Legislature(2009 - 2010)SENATE FINANCE 532
03/16/2010 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB230 || SB253 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 230 | TELECONFERENCED | |
| += | SB 253 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE BILL NO. 230
"An Act making and amending appropriations, including
capital appropriations, supplemental appropriations,
and other appropriations; making appropriations to
capitalize funds; and providing for an effective
date."
SENATE BILL NO. 253
"An Act making capital appropriations for deferred
maintenance projects, equipment replacement, and
emergency repairs; and providing for an effective
date."
9:08:12 AM
Co-Chair Stedman made opening comments. He referenced the
budget books entitled, "Governor's Proposed Capital Budget"
and "Project Review Listing - FY 2010 Deferred Maintenance
Amended" (copy on file).
UNIVERSITY OF ALASKA
9:12:22 AM
MARK HAMILTON, PRESIDENT, UNIVERSITY OF ALASKA, introduced
himself.
KIT DUKE, CHIEF FACILITIES OFFICER, UNIVERSITY OF ALASKA,
introduced herself.
MICHELLE RIZK, ASSOCIATE VICE PRESIDENT, STATEWIDE BUDGET,
UNIVERSITY OF ALASKA, introduced herself.
9:14:07 AM
DM AMD 45326
Maintaining Existing Facilities Renewal and Renovation
Annual Requirement
$37,500,000 GF
Ms. Rizk informed the committee that maintaining the
state's investment in facilities has been the Board of
Regent's top priority for many years. The University of
Alaska uses $6.7 million square feet, nearly 400 buildings
of various sizes and purposes, located throughout the
state. The average age of the facilities is thirty-one
years. The deferred maintenance bill includes $37.5 million
toward the annual requirement for maintaining existing
facilities and reducing deferred maintenance for the
university. The funding will be distributed to each major
academic unit (MAU) based on a formula of facility age and
size, times the weighted average age.
Ms. Rizk offered to provide information regarding the
number, size, and age of facilities per campus.
Ms. Duke discussed the list of projects that would be
funding by the $37.5 million. She pointed out that 73
percent of the university's square footage is more than 25
years old. The $37.5 million will cover replacement of
heating and ventilating systems, fire alarm systems,
flooring and wall finishes, and roofing projects. Many of
the projects are bid ready now. All of them can go out to
bid in 2010. Much of the funding should be spent in 2010
and through the winter of 2011. Also included in the
requests is money designated for energy conservation
projects, which will create some savings in the operating
budget. The projects will address needs at all campuses
statewide.
Co-Chair Hoffman requested a breakdown by campus. Ms. Duke
agreed to do so.
Co-Chair Stedman asked for information on each deferred
maintenance request.
9:16:21 AM
Ms. Duke began with the Anchorage science building renewal
request. The building needs to be refurbished due to
occupancy this past summer. There is also a request for
campus roof replacement and upgrades for heating,
ventilating, and air conditioning systems, and for fire
alarm panels. There is a need for a water system connection
at the Kenai River Campus and for a wellness center and
student life renewal project for Prince William Sound.
There is a boiler and exhaust fan replacement project at
the MatSu Campus, and a Kodiak Campus renewal, which
entails repair of mechanical and electrical systems.
Ms. Duke described deferred maintenance requests from
Fairbanks: Skarland Hall dormitory critical restroom
renovation, critical electrical distribution, critical
power plant repairs, and critical repairs for the waste
system. Also needed is Phase 4 revitalization for the
Tenana Valley Community Campus.
Ms. Duke highlighted projects at the Kuskokwim Campus and
energy conservation repairs for Kotzebue, Bethel, and Nome.
At the Juneau Campus there is a need for improvements in
the road entryway, as well as repairs to the Hendrickson
Building, to the parking lot, to a roof, and replacement of
fire alarms and the sewage lift station.
In Sitka, code corrections are being made to the main
building. A roof in Ketchikan is being replaced, as well as
an oil tank.
Ms. Duke listed statewide building projects - roofing
replacements and refurbishing the canopy to the main
Butrovich Building at UAF. At UAA, the Lake Building would
get a fire alarm system and lighting upgrades.
9:19:32 AM
Co-Chair Stedman requested an update on the status of
previously appropriated maintenance monies for the
university. Ms. Duke indicated that last year the
university received $3.2 million in repair and renovation
(R&R) funding. The previous year it received $47.5 million.
