00 CS FOR HOUSE BILL NO. 191(FIN) 01 "An Act authorizing financing for certain public transportation projects; giving notice 02 of and approving the entry into, and the issuance of revenue obligations that provide 03 participation in, lease-financing agreements for those transportation projects; and 04 providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 07 to read: 08 INTENT. It is the intent of the legislature that the state take full advantage of 09 innovative financing methods recognized by the Federal Highway Administration. The 10 legislature intends that the revenue obligations issued under this Act will be repaid from 11 appropriations of federal money derived from annual apportionments paid to the state by the 12 Federal Highway Administration. It is the intent of the legislature that interest earnings on the 13 proceeds of bonds issued under this Act be used for the required state match on the projects 14 listed in this Act. 01 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 02 read: 03 TRANSPORTATION PROJECT ALLOCATION. The Department of Transportation 04 and Public Facilities shall allocate the net proceeds derived from the sale of revenue 05 obligations authorized in sec. 5 of this Act for construction or acquisition of the following 06 state transportation projects among those projects as follows, subject to reallocation among 07 the projects under AS 37.07.080(e): 08 PROJECT ALLOCATION 09 (1) Fairbanks: Downtown Street Improvements $ 8,000,000 10 (2) Fairbanks: Illinois-Barnette and Bridge 18,700,000 11 (3) Kotzebue: Ted Stevens Way Reconstruction 4,400,000 12 (4) Dillingham: Wood River Road Reconstruction 3,575,000 13 (5) Bethel: Ptarmigan Street Improvements 1,480,000 14 (6) Nome: Bering Street, Seppala Drive, and Front 5,090,000 15 Street Rehabilitation and Front Street Safety 16 and Enhancements 17 (7) Kaltag Area Roads 910,000 18 (8) McGrath Area Roads 968,000 19 (9) Aniak Area Roads 2,000,000 20 (10) Galena Area Roads 3,315,000 21 (11) Williamsport-Pile Bay Road Improvements, Phase I 6,000,000 22 (12) Deering: Cape Deceit Road Improvements 800,000 23 (13) Saint Mary's Area Roads 2,050,000 24 (14) Fairbanks: Richardson Highway: MP 52 11,100,000 25 to 361 Rehabilitation 26 (15) Fairbanks: Richardson Highway: North Pole 16,100,000 27 Area Interchange 28 (16) Fairbanks: Borough-Wide Roads and Trails 3,100,000 29 (17) Anchorage: A/C Couplet, 6th Avenue to 40th Avenue 6,250,000 30 (18) Anchorage: Bragaw Street - Glenn Highway to 625,000 31 Debarr Road 01 (19) Anchorage: Lake Otis Parkway - Abbott Road to 2,600,000 02 O'Malley Road and Debarr Road to Northern 03 Lights Blvd. 04 (20) Anchorage: Mountain View Drive - Commercial 420,000 05 Drive to Glenn Highway 06 (21) Anchorage: 9th Avenue - L Street to Ingra Street 700,000 07 (22) Anchorage: Northern Lights/Benson Blvds., Forest 3,000,000 08 Park Drive to Lake Otis Parkway (Couplet) 09 (23) Anchorage: Old Seward Highway, Huffman 2,000,000 10 Road to Potter Valley Road 11 (24) Anchorage: Spenard Road - McRea to Fireweed Lane 1,500,000 12 (25) Anchorage: C Street Phase III, Dimond Blvd. to 28,750,000 13 O'Malley Road, including interchange at O'Malley 14 Road and a grade separation for the Alaska Railroad 15 near 68th Avenue and C Street 16 (26) Anchorage: Glenn Highway, Gambell Street to 58,180,000 17 McCarrey Street 18 (27) Anchorage: Seward Highway at International 15,000,000 19 Airport Road Grade Separated Crossing 20 (28) Anchorage: Seward Highway at 92nd Avenue Grade 12,500,000 21 Separation and Connection to Old Seward Highway 22 Abbott Road 23 (29) Anchorage: Abbott Loop North Extension 15,000,000 24 (30) Kenai: North Kenai Spur Road MP 22 to 29.7 Repave 10,612,000 25 (31) Soldotna: East Redoubt Avenue Rehabilitation 5,073,000 26 (32) Matanuska-Susitna: Glenn Highway MP 34 to 42 1,500,000 27 Reconstruction - Parks to Old Glenn Highway (Palmer) 28 (33) Matanuska-Susitna: Glenn Highway State Fairgrounds 500,000 29 Access Improvements 30 (34) Matanuska-Susitna: Seward Meridian Road, Parks 7,525,000 31 to Seldon Road 01 (35) Matanuska-Susitna: Trunk Road Reconstruction 9,150,000 02 (36) Palmer: East Eagle Avenue and Gulkana Street Upgrade 1,200,000 03 (37) Wasilla: Roads and Trails 1,120,000 04 (38) Matanuska-Susitna: Fairview Loop Path 1,310,000 05 (39) Matanuska-Susitna: Old Glenn Highway MP 0 to 18.6 13,225,000 06 Rehabilitation 07 (40) Palmer-Wasilla Highway Expansion 17,850,000 08 (41) Matanuska-Susitna: