HB 146: "An Act relating to the issuance of certificates of participation to finance deferred maintenance projects, and a construction project, for certain public harbor facilities; giving notice of and approving the entry into, and the issuance of certificates of participation in, lease-financing agreements for those public harbor facility projects; repealing a provision relating to the financing of construction and renovation of facilities for certain ports and harbors; and providing for an effective date."
00 HOUSE BILL NO. 146 01 "An Act relating to the issuance of certificates of participation to finance deferred 02 maintenance projects, and a construction project, for certain public harbor facilities; 03 giving notice of and approving the entry into, and the issuance of certificates of 04 participation in, lease-financing agreements for those public harbor facility projects; 05 repealing a provision relating to the financing of construction and renovation of facilities 06 for certain ports and harbors; and providing for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 09 to read: 10 FINDINGS; INTENT. (a) Except for the Nome harbor and dock, the facilities 11 described in sec. 2 of this Act are currently owned by the state and are in need of substantial 12 investment in capital maintenance and upgrades. The City of Nome is in need of additional 13 money for a capital project at the Nome harbor and dock.
01 (b) The legislature intends to provide for the required investment, and intends transfer 02 of ultimate ownership of and responsibility for the state-owned harbor facilities to local 03 municipalities. 04 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 05 read: 06 HARBOR FACILITIES LEASES AUTHORIZED. (a) The Department of 07 Transportation and Public Facilities is authorized and directed to develop a plan for 08 improvement and financing of the state-owned harbor facilities listed in (b) of this section and 09 for the transfer of ownership and responsibility for the improved facilities, subject to the 10 limitations set out in this Act, to the municipalities listed in (b) of this section. The 11 Department of Transportation and Public Facilities is authorized to lease the harbor facilities 12 from the municipalities listed in (b) of this section, including the City of Nome, under the 13 authority of AS 35.10.110. 14 (b) The Department of Transportation and Public Facilities shall allocate the net 15 proceeds derived from the lease-financing agreements authorized in sec. 5 of this Act for 16 capital maintenance and upgrade projects, including the City of Nome's project, to the 17 following harbor facility projects, in the amount allocated for each facility: 18 FACILITY/PROJECT ALLOCATION 19 (1) Whittier - Whittier Small Boat Harbor $2,449,000 20 (2) Valdez - Valdez Small Boat Harbor 3,212,000 21 (3) Seldovia - Seldovia Small Boat Harbor 2,628,000 22 (4) Petersburg - North Harbor, Middle Harbor, South Harbor 3,729,000 23 (5) Juneau - Auke Bay Harbor, Aurora Harbor, Harris Harbor, 24 Douglas Harbor and Dock, North Douglas Launch 25 Ramp, Taku Harbor 7,119,000 26 (6) Ketchikan - Thomas Basin Harbor, Ryus Float, Bar Harbor 27 South, Bar Harbor North, Hole in the Wall Harbor, 28 Knudson Cove Harbor 7,876,000 29 (7) Sitka - Thomsen Harbor, Crescent Harbor, 30 Sealing Cove Harbor 4,469,000 31 (8) Cordova - Cordova Harbor 4,876,000
01 (9) Klawock - Klawock Harbor and Seaplane Float 896,000 02 (10) Yakutat - Yakutat Harbor 526,000 03 (11) Wrangell - Standard Harbor, Reliance Harbor, Inner Harbor 04 Fish and Game Dock, Shoemaker Harbor 3,492,000 05 (12) Nome - Nome Harbor and Dock 1,000,000 06 (13) Adak - Adak Boat Harbor 500,000 07 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 08 read: 09 DELEGATION OF AUTHORITY FOR LEASE-FINANCING AGREEMENTS. The 10 Department of Transportation and Public Facilities is delegated the Department of 11 Administration's authority under AS 36.30.085 to enter into lease-financing agreements for 12 the harbor facility projects described in sec. 2 of this Act. 13 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 14 read: 15 LEASE-FINANCING PAYMENTS. (a) The lease payments owed under lease- 16 financing agreements executed under sec. 3 of this Act are subject to annual appropriation by 17 the legislature. 18 (b) The legislature intends that the marine motor fuel tax under collected under 19 AS 43.40.010 will provide enough revenue to the general fund to make all lease payments; 20 however, if that revenue source is insufficient, the payments may be made from any other 21 valid revenue source, subject to appropriation. 22 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 23 read: 24 NOTICE OF THE ENTRY INTO AND FINANCING OF LEASE-FINANCING 25 AGREEMENTS. (a) Subject to annual appropriation, the Department of Transportation and 26 Public Facilities is authorized to enter into lease-financing agreements for the harbor facility 27 projects described in sec. 2 of this Act. 28 (b) The state bond committee is authorized to provide for the issuance of certificates 29 of participation in one or more series in the aggregate principal amount of $43,680,000 for the 30 cost of the projects described in sec. 2 of this Act. The estimated total cost of construction, 31 acquisition, and equipping the projects is $43,680,000. The estimated annual amount of rental
01 obligations under the lease-financing agreements is $4,525,000. The estimated total lease 02 payments for the full term of the lease-financing agreements is $64,063,916. In this 03 subsection, "costs of construction" includes credit enhancement and underwriting expenses, 04 rating agency fees, bond counsel fees, financial advisor fees, printing fees, trustee fees, 05 capitalized interest, and interest earnings used for lease payments. 06 (c) Under terms approved by the Department of Transportation and Public Facilities, 07 the leasehold interests of the state in projects described in sec. 2 of this Act that are financed 08 under this section may terminate following the payment and retirement of the certificates of 09 participation or at another later date as considered reasonable by the Department of 10 Transportation and Public Facilities. The plan prepared by the Department of Transportation 11 and Public Facilities under sec. 2 of this Act may provide for the transfer of title to some or all 12 of the state-owned harbor facilities to the municipalities identified in sec. 2 of this Act, with a 13 leaseback to the department, as long as the title to the state-owned facilities transfers to 14 municipal ownership no later than the final payment and retirement of all certificates of 15 participation issued to finance the respective projects. 16 (d) The state bond committee may contract for credit enhancement, underwriting, 17 credit ratings, bond counsel, financial advisor, printing, and trustee services that the 18 committee considers necessary in financing the projects described in sec. 2 of this Act. 19 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 20 read: 21 NOTICE AND APPROVAL OF AGREEMENTS. Section 5 of this Act constitutes 22 the notice and approval of the lease-financing agreements described in sec. 2 this Act that is 23 required by AS 36.30.085. 24 * Sec. 7. AS 29.60.700 is repealed 25 * Sec. 8. This Act takes effect July 1, 2001.