She offered to provide the balances for the past two years.
Co-Chair Stedman recalled the $47 million allocation. He
wondered what the rate of encumbrance was and if the money
had all been spent. He pointed out that last year the
legislature did not add projects. Ms. Rizk offered to
provide that information. She spoke of the challenges of R
& R funding. The university has received an average of $16
million of the $50 million annual requirement needed over
the last ten years. The funding has been sporadic.
9:21:51 AM
Ms. Duke added that a number of projects include advanced
design work that the department expects to be funded in the
next round of the governor's program. It is possible to
have a consistent program and prepare for the next round of
money so that spending takes place soon after the money is
appropriated.
Senator Ellis asked about the UAA Science Building renewal
for $6.8 million. He pointed out that the Blue Book lists
it at $11 million. He wondered about the difference in
amounts. Ms. Duke explained that under the $37.5 million
allocation, the apportioned share that would go to
Anchorage is $6.8 million. If additional funding were
available, more of the total project could be funded.
Senator Ellis concluded that the project really costs $11
million. Ms. Duke agreed. Senator Ellis continued to say
that because of some sort of regional proportionality, the
project is only allocated $6.8 million. Other funding would
have to be found from other sources in order to fully fund
the project. Senator Ellis requested clarification. Ms.
Duke explained that there is work that can be done for the
$6.8 million; however, it would be more efficient if the
department were able to fund the whole project at one time.
She pointed out that this item does not come under the
regional funding formula, but rather it is based on age and
square footage.
9:23:48 AM
Co-Chair Hoffman noted that out of the $37.5 million, the
Kuskokwim Campus received $100,000. He wondered how much
funding was allocated for phases three and four and what
that money would accomplish. Ms. Duke offered to find out.
Co-Chair Stedman asked about the funding request for $108.6
million, $88 million in general funds and roughly $20.6
million in non-general funds, for the Life Sciences
Building. He wondered how much the university would need to
move forward under a phased approach. Ms. Rizk spoke of
alternative options if the funding requested in FY 2011 was
not all available at once.
9:25:36 AM
BRIAN ROGERS, CHANCELLOR, UNIVERSITY OF ALASKA, FAIRBANKS,
explained the options as to how the Life Sciences facility
might be phased. The project includes $15 million to extend
a utilidor to the west ridge to provide heat and power. It
includes $7 million for relocation of a greenhouse and
construction of a replacement greenhouse for the
agricultural program. Those two pieces are severable.
Within the Life Sciences building, just the research wing
or the instructional wing could be constructed. He offered
to provide the financial picture for each scenario.
Co-Chair Stedman asked for clarification of the $15
million. Chancellor Rogers explained that $15 million would
only build the utilidor; $7 million would fund only the
greenhouse. It would cost $41.9 million to build the
instructional wing, and $52.2 million plus the university's
non-general fund authority for the research wing. The
latter two numbers include the utilidor and greenhouse. Co-
Chair Stedman said he was struggling with the process of
funding everything in the Life Sciences Building.
9:27:44 AM
Ms. Rizk asked if there were further questions.
Senator Olson asked about funding for the Kotzebue and Nome
Campuses. Ms. Duke said the category is Community Campus
(CC) Energy Conservation for $768,700. Ms. Rizk added that
it is listed as UAF CC. Senator Olson asked if the goal is
to make it more energy efficient. Ms. Duke said it was
intended to curb rising utility costs in rural areas.
Senator Thomas asked for the total dollar amount for
backlogged maintenance projects. Ms. Duke reported that the
dollar amount was about $1 billion. She did not know the
number of projects. Senator Thomas asked if the list was
prioritized and if the intention was to spread the funding
down the list as much as possible. Ms. Duke said that was
true. Senator Thomas observed that with only $37.5 million
allocated for deferred maintenance, it will take a while to
fund $1 billion-worth of projects. Ms. Duke agreed.
Co-Chair Hoffman asked how the project rankings are
determined, and how the cutoffs and distributions at each
campus are decided. He pointed out that his initial request
was for $3.1 million for UAA, $1.8 million for UA CC, $23
million for UAF, and $.8 million for UAF CC.
9:31:31 AM
Ms. Duke explained the formula used to decide on funding.
