Legislature(2021 - 2022)BELTZ 105 (TSBldg)
02/15/2022 01:30 PM Senate TRANSPORTATION
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| SB166 | |
| SB150 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 150 | TELECONFERENCED | |
| += | SB 166 | TELECONFERENCED | |
| + | TELECONFERENCED |
SB 166-G.O. BONDS FOR INFRASTRUCTURE PROJECTS
1:36:20 PM
CHAIR MYERS announced the consideration of SENATE BILL NO.
166 "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,
major maintenance, and port and transportation projects;
and providing for an effective date."
1:36:33 PM
CHAIR MYERS opened public testimony on SB 166.
1:36:57 PM
PAT BRANSON, Mayor of Kodiak, Kodiak, Alaska, spoke in
support of SB 166. The City of Kodiak understands that
Alaska voters would consider the proposition in the
November 2022 election if approved by the legislature. If
ratified by the voters, these projects will benefit
Alaskans. The City of Kodiak requested $15 million to fund
the Kodiak Fire Station. The current building was
constructed in the 1940s, has outlived its useful life, is
riddled with cracks from seismic damage, is located in the
tsunami inundation zone, and is unsafe. In 2021, the city
purchased the property for the new fire station, completed
the pre-design phase with ECI Alaska Architects, and
recently selected Wolf Architecture, Inc. to lead 100
percent of the design efforts. She estimated the total cost
of $20 to $22 million based on the design for the 21,000
square foot facility. She urged members to support the
bill.
1:39:12 PM
COLBY HICKEL, Deputy Municipal Manager, Municipality of
Anchorage (MOA), Anchorage, Alaska, spoke in support of the
Port of Anchorage project in SB 166. She provided an update
on the Port of Anchorage project. She emphasized the urgent
need for funding. The Port of Alaska is a lifeline for 90
percent of Alaskans and is in critical condition. In
November 2018, Anchorage suffered an earthquake. She
predicted that if the earthquake had lasted an additional
seven seconds, the Port of Anchorage would have failed,
leaving Alaskans without food security. It is critical to
act now to rebuild the corroded and broken infrastructure.
If the port were to fail, a failure of this magnitude would
affect everyone from the North Slope to Nome, Fairbanks,
Wasilla, Seward, Southeast Alaska communities, and everyone
in between.
MS. HICKEL said it is important to note that the $175
million for the Knik Arm Port Infrastructure in General
Obligation (GO) bonding will not get the Port of Alaska
shovel-ready. The Municipality of Anchorage is requesting
$600 million to rebuild Terminal 1, intended to support
lift-on/lift off containerized cargo operations. She said
this will help achieve food security, but the Port of
Alaska will need $1 billion by 2025 to move this project
forward.
1:40:31 PM
MS. HICKEL reported that the Municipality of Anchorage
(MOA) won a major court victory over the US Transportation
Maritime Administration, or MARAD, contract dating back to
2003. MOA does not know the settlement amount until the
court determines it, nor does it have a timeframe when the
funds will be distributed. Further, this funding could be
tied to stabilizing the North Extension only. The Petroleum
and Cement Terminal was funded in three ways and is
scheduled for completion in August 2022. She reported that
50 percent was obtained through state grants, 24 percent
from a tariff rate increase, and 20 percent in federal
grants. In addition to asking for legislative assistance,
the Municipality of Anchorage will travel to Washington, DC
in March to request additional funding. The modernization
program is projected to cost $1.6 to $1.8 billion, and the
next program phase will require $1.1 billion, 56 percent of
which equals the $600 million requested in SB 166. In
closing, she urged members to help.
1:41:04 PM
SENATOR MICCICHE joined the meeting.
1:42:01 PM
DAVID AMES, Program Manager, Port of Alaska Modernization
Program, Jacobs Engineering, Anchorage, Alaska, spoke in
support of SB 166. He offered to answer any technical
questions. This port is essential to support food security
for the city and the state. In closing, he said the
justification for the funding for the is undeniable.
