Legislature(2021 - 2022)BARNES 124

04/27/2021 01:00 PM House TRANSPORTATION

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Moved HB 166 Out of Committee
Moved HB 87 Out of Committee
Moved CSHB 160(TRA) Out of Committee
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
**Streamed live on AKL.tv**
          HB 160-PROCUREMENT; CONSTRUCTION; CONTRACTS                                                                       
1:21:54 PM                                                                                                                    
CHAIR HOPKINS  announced that the  final order of  business would                                                               
be HOUSE BILL NO. 160, "An  Act relating to the state procurement                                                               
code;  establishing the  construction manager  general contractor                                                               
procurement method; and providing for an effective date."                                                                       
1:23:16 PM                                                                                                                    
REPRESENTATIVE HANNAN moved to adopted  Conceptual Amendment 1 to                                                               
HB 160, which read as follows [original punctuation provided]:                                                                  
     Page 2, line 5                                                                                                             
         Following "the Department of Transportation &                                                                          
     Public Facilities may,"                                                                                                    
        Insert "through the competitive sealed proposal                                                                         
     Page 2, line 10                                                                                                            
          Following "construction phase"                                                                                        
        Delete "through the competitive sealed proposal                                                                         
     Page 2, line 11                                                                                                            
          Following "the department"                                                                                            
          Delete "shall"                                                                                                        
          Insert "may"                                                                                                          
         The committee authorizes the Legislative Legal                                                                         
       Services division to make technical and conforming                                                                       
     changes to the committee substitute for HB 160.                                                                            
1:23:28 PM                                                                                                                    
JOE  HARDENBROOK,  Staff,  Representative Grier  Hopkins,  Alaska                                                               
State Legislature,  explained Conceptual  Amendment 1 to  HB 160.                                                               
He  said the  amendment was  available in  the committee  packet,                                                               
with the second page showing how it is incorporated into HB 160.                                                                
1:25:34 PM                                                                                                                    
MIKE LESMANN,  Legislative Liaison,  Office of  the Commissioner,                                                               
Department  of Transportation  and  Public Facilities,  explained                                                               
how Conceptual  Amendment 1 would  improve HB 160.   He explained                                                               
that moving  the words "through  the competitive  proposal sealed                                                               
process"  from page  2, line  10, to  line 5  clarifies that  the                                                               
construction  manager/general  contractor (CM/GC)  really  starts                                                               
with that competitive  sealed proposal process and  takes care of                                                               
the phase of pre-construction services.   He explained the change                                                               
from  "shall"  to  "may" would  help  the  contracting  community                                                               
better  understand the  process.   He deferred  to Mike  Lund for                                                               
further explanation.                                                                                                            
1:26:23 PM                                                                                                                    
MIKE  LUND,  Regional  Construction  Engineer,  Northern  Region,                                                               
Department  of Transportation  and  Public Facilities,  regarding                                                               
the change  from "shall" to  "may" explained that the  process is                                                               
further clarified in  [subsections] (b) and (c) as  to when those                                                               
actions would take place and related  to whether or not costs can                                                               
be negotiated.   Further, he said "may"  would provide protection                                                               
for the owner  or the State of Alaska in  the event, for example,                                                               
that  a  cost is  negotiated  but  funding  is not  available  to                                                               
proceed with  the construction contract.   He said,  "It provides                                                               
an  avenue  for  the  State   of  Alaska  or  the  Department  of                                                               
Transportation [& Public  Facilities] to ... have an  out even if                                                               
we can still satisfy a fair negotiation of costs."                                                                              
1:27:45 PM                                                                                                                    
CHAIR HOPKINS opened public testimony on HB 160, as amended.                                                                    
