Legislature(2009 - 2010)SENATE FINANCE 532
03/16/2010 03:00 PM 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."
3:02:00 PM
Co-Chair Stedman discussed housekeeping.
DEPARTMENT OF TRANSPORTATION
CAP RN 48782
Roads to Resources: Foothills West
$8,000,000.
FRANK RICHARDS, DEPUTY COMMISSIONER, HIGHWAYS & PUBLIC
FACILITIES, DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES, testified that the proposed road would provide
access to the community of Umiat and the Gubik Gas Fields.
He stated that the $8 million would fund additional
development for the National Environmental Policy Act, and
environmental documents and permits necessary to construct
an all-season road between the Dalton Highway and the state
airport at Umiat. The efforts would not obligate the state
to build the road, but would reduce the lead time required
before construction could commence. State land within the
Central North Slope of the Brooks Range, contain 17 areas
rich in natural gas. The United States Geological Survey
estimation was that there were 31 trillion cubic feet of
natural gas in the vicinity. The National Petroleum
Reserve-Alaska, located next to Umial, contains a potential
additional 51 trillion cubic feet of gas. Specifically at
Umiat, the Division of Oil and Gas had refined resource
estimates totaling 590 million barrels of oil and 7
trillion cubic feet of gas within the road influence area.
Currently explorers in the area are building ice roads,
which through tax credits are costing the state $25 million
per year. The project contributes to the department's
mission by improving the mobility of people and goods.
3:05:28 PM
Senator Olson asked if a right of way for the natural gas
pipeline, and not solely a road, had been included in the
environmental impact statement. Commissioner Richards
replied that a transportation corridor was being examined
that included the road and utilities, including pipelines,
to extend from the Dalton Highway to Umiat.
3:05:57 PM
Senator Thomas inquired about the expected cost and
timeline to build the road. Commissioner Richards replied
the current estimate was $3 million per mile. Thusly, 75
miles to Gubik would cost $225 million. He stated that the
development efforts put forth by the department were
similar to the efforts that Exxon was investing in Point
Thomson. He suggested a 2 to 3 year timeline to complete
the environmental impact statement.
Senator Huggins asked where crossing sites were located on
the department's priority list. Commissioner Richards
replied that identifying crossing sites had been recognized
as a need, but had not yet been worked into the program.
3:08:43 PM
Senator Huggins recalled a 2008 meeting of Anchorage
communities where an inventory of gasline support projects
had been identified. He questioned the status of the
inventory and whether it was currently being used by the
department. Commissioner Richards replied that the list was
still being referred to and that the department intended to
use federal highway dollars to fund the projects.
3:09:56 PM
Commissioner Richards continued to the statewide federal
programs section of the request.
CAP RN 34752
Commercial Vehicle Enforcement Program
$1,600,000
LAURA BAKER, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES informed
the committee that the federal funding would provide
financial assistance to the program for the prevention of
accidents during hazardous material transportation.
Co-Chair Stedman asked if the safety inspections would be
limited to commercial vehicles. Ms. Baker understood that
the implication was for commercial vehicles. Commissioner
Richards added that the department had worked within the
existing regulations. He shared that there had been an
issue concerning intra-state and inter-state commerce, and
that a mechanism to allow the two uses to be legal under
current state statutes was being discussed.
3:11:31 PM
CAP RN 31375
Cooperative Reimbursable Projects
$13,500,000
Ms. Baker explained that the request was made up of $12
million in statutory designated receipts, and $1.5 million
in federal receipts. The receipts were for services that
were provided to other state and non-state agencies. If a
program required special drilling requirements, or other
work that the Department Of Transportation and Public Works
(DOT) had expertise for, a reimbursable service agreement
would be entered in order to carry out the work.
3:12:44 PM
Co-Chair Hoffman asked for a description of the Rural Dust
Control Demonstration Project. Commissioner Richards
replied that he did not have the cost amount of the
projects offhand. He shared that the department had been
working with the Denali Commission and other regional non-
profit organizations on the project. He agreed to provide
the committee with individual project specifics.
CAP RN 31376
Federal Contingency Projects
$15,000,000
Ms. Baker explained that the allocation would allow for
discretionary funding for highways, airports, or projects
that arose late in the year that need federal authority to
complete the work within a given season. The federal agency
funds lapse September 30, 2010, and state books close on
August 30, 2010. The formula funds would allow the state to
complete the work that had already begun.
