Legislature(2005 - 2006)SENATE FINANCE 532
04/07/2005 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB46 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 46 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE BILL NO. 46
"An Act making capital appropriations and appropriations to
capitalize funds; and providing for an effective date."
This was the sixth hearing for this bill in the Senate Finance
Committee.
Alaska Court System
Palmer Courthouse Expansion
$3,900,000 ASLC Bonds
Reference No.: 39022
Category: Law and Justice
Location: Palmer (Richardson/Glenn Highways)
Election District: Richardson/Glenn Highways
Estimated Project Dates: 07/01/2005 - 06/30/2007
The court system requests funding to complete an addition to
the Palmer courthouse to accommodate sufficient judicial staff
to handle the caseload.
CHRIS CHRISTENSEN, Deputy Administrative Director, Alaska Court
System, appreciated the fact that three Court System projects were
included in Governor Frank Murkowski's FY 2006 capital budget.
Mr. Christensen shared that the City of Palmer built the Palmer
Courthouse in 1988 under a lease/purchase agreement with the State.
An expansion in 1999 provided two more courtrooms, for a total of
five, in order to accommodate four resident court judicial officers
as well as regularly scheduled hearings conducted by a visiting
Anchorage judge. Currently, six resident judicial judges preside
over court hearings in Palmer in addition to the visiting Anchorage
judge, and the facility's office and courtroom capacity is under
capacitated for the increased staffing and workload. The Palmer
area's population has increased approximately 70-percent since 1990
and consequently the area's case filings have experienced "dramatic
increases". The expectation is that the population growth would
continue to grow, and additional judicial positions are also
anticipated. The proposed expansion would increase the number of
Courtrooms from five to seven. It would also provide additional
judicial chambers and clerk space and would relocate the law
library. The funding would provide for project design, bid document
development, and construction costs.
Co-Chair Green recounted "the awkwardness" associated with
maneuvering judicial staff, witnesses, and those being prosecuted
in the current facility. She asked whether the current building was
designed for expansion.
Mr. Christensen replied that the Palmer Courthouse and Kenai
Courthouse were similarly designed with the exception being that
Kenai was built with four rather than three courtrooms. While the
design is expandable, this addition would be the final phase, as
the size of the property would not allow for further expansion.
Mr. Christensen communicated that night and weekend court hearings
are being conducted, as the current space does not allow all the
judges to conduct court hearings "during the standard workday".
Co-Chair Green asked whether the parking lot could be expanded.
Mr. Christensen responded that while there would be sufficient
space to meet code requirements for this proposed expansion, no
further expansion would be possible
Co-Chair Green noted that inquiries about the availability of
surrounding land have been made.
Bethel Courthouse
$825,000 Bond Funds
Reference No.: 40084
Category: Law and Justice
Location: Bethel
Election District: Bethel
Estimated Project Dates: 07/01/2006 - 06/30/2011
One-Time Project
The court system requests funding for improvements to the
Bethel courthouse facility.
Mr. Christensen remarked that this request is one of a two-part
effort to address the needs of the Bethel facility. The second
component, which has been approved in the House of Representatives
FY 06 Operating Budget, is a $92,000 component that would provide
for increased expenses associated with space leases. The Bethel
Courthouse currently leases 10,000 square feet from the City of
Bethel. The Operating Budget component would increase that by 2,600
square feet, in the form of a new addition the City of Bethel would
be constructing at the current facility. This request would allow
improvements to be made to the existing space.
Mr. Christensen informed the Committee that Bethel is a "high
volume Superior Court location". While the area's population is
less than 20-percent of that served by the Fairbanks Court System,
during the previous year its charged felony volume was
approximately 80-percent and its sexual assaults felonies was on
par with that of Fairbanks. Furthermore, while its felony caseload
was smaller than that of either Kenai or Palmer, its civil jury
trials equated to both those communities combined. "It is an
incredibly busy Court location considering the size of the
population."
9:12:59 AM
Mr. Christensen stated that currently two Superior Court Judges,
two Magistrates, and a visiting Judge from Fairbanks share the
facility's single Superior Courtroom and single District Courtroom.
The District Courtroom is inadequate to seat the required number of
jurors required for a Superior court case. The proposed expansion
would provide two Superior Courtrooms, expansion and soundproofing
of the jury deliberation room, improved office areas, and security
enhancements. The funds provided by this request would support bid
document preparation, project management, and construction.
Deferred Maintenance Projects
$300,000 Bond Funds
Reference No.: 39018
Category: Law and Justice
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2009
On-Going Project
The court requests funding for repairs to building components
that have not been sufficiently maintained and whose condition
now threatens longevity of the building.
Mr. Christensen noted that the Department's total deferred
maintenance needs amount to approximately one million dollars. This
request would allow the projects at the top of the Department's
priority list to be addressed. Those projects would include cooling
and lighting system needs at the Ketchikan Courthouse and basic
maintenance needs such as bringing the Dimond Courthouse in
Juneau's lighting up to code.
Department of Revenue
Co-Chair Green reminded that the Alaska Housing Finance Corporation
project overviews, which comprise the bulk of the Department of
Revenue's Capital Budget projects, were presented to the Committee
during the March 23rd hearing on this bill.
Child Support Services IVR KIDS Hotline Replacement
$105,000
$69,300 Fed Rcpts
$35,700 Rcpt Svcs
Reference No.: 40028
Category: Health/Human Services
Location: Anchorage Areawide
Election District: Anchorage Areawide
Estimated Project Dates: 07/01/2005 - 06/30/2007
State Match Required
One-Time Project
ETS currently provides enterprise shared Interactive Voice
Response (IVR) systems support and administration in Anchorage
and Juneau to CSSD and 4 other agencies. ETS has recommended
that these ages IVR systems be replaced as soon as possible.
This project would share the cost of replacing the IVR systems
with the other agencies using the shared ETS systems, and
would also replace the CSSD KIDS Hotline application with a
reliable and effective system for use by clients to check on
payment information. Improved customer service is one of
CSSD's strategies to achieving their end result of improving
the collection and disbursement of child support due to the
children served by CSSD.
SUSAN TAYLOR, Director, Administrative Services Division,
Department of Revenue, stated that this project would improve
interactive communications between the Child Support Services
Division and custodial and non-custodial parents. This would result
in increased staff efficiency. Improvements in regards to this
"Enterprise Project" are also being pursued by the Division of
Motor Vehicles, Department of Administration; the Division of
Public Assistance, Department of Health and Social Services; and
Division of Elections. The Enterprise Technology Services division
of the Department of Administration would coordinate the project.
9:17:35 AM
Child Support Services Computer Replacement Project - Phase 1
$162,250
$107,085 Fed Rcpts
$ 55,165 Rcpt Svcs
Reference No.: 37810
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2006
State Match Required
On-Going Project
This is the start of a second five-year replacement cycle of
the computer and printer replacement project. The first five-
year cycle was initiated in FY 2000. The agency objective is
to replace personal computers, printers, and servers that have
exceeded their useful life. With 274 computers in use within
the division, a five year replacement plan has 55 computers in
that situation, as well as several servers and duplex
printers. By replacing units, we will be able to serve our
clients quicker and more effectively as well as saving
repeated costly repairs to equipment that has exceeded its
useful life. The end result is increased customer satisfaction
and a better use of state funds.
Ms. Taylor noted that this would be the sixth year of this computer
upgrade endeavor. A projection of estimated spending in the out
years, as requested by the Committee last year, is included in the
project's backup material.
