Legislature(2011 - 2012)SENATE FINANCE 532
04/09/2012 01:00 PM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB163 | |
| SB192 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 163 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| = | SB 192 | ||
SENATE BILL NO. 163
"An Act providing for and relating to the issuance of
general obligation bonds for the purpose of paying the
cost of municipal port projects; and providing for an
effective date."
1:07:34 PM
Co-Chair Hoffman MOVED to ADOPT the proposed committee
substitute for SB 163, Work Draft 27-GS2769\D
(Finley/Kirsch, 4/7/12.)
1:07:44 PM
Co-Chair Stedman OBJECTED for the purpose of discussion.
1:08:01 PM
WESTON EILER, STAFF, SENATOR BERT STEDMAN, highlighted the
changes in the committee substitute (CS). He cited that
Page 1, line 1, contained a title revision that expanded
the bill's coverage exclusively from ports to other state
transportation projects. He added that Page 1, line 10,
amended the amount of the general obligation bonds (GEO) to
$453,499,200. He reported that on Page 2, line 1, renamed
the project fund to the "2012 State Transportation Project
Fund". He noted that on Page 2, line 8, Section 3 broadened
the grant award statutes, AS 37.05.316, and changed the
grant fund total to $188.4 million (line 13.) He listed the
transportation grant projects, which contained changes from
previous versions of SB 163. He read the list beginning on
Page 2 line 16:
PROJECT AMOUNT
Anchorage - Port of Anchorage $50,000,000
Expansion
Bethel - Harbor Dredging 4,000,000
Bristol Bay Borough - Port of Bristol Bay 7,000,000
Expansion and Pile Dock Replacement
Haines Borough - Boat Harbor Upgrades 12,000,000
Kodiak - Pier III Replacement 15,000,000
Kotzebue - Cape Blossom Road and Port 10,000,000
Matanuska - Susitna Borough - Bogard Road Extension
13,500,000
Matanuska-Susitna Borough - Port Mackenzie
30,000,000 Rail Extension
Nenana - Totchaket Resource Development 6,500,000
Corridor Access
Newtok Traditional Council - Mertarvik Evacuation
4,100,000
Road Construction
Nome - Port Design and Construction 10,000,000
Sand Point - Sand Point Road Rehabilitation
2,500,000
Seward - Marine Industrial Center Expansion
10,000,000
Sitka - Sawmill Cove Industrial Park Dock 7,500,000
St. George - Harbor Reconstruction 3,000,000
Togiak - Waterfront Transit Facility 3,300,000
Mr. Eiler directed attention to Section 4, line 6, which
added a new section that authorized (AS 37.07.080(e)) the
Department of Transportation and Public Facilities (DOT) to
appropriate the following from the 2012 State
Transportation Project Fund:
PROJECT AMOUNT
Anchorage - Glenn Highway, Hiland Road to Artillery
Road 35,000,000 Reconstruction
Anchorage - Glenn Highway/Muldoon Road Interchange
15,000,000 Reconstruction
Anchorage - New Seward Highway/36th Avenue
26,000,000 Reconstruction
Anchorage - New Seward Highway - MP 75 - 90
10,000,000 Bridge Repairs
Anchorage - O'Malley Road Reconstruction 15,000,000
Fairbanks - Elliott Highway, MP 108 - 120
Reconstruction 6,500,000
Fairbanks - Old Steese Highway to McGrath Road
24,000,000 Reconstruction and Extension
Fairbanks - Wendell Street Bridge Replacement
14,400,000
Haines - Maintenance Shop Replacement 3,000,000
Juneau - Glacier Highway, MP 4 - 6 Improvements
5,500,000
Juneau - Mendenhall Loop Road Improvements 6,000,000
Kenai - Kenai Spur Road Rehabilitation 20,000,000
Ketchikan - Shelter Cove Road Construction and
Improvements 19,000,000
Mat-Su - Fairview Loop Road Reconstruction 10,000,000
Mat-Su - Knik Goose Bay Road Reconstruction
15,000,000
North Pole - Plack Road Improvements 5,000,000
Platinum Airport Runway Extension 3,100,000
Port Clarence Access Improvements 4,000,000
Richardson Highway - Ruby Creek Bridge Replacement
11,000,000
Sitka - Katlian Bay Road Construction 14,000,000
Mr. Eiler noted that Section 5, Page 4 contained
instructions and authorizations for the State Bond
Committee. He read the following language (Page 4, Lines 11
- 15):
If the issuance of the bonds is ratified by a majority
of the qualified voters of the state who vote on the
question, the amount of $3,599,200 or as much of that
amount as is found necessary is appropriated from the
2012 state transportation project fund of the state to
the state bond committee to carry out the provisions
of this Act and to pay expenses incident to the sale
and issuance of the bonds authorized in this Act.
He concluded with Section 7 (Page 4, line 26), which
contained the ballot question and the total amount
[$453,499,200] of the bond package.
1:15:09 PM
Senator Thomas referred to Page 3, line 23; Fairbanks -
Elliott Highway, MP 108 - 120 Reconstruction 6,500,000 and
indicated that the project was located 118 miles outside of
Fairbanks. He did not want the project attributed to
Fairbanks.
Co-Chair Stedman replied that the language would be
remedied later on in the process.