The square footage and the age of the square footage
determine a formula for each campus. The projects are
prioritized by the MAU as far down the list as the funding
allows. The most urgent projects at each campus are given
priority. She noted it was a typical way of addressing
deferred maintenance funding.
Co-Chair Hoffman deduced that there was a scientific method
used to calculate the numbers. President Hamilton clarified
that the methodology for determining the funding is a
nationally-used formula. He continued to detail how
deferred maintenance items are funded. He emphasized that
the request was for the amount needed every year for
maintenance in order to prevent the need for deferred
maintenance. The standard number to achieve that goal would
be about $50 million per year. He related that the
allocation is set up to project funding out five years.
9:34:58 AM
Co-Chair Stedman pointed out that the university has
substantially less square footage than the state. If the
state tried to keep up on maintenance projects using the
same formula, the number would be very large. President
Hamilton noted that many of the state buildings are leased
and the maintenance falls to the owner, rather than the
state.
CAP RN 43172
UAF Life Sciences Classroom and Lab Facility
$20,625,000 Univ Rcpt
$87,975,000 COP's
Ms. Rizk highlighted the UAF Life Sciences Building request
and emphasized the importance of the request. She listed
the reasons why the request is needed now. The new facility
will replace cramped quarters and antiquated teaching space
and integrate teaching and research in biological,
wildlife, and biomedical services. The university will be
able to attract top students, faculty, researchers, and
research grants.
Ms. Rizk referred to Senator Hoffman's question about why
it is important to build the Life Sciences Building now.
She reported that great financing is available now and
construction costs are lower. The university is ready to
take advantage of federal priorities and make available
research needed at the national level.
Ms. Rizk reported on a critical need for space. She spoke
of the significant economic impacts from this project, such
as $170 million in direct and indirect economy output
during construction and 370 construction workers employed,
with an annual payroll of $80 million.
She referred to a McDowell Group report which explains the
economic impacts of the Life Sciences project and a
brochure which details some of the specifics of the
facility.
9:39:07 AM
Co-Chair Stedman asked what the next university project
would be. Ms. Rizk referred to the 10-year capital plan and
said there would be another request next year.
Co-Chair Hoffman referred to the university receipts list
and asked how the amount of $20.6 million relates to the
total project cost. Ms. Rizk explained that the bond
payment would be made through the additional indirect cost
recovery (ICR) that UAF believes it can generate from the
facility. Considering the approximately $1.6 million annual
debt payment, the amount was what UAF figured it could
afford by including the ICR.
Senator Thomas asked if federal receipts totaled $130
million for research grant money in 2007. He asked if that
figure was used when trying to determine the economic
impact of the Life Sciences Building.
Co-Chair Hoffman asked for information about anticipated
operating costs and staffing needs. Ms. Rizk reported that
operating costs are expected to be $2.6 million, of which
about $1 million would be for maintenance and operations,
and $1.6 million would be for maintenance and repair. There
would be new positions including maintenance staff and 1.5
teaching assistance positions to cover lab sessions. Those
positions would be covered by non-general funds.
Ms. Rizk explained that the faculty positions currently
exist. She spoke of Life Sciences priorities in the FY 2011
budget, and detailed the positions expected. She said they
were included in the operating budget request.
Co-Chair Hoffman asked how much of the $2.6 million is in
the current operating budget. Ms. Rizk explained that the
$2.6 million request is an additional, future-year request
and would be included in four years.
9:44:01 AM
Co-Chair Hoffman asked what the plans for the existing
facility were. Ms. Rizk replied that programs were still
being evaluated to see which would be best suited for the
vacated spaces. Renovation costs are included in the R & R
list. Ms. Duke added that the space may be used by
researchers and funded by research grants.
Senator Thomas asked for information about general
obligation (GO) bonds versus certificates of participation
(COP's). He thought the COP's would provide a lower rate
when the Build America Bonds are factored in.
9:46:06 AM
Ms. Rizk addressed Senator Hoffman's question about who
would inhabit the old building. She added that the faculty
currently housed in ATCO modular buildings, as well as some
new faculty, might move into the vacated space.
Senator Ellis stated that he was a supporter of the Life
Sciences project and the engineering program expansion at
UAF and UAA. He asked how the engineering buildings ranked
in the regent's priority list. He wondered how the demand
for more engineers would be met. He spoke in favor of
expanding the engineering program. He requested more
information about meeting the demands in that area.