Permanent Fund Dividend Computer Replacement Project
$117,000 PFD Fund
Reference No.: 40051
Category: General Government
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2010
On-Going Project
This project funds the first year of a newly established
replacement cycle for desktop computers, printers, scanners
and servers. The cycle is based on warranty and expected
useful life. The Permanent Fund Dividend Division, whose
mission is to distribute the annual PFD dividend in a timely
manner, receives over two million documents annually that must
be scanned and processed. Regularly scheduled replacement of
equipment that has exceeded its useful life will avoid costly
repairs, equipment downtime, and delays in processing, and
will help the division achieve their mission. The end result
of this effort will be improved customer service to PFD
applicants and maintenance or reduction of staff costs.
Ms. Taylor clarified that this is the first time capital funds have
been requested by the Permanent Fund Division to upgrade its
computers. The Division Director, seated by the Governor Frank
Murkowski Administration, directed the Division to establish a
computer replacement plan, as none had previously existed. "The
Division is very committed to technology"; it has provided
tremendous benefit by allowing the Division "to process more
dividends without increasing budgets". The online PFD application
filing system experienced technical difficulties the previous year
but has been improved, and this year the process is easier and more
cost effective. More than 200,000 online PFD applications have been
received this year, and such technological advancements would
continue to produce cost savings.
Co-Chair Green acknowledged.
Senator Olson asked how many areas of the State might be unable to
conduct online filing.
Ms. Taylor responded that information regarding the communities
that file online could be provided. The anticipation is that there
would always be those who would prefer to paper file, and therefore
that option would be available.
Senator Olson asked whether people in Bush Alaska communities such
as Shishmaref could conduct online filing.
Ms. Taylor voiced confidence that people from Shishmaref have filed
online. People from a variety of small communities as well as
people from out-of-State have filed in that manner.
PAUL DICK, Chief, PFD Operations, Permanent Fund Dividend Division,
Department of Revenue, assured that the Division has received
online applications from Rural areas throughout the State. 211,464
online applications have been filed online this year.
Mobility Coalition Project
$500,000 Fed Rcpts
Reference No.: AMD 40545
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 10/01/2005 - 09/30/2010
On-Going Project
The U.S. Department of Transportation, Federal Transportation
Act Section 5309 appropriates funding for fixed route
capability public transportation projects to the Mental Health
Trust Authority (MHTA). The MHTA will use the funding for the
Coordinated/Non-coordinated Transportation and Assessment
project, which coordinates mobility and human services
transportation systems in local communities by polling
available resources, i.e. coordinated transportation. Other
options may include developing taxi voucher programs, taxi
accessibility projects, convertible ambulances, boats, and
snowmobile carts.
State Match Required
Ms. Taylor stated that these federal funds have historically been
provided to the Alaska Mental Health Trust Authority (AMHTA)
through an appropriation to the Department of Transportation and
Public Facilities (DOT); however, this year, the funds were
inadvertently provided to the AMHTA. This was corrected in the FY
05 Regular Supplemental bill. Upon review, it has been determined
that future funds would be better managed were the appropriation
provided to the Department of Revenue as the grant administrator.
This authorization change is being requested with the FY 06 budget.
Therefore, were these federal funds to continue, they would managed
by the Department of Revenue. They would convey the funds to the
DOT to administer the grant program.
Co-Chair Green asked for further details about the grant program.
Ms. Taylor expressed that the program would be administered by the
DOT; however, the Department of Revenue could gather the
information about the grantees.
Co-Chair Green asked that further information regarding the grant
process be provided; specifically whether the grantees would be
required to provide a program description reflecting how the
grantee would provide maintenance and upgrade/replacement funding
regarding such things as vehicles.
Ms. Taylor agreed to provide the requested information.
Co-Chair Wilken noted that the request specifies a 50-percent State
match. To that point, he asked regarding the absence of that match
in the funding details.
Ms. Taylor replied that the State match requirement had already
been appropriated in FY 06 budget.
Senator Olson asked about the "convertible ambulances" specified in
the Project Description.
Ms. Taylor responded that this information would be provided.
Department of Environmental Conservation
Village Safe Water Project Administration
$2,261,800
$1,696,300 Fed Recpts
$ 565,500 G/F Match
Reference No.: 33820
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2010
On-Going Project
This project provides funding for the operating cost of the
Village Safe Water Program. It contributes to the Division's
End Result 2 - Citizens are Protected from Unsafe Sanitary
Facilities. Drinking water and sewer projects constructed with
grant funds protect rural residents from unsafe sanitary
facilities.
State Match Required
MIKE MAHER, Director, Division of Information and Administrative
Services, Department of Environmental Conservation, explained that
the $2,261,800 amount specified in this request would fund the
administrative expenses for the entirety of the Village Safe Water
Program projects overseen by the Department.
Co-Chair Green asked for confirmation that this request would
support the administration expenses associated with all the
projects in this program.
DAN EASTON, Director, Division of Water, Department of
Environmental Conservation affirmed.
Co-Chair Green specified that there would be no need to address
each of the Safe Water projects. Each Village Safe Water Program
project's budget would be coordinated in a manner similar to the
project model utilized by the Denali Commission and as directed by
the Governor's Administrative Order regarding the selection,
administration, and execution of projects. The projects would be
monitored and reports would be required in order "to restore the
authority and the decision making to" the Department of
Environmental Conservation [DEC] and "the payer." The purpose would
be to develop, enhance, and finance each project "in the best way
possible". Specific language in this regard would be forthcoming.
Co-Chair Wilken informed the Committee that the Department has
developed and maintained a thorough spreadsheet titled "Rural
Sanitation Funding Database" that details the history of each
Village Safe Water Program project [copy on file]. Copies would be
provided to Committee members.
Co-Chair Green agreed that the spreadsheet would be beneficial and
would underscore the reason to further the Denali Commissions'
model, the Governor's Executive Order, and the aforementioned
Intent Language.
Municipal Water, Sewer and Solid Waste Matching Grant Projects
$11,035,500
$6,621,600 ASLC Bonds
$4,413,900 Fed Rcpts
Reference No.: 33824
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2010
On-Going Project
This project provides funding for grants to communities to
construct water, sewer and solid waste facilities and the
operating costs of the program. It contributes to the
Division's End Result 2 - Citizens are Protected from Unsafe
Sanitary Facilities. Drinking water and wastewater projects
constructed with grant funds protect citizens from unsafe
sanitary facilities.
State Match Required
Mr. Easton communicated that this appropriation would support
water, sewer, and solid waste infrastructure in communities larger
than those provided for by the Village Safe Water Program. While
State Funds are primarily utilized, federal grant funds would
support certain projects. The ratio of federal/State funds, when
applicable, is 75/25 percent respectfully. The 13 projects,
Reference Numbers 40130 through 40142, that would be addressed by
this appropriation are individually described in the Department's
Project Review material.
Co-Chair Green asked the Committee to independently review those
projects, as they would not be individually addressed during this
hearing.
Village Safe Water Feasibility Studies
$755,000
$565,900 Fed Rcpts
$189,100 G/F Match
Reference No.: 33821
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2010
On-Going Project
This project provides funding for grants to small communities
to plan water and sewer facilities. It contributes to the
Division's End Result 2 - Citizens are Protected from Unsafe
Sanitary Facilities. Drinking water and sewer projects
constructed with grant funds protect rural residents from
unsafe sanitary facilities.
State Match Required
Mr. Easton specified that this appropriation request would provide
for the feasibility study associated with each of the Village Safe
Water projects provided for in Reference Number 33824. The studies
would be the basis for the planning of each of the 12 projects,
Reference Numbers 40143 through 40154, and the funding ratio is
75/25 percent federal to State respectfully project. This funding
is separate from the construction funds associated with each
project.