Co-Chair Stedman REMOVED his OBJECTION. There being NO
further OBJECTION, Work draft 27-GS2769\D was ADOPTED.
KAREN REHFELD, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
spoke to the original version of the bill. She reported
that the original version of SB 163 authorized $350,000,000
in general obligation bonds for six port projects around
the state. Four new projects were incorporated into the CS.
ANGELA RODELL, DEPUTY COMMISSIONER, TAX DIVISION,
DEPARTMENT OF REVENUE, spoke to the fiscal note. She
explained that $3,500,000 of the bond total, $453,499,200
was the associated costs to issue the bonds. Upon ballot
approval, the first issuance would begin in February, 2013
and would continue into FY 14 and FY 15. She assured the
committee that the proceeds would be expended in a timely
manner. She expected a low cost for the first bond issuance
of approximately 2.6 percent. She commented that the
projects were long-term and anticipated a 20 year bond
issue. The administration planned to finance the projects
over the 20 year period to free up funds for other
priorities.
Co-Chair Stedman cited the fiscal note from the Department
of Revenue (DOR) that appropriated $900,000 in general
funds for FY 2013.
1:19:47 PM
STEPHEN RIBUFFO, INTERIM DIRECTOR, PORT OF ANCHORAGE,
ANCHORAGE (via teleconference), testified in support of SB
163. He thanked the committee for the additional funding
totaling $50,000,000 but related that the funding fell
short of the $350,000,000 requested by the municipality. He
considered the port a statewide project and felt that it
benefited the entire state.
ALLEN JOSEPH, VICE-CHAIR, SEA LION CORPORATION, BETHEL (via
teleconference), expressed his support of SB 163. He worked
in collaboration with the city of Hooper Bay on various
projects. Currently, the community sought to construct a
small boat harbor at a cost of $8,000,000 and to extend a
road at a cost of $700,000, for the transportation of goods
that arrive by barge. The harbor was unprotected and the
goods brought in by barge were trucked on the beach. The
residents of Hooper Bay were concerned that a barge or
truck accident would affect subsistence fishing. He
requested the project's inclusion in SB 163.
CHRISTINE KLEIN, CALISTA CORPORATION, ANCHORAGE (via
teleconference), testified in support of including the
Emmonak port project in SB 163 and clarified that the
project was included in earlier versions of the
legislation. She explained that the Emmonak port was the
hub for villages along the Yukon River. The port was relied
on for fuel deliveries and utilized by the fisheries plant
that provided jobs for residents. She detailed that the
project design was complete and it was "shovel ready." The
total cost was $16,500,000. The cost of Phase 1 was $10
million for construction of the dock and wharf. The landing
ramp cost $6,400,000. The project was supported by Kwik'Pak
Fisheries, the City of Emmonak, Calista Regional
Corporation, and the Tribe of Emmonak.
1:24:24 PM
MARTIN B. MOOR SR., CITY MANAGER, CITY OF EMMONAK, EMMONAK
(via teleconference), testified in support of including the
Emmonak port and dock facility project in SB 163. He noted
that the city was located 10 miles from the mouth of the
Yukon River and served as the regional hub. He served the
city since 1963, which included some time as mayor. He
spoke of interior Alaska's increasing costs for fuel and
basic necessities, which threatened rural Alaska's physical
survival. Every necessity must be shipped in. He shared
that expanding the Emmonak port benefited the entire region
and could potentially reduce the costs.
BOSCO OLSON, SENIOR CITY ADMINISTRATOR, CITY OF HOOPER BAY,
HOOPER BAY (via teleconference), expressed his support of
the inclusion of the road extension and the small boat
harbor in SB 163. He explained that the road extension
would expand the road over a slough and that the small boat
harbor protected boats from potentially destructive storms
in the fall.
1:31:45 PM
WILBUR R. HOOTCH, MAYOR, CITY OF EMMONAK, ANCHORAGE (via
teleconference), testified in support of including the
Emmonak port and dock facility project in SB 163. He
remarked that the region was experiencing a crippling
energy crisis and listed the positive effects of the
project for the region.
GORDON SEVERSEN, MICHAEL L. FOSTER AND ASSOCIATES,
ANCHORAGE (via teleconference), testified in support of the
City of Emmonak's port and dock facility project. He voiced
that in 2009, 80 barges off loaded 1,500 containers in
Emmonak. The dock area was too small, congested, and
inadequate. Barge offloading caused bank erosion.
JOMO STEWART, SELF, FAIRBANKS (via teleconference),
testified in support of expanding the legislation to
include funding in SB 163 for solutions to the "crippling
energy needs" in Fairbanks. He remarked that the actual
definition of "port" in the statutes was fairly broad; "a
facility of transportation related commerce located within
the state." He briefly shared his ideas for funding.
1:38:40 PM
SB 163 was HEARD and HELD in committee for further
consideration.
1:38:43 PM
AT EASE
1:46:13 PM
RECONVENED
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 163 - CSSB 163(FIN) version D.pdf |
SFIN 4/9/2012 1:00:00 PM |
SB 163 |
| SB 192 April 9 PFC Energy Alaska Senate Finance.pdf |
SFIN 4/9/2012 1:00:00 PM |
SB 192 |