President Hamilton predicted that engineering facility
expansion would be the regents' number one priority next
year. Senator Ellis agreed with that direction. Ms. Rizk
added that the Board of Regents had decided that
engineering was the next priority.
9:48:41 AM
CAP RN 49199
Feasibility Study for Community Campuses
$1,400,000 GF
Co-Chair Stedman asked about the feasibility study on
community campuses. Ms. Duke explained that the money was
intended to take a holistic look at the needs of the
community campuses and facilitate a professional approach
to development of those campuses.
Co-Chair Stedman asked if the requests were ranked by
priority. Ms. Duke said the MAU's rank the projects. Ms.
Rizk added that the University of Alaska's number one
priority is deferred maintenance. The Life Sciences
facility is the number one priority for new construction.
The community campus feasibility study is the next
priority.
Co-Chair Stedman summarized that deferred maintenance is
first; the Life Science building is second. Ms. Rizk
concurred. She said that the Board of Regents prefers to
take care of existing facilities first - a number one
priority for over a decade.
DEPARTMENT OF TRANSPORTATION
9:51:01 AM
DM RN 49567
Deferred Maintenance Projects
$25,000,000 GF
FRANK RICHARDS, DEPUTY COMMISSIONER, HIGHWAYS & PUBLIC
FACILITIES, DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES, reported that the department received a $25
million allocation in the deferred maintenance request from
the governor. Within that allocation, 193 specific projects
have been identified. There are sub-allocations for
aviation, facilities, harbors, marine highway and highway
functions. He explained that the allocations were made
based on deferred maintenance needs across the spectrum. He
reported that the department calculated about $750 million
worth of deferred maintenance needs and made sub-
allocations based on those needs. Within each mode, safety
requirements, security, preservation, and regulatory
categories were considered. Specific work types were also
examined.
Mr. Richards listed the primary needs in aviation: life
safety, gravel surface repairs, fencing and gates, drain
improvements, asphalt repairs, electrical repairs and
parts, and vegetation management. He detailed the needs
under the marine highway category: safety and life at sea
requirements, fire detection and prevention, emergency
response, and international codes. Under facilities, the
priorities are: electrical upgrades, elevator upgrades,
roofing, heating, power generation, and hoist replacements.
For highways, the bulk of the requests are for: vegetation
management, gravel surfacing, asphalt repair, guardrail
repair, traffic signals and signs, drainage, culverts,
bridges, and high light tower repairs.
Mr. Richards reported that the governor was very interested
in job creation, so the department has decided to provide
contracts in order to accomplish the work in a timely
manner. As soon as the department receives the
appropriation, it can initiate the contracts and begin work
this summer. The department anticipates using approximately
80 percent of the $25 million allocation for contracts, and
the remaining 20 percent allocated to state forces. Of that
20 percent, the majority will be used to purchase materials
and to rent equipment.
9:54:17 AM
Mr. Richards spoke of the goal "to get these projects out
on the street to address those deferred maintenance items
across the modes in the very near term." He offered to
discuss individual requests.
Co-Chair Stedman suggested looking at each page of the
spreadsheet.
Co-Chair Hoffman asked about the location of Quartz Creek
Airport - item 10. Mr. Richards said it was on the Kenai
Peninsula along the Sterling Highway.
Senator Olson inquired about item 9 - Koyuk & Stebbins
Brush Cutting. Mr. Richards could not provide information
about the two airports. Senator Olson said the department
could report back with the information.
9:56:19 AM
Co-Chair Stedman asked if there were any questions on page
2. Senator Olson referred to a recent accident at the
Kodiak Airport. He wondered which airport the accident was
at. Mr. Richards said it was at the main Kodiak airport.
Senator Olson asked if anything on the deferred maintenance
list contributed to the accident. Mr. Richards did not know
of any airport features that contributed to the accident.
Senator Olson wanted to rule out incomplete maintenance as
an issue.
Co-Chair Stedman asked if there were any questions on pages
3 or 4.
9:57:36 AM
Senator Huggins asked an aviation-related question. He
brought up the topic of the Iditarod Race and the
challenges it brings to the Willow community and to the
airport complex. He asked why the Willow airport is not
included on the list. Mr. Richards explained that the needs
at Willow are capital expenses, not deferred maintenance
needs. Senator Huggins reiterated the challenge that
exists.