Village Safe water Projects
$78,922,700
$ 2,378,000 ASLC Bonds
$59,140,500 Fed Rcpts
$17,404,200 G/F Match
Reference No.: 33822
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2010
On-Going Project
This project provides funding for grants to small communities
to design and construct water and sewer facilities. It
contributes to the Division's End Result 2 - Citizens are
Protected from Unsafe Sanitary Facilities. Drinking water and
sewerage projects constructed with grant funds protect rural
residents from unsafe sanitary facilities.
State Match Required
Mr. Easton stated that this appropriation would provide for the
construction of 67 Village Safe Water projects as reflected on the
Project Review Listing material, Reference numbers 40155 through
40222. Funding is again 75-percent federal and 25-percent State
match.
Regional Haze Trans-boundary Monitoring Project
$750,000 Fed Rcpts
Reference No.: 40129
Category: Natural Resources
Location: Southcentral Alaska
Election District: Southcentral House Districts 12-36
Estimated Project Dates: 07/01/2005 - 06/30/2008
One-Time Project
To establish a monitoring network that will generate quality
date which can be used to determine the contribution of
internationally transported pollutants to regional haze
impacts within three of Alaska's Class I areas - Denali Park,
Tuxedni Island(lower Cook Inlet), and Simeonof Island
(southwest of Kodiak).
TOM CHAPPLE, Director, Division of Air Quality, Department of
Environmental Conservation, testified via teleconference from
Anchorage to explain that this project would provide for air
quality monitoring in the four national parks and refuges in the
State, including Denali National Park. Federal rules require the
Department to "manage and reduce human caused haze in national
parks and refuges." Because the majority of the State's haze
problem comes from places such as Siberia, China, and Europe rather
than from within, this federally funded project is more of effort
to document effects imposed by other countries in order to avoid
"inappropriately" controlling "our own activities more than is
necessary" to control haze pollution.
Data Integration and Network Readiness
$910,000 Fed Rcpts
Reference No.: AMD 39963
Category: Natural Resources
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2010
One-Time Project
This project is to consolidate, upgrade and integrate
Department of Environmental Conservation data stores to allow
program information to be shared among divisions, other state
and federal agencies and, to provide information for senior
department management to make informed decisions in a timely
fashion.
Mr. Maher stated that this request is being withdrawn.
Contaminant Monitoring and Incident Response Capability
$1,500,000 Fed Rcpts
Reference No.: AMD 40550
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2010
Amendment
This project captures federal funding to build routine
environmental monitoring, food supply surveillance, and
incident response capacity for toxic, chemicals and biological
contaminating substances or agents. It contributes to the
department's End Result #2 by protecting against unsafe food.
KRISTIN RYAN, Director, Division of Environmental Health,
Department of Environmental Conservation, informed the Committee
that this request would utilize federal funds to provide the
necessary equipment to test for toxins in our environment.
Acquiring this equipment would allow tests to be conducted in-house
rather than contracting with outside laboratories at a per test
price of $3,000. Primary sampling relates to such things as the
monitoring of PCBs, PBDEs, which is a very effective fire retardant
that is unfortunately "very persistent" and is being absorbed in
the food chain, pesticides, and dioxins, which are the byproduct of
burning plastic.
Ms. Ryan, responding to a question from Co-Chair Green, stated that
a laboratory in Canada currently conducts the tests.
9:37:32 AM
Animal Disease Surveillance and Monitoring
$400,000 Fed Rcpts
Reference No.: AMD 40471
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2010
One-Time Project
Amendment
This project will build monitoring and surveillance capacity
for animal diseases such as Chronic Wasting Disease (CWD),
Bovine Spongiform Encephalopathy (Mad Cow) and Scrapie in
domestic livestock, game farm animals and wildlife in Alaska.
It contributes to the department's End Result #2 by protecting
against unsafe food and providing information associated with
risks from animal diseases.
Ms. Ryan communicated that this federal funding would complement
previous federal funding of $150,000 that the Department received.
This would further surveillance capabilities regarding
Transmittable Spongiform Encephalopathies (TSEs) such as Mad Cow
Disease and Chronic Wasting Disease (CWD). The latter is of more
concern in Alaska as it is a disease that impacts animals with
antlers such as moose, reindeer, and deer. These efforts would
assist in determining whether CWD "is a problem" in the State.
Efforts are being coordinated with the Department of Fish and Game.
Senator Bunde asked whether the State has ever experienced a case
of CWD.
Ms. Ryan responded that while no case has been identified, very
little CWD investigative work has, to date, been afforded. This
funding would further that endeavor. The key to controlling the
disease is to locate and eradicate it swiftly. Otherwise, it could
spread rapidly.
Senator Olson understood that some of these diseases might produce
a sub-viral strain that could infect humans; to that point, he
asked whether any such situation has occurred.
9:40:13 AM
Ms. Ryan responded in the negative. She reminded that Mad Cow
disease could affect humans. This disease is tested for at the
Palmer slaughter facility and no positive tests have occurred. No
CWD disease or other animal to human transmitted infection has been
proven. One case of an illness relating to the consumption of moose
meat was suspected but not proven.
In response to a question from Senator Olson, Ms. Ryan affirmed
that in that case, the victim, who was a woman from Fairbanks,
died. She reiterated that no linkage to wild game consumption was
confirmed.
Senator Olson spoke in favor of this project, as a breakout of one
of these diseases would be "significant".
Denali Commission and Alaska Native Tribal Health Consortium
Safe Water Projects
$12,500,000 Fed Rcpts
Reference No.: AMD 40551
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2010
On-Going Project
Amendment
This project provides funding for grants to small communities
to design and construct water and sewer facilities. It
contributes to the Division's End Result 2 - Citizens are
Protected from Unsafe Sanitary Facilities. Drinking water and
sewerage projects constructed with grant funds protect rural
residents from unsafe sanitary facilities.
Mr. Easton communicated that this amendment is the result of the
receipt of additional monies provided by the Indian Health Service
to the Denali Commission and designated for the Village Safe Water
program. This amendment would provide the authority to the
Department to receive those funds.
Co-Chair Green asked whether these funds would support a
predetermined project.
Mr. Easton responded in the negative, the request simply reflects
funds that would be anticipated in FY 06.
Co-Chair Green asked whether the Department would participate in
"the grant process and the decisions-making" pertinent to these
funds.
Mr. Easton affirmed that the Department would "conduct the
decision-making".
Senator Bunde commented that while "many small communities have
been very concerned about the lack of revenue sharing" monies, it
appears that the federal government is providing revenue sharing to
them.
Co-Chair Green replied that such things are being considered.
This concluded the Department of Environmental Conservation's
capital budget requests.
9:42:31 AM
Department of Transportation and Public Facilities
Co-Chair Green informed the Committee that their packets contain a
Department of Transportation and Public Facilities (DOT) Project
Review Listing Packet as well as a Project Detail packet containing
project backup material [copies on file]. The Department would be
presenting a general overview of its Capital Budget projects as
opposed to discussing individual projects. Therefore, she urged
Committee Members to study and review the detailed packet
independently.
MIKE BARTON, Commissioner, Department of Transportation and Public
Facilities remarked that the Department's FY 06 Capital Budget
requests should be viewed as "an investment" in the State's future.
Even though it is "a substantial" request, "it barely scratches the
surface of the more than eight billion dollars that Alaskans have
identified" in transportation needs.
Co-Chair Green communicated that an effort was made to present the
projects in the twelve-page Project Review Listing summary by fund
source and area of interest.
Co-Chair Wilken, noting that Members' packet contain several
versions of the listings, asked the date of the material being
referenced.
