Legislature(2009 - 2010)HOUSE FINANCE 519
03/18/2009 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB154 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 154 | TELECONFERENCED | |
| + | HB 155 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
March 18, 2009
1:41 p.m.
1:41:34 PM
CALL TO ORDER
Co-Chair Stoltze called the House Finance Committee meeting
to order at 1:41 p.m.
MEMBERS PRESENT
Representative Mike Hawker, Co-Chair
Representative Bill Stoltze, Co-Chair
Representative Bill Thomas, Jr., Vice-Chair
Representative Allan Austerman
Representative Harry Crawford
Representative Anna Fairclough
Representative Richard Foster
Representative Les Gara
Representative Reggie Joule
Representative Mike Kelly
MEMBERS ABSENT
Representative Woodie Salmon
ALSO PRESENT
Frank Richards, Deputy Commissioner, Highways & Public
Facilities, Department of Transportation and Public
Facilities; James Armstrong, Staff; Nancy Slagle, Director,
Division of Administrative Services, Department of
Transportation and Public Facilities; Christine Klein,
Deputy Commissioner of Aviation, Department of
Transportation and Public Facilities
PRESENT VIA TELECONFERENCE
None
SUMMARY
HB 154 "An Act making supplemental appropriations and
capital appropriations; amending appropriations;
and providing for an effective date."
HB 154 was heard and HELD in Committee for further
consideration.
HB 155 "An Act relating to the authorization for the
Department of Transportation and Public Facilities
to participate in the American Recovery and
Reinvestment Act of 2009; and providing for an
effective date."
HB 155 was postponed.
1:42:37 PM
HOUSE BILL NO. 154
"An Act making supplemental appropriations and capital
appropriations; amending appropriations; and providing
for an effective date."
FRANK RICHARDS, DEPUTY COMMISSIONER, HIGHWAYS & PUBLIC
FACILITIES, DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES, presented an overview of HB 154. He explained
that HB 154 contains the federal economic stimulus funds for
transportation assets. The department must adhere to the
conditions contained in the federal legislation in order to
receive and expend the funds. The bill provides
approximately $175 million for highways, $42 million for
transit, and $85 million for aviation purposes.
Mr. Richards described the funding process. Federal Highway
and Transit funds will be received directly to the
Department of Transportation and Public Facilities (DOT)
through the usual formula funding in accordance with Title
23. Aviation funds will be received via the Federal Aviation
Administration (FAA) as discretionary allocations. In order
to access the formula funds the project must have been
developed under Title 23 rules. Fifty percent of the funds
must be obligated in 120 days (June 15, 2009). The remaining
funds must be used by February 17, 2010. Any funds not
obligated will be swept back and redistributed to another
state.
1:46:05 PM
Mr. Richards elaborated on the conditions for allocation of
surface transportation funds. Federal law requires three
percent of the funds must be used for transportation
Enhancement; 11 percent must be distributed to communities
with a population greater than 200,000, and 19 percent for
communities with less than 5,000 residents. The remaining 67
percent of the funds can be used for any state road,
highway, or bridge project and must be included in the
Statewide Transportation Improvement Program (STIP). He
emphasized that the federal legislation mandates the
stimulus funds must be spent on previously developed
projects in accordance with the federal rules under Title 23
and project selection must adhere to the provisions of
federal legislation. The department selected existing
projects that have been approved by the legislature, began
design work, approved environmental review, and acquired
right-of-way easements. The list totals approximately $330
million on highways and bridge projects.
1:47:54 PM
Mr. Richards explained that the department developed a
project ranking system based on the federal criteria,
project safety, and location in areas designated
economically distressed. This is defined by the federal
government as areas that have at least a one percent higher
unemployment rate than the national average, presently 8.1
percent.
Vice-Chair Thomas stated that he represents a large
population of commercial fishers. Most are not eligible for
unemployment benefits. He asked if the department factored
this into their criteria. Mr. Richards said he relied on
state and federal Department of Labor statistics, which
defines all of Alaska as economically distressed except the
North Slope, Anchorage, Juneau, Fairbanks, Sitka, and
Ketchikan. He stressed that federal regulations did not
prescribe a proportioned amount of the stimulus funds to the
economically distressed areas, only that these areas should
be "emphasized" so the projects can stimulate and create
employment.
1:50:15 PM
Mr. Richards reported that "gas line logistics" projects
were identified as part of the ranking criteria. These are
projects that would support gas line construction. The
department also identified projects that leveraged other
funds. He exemplified a causeway project in Gustavus that
leveraged $6 million in National Park Service Funds out of a
total cost of $20 million. Finally, the project must begin
construction in 2009. He reasoned that the intent of the
federal legislation was to provide jobs. This provision will
support that intent. The department then compiled the
stimulus fund list of priority and contingency projects.
1:51:23 PM
Co-Chair Hawker asked if the projects in HB 154 had to
previously been included in the Statewide Transportation
Improvement Program (STIP) or eligible for future inclusion
in the STIP to be considered for stimulus funding. Mr.
Richards clarified that he misspoke earlier. The bill
contains the list of projects that are in the current STIP.
The department amended the STIP (STIP Amendment 18) last
week to include eligible projects. He noted that any
additional projects appropriated by the legislature would
have to be included via the STIP amendment process to access
federal dollars.
Co-Chair Hawker questioned the purpose for the document
previously generated by the department, "Is Your Surface
Transportation Project Eligible For Economic Stimulus
Funding…" (copy on file). Mr. Richards answered that it was
intended to help legislators determine eligibility of
projects requested by constituents. The document explained
that proposed projects would have to meet the criteria and
timetable listed as prioritization factors. Co-Chair Hawker
again asked if the project would become eligible for
consideration if it met the criteria but was not listed on
the current STIP. Mr. Richards said yes. He conceded that
the project does not have to be on the current STIP. He
qualified that the project would become eligible if the
legislature includes it in an appropriations bill. The
department would have to go through another STIP amendment
process to access the stimulus funds if the project was
appropriated. Co-Chair Hawker thought it was a very
important distinction.