9:59:18 AM
Senator Thomas asked if local hire is a primary focus for
small maintenance projects such as brushing. Mr. Richards
replied that in most rural airports there is a local
contractor who deals with snow removal and who is also used
for other types of small maintenance projects.
10:00:32 AM
Co-Chair Stedman asked for information about upgrades to
the Taku, which are listed on several pages. Mr. Richards
deferred to Mr. Beedle.
JIM BEEDLE, DEPUTY COMMISSIONER, MARINE HIGHWAY, DEPARTMENT
OF TRANSPORTATION AND PUBLIC FACILITIES explained that the
Taku request is one of three Safety of Life at Sea (SOLAS)
vessels, which means it is certified to go into
international waters. If the upgrades are not done, it can
no longer go into Prince Rupert on a year-round basis.
10:01:47 AM
Senator Olson asked for more information about the aviation
building in item 1 on page 10. Co-Chair Stedman thought it
was in Anchorage. Mr. Richards said that was correct. He
said it is on Aviation Drive, the DOT regional
headquarters. Senator Olson asked what the elevator was
needed for. Mr. Richards explained that the request was for
repairs on an existing elevator.
Mr. Richards referred to the highway deferred maintenance
sub-allocation on page 11. He explained that the work
products are broken down into various work activities. For
example, the topics begin with vegetation management
followed by gravel surfacing, asphalt surface repair, and
guardrail repair. There were no further questions on pages
12 - 16.
10:03:20 AM
Co-Chair Stedman asked when the deferred maintenance work
will be done. Mr. Richards hoped to complete as much work
as possible this coming summer or by next summer. For rural
projects dependant on a barge schedule, it is important to
know the amount of the appropriation in order to order
materials.
Senator Olson returned to number 10 on page 1, the Quartz
Creed Airport, and asked what communities the airport
serves. Mr. Richards reported that it was in District 34,
the Kenai Peninsula. Co-Chair Stedman requested further
information on the location.
10:05:42 AM
CAP RN 47583
Alaska Aviation Safety Program
$500,000 Fed Rcpts
$250,000 Gen Fund
LAURA BAKER, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES,
explained the request for the Alaska Aviation Safety
Program. The funding is used to do research for safety
needs for private pilots and small commuters. The request
will fund a staff person and the general fund will be
matched by a federal grant. The program has recently
purchased a simulator to allow pilots to test out terrain.
10:08:22 AM
Senator Egan asked if the original request was for $500,000
and the total $1 million. Ms. Baker explained that the
historical funding is shown on the request page. Last year
the program received $400,000 in federal funds and $400,000
in general funds. The department did go through a review
process. At this time the department does not have a full
financing plan for anticipated federal receipts. The match
reflects the minimum allowable to keep the program running
until more information is available.
Co-Chair Hoffman asked where the simulator is located. Ms.
Baker thought one was in Anchorage and one was set to be
purchased. Co-Chair Hoffman mentioned a program in Western
Alaska that graduates pilots. He wondered if the simulator
was being used for similar training. Ms. Baker was not
aware that is was a training program, but rather an option
for current pilots to use. Co-Chair Hoffman suggested the
simulators might be better used for training, especially in
rural areas.
10:11:28 AM
Senator Huggins asked who has the lead on the aviation
mapping project. Ms. Baker was not sure. She thought DNR
and the university were involved. Senator Huggins requested
follow up on the question.
Senator Olson asked about the mapping method and the
possibility that it competes with private organizations in
Anchorage. Ms. Baker offered to find out. Senator Olson
wondered if personnel would be hired with the funding for
the Aviation Safety Program. Ms. Baker said of the $750,000
request, a portion is providing for an employee that will
be located in Aviation Operations in Anchorage. The rest of
the work would be done through contracts. Senator Olson
stated that one person would be hired. Ms. Baker clarified
that the person has already been working on the project for
several years.
10:13:45 AM
CAP RN 30624
Alaska Marine Highway System: Vessel and Terminal
Overhaul and Rehabilitation
$8,000,000 Gen Fund
Ms. Baker referred to RN 30624 on page 3. She explained
that certain requirements are needed in order to keep the
vessels operational. They are scheduled during each
vessel's annual maintenance.
