker provided testimony for eligible projects and he asked for a written the report to be added to the committee record.  2:32:30 PM Representative Noted three groups, Bristol Bay, King Fairclough Cover, Anchorage, asked for additions to the package and wondered if they will qualify for consideration.  2:33:04 PM Co-Chair Indicated these projects will be Stoltze investigated.  2:33:20 PM Representative Requested a Department of Gara Transportation representative be available for the next meeting on this topic.   Co-Chair Agreed that would be a good idea.  Stoltze 2:33:40 PM Representative Asked what was the next step for this Austerman bill.  2:33:52 PM Co-Chair Replied that the House will continue to Stoltze work with the Senate and the bill will then come back before the committee.    ADJOURNMENT The meeting was adjourned at 2:35 PM