1:55:10 PM
Mr. Richards reported that the "local" category of funding
proved problematic for the department. The communities of
Fairbanks, Juneau, Ketchikan, Palmer, and Wasilla fall under
the 19 percent funding category with populations between
5,000 and 200,000. They are not eligible for stimulus
funding for any project designated as "local roads". Mr.
Richards opined that it was an unfortunate consequence. The
federal legislation precluded an exemption Alaska had been
granted since 1991. The Alaska delegation would have to
pursue a technical correction via legislation. That process
would take longer to obtain than the timeframe that exists
to expend the stimulus funds.
Mr. Richards delineated that out of the $42 million of
stimulus funds for transit to the state, $32 million will go
directly to the Anchorage and Fairbanks Metropolitan
Planning Organizations. Fairbanks will receive $760,
thousand of the $32 million and Anchorage will receive the
remaining funds for distribution to the Anchorage
Metropolitan Area Transportation Study (AMATS). A large
portion [approximately $26 million] of the AMATS funds is
committed to the Alaska Railroad. He reminded the committee
that the distribution is mandated by formula funding.
1:57:19 PM
Representative Gara understood that the Railroad has secured
preferential treatment by Congress for the transportation
stimulus funding. He asked how that happened. He wondered,
if the legislature can go outside of the STIP process, can
they also manipulate the formula funding, if by policy call
it is determined that the formula is not practical.
JAMES ARMSTRONG, STAFF, CO-CHAIR STOLTZE, briefly explained
that the Intermodal Surface Transportation Efficiency Act
(ISTEA, called "Ice-Tea) provided for federal transit 5307
funds to flow directly into AMATS Transportation Improvement
Program (TIP). The distribution of the funds is greatly
influenced by AMATS policy committee.
Representative Gara described his understanding that a very
large portion of non-road transportation funding for AMATS
is dedicated to the railroad by formula. Mr. Armstrong
concurred and requested the committee refer to a letter by
the Alaska Railroad Corporation (ARRC) explaining the
stimulus funding process to the ARRC (copy on file).
Representative Gara felt that allowing ARRC to expend much
of the transit fund might not be in the best interest of the
state if the purpose of the stimulus money is to maximize
employment and benefits to communities. He suggested there
were other community needs that would take precedent over
some of the railroad's projects. Therefore, a change in the
formula would be warranted if possible.
Co-Chair Stoltze added that ARRC representatives will attend
a future hearing.
2:00:26 PM
Representative Gara disagreed with lobbying efforts in
Washington where one state entity can divert funding away
from other state entities. Co-Chair Stoltz agreed. Mr.
Richards clarified that transit funds go directly to AMATS
and do not flow through the state's appropriation process.
Mr. Armstrong concurred and added that the Federal Transit
Administration (FTA) must approve the TIP funding that AMATS
oversees.
Representative Gara asked if the state has any way to
control AMATS funds. Mr. Armstrong suggested that the AMATS
policy committee request by letter that the Alaska
delegation change the process.
Co-Chair Stoltze emphasized that Mr. Armstrong has no
current association with AMATS.
2:03:03 PM
Mr. Richards reported that the remaining $9 million for
transit flows through the department and would be used for
replacement vehicles, transit assets, and parking
structures. He offered to go through the projects in HB 154
individually as detailed in the spreadsheet provided by
Office of Management and Budget (copy on file).
2:04:33 PM
Representative Gara asked if the 19 page spreadsheet only
listed projects in the bill or also projects eligible for
stimulus funds.
2:05:06 PM
NANCY SLAGLE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES, replied
that all items on the spreadsheet are projects in the bill.
She explained that some of the projects that were previously
appropriated by the legislature required a funding source
switch to the economic stimulus funds. This category is
reflected in Section 4 of HB 154. The legislation contains a
combination of projects. Some of the projects do not require
additional legislative authority, but others require partial
or full approval by the legislature due to fund source
changes.
Representative Fairclough asked if a federal match is
required for any DOT stimulus projects. Mr. Richards stated
that the funding is 100 percent for all highway aviation and
transit funds subject to legislative approval.
2:07:15 PM
Co-Chair Hawker referred to the governor's press release
requesting authorization for $461 million of DOT stimulus
funding. He voiced that $300 million was stated by Mr.
Richards as the requested amount. Co-Chair Hawker asked
which number is correct. Ms. Slagle explained the difference
between new authority and total projects is reflected in
Section 4 of the bill. The difference includes the projects
requiring a fund source change. This includes $66.8 million
for aviation, and $56 million for surface transportation.
Co-Chair Hawker reiterated his question of which amount
reflects new stimulus fund dollars. Ms. Slagle said the
larger figure of approximately $400 million is the total
amount of new funds included in the bill.
2:09:49 PM
CHRISTINE KLEIN, DEPUTY COMMISSIONER OF AVIATION, DEPARTMENT
OF TRANSPORTATION AND PUBLIC FACILITIES, discussed the
department's federal economic stimulus projects for
aviation.
SECTION 1
Airport Stimulus Projects - Allocation
Akiachak: Airport Relocation
This project will relocate and construct a new Akiachak
Airport, 3,300 foot runway, new apron, taxiway and
airport access road, construct snow removal equipment
buildings, and install fencing and airport lighting.
11,500.0
Ms. Klein stated that the previous airport is located in a
poor location and has incursion issues.
Airport Stimulus Projects - Allocation
Allakaket: Airport Improvements
Repair and stabilize the runway embankment, taxiway and
apron to correct areas that have experienced serious
differential settlement, side slope failures and
erosion. Work will include resurfacing, addition of a
dust palliative and lighting adjustments or replacement
as needed, improve apron setback from the runway, and
make other improvements as funding allows. 3,600.0
Airport Stimulus Projects - Allocation
Fairbanks International Airport: Access Control
Improvements
This project is the result of a Federal Aviation
Administration (FAA) directive to identify access
control measures to reduce deviations and incursions at
Fairbanks International Airport (FAI), i.e., fencing,
gates, and improved signage.