Petersville Road MP 3 to 14 5,400,000 09 (42) One Fast Ferry 35,000,000 10 (43) Ketchikan: South Tongass Highway Widening and 5,000,000 11 Path Extension, Phase I 12 (44) Petersburg: Mitkof Highway Upgrade 550,000 13 (45) Juneau: Thane Road Rock Dump to Sheep Creek 900,000 14 Reconstruction 15 (46) Juneau: Old Dairy Road Resurfacing and Shoulder 700,000 16 Widening 17 (47) Juneau: Glacier Highway Brotherhood Bridge at 4,830,000 18 Mendenhall River 19 (48) Juneau: Upgrade Back Loop, Montana Creek and 3,700,000 20 Skaters Cabin Roads 21 (49) Petersburg: Haugen Drive Upgrade and Path Extension 470,000 22 (50) Ketchikan: North Tongass Highway Ward Cove to 1,900,000 23 Whipple Creek Widening/Realign 24 (51) Ketchikan Gateway Borough: Road Surface Treatment 600,000 25 (52) Craig: Port Saint Nicholas Road BST 2,550,000 26 (53) Thorne Bay: Shoreline Drive Paving 340,000 27 (54) Haines: MP 3.5 to 25.3 Reconstruction - Airport 3,000,000 28 to Bluffs 29 (55) Sitka: Sawmill Creek Road Upgrade, Phase I 5,500,000 30 (56) Kodiak: Chiniak Road Rehabilitation, Phase I 6,000,000 31 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 01 read: 02 DELEGATION OF AUTHORITY FOR LEASE-FINANCING AGREEMENTS. The 03 Department of Transportation and Public Facilities is delegated the Department of 04 Administration's authority under AS 36.30.085 to enter into lease-financing agreements in 05 connection with the issuance of revenue obligations to finance the state transportation projects 06 described in sec. 2 of this Act. 07 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 08 read: 09 LEASE-FINANCING PAYMENTS. (a) The lease payments owed under lease- 10 financing agreements executed under sec. 3 of this Act are subject to annual appropriation by 11 the legislature. 12 (b) The legislature intends that federal money in the form of apportionments from the 13 Federal Highway Administration for federal highway grants will provide enough revenue to 14 the general fund to make substantially all of the lease payments; however, if that revenue 15 source is insufficient, the payments may be made from any other valid revenue source, subject 16 to appropriation. 17 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 18 read: 19 NOTICE OF THE ENTRY INTO AND FINANCING OF REVENUE 20 OBLIGATIONS. (a) Subject to annual appropriation, the Department of Transportation and 21 Public Facilities is authorized to enter into lease-financing agreements for the issuance of 22 revenue obligations for the state transportation projects described in sec. 2 of this Act. 23 (b) The state bond committee is authorized to provide for the issuance of revenue 24 obligations in one or more series in the aggregate principal amount of $395,450,000 for the 25 costs of construction of the projects described in sec. 2 of this Act. The principal amount 26 includes the estimated cost of $379,618,000 for constructing, acquiring, and equipping the 27 projects described in sec. 2 of this Act; capitalized interest payments in the total amount of 28 $10,881,368; and an amount for the cost of issuing the revenue obligations of $4,950,632. 29 The estimated annual amount of rental obligations under the lease-financing agreements is 30 $41,000,000. The estimated total lease payments for the full term of the lease-financing 31 agreements is $592,600,000. 01 (c) The state bond committee may contract for credit enhancement, underwriting, 02 credit ratings, bond counsel, financial advisor, printing, and trustee services that the 03 committee considers necessary in financing the projects described in sec. 2 of this Act. 04 (d) In this section, 05 (1) "costs of construction" includes credit enhancement and underwriting 06 expenses, rating agency fees, bond counsel fees, financial advisor fees, printing fees, trustee 07 fees, capitalized interest, and interest earnings used for lease payments; and 08 (2) "revenue obligation" means a certificate of participation in the right to 09 receive a payment under a lease-financing agreement made to finance the costs of 10 construction or acquisition of a state transportation project. 11 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 12 read: 13 NOTICE AND APPROVAL OF AGREEMENTS. Section 5 of this Act constitutes 14 the notice and approval of lease-financing agreements to finance the transportation projects 15 described in sec. 2 this Act that is required by AS 36.30.085. 16 * Sec. 7. This Act takes effect July 1, 2001.