NANCY SLAGLE, Director, Division of Administrative Services,
Department of Transportation and Public Facilities specified that
the packet being referenced is dated February 23, 2005. It includes
the Department's original requests as well as the Governor's
amendments. Additional amendments would be addressed separately.
Commissioner Barton expressed that the Department's request is
"based on our best estimate of how the federal highway
reauthorization bill" would develop.
Co-Chair Green asked the status of that federal legislation.
Commissioner Barton stated that the Congressional House of
Representatives has passed the bill, and the Senate is considering
it. Alaska Senator Lisa Murkowski is a member of the Senate Energy
and Public Works Committee, which is, of the three Senate
committees that review the bill, the primary committee. Alaska
Representative Don Young worked diligently on getting the bill
passed by the House. Nonetheless, the bill is one and one-half
years behind schedule. The Senate anticipates taking action on the
bill this month and a Conference Committee is expected to meet
later this month. "The current Continuing Resolution" would expire
on May 31, 2005. Therefore, that is the target date for the bill.
Commissioner Barton communicated that the delay at the federal
level has made the program difficult to manage because federal
funding "has been allocated in pieces, two to three month
expenditures at a time". It is difficult to award large contracts
under the circumstances.
Co-Chair Green surmised therefore that the process utilized in
developing the Capital Budget could be likened to "a best guess"
scenario.
Commissioner Barton favored the term "best estimate".
Commissioner Barton stated that the FY 06 Capital Budget projects
being proposed includes approximately $600 million in roads
including approximately $145 million of Governor's Initiatives that
provide for such things as congestion relief and economic
development for tourism, mining, and the development of
infrastructure to support gas pipeline construction activities by
the year 2009.
Co-Chair Green asked whether a review of those projects would be
provided.
Commissioner Barton affirmed.
Commissioner Barton stated that the FY 06 projects also include in
excess of $400 million in federal matches relating to the Statewide
Transportation Improvement Program (STIP) and $410 million in
aviation components including $210 million for international
airport projects specifically a new airport terminal in Fairbanks,
two new concourses at the Anchorage airport, and $200 million in
Rural airport projects. Other projects include $11 million for
Department facilities and $12 million designated for harbors. The
total budget request would amount to approximately $1,100,000,000.
The projects would be supported by a variety of funding sources
including federal funding such as Federal Highway and Aviation
funds and Congressional earmarks, Amerada Hess Bonds, State general
funds, International Airport Bonds, and the International Airport
Revenue Fund. Approximately $16 million would come from other
miscellaneous funding sources.
Commissioner Barton explained that in addition to the Governor's
Transportation Initiative which would include traffic congestion
relief projects, the Governor's Transportation Access to Resources
Initiative would further roads and economic development projects
such as the Bullen Point Road which would transit east from Prudhoe
Bay to access prospective oil and gas areas and the Foothills West
Road which would segment off the Dalton Highway in the vicinity of
Pump Station 2. The Foothills West Road would provide both
independent and large producers access to State resource areas.
Several bridge projects, passing lanes, and intersection
improvements in the Fairbanks area would assist in alleviating
congestion relief. Other projects in the Fairbanks area would
provide for pipeline transportation infrastructure. Road upgrades
such as the five million dollar road upgrade proposed for Stampede
Road would benefit tourism industry operations.
Co-Chair Green asked the location of Stampede Road.
Commissioner Barton noted that Stampede Road is located in the
Healy area just north of Denali Park.
Commissioner Barton overviewed other Governor's Transportation
Initiative projects including the $30 million improvements proposed
for the Glenn Highway and Bragaw Street intersection in Anchorage
that would provide congestion relief for both Anchorage and Mat-Su
Valley commuters. Numerous other Anchorage projects would provide
congestion relief, and in addition, would assist in streamlining
industrial traffic from the Port of Anchorage to points outside the
City.
9:52:44 AM
Commissioner Barton noted that Wasilla and other Mat-Su Valley
communities' congestion issues would also be addressed under the
Governor's Transportation Initiative projects. Environmental
studies pertaining to the Tanana/Wasilla Highway expansion and the
Parks Highway corridor expansion would also be provided for.
Co-Chair Green understood that the discussions pertaining to the
Parks Highway corridor have been tumultuous in regards to such
things as the proposal to bypass communities such as Wasilla.
Commissioner Barton affirmed. He noted that the Alaska Railroad is
participating in the endeavor.
Co-Chair Green asked whether Alaska Railroad funds might be
involved in this project.
Commissioner Barton understood that the Railroad would participate.
Co-Chair Green asked whether the Mat-Su Borough has participated in
the discussion.
Commissioner Barton assured that the Department has included the
Borough in these on-going discussions.
Commissioner Barton noted that other projects included in the
Governor's Transportation Initiative would be the McCarthy Road
maintenance. This long-term project is in its final environmental
impact study (EIS) stages. The end result would be improved access
to Denali Park and the community of McCarthy. The Copper River
Highway Rehabilitation project would also improve road conditions
from Cordova to the Cordova airport. The 11-mile Kalifornsky Beach
Road in Kenai would also be improved.
9:55:51 AM
Co-Chair Green understood that the Governor's Transportation
Initiative projects would be primarily funded by Bond funds.
Commissioner Barton affirmed. The proposal would be to utilize
Amerada Hess bond funds.
Senator Bunde asked whether the costs associated with the Bullen
Point Road and the Foothills West Road EIS studies were included in
the Governor's Transportation Access to Resources Initiative total
of $37,000,000. In other words, was their listing a subcategory of
the Governor's Transportation Access to Resources Initiative
heading.
Commissioner Barton clarified that those EIS studies were included
in the $37,000,000 total.
9:57:12 AM
Governor's Transportation Access to Resources Initiative
$37,000,000 Bond Funds
Reference No.: 40448
Category: Transportation
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2010
Resource Roads
North Slope: Foothills West Road EIS
$4,000,000,000 Bond Funds
Reference No.: 40420
Category: Transportation
Location: North Slope Borough
Election District: Arctic House District
Estimated Project Dates: 07/01/2005 - 06/30/2010
Complete NEPA process necessary to construct 50-mile road from
Pump Station 2 on Dalton Highway westerly into area of oil and
gas leases on state land.
Senator Bunde understood therefore that the North Slope: Foothills
West Road EIS, Reference Number 40420 project was included in the
$37 million specified in the Governor's Transportation Access to
Resources Initiative Reference Number 40448.
Commissioner Barton clarified that Reference Number 40420 was
included in the $37 million Governor's Transportation Access to
Resources Initiative total allotment, Reference Number 40448.
Senator Bunde asked the difference between the State Equipment
Fleet Replacement project, Reference Number 30628, and the Capital
Improvement Program Equipment Replacement project, Reference Number
32534.
State Equipment Fleet Replacement
$10,000,000 Hwy Capiti
Reference No.: 30628
Category: General Government
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2007
On-Going Project
Replacement and/or refurbishment of equipment and vehicles
which have reached the end of their useful life cycles and all
extension periods, and continued conversion of vehicles to
alternate fuel and related alternate fuel program expenses.
This project contributes to the Department's Mission by
reducing injuries, fatalities, and property damage and by
improving the mobility of people and goods.
Capital Improvement Program Equipment Replacement
$1,500,000 CIP Rcpts
Reference No.: 32534
Category: Transportation
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2007
Replace equipment through a usage fee charged to capital
projects. Types of equipment to be replaced include
specialized instruments used in designing projects, copiers,
plotters and computers. The project will also pay for eligible
useage rate costs reimbursed through the Indirect Cost
Allocation Plans. This project contributes to the Department's
Mission by reducing injuries, fatalities and property damage
and by improving the mobility of people and goods.