CAP RN 32534
Capital Improvement Program Equipment Replacement
$1,500,000 CIP Rcpts
Ms. Baker discussed RN 32534 on page 6. She explained that
these are equipment needs that are related to project
costs. They have to be run through the department's
indirect cost allocation because they cannot be funded by
federal program dollars.
CAP RN 30648
MH Coordinated Transportation and Vehicles
$800,000 GF/MH
$250,000 MHTAAR
Ms. Baker explained that RN 30648 on page 7 is an annual
request for transit funds for Mental Health Trust
beneficiaries.
CAP RN 36453
Corps of Engineers-Harbor Program-Saint Paul
$700,000 GF Match
Ms. Baker reported that RN 36453 on page 9 represents the
last portion of the match funds that are needed to complete
this project.
CAP RN 48926
Highways and Facilities
$7,022,000 Gen Fund
$15,000,000 Hwy Capitl
Mr. Richards detailed RN 48926, page 10. He noted there
were sub-allocations for $22 million. The first sub-
allocation is RN 6391 for Americans with Disabilities Act
Compliance Projects. This funding will be used to address
needs within buildings for ramps, access restroom upgrades,
and automatic doors.
10:16:22 AM
CAP RN 48797
Central Region Signal Malfunction Management Units
$22,000 Gen Fund
Mr. Richards explained RN 48797 on page 12. The request is
for control units within the boxes at intersections outside
the municipality of Anchorage, primarily in MatSu and
Kenai.
CAP RN 49031
Highway Safety Corridors Near-Term Improvements
$5,000,000 Gen Fund
Mr. Richards detailed RN 49031, page 13. The highway safety
corridors are portions of highways where there are major
accidents and fatalities. The allocation will be used for
near-term items such as information signs, improved
intersections, and traffic signals in order to improve
safety on those highways.
CAP RN 48754
Manley Hot Springs Shop/Snow Removal Equipment
Building (SREB)
$900,000 Gen Fund
Mr. Richards turned to RN 48754 on page 14. The department
is building a new airport in Manley Hot Springs using FAA
funds. It will include a snow removal equipment building.
There is also a highway maintenance station. General funds
will be needed to add square footage to the airport
building in order to allow the department to end a lease
agreement for a substandard building.
10:17:58 AM
Co-Chair Hoffman asked for a list of snow removal equipment
buildings planned for rural Alaska in the next three years.
Mr. Richards agreed to do so.
CAP RN 48855
Northern Region Bike Path Equipment
$100,000 Gen Fund
Mr. Richards explained RN 48855 on page 15. The funding
will pay for snow removal equipment - a bobcat, pickup
plow, and sweeper - in order to comply with federal highway
requirements.
Co-Chair Stedman mentioned a previous discussion about
federal government requirements for snow removal on
walkways. He requested more information how that issue is
handled statewide. Mr. Richards responded that the Federal
Highway Administration grants the state money to construct
highways and ancillary facilities; however, they do not
maintain the ancillary facilities. The legislature has
provided money to address snow removal needs in Anchorage,
Juneau, and Fairbanks. The priority list includes main
highways, secondary highways, school bus routes, and
finally, ancillary routes like sidewalks and bike paths.
The equipment request will allow the department to address
snow removal on ancillary routes.
Senator Huggins noted a challenge in MatSu is lack of
pathways.
10:21:05 AM
CAP RN 48765
Slana Maintenance Station Bunkhouse
$350,000 Gen Fund
Mr. Richards addressed RN 48765 on page 16. He informed the
committee about the difficulty of hiring and retaining
employees at the Slana Station. Building a bunkhouse and
implementing a new schedule should help resolve that
problem.
CAP RN 30628
State Equipment Fleet Replacement
$15,000,000 Hwy Capitl
Mr. Richards addressed RN 30628 on page 17. This request is
the authority to spend the highway working capital fund in
order to replace old equipment.
CAP RN 41394
Statewide Anti-icing Program
$150,000 Gen Fund
Mr. Richards noted RN 41394 on page 18 allows for continued
funding for anti-icing equipment. An experimental salt
brine is currently being used in Southeast Alaska and will
be expanded to other areas.
Co-Chair Stedman requested additional information about
chemicals used for the purpose of de-icing the roads. Mr.