1:43:09 PM
JOY BAKER, City of Nome, Nome, Alaska, spoke in support of
the Port of Nome - Arctic Deep Draft Project funding in SB
166. She thanked the governor for including the $10 million
in the General Obligation (GO) bond bill. She reported that
this massive infrastructure project has been moving forward
to complete the feasibility study that the City of Nome
cost shares with the US Army Corps of Engineers. It has
resulted in a federal project authorization in the 2020
Water Resources Development Act. She stated that the
legislature added the City of Nome's $10 million request to
Capital Project Submission and Information System (CAPSIS)
last year. This $10 million will be amplified by another
$250 million that was allocated to the project by the US
Army Corps of Engineers (Corps) Civil Work Construction
Work Plan funded by the federal Infrastructure Investment &
Jobs Act. This milestone step by Congress constitutes a
federal commitment to construct the first deep-draft port
in the US Arctic. It has sparked commercial interest and
discussions regarding partnering funds for the local cost-
share match.
1:44:53 PM
MS. BAKER reported that in 2017 and 2019, the legislature
appropriated a combined $3 million of local match to the
Corps to complete the feasibility and design of the general
navigation features. The City of Nome has invested $2
million of in-house funds to design the local service
facilities. She related the project has support from the
community and regional organizations.
MS. BAKER noted she has worked on this project for 12
years. The State of Alaska has become an integral part of
the project, working with the City of Nome for in-kind
services and materials to serve as the local cost-share.
She pointed out the intense competition from China, Russia,
and other countries seeking to dominate and control the
Arctic. The expanding needs for national security presence,
and the rising geopolitical concern highlights the need for
this project. Increased vessel traffic requires search and
rescue and response vessels that can refuel and resupply
within the coverage area. Vessels seeking to transit the
Northwest Passage using Nome as a refueling point, could
reduce their fuel costs by 40 percent, shave time off their
voyage, and achieve substantial cost savings and shipping
efficiencies.
1:46:26 PM
MS. BAKER emphasized that the City of Nome must sign a
project partnership agreement and provide matching funds to
the Corps this year in anticipation of the Phase 1 design
completion by the end of 2022, prior to solicitation of
construction bids in March 2023. Further, time is of the
essence since this federal funding was not an earmark but
an appropriation to the Remote Assistance Harbors Program.
Therefore, these funds would be eligible to other
qualifying projects if Nome fails to fund its share. The
City of Nome would like to increase its $10 million request
from last year to $175 million for matching funds to the
Corps funds to construct Phase 1 of the project.
MS. BAKER explained that this project is moving at a fast
pace. Although the City of Nome is currently holding pace
with the Corps for design, it will need assistance to meet
the construction requirements to build the project
beginning in 2024. She anticipated in-kind contributions
from the state, but those contributions along with a few
local public-private partnership (PPP) agreements with
industry partners are not yet valued. The city will
contribute land, easements, and right-of-way and
anticipates contributing a portion of the local match. The
$175 million request will cover the Phase 1 construction
cost-share. The remaining funds will help fund Phase 2
design in November 2022, and the local service facilities
design and construction obligation.
1:49:03 PM
TIM SULLIVAN, Director of External Affairs, Alaska Railroad
Corporation, Anchorage, Alaska, spoke in support of the $5
million in SB 166 to provide matching funds. He related his
understanding that there was some confusion at the last
committee regarding the funding for the Seward dock.
CHAIR MYERS held public testimony open on SB 166.
1:50:13 PM
SENATOR SHOWER remarked that food security is essential. He
defined food security as the ability to feed Alaskans
without relying on anyone else. He clarified that the Port
of Alaska actually identified logistic security, which is
the ability to ensure that ships and barges can use the
port facilities. He predicted bond and interest rates would
rise further.
CHAIR MYERS held SB 166 in committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 150 v. A Sponsor Statement.pdf |
STRA 2/15/2022 1:30:00 PM |
SB 150 |
| SB 150 v. A Sectional Analysis.pdf |
STRA 2/15/2022 1:30:00 PM |
SB 150 |
| SB 150 Fiscal Note DOT&PF.pdf |
STRA 2/15/2022 1:30:00 PM |
SB 150 |
| SB 150 Support Document- NCSL .pdf |
STRA 2/15/2022 1:30:00 PM |
SB 150 |
| SB 150 Support Document-ATA 2020 National Truck Driver Appreciation Week.pdf |
STRA 2/15/2022 1:30:00 PM |
SB 150 |
| SB 150 Support Document-The New York Times.pdf |
STRA 2/15/2022 1:30:00 PM |
SB 150 |
| SB 150 Support Letter- AMA.pdf |
STRA 2/15/2022 1:30:00 PM |
SB 150 |
| SB 150 Truck Driver AppreciationDay Presentation.pdf |
STRA 2/15/2022 1:30:00 PM |
SB 150 |