The Fairbanks International Airport ranks among the top
20 of 400 certified airports in incursions and
deviations. Every effort will be made to implement the
least costly and restrictive measures that accomplish
the objective of reducing incursions and deviations.
3,000.0
Ms Klein noted this will enable the airport to comply with
federal regulations regarding pedestrian deviations. This is
a high FAA priority.
Airport Stimulus Projects - Allocation
Fairbanks International Airport: 1L-19R - Taxiway and
Apron Improvements
This request will fund construction of the initial
phase of Taxiway Echo and pave aircraft apron areas
proximal to runway 1L-19R. The initial phase of
Taxiway Echo consists of excavating, filling, grading,
paving, lighting, and marking approximately 400' of new
taxiway. 3,000.0
Airport Stimulus Projects - Allocation
Fort Yukon: Airport Improvements
Resurface and include a dust palliative on the apron,
taxiway and runway at the Fort Yukon Airport. Correct
drainage problems, clear overgrown vegetation, and
complete other improvements as funding allows. 6,500.0
Ms Klein explained that this airport is in poor condition.
It is 30 years old and has had minimal repairs in that time.
2:12:08 PM
Representative Gara asked if more airport projects could
have qualified other than what is listed in HB 154. He
wondered how they were chosen. Ms. Klein explained that the
FAA has the ultimate authority and discretion to decide
which projects are funded. They determine eligibility and
select projects based on rankings by the Airport Project
Evaluation Board (APEB) scores and other national scores.
Representative Gara asked if the aviation projects were in
the order prioritized by the FAA. Ms. Klein said the
projects were not prioritized by the FAA, but all of the
projects selected had to meet federal criteria. All of the
aviation projects selected are included in the bill.
2:15:07 PM
Representative Gara asked if the state can prioritize the
projects. Ms. Klein responded that the state has no
discretion to prioritize or switch projects.
2:16:00 PM
Airport Stimulus Projects - Allocation
Hoonah: Airport Improvements
Extend airport runway to state standard to reduce
weight penalty on aircraft serving Hoonah; expand lease
lots and apron space to accommodate additional general
aviation and commercial traffic, provide additional
lease lots for hangars and commercial development;
provide dedicated parking area for short and long-term
passenger parking; construct a ramp to allow float
planes to be hauled out and serviced or based at the
airport; and other improvements. 100.0
Airport Stimulus Projects - Allocation
Kodiak: Chemical Storage Building
This project will provide a safe storage and mixing
area for liquid de-icing materials and equipment.
Without the building and storage tanks to mix the dry
urea for liquid application, the use of sand for runway
de-icing will continue. New Alaska Airlines jets have
a less-forgiving engine for sand or foreign object
debris ingestion which could lead to engine failure.
The need to switch from sand to chemical de-icing at
Kodiak is further underscored by Central Region
Maintenance and Operations' inability to obtain sand
that meets the minimum specifications identified by the
Federal Aviation Administration (FAA). 1,200.0
Airport Stimulus Projects - Allocation
Kotzebue: Apron Expansion
Expand the terminal apron to the south and east. This
project will also construct new general aviation
aircraft parking, a new access road and taxiway,
security fencing and drainage improvements, and will
provide new leasing areas. 5,300.0
Ms. Klein stated that this project responds to complaints by
the aviation industry for expansion needs.
Airport Stimulus Projects - Allocation
Ouzinkie: Airport Reconstruction and Relocation
Project will entail the final design, right of way
acquisition, and construction of a new airport and
access road for the village of Ouzinkie located near
Kodiak. 8,400.0
Airport Stimulus Projects - Allocation,
Ted Stevens Anchorage International Airport: North
Terminal Gate N8
Reconstruct the deteriorated gate apron pavement,
including all associated lighting, hydrant system, jet
bridge foundations, drainage, pavement, subgrade
preparation, etc. Expand the portland cement area to
provide better support for ground service equipment
during aircraft servicing. This project is needed to
avoid continued high maintenance costs and potential
damage to aircraft from Foreign Object Debris (FOD).
3,000.0
Ms Klein noted that the weight of the aircrafts cause the
pavement to crack over time. She also noted the following
projects were recently added by the FAA due to their high
priority.
2:17:54 PM
Airport Stimulus Projects - Allocation
King Salmon: Apron and Taxiway Resurfacing
Resurface the terminal and transient ("Fish Haul")
aprons at King Salmon Airport, and also several
taxiways, whose Pavement Condition Indexes are well
within the "reconstruct" range.
9,750,000
Airport Stimulus Projects - Allocation
Huslia: Airport Improvements
Airport repairs and runway extension.
7,525,000.
2:19:09 PM
Co-Chair Stoltze asked the amount of the previous
appropriation for Hulisa Airport. Ms. Slagle answered that
it was $7.525 million.
2:19:53 PM
Mr. Richards turned to Transit projects.
Transit Stimulus Projects - Allocation
Statewide: Transit Rural Formula Capital Projects
This program provides federal stimulus funding from the
Federal Transit Administration (FTA) for the purchase
of vehicles and equipment, installation and repair of
bus shelters/bus stops and other capital expenditures.
These funds require no match and are available to both
public transit systems and private nonprofit
organizations through a grant process. 5,183.9
Co-Chair Stoltze asked what is also included in this
category. Mr. Richards replied that it included buses,
commuter vans and para-transit.
Transit Stimulus Projects - Allocation
Juneau: Downtown Transit Center Construction
This project will construct a combination transit
center and parking facility in downtown Juneau.
This investment in public transportation will benefit
economic development in the capital city, reduce
parking congestion, and improve transportation options
for those who choose not to drive or who cannot afford
a personal vehicle. Adequate public transportation is
critical for those making the transition from welfare
to work. 3,000.0
Transit Stimulus Projects - Allocation
Mat-Su: Park and Ride at Seward Meridian/Parks Highway
Project would construct a parking and ride area
somewhere along the Parks Highway near or east of
Wasilla. Possible locations include near the southern
extension of Trunk Road and near Seward Meridian
Parkway. Approximately 10,000 people commute daily
between the Mat-Su Valley and Anchorage and the
existing park and ride facilities are consistently over
capacity. Van-pool, carpool and bus service from the
valley is in the process of being expanded and parking
demands are increasing. 900.0
Mr. Richards elaborated that increasing numbers of people
are commuting from the Mat-Su Valley to Anchorage and the
park and ride facilities are at maximum capacity and
overflowing.