Richards responded that a magnesium chloride salt was
previously used, but now sodium chloride with a corrosion
inhibitor added, which is less costly, is used. The
corrosion inhibitor safeguards the vehicles. The goal is to
use an abundant, less costly product.
Co-Chair Stedman pointed out that people have a different
impression.
Senator Egan asked about corrosive studies regarding de-
icing chemicals. Mr. Richards responded that a study was
done by the Pacific Northwest Snow Fighters Association, a
group made up of state DOT's and salt manufacturer
suppliers.
10:25:17 AM
CAP RN 48921
Regulatory Compliance
$2,041,000 Gen Fund
Mr. Richards turned to RN 48921 on page 19, an
appropriation with suballocations RN 48798 and 48852.
CAP RN 48798
EPA MS 4 Requirements-Municipality of Anchorage Sand
Storage Facilities
$1, 041,000 Gen Fund
Mr. Richards detailed RN 48798 on page 20. Under the
current permit beginning on February 1, 2010, there is a
requirement by EPA to provide covered sand storage
facilities in Anchorage by February 1, 2014. This initial
allocation will fund the design efforts for three
buildings; one in Girdwood, one in Birchwood, and one in
Anchorage.
Co-Chair Hoffman asked why the funds are multiplied by 14
in 2012, totaling $14 million. Mr. Richards replied that
based on conceptual designs, $14 million would be needed to
construct the buildings. The initial allocation for $1
million is to come up with a design package resulting in
construction by 2014. Co-Chair Hoffman asked if additional
operation dollars would be required. Mr. Richards
anticipated on-going operational costs of $185,000.
CAP RN 48852
Statewide: GIS Mapping of Storm Drainage Systems for
EPA MS 4
$1,000,000 Gen Fund
Mr. Richards explained RN 48852 on page 21. The request is
also for compliance with EPA permit MS 4. A target date is
February 1, 2013. This is the state's portion of GIS
mapping. The state will work with Anchorage on the project.
Senator Thomas understood that University of Alaska has a
very extensive GIS program. He suggested contacting the
university regarding their program. Mr. Richards offered to
look into potential collaboration.
Co-Chair Stedman inquired if all projects fell under the
Statewide Transportation Improvement Program (STIP). Mr.
Richards reported that the projects are not in the STIP
program, but rather are general fund requests.
10:29:01 AM
Senator Huggins asked about an area in Eagle River that is
commonly flooded every year. He wondered if a solution
would result from the mapping project.
Mr. Richards thought Senator Huggins was referring to a
subdivision next to the Glenn Highway. He explained that
the surface waters are impacting the homeowners. The
department is working with the municipality to put in a new
cross culvert. That work is slated to be completed this
summer. Additional work within the subdivision is necessary
to capture the water and direct it to the culvert.
CAP RN 48941
Roads to Resources
$15,000,000 Gen Fund
Mr. Richards explained RN 48941 on page 22, an
appropriation with sub-allocations. The first project is RN
41390 - Dalton Highway Including Surfacing Materials. The
legislature has been supportive of work on the Dalton
Highway over the last four years, providing almost $29
million to address heavy maintenance for surface drainage
and embankment efforts. This allocation allows that work to
continue and addresses approximately 59 miles of road to
repair permafrost degradation, raise the grade, and place
delineators.
Co-Chair Stedman concluded that none of the projects were
STIP projects and none would obligate or alter the forward
STIP process. Mr. Richards responded that the projects are
general fund projects and address maintenance needs. There
are STIP projects for the Dalton Highway, but not in these
areas at this time. There is no overlap of the projects.
Co-Chair Stedman noted a concern if the STIP projects are
altered. He clarified that there is no obligation of funds
for future projects.
10:32:13 AM
Senator Thomas noted that the Haul Road was lengthy and
required much work. He pointed out that there appeared to
be about $9 million over a two-year period of time for road
maintenance. He asked if there was any other maintenance
money.
Mr. Richards responded that there was an annual maintenance
budget for $16 million to cover the responsibilities of the
work crews along the 414 miles of highway. There is also
$14 million in the GO Bond allocated to the Dalton Highway.
Senator Thomas asked if Steese Highway intersections were
funded by the GO Bond. Mr. Richards believed so.
Senator Egan mentioned new types of delineators which
provided better visibility for drivers. He wondered if the
department had considered using them. Mr. Richards said
that there is a federal program project specifically
designed to install those new delineators.