Ms. Slagle explained that Reference Number 30628 would replace
fleet vehicles such as Alaska State Trooper vehicles and heavy
equipment, which are funded by the Highway Working Capital Fund
through receipts from user agencies. Reference Number 32534 is
funded by Department construction projects; specifically for
construction equipment needs. Equipment could not be directly
charged to a capital project as such a purchase would not qualify
under Office of Management and Budget requirements. The equipment
that is purchased would support Department programs in their
entirety rather than a specific project. This equipment would not
include vehicles but would include other types of equipment such as
re-pavers.
9:59:38 AM
Senator Bunde understood therefore that one project would pertain
to vehicles and the other would pertain to construction equipment.
He asked that particular attention be provided to Reference Number
32534 as private enterprise has conveyed to him their frustration
"with the State buying construction equipment that the private
sector could easily supply". The State might be competing in
business with the private sector.
Senator Olson shared the public's concern that such things as
drilling rigs have been purchased by the State for limited use.
Commissioner Barton voiced being aware of the drilling rig concern.
That issue has been reviewed and the findings could be shared.
10:01:37 AM
Senator Olson voiced the importance of the State not competing or
phasing out the private sector.
Co-Chair Wilken, Chair of the Finance Committee Transportation
subcommittee, informed that the subcommittee has reviewed this
concern. In FY 04, approximately one to four percent of the total
money the State spent on road maintenance was conducted by the
State. These were primarily "helter-skelter" jobs that were not
sought after by the private sector. While he had heard similar
concerns, it would appear that "there was smoke" but not much fire.
He concluded that the Department was utilizing people and equipment
appropriately", in conducting work, at least in the Interior region
of the area, that the private sector did not find attractive. While
there might be drilling rig issues, one situation should not
"taint" the entire effort to use DOT to provide road maintenance.
The majority of the money is awarded, "as it should be" to
contractors.
10:03:26 AM
Commissioner Barton affirmed that supporting documentation could be
provided in this regard.
Statewide: Civil Rights Program
$200,000 Fed Rcpts
Reference No.: 36185
Category: Transportation
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2010
Phased Project
On the job training to provide training opportunities on
construction jobs. Also, provides on-site construction review
to assure compliance with Civil Rights laws. This project
contributes to the Department's Mission by increasing private
investment.
State Match Required
Senator Bunde asked for further information regarding the "role" of
the Department pertaining to this program.
Ms. Slagle explained that the Federal Highways Administration
requires the Department to "administer certain" federally required
programs relating to disadvantaged business enterprises and equal
employment opportunities (EEO). Therefore, the Department must
monitor contractor and subcontractor activities in order to assure
that they are adhering to federal civil rights and EEO guidelines.
Senator Bunde opined that this request should be in the Operating
rather than the Capital Budget.
Ms. Slagle stated that due to the Department's billing system
constraints, the majority of federal funds are identified in the
Capital Budget but are included in the Operating Budget as Capital
Improvement Project (CIP) receipts. Therefore, this Civil rights
project is reflected in the Operating Budget and the funding for
the associated positions is financed by this Capital Budget
allocation.
Selawik: Landfill Access Improvements
$1,800,000 Fed Rcpts
Reference No.: AMD 40582
Category: Transportation
Location: Selawik
Election District: Arctic
Estimated Project Dates: 07/01/2005 - 06/30/2010
One-Time Project
Construct a landfill access road, approximately one mile in
length, to the new Selawik landfill. This project contributes
to the Department's Mission by reducing injuries, fatalities,
and property damage and by improving the mobility of people
and goods.
Amendment
Senator Bunde inquired as to whether, in addition to building a
road to the landfill, the Department would also be involved in
building landfills.
Commissioner Barton shared that in situations in which the
Department of Environmental Conservation and a community might be
developing or improving their landfill, the Department would
attempt to coordinate any road improvements that might be required
at the same time.
Senator Olson shared that he had recently visited Selawik, and that
a new landfill was desperately needed there as the current one is
contaminating the river.
Senator Bunde noted that the Legislature is Constitutionally
directed to develop a Capital Budget that would equate to
approximately one-third of the total Operating Budget. It appears
that the Department of Transportation and Public Facilities'
Capital Budget "would fill the whole Capital Budget". To that
point, he asked Co-Chair Green's goal in regard to the Capital
Budget.
Co-Chair Green responded that the Capital Budget is still being
developed.
Co-Chair Green voiced disappointment that the aforementioned Civil
Rights project had not included the placement of signage along the
Parks Highway and other Rural roads to direct people to places of
business.
King Salmon Airport Improvements
$8,500,000 Fed Rcpts
Reference No.: 40285
Category: Transportation
Location: King Salmon
Election District: Bristol Bay/Aleutians
Estimated Project Dates: 07/01/2005 - 06/30/2010
Phased-new
Project to provide improvements to the King Salmon Airport.
Stage 1 will construct full runway safety areas. State 2 will
make other safety areas improvement and address parking areas.
This project contributes to the Department's Mission by
reducing injuries, fatalities and property damage and by
improving the mobility of people and goods.
State Match Required
Senator Hoffman asked the status of the State's agreement with the
Federal Aviation Administration (FAA) in regards to the operation
of the control tower at this airport. It was his understanding that
the House has included $70,000 in its budget to support the
agreement. He asked whether further discussion of the agreement
might occur.
Commissioner Barton affirmed the existence of an agreement. The
Department has been working with the FAA to more develop an
equitable sharing agreement. He shared that he had made a personal
commitment to the director of the FAA to continue the tower
operations while the funding issue was being addressed.
KIP KNUDSON, Deputy Commissioner of Aviation, Department of
Transportation and Public Facilities informed the Committee that
the $68,000 subsidy included in the Department's Operating Budget
would provide approximately 15-percent of the salary expenses
associated with staffing the King Salmon airport tower. "The King
Salmon Tower is one of four contract towers in the State". The
conditions of the federal contract tower program specify the
federal/local cost ratio components relating to such towers.
10:10:24 AM
Mr. Knudson stated that the State is currently contributing 15-
percent less than the current specified obligation level. Weighing
the expense and the risks are the issues of the on-going
State/federal debate regarding this tower. The State anticipates
that the traffic at the airport would increase to a level that
would enable the funding to reach a benefit/cost ratio of one at
which point the State's subsidy would crease.
Co-Chair Green asked whether the anticipated increase in traffic
would be attributed to increased development in the area and
improved fishing conditions.
Mr. Knudson affirmed.
Senator Bunde asked the current population of Kokhanok, which is
another community slated to undergo airport improvements.
Mr. Knudson replied that 170 people reside there. This is
considered "a fairly decent size village" relative to other Rural
airport communities.
Senator Bunde wondered to the per capita cost of providing
$3,100,000 in airport improvements funding to a community of 170
people.
Sand Point: Runway Rehabilitation and Extension
$3,800,000 Fed Rcpts
Reference No.: 38407
Category: Transportation
Location: Sand Point
Election District: Bristol Bay/Aleutians
Estimated Project Dates: 07/01/2005 - 06/30/2010
Phased Project- Underway
Construct runway embankment to extend runway and safety area.
Move runway centerline, and pave runway and safety area.
Relocate navigational and glide slope aids and remove
obstructions from bluffs east of the runway. This project
contributes to the Department's Mission by reducing injuries,
fatalities and property damage and by improving the mobility
of people and goods.
State Match Required
Senator Hoffman noted that this budget would provide $3,800,000
towards the rehabilitation and expansion of the Sand Point Airport
and, to that point, he asked the status of a separate one million
dollar appropriation that had previously been allocated to
rehabilitate the Sand Point Airport Terminal.