2:21:28 PM
Mr. Richards introduced Highway and Bridge projects.
Highway and Bridge Stimulus Projects - Allocation
Dalton Highway Culverts: Milepost 260 to 321
This project replaces existing culverts at seven
locations between MP 260 and 321, addresses the
Oksrukuyik Creek Bridge and raises the roadway grade
between MP 311.7 and 313.3.
This project will preserve and extend the service life
of the highway, enhance highway safety and provide
adequate fish passage. Within the project area, seven
stream crossings have culverts that are undersized
and/or failing. Failure of any of these culverts could
lead to washouts which would severely diminish
transportation capabilities along the Dalton. There is
an approximately 2.1 mile stretch of road (MP 311.7 to
313.9) that is routinely overtopped and threatened by
floodplain overflow of the Sag River. 26,300.0
Mr Richards stated the importance of the project because the
Dalton Highway services the North Slope oil fields and its
future service to the gas pipeline.
Co-Chair Stoltze spoke of failing salmon stream culverts in
the Mat-Su borough that affect the Cook Inlet fishery. He
wondered if DOT has looked at that problem. Mr. Richards
referenced an earmark for that purpose. The department, in
collaboration with the Department of Fish and Game, received
funds to rehabilitate fish passage culverts in the entire
state. He elaborated that the challenge with these repairs
is that it requires ripping up the road. The work must be
done in conjunction with slated road rehabilitation
projects. The culverts are being identified, prioritized,
and repaired as the monies become available.
2:23:46 PM
Representative Gara returned to the transit projects for $9
million and asked if that was the full amount allocated for
those projects. Mr. Richards affirmed. Representative Gara
asked for clarification regarding the remaining $32 million
for transit. Mr. Richards reported that the $32 million
flows directly to AMATS.
Representative Fairclough thought it was going to FMATS
(Fairbanks Metropolitan Area Transportation Study) and
AMATS. Mr. Richards qualified that he forgot to include the
$760,000 appropriated to FMATS out of the $32 million. Mr.
Richards reiterated that out of $42 million of stimulus
transit funds $9.1 million is a direct allocation to the
state, approximately $32 million is directly appropriated to
Anchorage AMATS and $760,000 to Fairbanks FMATS.
2:26:08 PM
Highway and Bridge Stimulus Projects - Allocation
Parks Highway: Milepost 72 to 83 Rehabilitation, Willow
to Kashwitna
Rehabilitate the Parks Highway, from MP 72 to 83,
between Willow Creek and the Kashwitna River. The
improvements include widening the embankments for 8-
foot shoulders; rehabilitate the pavement; add a total
of seven miles of alternating north and south bound
passing lanes; and construct paved roadside pull outs
at Kashwitna Lake and Grey's Creek. 23,000.0
Mr. Richards stated that there is a subsurface problem
associated with this section of road.
Highway and Bridge Stimulus Projects - Allocation
Alaska Highway: Milepost 1412 to 1422
Rehabilitate, improve drainage, re-level and resurface
the highway. Substandard embankment conditions have
been identified in this area causing significant
pavement failures. This project will improve the Alaska
highway to accommodate increased truck traffic
associated with gas line construction. 5,300.0
2:27:27 PM
Representative Fairclough shared that she went on a tour of
the Dalton Highway and was informed that location of gravel
sites are a problem for that corridor. She asked if funding
has been allocated to solve the problem. Mr. Richards spoke
of a conversation with the Department of Natural Resources
to define areas for a geotechnical investigation to find
usable gravel that does not contain asbestos particles. He
also spoke with the Denali Pipeline Company who is also
working to identify gravel sources along the Dalton Highway
for their project. The department is currently seeking
information and funding for that project.
Representative Fairclough asked if this expense was included
in the Dalton Highway stimulus projects and what portion of
the cost is for gravel for these projects. Mr. Richards
answered that he did not know. Representative Fairclough
advised that it might increase project costs and state
funding might be required to complete these projects.
2:30:16 PM
Highway and Bridge Stimulus Projects - Allocation
Glenn Highway: Hiland to Eklutna Resurfacing
Mill and resurface mainline driving lanes on the Glenn
Highway from the Hiland Interchange to Eklutna
Interchange. Project will also resurface all ramps and
bridges encompassing Hiland Road and Artillery Road
Interchanges, and replace guardrail and pavement
markings. 25,000.0
Mr. Richards noted that the Glen Highway has some surface
distress and rutting. The project will benefit the
commuters. Co-Chair Stoltze commented that the Glen Highway
is a national highway connecting Alaska's largest
municipality (Anchorage) to the second and third largest
municipalities in the state.
Representative Fairclough asked if there is a gravel pit
source identified for the Glenn Highway project. Mr.
Richards said he was unaware of any. Representative
Fairclough requested information on the gravel allocations
the state has claimed for the NW corner, Section 25 of the
Glen Highway Project.
2:32:42 PM
Representative Gara wondered if the legislature has any
discretion to select other qualified highway and bridge
projects and how these were chosen. Mr. Richards explained
that there are two sections in HB 154: Highway and Bridge
Stimulus Projects, and Highway and Bridge Stimulus
Contingency Projects. These projects were able to meet the
criteria and requirements for stimulus eligibility under
Title 23. Communities can identify other eligible projects
and DOT will confer with the Federal Highway Administration
to determine if they can be added to the list. He voiced
that from the department's perspective these are the
projects available for stimulus funds.
Representative Gara asked if more funds were available if
more projects are found. Mr. Richards reported on the use it
or lose it clause of the federal legislation. The
contingency list was provided in the event that more
stimulus money is redistributed to Alaska if other state's
falter. Representative Gara summarized his understanding
that $148 million of the stimulus funds are appropriated for
the Highway and Bridge Stimulus projects. The contingency
projects listed will only be funded if the state receives
additional stimulus money. Mr. Richards agreed.