Co-Chair Stedman pointed out the difference in past and
present definitions of Roads to Resources. In the past it
was defined as opening up new roads to new areas;
currently, it seems to be geared for maintenance use. He
wondered if there had been a philosophical shift by the
administration.
10:35:48 AM
Mr. Richards did not think there had been a philosophical
shift. He observed that maintenance of the Dalton Highway
is extremely important to the state because it leads to
North Slope oil fields. The next project listed is intended
to open up lands to provide better access to extracting
natural resources within the state.
CAP RN 39356
Roads to Resources Program
$1,000,000 Gen Fund
Co-Chair Hoffman stated that in the last four years, the
legislature has appropriated $42 million for Roads to
Resources. This year the request is only for $1 million. He
said he was interested in four projects: Links on the
Alaska Peninsula and Bristol Bay, Pebble Copper North of
Lake Illiamna, and the Williamsport to Pile Bay Road. He
wondered what product would result from the $1 million
appropriation. He also wondered about the drastic reduction
of the request.
Mr. Richards addressed the dollar value for the program. He
noted two additional projects in the program, the Western
Alaska Access Planning Study and the road to the Gubik Gas
Fields. The million dollar request will provide road access
to mining and timber sites - the smaller projects. Previous
years' funding has been used for the road to Umiak and for
roads to access timber sales.
Co-Chair Hoffman asked about why Donlin Creek with $32
billion of resources is not listed as a candidate for Roads
to Resources. Mr. Richards spoke of conversations with the
developers and about a federal earmark for the project.
Mixed messages were received. The developers had the
perspective of developing the road themselves so it would
not be a public road.
10:40:02 AM
CAP RN 48781
Roads to Resources: Western Access Project-Phase 1
$1,000,000 Gen Fund
Mr. Richards informed the committee that RN 48781 on page
26 is also known as the Road to Nome. It is a 500 mile
road. Preliminary studies have been done. The funds would
be used for an environmental assessment and preliminary
engineering studies.
Co-Chair Stedman wondered if the project would ever be
constructed. He preferred to see less design and more
action. Mr. Richards explained the efforts needed prior to
construction, such as environmental impact permits.
Co-Chair Stedman asked how much it would cost to finally
construct the road. Mr. Richards said the entire project is
500 miles long and would cost approximately $2.3 to $2.7
billion. Co-Chair Stedman asked how many federal dollars
would be used. Mr. Richards explained that general fund
dollars would be used, rather than federal funds, in order
to lessen costs and time.
10:44:07 AM
Co-Chair Stedman pointed out a trend to use general funds
on new road projects. When looking at smaller projects such
as a road in Kake, general funds are not forthcoming;
instead money is allocated for design. He wondered how to
get away from design planning and actually build something.
Mr. Richards spoke of the requirements when designing and
building roads due to state and federal statutes. Roads to
Resources' goal is to open lands in order to provide jobs.
Various impacts have to be taken into consideration.
Co-Chair Stedman looked at the history of road construction
over the last 30 years. He expressed frustration over the
time delays. He used an example of $5 billion for one
project versus smaller dollar amounts for smaller projects.
He expressed frustration regarding the inability to get
small roads in Southeast Alaska built. He termed it
"political theater."
10:50:00 AM
Senator Olson inquired how many requests would involve
community input in Native land areas. Mr. Richards stated
that there is public process in the following projects:
Western Access and Foothills West. Senator Olson concluded
that none of the money would be used for future hearings in
the communities. Mr. Richards clarified that there would be
community involvement.
Senator Olson agreed with Co-Chair Stedman's frustration
about the delayed-time factor and excessive bureaucracy in
road projects.
10:52:31 AM
Senator Thomas was not sure that the road to Nome, as
defined, would connect the road to accessible mineral
projects. He suggested an alternative.
Mr. Richards agreed with Senator Thomas's comments about
the access road.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 230 2010 02 26 OMB re FY11 Cap Process.pdf |
SFIN 3/16/2010 9:00:00 AM |
SB 230 |
| Project review listings for DM projects White.pdf |
SFIN 3/16/2010 9:00:00 AM |
SB 253 |
| Project review listings for amended DM projects Green.pdf |
SFIN 3/16/2010 9:00:00 AM |
SB 253 |