Mr. Knudson understood that one million dollars had been included
in the FY 05 Supplemental Budget; however, he expressed that that
money must have been earmarked as DOT does not build or maintain
passenger terminals.
Senator Hoffman affirmed that it was federal earmarked funding.
Mr. Knudson stated that that money was included in the Supplemental
budget.
Co-Chair Green understood therefore that the one million dollars is
not included in the $3,800,000 specified in the Capital Budget.
Mr. Knudson stated that the money included in the Capital Budget
would be exclusively utilized for runway work.
Senator Hoffman asked whether the terminal improvements provided
for by those federal funds would come to fruition.
Mr. Knudson stated that it would, provided there was local
community support.
Senator Bunde pointed out that Pilot Station is also a small
community whose airport is slated to receive $12,300,000.
Senator Olson stated that Pilot Station, which is in his election
district, has 474 residents.
Commissioner Barton expressed that "Rural airports are not only
important to the community in which they are located, but they are
also important" to both general and commercial aviation. "The
entire system", rather than being viewed as individual airports,
must be considered.
Senator Olson recalled a DC-6 airplane accident that had occurred
in a remote area of the State and noted that Senator Bunde, being a
former DC-6 pilot, was aware of "the importance" of airports in
remote areas. They could provide a safety net in times of distress.
10:15:28 AM
Co-Chair Green commented that, while she is unfamiliar with the
operational support provided at various airports sizes, it is the
policy at major airports for airlines to financially participate in
the operations of the airport such as scheduling. To that point,
she asked whether such things as landing fees or other fees are
incorporated at small airports.
Mr. Knudson responded that there is "a series of aviation fees":
the international airports in Anchorage and Fairbanks incorporate
such fees as a federal passenger facility charge, fuel flow fees,
and passenger terminal rental fees. "International airports are
governed by either the Commissioner or an agreement with the
airlines." Rural airports fees are governed by the Legislature. The
only fee currently in place for the Rural airport system is a fuel
tax on low-lead and jet fuel. In addition, there are land lease
fees, "which are generally held by airlines serving the
communities". Approximately 150 of the total 259 airports in the
State receive scheduled passenger service. The majority of the
airports listed in the Project Review Listing provide passenger
service.
10:17:19 AM
Co-Chair Green characterized previous discussions regarding
amending Rural airport fees as "exciting".
Senator Bunde commented that the DC-6 aircraft incident referred to
by Senator Olson had little to do with the size of the airport, but
was rather the result of people being on the runway. He suggested
that were the airport projects to include runway fencing then the
investment could be viewed as addressing a safety issue.
Senator Olson stated that another reason for having good airports
is to allow people to travel from small villages to larger cities
to shop. He is "a strong proponent for good safe airports …".
Co-Chair Green reiterated the importance of discussing whether
airlines could participate more in the financial aspect of airport
operations. Airliners would benefit by improved scheduling and
reduced delays; however those efforts might incur costs that should
be shared by the users, as it is "a great shock" to see such a
substantial amount of federal funds supporting small airports.
Commissioner Barton stated that "we all recognize" "the importance
of aviation" in the State. In many situations, there is no
alternative to air travel; this is recognized by the federal
government. He voiced being grateful for the federal funding
provided to Rural airports. The State would not be permitted to
shift these federal funds to other projects; that is not an option.
Co-Chair Green agreed.
Commissioner Barton allowed that were such an attempt made, the
State might "just lose the money".
10:21:12 AM
Commissioner Barton explained that when contemplating fees, the
distinction between international and Rural airports should be
foremost in the decision making process. At international airports,
"the air carriers pay all the costs".
Co-Chair Green agreed. Nonetheless, she voiced that there is a
fairness issue here. Most private pilots are delighted to have
small safe airports "in time of need". The question is whether that
service should be free.
10:21:56 AM
Co-Chair Wilken noted that there is $260 million in the Amerada
Hess fund account. It would be interesting to determine which of
the projects proposed to receive Amerada Hess funding might
"qualify for federal match money". He asked whether the Kenai
Peninsula $11 million Kalifornsky Beach Road rehabilitation project
would be entirely funded by Amerada Hess funds or whether that
amount might be subject to a federal match. He suggested that the
entirety of projects in the Governor's Transportation Initiative
and the Governor's Transportation Access to Resources Initiative
should be re-evaluated in this regard.
Commissioner Barton responded that, "a vast majority of the
projects would be eligible for federal money": some would not
qualify and there are some to which it "would be a mistake" to fund
with federal dollars. He warned that in the determination of
whether or not to utilize federal money, "it should be kept in
mind" that there would be "a lot of strings attached" to the
project were federal funds utilized. "In general, it would lengthen
the time of the project and increase the cost of the project.
Typically the increase in time might run from one to three years"
depending on the type of project. Costs might increase between "ten
to thirty percent". These are the reasons that the Department
decided to use "non-federal money for these projects". The work
could be conducted "faster and cheaper".
10:24:16 AM
Co-Chair Wilken asked whether the typical match would have "a ten
to one" match requirement.
Commissioner Barton responded that road projects "typically"
require a ten-percent match; bridges have a twenty-percent match
requirement.
Co-Chair Wilken understood therefore that "in order to save a year
to three years and in order to save ten to thirty percent, we are
going to spend ten times as much of our money just to have those
two things." It is difficult "to understand the logic behind that."
Commissioner Barton expressed that the actions being proposed would
"expand the total investment". That is the key, as "the STIP is
fiscally constrained. This is an effort to increase the investment
in transportation in Alaska; not just re-slice it."
Co-Chair Wilken understood therefore that the discovery of an
alternate funding avenue that would allow the State to access the
federal ten to one match "would be okay as long as the projects are
built".
Commissioner Barton asked for further information.
Co-Chair Wilken suggested that perhaps one million dollars of
Garvee Bonds could be utilized to fund several of the Governor's
Transportation Initiative projects including the Glenn Highway
Corridor and Kalifornsky Beach Road. Such usage of those funds
would essentially "amount to free roads".
Commissioner Barton replied that that could be done; however, he
recommended against the use of Garvee Bonds. He recalled that
$103,000,000 of Garvee Bonds were issued in the year 2003; however,
the end result is that the State would be spending "$135,000,000 to
get $103,000,000 worth of pavement". Furthermore, "that money
counted against the STIP allocations", therefore, the State
actually "reduced the amount of money going into pavement" by
approximately $33,000,000.
10:26:41 AM
Commissioner Barton continued that other projects that were
scheduled in the STIP were delayed in order to accommodate that
payment. "Any device that adds to the transportation investment:
would be supported; however, he does not support the use of Garvee
Bonds. While they "could be a useful tool, this is not the place to
use them".
Co-Chair Green asked for suggestions as to where the use of Garvee
Bonds would be "a good solution".
Commissioner Barton responded that Garvee Bonds could be used in a
situation in which there would be "no alternative funds".
Co-Chair Wilken continued to voice dismay at spending ten times the
amount necessary "to build a road in order to save three years". He
questioned why the State would make a decision to build a road with
a 9-percent investment in it verses a 100-percent investment in it.
Commissioner Barton stated that one example would be the negative
impact of not completing the construction of a bridge in the
Fairbanks area in the timeframe that is required. This action might
delay the construction of the pipeline project. The cost of such a
delay should be considered.
Co-Chair Wilken agreed that each project must be viewed
independently. It would be difficult "to imagine" that a project
such as the Fairbanks: Richardson Highway - Northbound Chena
Overflow Bridge for Gas Pipeline, Reference Number 40444 in the
Governor's Transportation Access to Resources Initiative could not
be constructed "in a matter of three to four years". But to just
ask for a substantial amount of bonded indebtedness without
reviewing other funding sources "just to save time and the
heartache of an EIS" should be questioned. "That's the fallacy
behind the Governor's Amerada Hess proposal".