2:37:06 PM
Co-Chair Hawker asked Mr. Richards to name for the record
any other eligible projects he is aware of that is not
included in HB 154. Mr. Richards responded that he is aware
of an eligible project in Whittier.
Representative Gara requested DOT provide the committee a
list of any additional eligible projects as they become
known to the department. Mr. Richards added that the Port of
Anchorage is also eligible to receive stimulus funds under
the bridge and highway category.
Co-Chair Stoltz asked if the Port of Anchorage is the only
port in the state eligible for stimulus funds. Mr. Richards
reported that any port is eligible as long as their project
meets the same federal criteria.
2:42:46 PM
Highway and Bridge Stimulus Projects - Allocation
Kotzebue: Shore Avenue Rehabilitation and Erosion
Protection
Reconstruct Shore Avenue from Lake Street, through the
primary commercial area of Kotzebue, approximately
4,400 feet to the end of the road at Crowley Dock.
Shore Avenue will be paved, new sidewalks, a pathway,
parallel parking, an open space on the seaward side,
and an erosion protection revetment on the seaside.
This request includes $8.5 million of Federal Receipts
and $6.5 million of Federal Economic Stimulus Funds.
8,500.0
This project requires additional legislative authority and
is time sensitive. Lead time is required to order the steel
sheet piles and deliver it to the barge lines for delivery
to Kotzebue in order for construction to begin this summer.
Co-Chair Stoltz asked how the project could be expedited
quickly. Mr. Richards specified two ways for the project to
proceed on time. He offered that swift legislative
appropriation or requesting bids for the project contingent
on legislative approval are the solutions to ensure the
project proceeds on time.
2:44:53 PM
Representative Joule asked how long the Kotzebue project was
on the STIP. Mr. Richards answered that he did not know.
Highway and Bridge Stimulus Projects - Allocation,
Alaska Highway: Milepost 1308 - Tok Weigh Station
Reconstruct the Tok Weigh Station to include multi-
platform scales, a new scale house, and a heated
inspection facility. The current facility does not meet
the needs of the vehicle inspection crews on site. A
new weighing system is needed to facilitate
simultaneous axle group and gross weight enforcement.
The site will be expanded to accommodate a new scale
house. This request includes $1.0 million of Federal
Receipts and $3.0 million of Federal Economic Stimulus
Funds. , 1,000.0 , 3,000.0 , 4,000.0
2:45:55 PM
Representative Gara wondered if there was another weigh
station in the area. Mr. Richards answered that the next
weigh station was in Fairbanks on the Richardson Highway.
This services trucks entering from Canada. Representative
Gara wondered if there was another one near Canada. Mr.
Richards said there was not.
2:47:27 PM
Highway and Bridge Stimulus Projects - Allocation
Yakutat: Areawide Paving
Resurface Airport Road from approximately MP 0 to MP 4.
Extend existing Dangerous River Road pavement
approximately 0.2 miles to access new entrance to city
landfill. Resurface and extend existing Ocean Cape
Road pavement along the segment extending approximately
0.23 miles from the intersection with Airport Road.
Pave and improve drainage on approximately 1.4 mile
long Max Italio Road. Replace two tidal relief culvers
and related work on Mallot Avenue. 3,800.0
Highway and Bridge Stimulus Projects - Allocation
Haines: Front Street to Union Street
Rebuild this 28'-wide section of road, remove existing
asphalt, grade and restore existing sub grade as
required, and place new surface to match existing
finish grades. Rebuilding this section of roadway will
complete reconstruction of the remaining section of
highway from town to the ferry terminal, streamlining
access to the ferry system and other port facilities.
Pedestrian safety is vastly improved, as is transport
efficiency. 2,500.0
Highway and Bridge Stimulus Projects - Allocation
Glenn Highway: Milepost 34 to 42 - Parks Interchange to
Palmer Resurfacing
Mill and resurface mainline driving lanes on the Glenn
Highway from the Parks Highway / Glenn Highway
Interchange to the Palmer-Wasilla Highway Intersection
in Palmer.
This project will provide an improved driving surface
and extend the service life of the facility. The route
has pavement ruts ranging from .25 inch to 1.5 inches
deep. Guardrail is in need of repair or replacement,
and guardrail end terminals need to be upgraded to
current design standards. 8,000.0
Highway and Bridge Stimulus Projects - Allocation
Nome Road Improvements
The community has seen an increase in vehicle traffic
over the past decade. This increase has made dust
mitigation such as paving or chemical treatments on
local roads a significant issue. The project will
also improve drainage on city streets that are
typically impacted by permafrost and migration of fine
soil particles caused by snowmelt and seasonal rain.
Improving drainage is critical to the effectiveness of
any dust-abatement surface treatment. Proper drainage
will also prevent potholing and any further loss of
pavement on the few paved streets in the community.
4,000.0
2:49:24 PM
Highway and Bridge Stimulus Projects - Allocation
Emmonak: Community Road Improvements
The community roads in Emmonak lack proper surfacing
material. Due to the silty soil conditions in the
area, the roads are extremely dusty in dry weather and
rutted in wet weather. The roads lack proper drainage
structures resulting in standing water in many
locations throughout the community. The dusty road
conditions are a serious health issue and need to be
addressed. Although this project is jointly funded
from federal and state sources, additional funding is
needed to successfully complete this project and to
significantly improve the health and quality of life in
Emmonak. 3,000.0
Highway and Bridge Stimulus Projects - Allocation
Marshall: Airport Access Road Bridge Replacement
Replace the existing temporary bridge on the Marshall
Airport Access Road. The existing temporary bridge is
inadequate and does not meet the needs of the
community. It was installed as a temporary measure
several years ago to keep the access to the airport
open. This road is the only vehicular access the
village has to the airport. Replacing the bridge with
a safer more durable structure would make the delivery
of passengers and freight more efficient and improve
the overall safety for the traveling public. 2,800.0
2:50:57 PM
Highway and Bridge Stimulus Projects - Allocation
Hoonah: Airport Road Paving - Ferry Terminal to Airport
Grind and repave Airport Road from the Ferry Terminal
(MP 0) to the Airport (MP 2.2). The degraded condition
of Hoonah's airport road has resulted in
controllability issues, with extremely poor conditions
in front of the post office. Maintenance crews have
had difficulty staying on top of patching, and freeze-
thaw cycles regularly generate new potholes and other
degradations. Rutting is extreme, with ½ inch ruts
along at least ½ the length of the road. 3,000.0
Highway and Bridge Stimulus Projects - Allocation
AMATS: Stimulus Highway and Bridge Funded Projects
This funding will be assigned to specific projects by
the Metropolitan Planning Organization (MPO) policy
board, as required by federal law. Because of the
rapid timeline in developing the Stimulus bill, there
has not been time to pre-identify the specific
projects.