1:28:06 PM                                                                                                                    
ALICIA SIIRA, Executive  Director, Associated General Contractors                                                               
of  Alaska (AGC),  stated that  AGC supports  having CM/GC  as an                                                               
additional tool  in the  toolbox.  She  said AGC  represents over                                                               
600  members.     She  said  CM/GC  is  a   common  and  accepted                                                               
alternative  delivery  project  method of  construction  used  in                                                               
Alaska for over a decade.   She asked that the committee remember                                                               
that CM/GC  is but one tool,  and she asked for  transparency and                                                               
ample review  when using it,  in order  to ensure the  best value                                                               
for  the  state.   She  stated  that  HB  160 would  benefit  the                                                               
construction  industry and  the  state  by modifying  procurement                                                               
statutes to  codify the CM/GC procurement  process, thus allowing                                                               
DOT&PF to use the process  without having to submit an innovative                                                               
procurement request  with the Department  of Law and  the Federal                                                               
Highway   Administration   (FHWA)   or   the   Federal   Aviation                                                               
Administration (FAA)  for each project.   She stated,  "This bill                                                               
will  modernize, clarify,  and  improve  the state's  procurement                                                               
process  and  align Alaska  with  a  majority of  other  states."                                                               
Further,  passage  of   HB  160  would  allow   the  industry  to                                                               
participate  in  the  development  of  a  regulatory  package  to                                                               
address  concerns  about  consistency  in the  use  of  CM/GC  on                                                               
projects.   She said AGC  requests a seat  at the table  for this                                                               
process.  She  noted that the association has compiled  a list of                                                               
best practices  within Alaska and  in other states that  it looks                                                               
forward to sharing  with DOT&PF partners.  She  said AGC supports                                                               
the amendments to HB 160 discussed earlier in this hearing.                                                                     
1:31:15 PM                                                                                                                    
SARAH LEFEBVRE shared  that she works for  a statewide contractor                                                               
in  its  Fairbanks  office  and  has  been  in  the  construction                                                               
industry for  over 23 years.   She  said passage of  the proposed                                                               
legislation  would  ensure  that  CM/GC  would  be  applied  more                                                               
consistently and  transparently.  Putting the  process in statute                                                               
would allow DOT&PF to move  forward in completing regulations and                                                               
completing  a handbook  that  has  existed in  draft  form for  a                                                               
couple years.   She  said the  construction community  is excited                                                               
about the possibility of  additional infrastructure funds through                                                               
the state  from the  federal level but  is concerned  that DOT&PF                                                               
"may need some more opportunities  in the future to move projects                                                               
forwards," and having CM/GC as a  tool will facilitate this.  She                                                               
closed by stating  her support of [Conceptual Amendment  1] to HB
1:33:04 PM                                                                                                                    
CHAIR  HOPKINS, after  ascertaining  there was  no  one else  who                                                               
wished to testify, closed public testimony on HB 160.                                                                           
1:33:17 PM                                                                                                                    
MR. LESMANN  thanked the  committee and staff  for working  on HB
1:33:50 PM                                                                                                                    
REPRESENTATIVE HANNAN moved  to report HB 160,  [as amended], out                                                               
of   committee   with    individual   recommendations   and   the                                                               
accompanying  zero  fiscal  notes,  and  with  authorization  for                                                               
Legislative  Legal  Services  to make  technical  and  conforming                                                               
1:34:19 PM                                                                                                                    
CHAIR  HOPKINS objected  for the  purpose of  taking the  time to                                                               
thank  Mr.  Lesmann  for  his  service.    He  then  removed  his                                                               
objection.  There  being no further objection,  CSHB 160(TRA) was                                                               
reported out of the House Transportation Standing Committee.                                                                    

Document Name Date/Time Subjects
HB 166 Letter of Support Leon Smith 4.27.2021.pdf HTRA 4/27/2021 1:00:00 PM
HB 166
HB 87 Supporting Document - People for Bikes Letter 4.27.2021.pdf HTRA 4/27/2021 1:00:00 PM
HB 87
HB 166 Letter of Opposition APDEA 4.27.2021.pdf HTRA 4/27/2021 1:00:00 PM
HB 166
HB 160 - CMGC Award Process - Flow Chart STEP 1 4.27.2021.pdf HTRA 4/27/2021 1:00:00 PM
HB 160
HB 160 - CMGC Award Process - Flow Chart STEP 2 4.27.2021.pdf HTRA 4/27/2021 1:00:00 PM
HB 160