Commissioner Barton reiterated that the funding mechanisms for the
projects "would expand the total dollar we're investing in
transportation". The use of Garvee Bonds would not allow for such
expansion.
Co-Chair Wilken stated that this discussion should continue
"another day". It would be beneficial "to know which of the
proposed projects would qualify for federal match funds".
Commissioner Barton stated that this information would be willingly
provided.
Co-Chair Green stated that work is being conducted "to reconstruct
the previous STIP" as such things as road classification changes
have occurred. It has been argued that changes to construction
projects have occurred as the result of the Garvee Bond usage. The
affect of that is being investigated. Use of the general fund
rather than a federal match might also be the goal. A balance
should be obtainable.
Co-Chair Wilken stated that the use of Amerada Hess funds for
projects could be the focal point of the issue. While allowing that
the Commissioner has more experience with Garvee Bonds, he remained
unconvinced that they were not a viable option.
Co-Chair Wilken pointed out that while the Fairbanks: University
Avenue-Geist-Johansen Intersection improvement project, Reference
Number 40510, "is a nice thing", the real need "is to widen the
bridge". That, combined with widening the entire road, would
eliminate the bottleneck. This "is one of the most dangerous roads
in Alaska."
Co-Chair Wilken stated that the Governor's Transportation Access to
Resources Initiative North Slope: Bullen Point EIS project,
Reference Number 40447, has also been appropriated funding in the
FY 05 Fast Track Supplemental bill. To that point, he asked whether
the combination of these two funding sources would be sufficient to
complete the EIS process.
Commissioner Barton stated that the total cost could not be
calculated until the reconnaissance work is completed.
JOHN MACKINNON, Deputy Commissioner of Highways & Public
Facilities, Department of Transportation and Public Facilities,
shared that the Department is coordinating this project with the
Department of Natural Resources. The "goal is to permit the right-
of-way and the entire transportation corridor for road, pipeline,
and any other utilities" that might be needed from Prudhoe Bay to
Bullen Point. The Department has not issued guidelines in regards
to how the road or the corridor should be constructed; the goal is
to have "it poised so that it is in position to be constructed by
some entity". Both departments are endeavoring "to have the EIS
completed and an entity created that can accept the right-of-way
and a project ready to go".
Industrial Road Program
$10,000,000 Bond Funds
Reference No.: 39356
Category: Transportation
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/20005 - 06/30/2010
Phased - new project
Funding for Colville River Bridge and other industrial roads.
This project contributes to the Department's Mission by
improving the mobility of people and goods and increasing
private investment.
Co-Chair Wilken asked regarding the Crooked Creek and Yukon-
Kuskokwim River Ports and Roads component of the request that would
construct a road to connect the Donlin gold properties to a port on
the Kuskokwim River, as he had understood that the gold mining
companies rather than the State were to build that access road.
Mr. MacKinnon explained that during negotiations with Placer Dome,
"the likely developer of the Donlin property", a request was made
that the State not participate in the construction of the road from
the mine property to the river; that road would be constructed by
Placer Dome and would not terminate at the community of Crooked
Creek. Thus, the current proposal is that the State's participation
would be to construct a connecting road from that road to the
community of Crooked Creek.
Co-Chair Wilken surmised therefore that this road project could be
a lower priority than the other components of the Industrial Road
Program.
Mr. MacKinnon concurred.
Congressional Earmark Match
$15,000,000 Bond Funds
Reference No.: AMD 39037
Category: Transportation
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2010
One-Time Project
Funds needed to match congressional earmarks for State
infrastructure. This project contributes to the Department's
Mission by improving the mobility of people and goods and by
increasing private investment.
Co-Chair Wilken asked whether this request could be considered as
"just a place holder" or whether specific projects have been
identified to receive this funding.
Commissioner Barton replied that the federal funds pertinent to
this request would be anticipated over a five or six-year period.
The funds would be dependent on the outcome of the Reauthorization
Bill. The funds requested in this request would support the
Department's "anticipated first-year need".
Co-Chair Wilken asked whether a list of projects has been
identified or whether the funds would support earmarked projects.
Commissioner Barton replied that these funds would provide the
State Match to Congressional earmarked projects. The funds would be
divvied up according to that finalized project list.
Co-Chair Green understood that the earmark match requirement would
be approximately ten or 20 percent.
Commissioner Barton concurred.
Co-Chair Wilken continued to ask whether a list totaling
$15,000,000 has been developed.
Commissioner Barton replied that there is a list of earmarks that
would total approximately $15,000,000. He reiterated that this
request is "a best estimate" of what might be forthcoming from
Congress.
Co-Chair Wilken understood therefore that the $15,00,000 "is not
attached to any particular project".
Commissioner Barton agreed. "It is a composite of all the
earmarks."
Co-Chair Wilken surmised therefore that the total funding need
could fluctuate. "It could be become $20 [million] or ten
[million]" depending on the actions of Congress. Therefore, he
characterized the request as being "a placeholder".
Commissioner Barton noted that a similar request would be presented
each year for the balance of the reauthorization period, depending
on the funds provided by Congress.
Senator Stedman echoed Co-Chair Wilken's request that a
"comprehensive breakdown" of the projects proposed to receive
Amerada Hess funding be provided; it would be beneficial to
understand which of those projects might qualify for matching
funds.
Commissioner Barton affirmed that this information would be
provided.
10:37:01 AM
Senator Hoffman asked the total of federal receipts that would be
expected, including the amended requests.
Commissioner Barton stated that approximately $460,000,000 in
federal highway dollars "including the expected earmarks" would be
anticipated.
10:38:33 AM
Alaska Marine Highway System - Vessel and Terminal Overhaul
and Rehabilitation.
$6,500,000 Bond Funds
Reference No.: 30624
Category: Transportation
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 12/31/2006
On-Going Project
Annual maintenance and overhaul on vessels and at terminals,
particularly component or system failures which will impact
service in the short term. This project contributes to the
Department's Mission by reducing injuries, fatalities and
property damage and by improving the mobility of people and
goods.
Senator Stedman understood that the State has experienced "some
challenges" in respect to some vessels with aluminum construction.
Further discussion of this issue might occur at a later time.
Corps of Engineers - Harbors Program Formulation
$100,000 G/F Match
Reference No.: 7091
Category: Transportation
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2010
On-Going Project
Participation with the Corps of Engineers and local
governments in harbor breakwaters, dredging, feasibility
studies, and program assistance. This project contributes to
the Department's Mission by reducing injuries, fatalities and
property damage and by improving the mobility of people and
goods.
Co-Chair Green asked for further information regarding the GF
match.
Ms. Slagle responded that the Harbors Program Rehabilitation is the
funding that the State utilizes when working with communities to
develop harbor projects that would be submitted to the Corps of
Engineers. These projects would include such things as breakwaters,
dredging, and feasibility studies. The ultimate goal would be that
the Corps would provide the funding to actually construct the
project. This is an annual request to fund the project preparation.
Corps of Engineers - Harbors Program Construction
$2,600,000 G/F Match
Reference No.: 36453
Category: Transportation
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2010
Phased Project
Participation with the Corps of Engineers and local
governments in harbor breakwaters, dredging, feasibility
studies, and program assistance. This project contributes to
the Department's Mission by reducing injuries, fatalities and
property damage and by improving the mobility of people and
goods.