18,953.9
Mr. Richards apologized for not having the detailed list of
AMATS projects. He stated he was aware of one project on
Minnesota Avenue to repair ruts. Co-Chair Stoltze wondered
if a specific portion of the Highway and Bridge funding must
be spent on bridges. Mr. Richard said that the stimulus
dollars received were not specifically prescribed for
bridges.
Representative Fairclough asked about a $310 million federal
fund designated for Indian Reservation Roads. She identified
specifically the Eklutna Bridge that is in desperate need of
repair. The bridge falls under AMATS jurisdiction and is not
a priority at this time. She asked if this historic bridge
is eligible for repair under the reservation funds. Mr.
Richards replied that the reservation dollars flow through
the Bureau of Indian Affairs (BIA). He elaborated on the
issue and suggested addressing the Eklutna tribe directly to
discuss their priorities and the allotment of BIA dollars.
He thought that the Eklutna tribe will receive additional
stimulus money through the BIA.
2:55:55 PM
Representative Austerman asked if the list of projects in HB
154 is in order of priority. Mr. Richards replied that the
governor prioritized the list according to how the project
met the federal criteria and if the project addressed
infrastructure that benefited the construction of the gas
pipeline. Representative Austerman asked if the order in the
bill is the order of priority. Mr. Richards said yes.
2:58:43 PM
Highway and Bridge Stimulus Projects - Allocation,
Valdez: Areawide Bike and Pedestrian Trail Pavement
Refurbishment
Repave the bike path along the Richardson Highway from
Egan Drive to Robe River Subdivision (7 miles). The
surface of this bike path has deteriorated and cracked
in many areas. This path is used for summer and winter
recreational opportunities. The Blueberry Lake
Campground road is used to access the popular state
recreation site at Blueberry Lake. The existing road
is narrow, potholed with no surfacing. These
improvements will provide better access to campsites,
fishing and trails. 3,290.0
Highway and Bridge Stimulus Projects - Allocation
Denali Highway: Milepost 7 Wayside
Provide wayside parking and traveler information near
the east end of the Denali Highway. Includes parking
for RVs and automobiles. Enhancements include
interpretive signs along the viewing area, vaulted
toilets and trash receptacles. The Department of
Transportation and Public Facilities will perform
maintenance of the pavement surface and the Bureau of
Land Management will perform maintenance of the
enhancements. 330.0
Mr. Richards concluded that he addressed the entire list of
stimulus fund projects in HB 154. He invited questions
concerning the contingency list.
3:00:15 PM
Co-Chair Stoltze asked Mr. Richards to list the next set of
items by priority. He wondered how speculative or likely it
was that additional funds will become available.
Representative Thomas asked for the status of the Gustavus
Dock Replacement project. Ms. Slagle responded that it was
in Section 4 of the bill. The project was previously
approved by the legislature. The department is only
requesting a fund source change of $7.7 million for part of
the total cost.
3:03:10 PM
Mr. Richards continued that the same criteria and priorities
were used to rank the contingency list and claimed the
projects were listed in priority order.
Co-Chair Stoltze asked if there was a reasonable expectation
of receiving new money or is the contingency list there in
case an original project becomes ineligible. He wondered
what a more likely scenario is. Mr. Richards contended that
it will be both. He felt that additional money will likely
become available as a redistribution but the amount is
unknown. He expressed concerns that some impediment might
surface to cause an original project to slip off the list
and be replaced by a contingency project.
Representative Fairclough wondered if the Port of Anchorage
qualified for the contingency list projects. Mr. Richards
replied that it qualifies under the surface transportation
category as long as the projects meet Title 23 and other
stated criteria. Representative Fairclough opined that Port
of Anchorage projects are being penalized for the port's
Anchorage location. She felt the contingency funds should be
used for the port as it benefits the entire state.
3:06:18 PM
Mr. Richards reminded the committee that the projects in HB
154 have previously been in the STIP. The Port of Anchorage
is available to receive STIP stimulus fund through the AMATS
TIP and those TIP projects are not listed separately. He
said the legislature can authorize a specific port project
if it meets the eligibility requirements. Representative
Fairclough believed that port projects should be a priority
for the contingency funds. She felt it should not replace
original stimulus projects but should be prioritized if
additional funds are captured. She felt that the port
benefits the entire state at large. She suggested an
appropriation of $20 million.
Representative Austerman asked about the priority of the
Richardson Highway contingency project. Mr. Richards said it
was on the STIP and is the top contingency project.
3:09:19 PM
Representative Austerman observed that some projects had
been removed or moved from contingency to priority or vice
versa during the legislative process. He wondered if the
projects listed in Section 4, requesting fund source changes
from federal receipts to stimulus funds, affected the
changes in the project list. Mr. Richards replied that there
had been challenges tracking the bill as it traveled through
the legislature. He said that the final version contained
fewer projects because of the constriction in the timeline.
The original timeline, which called for expenditure of fifty
percent of the funds in 90 days with 18 months for the
remainder, was reduced to expenditure in 120 days with the
remainder used within one year. He explained that based on
the final version of the bill some projects had lost
eligibility and the priority of contingency projects had
shifted.
3:11:59 PM
Representative Austerman felt his question had not been
answered. He wondered if the shift of project lists was
affected by inclusion of the language section of the bill.
