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 Page 1, line 10: Delete "$356,405,952" Insert "$353,439,192" Page 4, line 23: Delete "$175,658,488" Insert "$172,706,488" Page 5, line 3: Delete all material. Page 6, line 21: Delete "$1,773,164" Insert "$1,758,404" Page 7, line 11: Delete "$356,405,952" Insert "$353,439,192" Page 7, line 14: Delete "$356,405,952" Insert "$353,439,192" 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 Page 1, line 10: Delete "$356,405,952" Insert "$354,516,552" Page 4, line 23: Delete "$175,658,488" Insert "$173,778,488" Page 5, line 6: Delete all material. Page 6, line 21: Delete "$1,773,164" Insert "$1,763,764" Page 7, line 11: Delete "$356,405,952" Insert "$354,516,552" Page 7, line 14: Delete "$356,405,952" Insert "$354,516,552" [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 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 5, line 10: 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" 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 Page 1, line 10: Delete "$356,405,952" Insert "$353,299,497" Page 4, line 23: Delete "$175,658,488" Insert "$172,567,488" Page 5, line 13: Delete all material. Page 6, line 21: Delete "$1,773,164" Insert "$1,757,709" Page 7, line 11: Delete "$356,405,952" Insert "$353,299,497" Page 7, line 14: Delete "$356,405,952" Insert "$353,299,497" 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 Page 1, line 10: Delete "$356,405,952" Insert "$352,988,952" Page 4, line 23: Delete "$175,658,488" Insert "$172,258,488" Page 5, line 16: Delete all material. Page 6, line 21: Delete "$1,773,164" Insert "$1,756,164" Page 7, line 11: Delete "$356,405,952" Insert "$352,988,952" Page 7, line 14: Delete "$356,405,952" Insert "$352,988,952" 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: Insert new material to read: "Cordova South Harbor 5,000,000" Page 5, following line 10: Insert new material to read: "Juneau Aurora Harbor 2,000,000" Page 5, line 17: Delete all material. Page 5, following line 27: Insert new material to read: "Sand Point Harbor 3,560,000 Seward Harbor 1,729,988" Page 5, following line 30: Insert new material to read: "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 Page 1, line 10: Delete "$356,405,952" Insert "$353,910,537" Page 4, line 23: Delete "$175,658,488" Insert "$173,175,488" Page 5, line 18: Delete all material. Page 6, line 21: Delete "$1,773,164" Insert "$1,760,749" Page 7, line 11: Delete "$356,405,952" Insert "$353,910,537" Page 7, line 14: Delete "$356,405,952" Insert "$353,910,537" 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 Page 1, line 10: Delete "$356,405,952" Insert "$355,632,102" Page 4, line 23: Delete "$175,658,488" Insert "$174,888,488" Page 5, lines 23 - 24: Delete all material. Page 6, line 21: Delete "$1,773,164" Insert "$1,769,314" Page 7, line 11: Delete "$356,405,952" Insert "$355,632,102" Page 7, line 14: Delete "$356,405,952" Insert "$355,632,102" 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 Page 1, line 10: Delete "$356,405,952" Insert "$351,530,697" Page 4, line 23: Delete "$175,658,488" Insert "$170,807,488" Page 6, line 4: Delete all material. Page 6, line 21: Delete "$1,773,164" Insert "$1,748,909" Page 7, line 11: Delete "$356,405,952" Insert "$351,530,697" Page 7, line 14: Delete "$356,405,952" Insert "$351,530,697" 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 Page 1, line 10: Delete "$356,405,952" Insert "$354,195,957" Page 4, line 23: Delete "$175,658,488" Insert "$173,459,488" Page 6, line 5: Delete all material. Page 6, line 21: Delete "$1,773,164" Insert "$1,762,169" Page 7, line 11: Delete "$356,405,952" Insert "$354,195,957" Page 7, line 14: Delete "$356,405,952" Insert "$354,195,957" 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 Page 1, line 10: Delete "$356,405,952" Insert "$345,451,452" Page 6, line 8: Delete "$29,978,000" Insert "$19,078,000" Page 6, line 15: Delete all material. Page 6, line 21: Delete "$1,773,164" Insert "$1,718,664" Page 7, line 11: Delete "$356,405,952" Insert "$345,451,452" Page 7, line 14: Delete "$356,405,952" Insert "$345,451,452" 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 Page 1, line 10: Delete "$356,405,952" Insert "$205,545,904" Page 4, line 23: Delete "$175,658,488" Insert "$25,548,988" Page 4, lines 28 - 31: Delete all material. Page 5, lines 2 - 9: Delete all material. Page 5, lines 11 - 16: Delete all material. Page 5, line 18, through page 6, line 4: Delete all material. Page 6, line 21: Delete "$1,773,164" Insert "$1,022,616" Page 7, line 11: Delete "$356,405,952" Insert "$205,545,904" Page 7, line 14: Delete "$356,405,952" Insert "$205,545,904" 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.