Ms. Slagle explained that this request "is to actually match the
Corps of Engineers' funding" for the Wrangell Heritage Harbor Float
Construction, Chignik Harbor Float Construction, and the Haines
Harbor Design project.
Hoonah Harbor Deferred Maintenance and Transfer
$3,500,000 Bond Funds
Reference No.: 37885
Category: Transportation
Location: Hoonah
Election District: Cordova/Southeast Islands
Estimated Project Dates: 07/01/2005 - 06/30/2010
One-Time Project
The city of Hoonah has actively pursued local ownership of
their harbor facilities, subject to the State addressing the
deferred maintenance issues, since 2002. The Hoonah Harbor
consists of the City float and Hoonah Harbor. This project
contributes to the Department's Mission by reducing injuries,
fatalities and property damage and by improving the mobility
of people and goods.
Co-Chair Green elaborated that the Deferred Maintenance and
Transfer program is the State's continuing attempt to transfer "the
authority and responsibility" for harbors to the local community.
Commissioner Barton concurred.
Co-Chair Green noted that this endeavor would require the State to
invest in upgrading harbors to certain standards prior to that
transfer.
Commissioner Barton affirmed.
Senator Stedman asked the amount of remaining Bond Fund money
designated to support this endeavor.
Commissioner Barton communicated that the Legislature authorized
the sale of these Bonds to support this program. While a dollar
amount had been specified for each community; the communities have
deemed the amounts insufficient. He could not recall the current
Fund balance, but allowed that an infusion of "50 percent more"
might satisfy the amounts specified by the communities.
Senator Stedman requested that the Fund balance and any claims upon
that balance be provided. He would have expected that the
Petersburg: North Harbor Deferred Maintenance and Transfer project,
Reference Number 39912, would have been one of the harbors
designated on the initial transfer list.
Commissioner Barton informed the Committee that the Harbor Transfer
Bond funds in its entirely has "been targeted" to specific
communities. Communities have requested that their allocation be
increased. None-the-less, the Department has attempted to honor the
Legislative intent regarding the amount specified for each
community.
Mr. MacKinnon informed Senator Stedman that the Petersburg North
Harbor was not included in the original two-year old transfer list.
Co-Chair Green understood that each community would be required to
fund the upgrades and then the State would reimburse the
expenditures 100-percent, up to the specified limit.
Mr. MacKinnon affirmed that a specified amount was determined for
each of the 26 or 27 harbors in ten communities. Transfer
agreements have been reached with nine communities. The delay in
reaching an agreement with the tenth community was due to an FAA
right-of-way concern regarding a seaplane float. That community was
able to accept three of its harbors because they were within the
city limits; however, two others that were outside the city limits
could not yet be accepted. Efforts are continuing in that regard.
Senator Stedman understood the "philosophical differences" between
the communities' harbor upgrade needs and the State's community
allotments. The $2,500,000 request associated with the North Harbor
transfer would not meet the $4,500,000 in upgrades required for
that harbor. While dissimilar to the gas pipeline, this harbor
transfer program could be included in the discussion regarding the
best use of Amerada Hess funds.
10:47:11 AM
Co-Chair Green asked whether the amount specified for North Harbor
was the initial determination.
Mr. MacKinnon affirmed that $2,500,000 was the original allocation.
CAPTAIN JOHN F. FALVEY, General Manager, Alaska Marine Highway
System, Department of Transportation and Public Facilities,
testified via teleconference from Ketchikan to address any
Committee questions.
Senator Stedman asked about the aluminum problems being experienced
by some State vessels, as referenced in an April 1, 2005 letter
[copy not provided] from Tom Lawson, Director, Division of
Administrative Services, Department of Fish and Game.
Captain Falvey explained that while there has been a problem over
the past few years with marine grade aluminum, which is a blended
aluminum, that aluminum has been identified and does not affect the
State's new fast ferries, the M/V Fairweather and the M/V Chenega.
The "bad" aluminum experienced cracking in certain stress areas
such as vessel transoms and steering components. The Marine Highway
System has been monitoring this issue closely. He noted that it is
possible that one of the Department of Fish and Game boats might
contain some of the bad aluminum.
Senator Stedman shared that one aluminum-boat manufacturer who
constructed a variety of boat sizes, including some "substantially"
large vessels, has gone out of business. The aluminum manufacturer
had warranted and replaced numerous boats, including large ones
such as the aforementioned Fish and Game vessel.
Captain Falvey affirmed that the aluminum has been identified and
that the vessels built with that aluminum have been identified. The
manufacturers or shipyards are correcting the problem.
Senator Stedman asked whether the correction might include a full
vessel replacement as opposed to limiting the replacement to the
"below waterline" exposure of vessel.
Capt Falvey responded that in some extreme cases, the complete
vessel has been replaced. He was unsure of the extent of the work
the Fish and Game vessel might require.
Senator Stedman responded that further discussions in this regard
would occur with the Department of Fish and Game.
Facilities Deferred Maintenance and Critical Repairs
$8,000,000 Bond Funds
Reference No.: 30632
Category: Transportation
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 09/30/2006
On-Going Project
To address the most critical deferred maintenance needs at
Department of Transportation maintained facilities. This
project contributes to the Department's Mission by reducing
injuries, fatalities and property damage and by improving the
mobility of people and goods.
Willow Maintenance Station Replacement
$350,000 Bond Funds
Reference No.: 36801
Category: Transportation
Location: Willow
Election District: Rural Mat-Su
Estimated Project Dates: 07/01/2005 - 06/30/2010
One-Time Project
Construction of the Willow maintenance shop will begin in the
Spring of 2005 and continue into 2006. This project
contributes to the Department's Mission by reducing injuries,
fatalities and property damage and by improving the mobility
of people and goods.
Chandalar Maintenance Station Replacement
$2,445,000 Gen Fund
Reference No.: AMD 32478
Category: Transportation
Location: Chandalar Lake
Election District: Interior Villages
Estimated Project Dates: 07/01/2005 - 06/30/2010
One-Time Project
Funding is for installation of essential items needed to
complete the new shop facility being constructed near Atigun
Pass. This included the HVAC (heating, ventilation, and air
handling) system, vehicle exhaust system, electrical system
and overhead crane. This is one of the most hostile
environments on the highway system. It is impossible to
operate equipment in this area without adequate warm storage.
This project contributes to the Department's Mission by
reducing injuries, fatalities and property damage and by
improving the mobility of people and goods.
10:53:02 AM
Ms. Slagle stated that this request would address the Department's
facilities deferred maintenance and replacement needs. Typically,
the budget has allowed for "an adequate level of operation".
Inadequate preventable maintenance funds could result in system
failures or delayed roof repairs. The list of deferred maintenance
needs is large and includes such things as door replacements, roof
repairs, and other issues. The Willow and Chandalar Maintenance
Stations were structurally inadequate and in need of being
replaced. The work on the new facilities has begun and this funding
would complete those projects.
Co-Chair Green recalled that the Chandalar project was included in
the Fast Track Supplemental bill.
Ms. Slagle clarified that the funding included in the Fast Track
Supplemental bill provided the funding to construct the shell of
the Chandalar building. This request would provide the funds for
the finishing work.
Co-Chair Green asked regarding the cost overruns associated with
the project.
Ms. Slagle explained that the bids for the shell construction
exceeded the Department's projections; thus, the need for the
supplemental request.
Co-Chair Green opined that, "Chandalar must be very special".
Co-Chair Wilken provided the Members copies of the aforementioned
Village Safe water "Rural Sanitation Funding Database, Division of
Water" spreadsheet [copy on file] that pertained to the Department
of Environmental Conservation presentation.
Co-Chair Green ordered the bill HELD in Committee.
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