SB 122: "An Act authorizing financing for certain public transportation projects; giving notice of and approving the entry into, and the issuance of revenue obligations that provide participation in, lease-financing agreements for those transportation projects; and providing for an effective date."
00 SENATE BILL NO. 122 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. 13 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 14 read:
01 TRANSPORTATION PROJECT ALLOCATIONS. The Department of 02 Transportation and Public Facilities shall allocate the net proceeds derived from the sale of 03 revenue obligations authorized in sec. 5 of this Act for construction or acquisition of the 04 following state transportation projects among those projects as follows, subject to reallocation 05 among the projects under AS 37.07.080(e): 06 PROJECT ALLOCATION 07 (1) Fairbanks: Downtown Street Improvements $ 8,000,000 08 (2) Fairbanks: Illinois-Barnette and Bridge 18,700,000 09 (3) Kotzebue: Shore Avenue Rehabilitation and 10 Erosion Protection 11,450,000 11 (4) Nome: Bering, Seppala & Front Street Rehabilitation 12 and Front Street Safety and Enhancements 5,090,000 13 (5) Richardson Highway: MP352 to 361 Rehabilitation 11,100,000 14 (6) Richardson Highway: North Pole Area Interchange 16,100,000 15 (7) Fairbanks North Star Borough Area Roads and Trails 10,000,000 16 (8) South Cushman Street Improvements, Phase I 3,100,000 17 (9) Rural: Village Road Surfacing 15,000,000 18 (10) A/C Couplet, 6th Ave. to 40th Ave. 6,250,000 19 (11) Bragaw - Glenn Highway to Debarr 625,000 20 (12) Dimond Blvd., Jewel Lake Rd. to New Seward 21 Highway 6,500,000 22 (13) Lake Otis - Abbott to O'Malley & Debarr to Northern 23 Lights Blvd. 2,600,000 24 (14) Mt. View Drive - Commercial to Glenn Highway 500,000 25 (15) 9th Avenue - L Street to Ingra 800,000 26 (16) Northern Lights/Bensen Blvds., Forest Park Dr. to 27 Lake Otis Parkway (Couplet) 3,000,000 28 (17) Old Seward Hwy., Huffman Rd. to Potter Valley Road 2,000,000 29 (18) Spenard Road - McRea to Fireweed 1,500,000 30 (19) C Street Phase III, Dimond Blvd. to O'Malley Rd., 31 including interchange at O'Malley Rd. and a grade
01 separation for the Alaska Railroad near 68th Ave. 02 and C Street 28,750,000 03 (20) Glenn Highway, Gambell St. to McCarrey St. 04 (six laning with interchanges at Airport Heights and 05 Bragaw Street) 56,000,000 06 (21) Seward Highway at International Airport Rd. Grade 07 Separated Crossing 15,000,000 08 (22) Seward Highway at 92nd Avenue Grade Separation 09 and connection to Old Seward Highway and 10 Abbott Road 12,500,000 11 (23) Seward Highway reconstruction of frontage roads 12 including an extension of West Frontage Road - 13 Dimond to O'Malley 9,000,000 14 (24) Bethel: Akakeek Street Improvements 880,000 15 (25) Bethel: Chief Eddie Hoffman Highway/Anton Anvil 16 Separated Pathway 6,000,000 17 (26) Bethel: H-Marker Road Improvements 480,000 18 (27) Bethel: Ptarmigan Street Improvements 1,480,000 19 (28) North Kenai Spur Road MP 22-29.7 Repave 10,612,000 20 (29) Soldotna: East Redoubt Ave. Rehabilitation 5,073,000 21 (30) Glenn Highway MP 34 to 42 Reconst. - Parks to 22 Old Glenn Hwy. (Palmer) 1,500,000 23 (31) Glenn Highway State Fairgrounds Access Improvements 500,000 24 (32) Parks Highway Corridor Alternative (Wasilla Area) 1,700,000 25 (33) Mat-Su: Bogard Road Extension East 6,530,000 26 (34) Mat-Su: Seward Meridian Rd., Parks to Seldon 7,525,000 27 (35) Mat-Su: Trunk Road Reconstruction 9,150,000 28 (36) Palmer: East Eagle Avenue and Gulkana Street Upgrade 1,200,000 29 (37) Wasilla Local Gravel-to-Asphalt Program 1,000,000 30 (38) Mat-Su: Bogard Road Wasilla High/Middle School 31 Pedestrian Crossing 1,430,000
01 (39) Old Glenn Highway MP 0-18.6 Rehabilitation 13,225,000 02 (40) Palmer Wasilla Highway Expansion 17,850,000 03 (41) Petersville Road MP 3-14 5,400,000 04 (42) Dillingham Aleknagik Lake Road, MP 8-23 Paving 9,900,000 05 (43) Barrow Surface Treatments 10,000,000 06 (44) Two Fast Ferries 70,000,000 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 in 12 connection with the issuance of revenue obligations to finance the state transportation projects 13 described in sec. 2 of this Act. 14 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 15 read: 16 LEASE-FINANCING PAYMENTS. (a) The lease payments owed under lease- 17 financing agreements executed under sec. 3 of this Act are subject to annual appropriation by 18 the legislature. 19 (b) The legislature intends that federal money in the form of apportionments from the 20 Federal Highway Administration for federal highway grants will provide enough revenue to 21 the general fund to make substantially all of the lease payments; however, if that revenue 22 source is insufficient, the payments may be made from any other valid revenue source, subject 23 to appropriation. 24 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 25 read: 26 NOTICE OF THE ENTRY INTO AND FINANCING OF REVENUE 27 OBLIGATIONS. (a) Subject to annual appropriation, the Department of Transportation and 28 Public Facilities is authorized to enter into lease-financing agreements for the issuance of 29 revenue obligations for the state transportation projects described in sec. 2 of this Act. 30 (b) The state bond committee is authorized to provide for the issuance of revenue 31 obligations in one or more series in the aggregate principal amount of $442,900,000 for the
01 costs of construction of the projects described in sec. 2 of this Act. The principal amount 02 includes the estimated cost of $425,000,000 for constructing, acquiring, and equipping the 03 projects described in sec. 2 of this Act; capitalized interest payments in the total amount of 04 $12,387,000; and an amount for the cost of issuing the revenue obligations of $5,513,000. 05 The estimated annual amount of rental obligations under the lease-financing agreements is 06 $42,400,000. The estimated total lease payments for the full term of the lease-financing 07 agreements is $700,586,000. 08 (c) The state bond committee may contract for credit enhancement, underwriting, 09 credit ratings, bond counsel, financial advisor, printing, and trustee services that the 10 committee considers necessary in financing the projects described in sec. 2 of this Act. 11 (d) In this section, 12 (1) "costs of construction" includes credit enhancement and underwriting 13 expenses, rating agency fees, bond counsel fees, financial advisor fees, printing fees, trustee 14 fees, capitalized interest, and interest earnings used for lease payments; and 15 (2) "revenue obligation" means a certificate of participation in the right to 16 receive a payment under a lease-financing agreement made to finance the costs of 17 construction or acquisition of a state transportation project. 18 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 19 read: 20 NOTICE AND APPROVAL OF AGREEMENTS. Section 5 of this Act constitutes 21 the notice and approval of lease-financing agreements to finance the transportation projects 22 described in sec. 2 this Act that is required by AS 36.30.085. 23 * Sec. 7. This Act takes effect July 1, 2001.