Specifically he wondered if the fund source changes pulled
original projects off the list. Ms. Slagle believed that the
fund source change section had been considered along with
the original and contingency list through the entire process
of the bill.
3:13:53 PM
Representative Gara wondered about ports. He asked if there
were other funds that the port was eligible for through the
stimulus package. Mr. Richards stated that the U.S.
Department of Transportation is establishing a $1.5 billion
discretionary fund that both highways and ports are eligible
for by application. Projects must be nominated and ranked
for distribution of these funds. Representative Gara
emphasized that although the Port of Anchorage does benefit
the entire state and is a great Alaskan asset he did not
feel that the port should be a top priority over all other
contingency projects in the state. The port has requested
$170 million for expansion. He relayed that Representative
Young said he will get the port the money it needs for
expansion. He cautioned that an additional arbitrary
appropriation of $20 million should be justified by what it
will accomplish for the port as opposed to pressing needs in
other parts of the state.
3:16:29 PM
Representative Gara referred to the Kodiak Rocket Launch. He
understood that the Governor proposed using stimulus funds
for the rocket launch and asked if it is appropriated in HB
154. Mr. Richards responded that the facility is not
utilizing surface transportation funds and is not in the
bill.
Representative Gara asked about the last contingency
project, Bike Trail Pavement Refurbishment project on the
Glen Highway, Eagle River to Birchwood. He asked if this
project could encompass connecting Eagle River to the
Coastal Trail. Mr. Richards reported that the Glenn Highway
portion is currently available to meet the mandated
timeline. It would take longer to qualify the rest of the
project. Representative Gara thought that the Municipality
of Anchorage identified a trail project around Ship Creek
that was ready. Mr. Richards stated he was not aware of it.
Co-Chair Stoltze asked if there are any eminent domain
issues surrounding the section of trail. Mr. Richards did
not know of any.
Representative Fairclough questioned Anchorage's allocation
out of the $175 million of Highway funds. Mr. Richards
replied that for the Highway and Bridge allocation AMATS
received $18.9 million. Anchorage will be eligible for some
of the Transit project funding of $5.2 million for a total
of approximately $20 million. He questioned whether the $25
million Glenn Highway Rut Repair project could be counted as
an Anchorage project. The funding for this project flows
through the Anchorage MPO (Metropolitan Planning
Organization). Representative Fairclough pointed out that
Anchorage represents only a portion of the Glen Highway
project. She stressed that $20 million for Anchorage was a
small amount and additional funding for the port of
Anchorage was not unreasonable. She stressed the benefits
that the Port provides to the entire state. She argued that
area wide use of the Port of Anchorage should not rank lower
than some of the other projects prioritized by the state.
3:22:22 PM
Vice-Chair Thomas understood that the stimulus projects were
formerly appropriated to individual legislators as capital
projects and allocations throughout the years. He pointed
out that the Gustavus project was approved and appropriated
four years ago. The Hoonah, Yakutat, and Haines projects
were on the STIP plan for years. He determined that rural
areas have paid politically for these projects already
because they were previously appropriated but never built.
He contended that rural area projects are not a priority.
3:24:57 PM
Co-Chair Hawker argued that what is unacceptable is that
approximately $37 million of the projects on the stimulus
list as fund source changes are projects that previous
legislatures committed full funding to. He believed these
projects should not be used for stimulus funding. The $37
million could be spent on the contingency list projects. The
projects were fully committed in the past. The stimulus
money should be used to go forward with new projects such as
the Whittier project.
3:27:09 PM
Ms. Slagle explained that three projects out of the $37
million in fund source changes have previously been
appropriated: Dalton Highway, Denali Highway, and Gustavus
Causeway. It is not unusual for projects to receive
legislative authority and funding and yet not go forward for
a number of reasons. The delays could be due to design
problems, environmental permits, right-of-way issues, etc.
The three projects were previously appropriated with federal
receipts. They are just now ready to move forward.
3:28:54 PM
Co-Chair Hawker thought that was a weak argument. He
questioned whether there was any intention by the department
to complete those projects. He wondered how the federal
money could fall short of fully approved and funded
projects. Mr. Richards reported that the challenge is
relying on the Federal Highway Administration funding stream
to complete those projects. Insufficient funding is often a
reflection of unfunded earmarks or recisions by the federal
government. The challenge is to have the federal funding
match the legislative authority.
Co-Chair Hawker argued that the legislature has been
providing DOT authority to spend federal receipts to
construct state assets for fifty years. The legislature and
the public believed there were funds available to back up
the appropriations. He wondered how much empty authority
existed and how much unfulfilled public expectation is
created. Mr. Richards explained that even if a community's
project has been identified in the STIP and has received
legislative authority other variables must be factored in
before construction can begin. The high costs of
construction and fuel has lead to project bids that are
prohibitively higher than estimated. The department has not
been able to do as many projects and capture all of the
funds. Expectations were not able to be met.
3:33:35 PM
Co-Chair Hawker asked how far over-authorized the state is
based on actual availability of federal funds. Mr. Richards
shared his concern and related that DOT does not know what
Congress will do with the highway bill in the future. He
speculated that Congress might direct highway transportation
money to address global warming. If the Economic Stimulus
bill is any indication, the transportation funding stream
will be directed to high speed rail, inner city rail, and
other types of transit systems. Funds from federal highway
dollars will be going to transit projects and that draws
funds away from rural states to urban areas.
Co-Chair Hawker reiterated his request to know how far over
extended the state is now.
3:36:24 PM
Ms. Slagle offered to provide information on authorized
projects not currently backed by federal dollars.
Representative Austerman summarized that there is a STIP
list and an authorized list and the projects are built based
on federal funding available. Ms. Slagle agreed.
3:38:11 PM
Co-Chair Hawker restated his point. He wanted information on
how far overextended the state is on authorized projects.
Ms. Slagle added that her staff looks at authorizations that
are more than ten years old on an annual basis. A typical
highway project lasts for eight to ten years. Over the last
four years DOT has worked to eliminate approximately $200
million in empty authority.
Representative Gara stated he was uncomfortable about each
district competing for federal dollars. He thought it was
understandable that Anchorage would not receive a favorable
portion of the stimulus money considering the federal
criteria that stimulus money be expended in areas of
economic distress. He reasoned that the state must follow
federal criteria and serve economically distressed areas or
risk losing the funding. He wondered if the Governor had to
certify that the projects chosen met the federal criteria.
Mr. Richards clarified that the Governor does have to
certify the projects. He added that Representative Gara was
correct that Congress placed an emphasis on economically
stressed areas, but there is no stipulation as to how much.
The list proposed by the Governor spends 67 percent of the
stimulus funds in economically distressed areas.
3:41:32 PM
Representative Gara stressed that he does not want any
stimulus money to go to projects that have been approved
with general fund money. He asked if the fund source change
projects included swapping general fund for stimulus money.
Ms. Slagle replied that they are not replacing any general
fund projects with federal stimulus funds. The governor had
to certify that stimulus funds would not supplant state
funds. The projects in Section 4 are projects funded by
federal receipt. Representative Gara stated his
understanding that the funding change projects lacked
adequate federal funds to move forward. He asked for
clarification. Ms. Slagle stated that was correct.
Representative Gara stated support for the department's use
of stimulus money to finish underfunded projects.
Representative Crawford asked why the previously approved
projects did not receive enough federal money. He also
wondered if DOT can shift federal funding to other projects.
Mr. Richards explained that some projects are not able to
proceed due to a variety of reasons: right-of-way issues,
environmental permitting process, etc. Allocations can be
transferred to another project within a program in order to
capture those funds for that particular year.
Representative Crawford asked if DOT has the authority to
prioritize and shift federal funding away from one approved
project to another project. Mr. Richards explained that
there is flexibility to shift funding under the program
allocation unless the highway funds are received as a
congressional earmark to be used for a specific project.
Highway funds come to the state based on program formulas.
Every program under the highway fund umbrella receives a
broad allocation. The Department of Transportation and
Public Facilities has the legislative authority under an
appropriation to shift funds. If one project is advanced and
needs additional money, another project may be held as a
result. It allows for efficient use of funds. Representative
Crawford asked what priority the projects that were
overlooked receive. Mr. Richards emphasized that projects
remain in line, nothing overrides or replaces them. The
legislative authority remains for the next year's funding
cycle.
3:52:29 PM
Representative Crawford asked if there was always a backlog
of projects. Ms. Slagle said yes. She added that the
project's legislative authority remains in tact.
3:54:52 PM
Representative Fairclough requested that the Port of
Anchorage be put at the bottom of the list. She did not have
knowledge of Congressman Young's pledge of funds to the
port. She stated she did not want to displace funds from
other projects if the Port has the funding it needs.
3:55:59 PM
Representative Joule asked if there were other communities
with projects besides Kotzebue that are time sensitive. Mr.
Richards reported that the projects in Western Alaska have
long lead times in terms of getting equipment and materials
to the project site. He observed that the airport projects
in Akiachak, Allakaket, and Huslia are time sensitive.
Co-Chair Stoltze requested a separate list of the time
sensitive projects.
Co-Chair Hawker spoke to the general fund consequences of
the fund source changes. He maintained that the required
general fund matches were "scooped up" by the department.
Ms. Slagle countered that general funds are not appropriated
to match by project; they are matched by program. Money is
not tied to specific projects. Co-Chair Hawker asserted that
there is an implicit general fund connection to each project
because of the match requirement. Each project must have a
match so there is an implicit consequence with every fund
source change. Ms. Slagle pointed out that the department
has done a good job in meeting the obligated match
requirements to capture all of the federal funds on an
annual basis.
3:59:56 PM
Representative Austerman asked if projects requiring a state
match were rated higher. Ms. Slagle reiterated that no state
match is required for any of the stimulus fund projects.
Nothing in the criteria requires state funding, but the
criteria prioritized a project where leveraging other funds
was possible.
4:01:51 PM
Representative Gara asked if the fund source change projects
are now being funded with one hundred percent federal funds.
Ms. Slagle said yes.
House Bill 154 was heard and HELD in Committee for further
consideration
ADJOURNMENT
The meeting was adjourned at 4:06 PM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 2 27 2009 Aviation E Stimulus.pdf |
HFIN 3/18/2009 1:30:00 PM |
HB 154 |
| 2 27 2009 Aviation Stimulus Map.pdf |
HFIN 3/18/2009 1:30:00 PM |
HB 154 |
| Economic Stimulus Bill DOT Projects 2-24-09.xls |
HFIN 3/18/2009 1:30:00 PM |
HB 154 |
| Economic Stim Fund Source Change DOT 2-20-09.pdf |
HFIN 3/18/2009 1:30:00 PM |
HB 154 |
| DOTPF Project Ready for Stimulus.pdf |
HFIN 3/18/2009 1:30:00 PM |
HB 154 |
| DOT response 2 20 09.pdf |
HFIN 3/18/2009 1:30:00 PM |
HB 154 |
| DOT Hwy and Bridge Revised 2-24.pdf |
HFIN 3/18/2009 1:30:00 PM |
HB 154 |
| DOT Aviation Revised 2-24.pdf |
HFIN 3/18/2009 1:30:00 PM |
HB 154 |
| 2009-02-24 Co-Chairs Letter.pdf |
HFIN 3/18/2009 1:30:00 PM |
HB 154 |
| Economic Stimulus Bill DOT Projects 2-27-09.xls |
HFIN 3/18/2009 1:30:00 PM |
HB 154 |
| ARRC Stimulus Letter 3-18-09.pdf |
HFIN 3/18/2009 1:30:00 PM |
HB 154 |
| ARRA DOT.pdf |
HFIN 3/18/2009 1:30:00 PM |
HB 154 |
| Stimulus project lists 2 22 09.pdf |
HFIN 3/18/2009 1:30:00 PM |
HB 154 |
| US DOT Letter.pdf |
HFIN 3/18/2009 1:30:00 PM |
HB 154 |