CAP RN 38424
Federal Emergency Projects
$10,000,000
Ms. Baker shared that the funds were for projects that had
been declared "emergency projects" under the Federal
Highway Administration Program, and that needed repair or
reconstruction due to damage from natural disasters.
3:15:35 PM
CAP RN 30643
Federal Transit Administration Grants
$9,000,000
Commissioner Richards explained that due to the program the
state would receive funds, which through a departmental
granting process could seek solicitation by means of
transit agencies in order to provide capital grants for
vehicles, project administration, training, and small
operating expenditures.
3:16:16 PM
CAP RN 6896
Federal-Aid Aviation State Match
$8,600,000
Ms. Baker explained that the request was for a federal aid
match for aviation improvements. She said that state match
to the federal formula dollars were put in a separate
appropriation to avoid individual pockets of general funds.
3:16:59 PM
Senator Thomas asked about CAP RN 38424. He wondered what
happened to the unused disaster funds. Ms. Baker replied
that a disaster declaration from the governor would be
necessary to access the funds. The funds were federal
receipt authority, not "money in the bank".
3:17:36 PM
CAP RN 32609
Federal Aid-Highway State Match
$36,000,000
Ms. Baker explained that the match was required for surface
transportation and other projects.
CAP RN 33485
Highway Safety Grants Program
$5,500,000
Ms. Baker stated that the federal receipts fund programs
that facilitate communication with the public on seat belt
laws and other highway safety training, networking and
advertising programs.
CAP RN 41923
Other Federal Program Match
$1,210,000
She stated that the funds were for non-aviation or surface
transportation federal programs.
3:19:24 PM
CAP RN 34018
Statewide Safety Program
$12,200,000
Commissioner Richards explained that the funds could only
be used for specific safety related programs.
Co-Chair Stedman asked if the department would present a
priority list of projects to Legislative Budget and Audit
(LB&A). Commissioner Richards replied that when the
department received the funds they were spent on specific
safety related projects. If granted the authority, the
funds may be used to address other, non-specific issues
pertaining to traffic safety.
3:21:04 PM
CAP RN 7470
Airport Improvement Program
$256,754,250
Commissioner Richards gleaned the list of airport
improvement requests.
CAP RN 47751
Bethel: Airport Master Plan Update
$350,000
CAP RN 49164
Cold Bay: Airport Improvements
$6,000,000
3:22:06 PM
CAP RN 40555
Cold Bay: Airport Rescue and Firefighting Building
$600,000
Commissioner Richards explained that the existing building
was too small to accommodate the new generation of vehicles
and needed to be upgraded.
CAP RN 43255
Chefornak: Airport Relocation
$6,400,000
Commissioner Richards informed the committee that the
request would fund the second stage of the runway
relocation project through to completion.
CAP RN AMD 43240
Deadhorse: Airport Master Plan
$150,000
3:23:00 PM
Commissioner Richards continued.
CAP RN 41530
Fairbanks International Airport: Environmental
Assessment and Cleanup
$300,000
The project would address environmental issues on vacant
lease lots by mitigating and cleaning up the lots and
bringing them into compliance.
CAP RN 41527
Fairbanks International Airport: Equipment
$1,040,000
Commissioner Richards relayed that the program would
replace snow removal and firefighting equipment.
CAP RN 49633
Golovin: Runway and Apron Improvements
$12, 520,000
Commissioner Richards communicated that the project would
bring the air strip at Golovin into compliance with current
standards and provides for an improved equipment storage
building.
CAP RN 49104
Haines: Airport Drainage Improvement and Taxiway,
Runway and Apron Rehabilitation and Fencing
$7,400,000
Commissioner Richards said that the project would address
the many deficiencies at the Haines Airport.
CAP RN 49163
Kodiak Airport Improvements
$36,000,000
Commissioner Richards stated that the request specifically
applies to airport runway surface improvements and safety
deficiencies.
CAP RN 49166
Koliganek: Airport Reconstruction
$8,700,000
Commissioner Richards relayed that the project would
upgrade the runway to meet current design standards.
3:24:22 PM
Senator Egan asked why two snow removal equipment buildings
were necessary at the Koliganek Airport. Commissioner
Richards replied that new equipment would be required to
meet Federal Aviation Administration (FAA) standards, and
that another building would be necessary to house the
equipment.
Co-Chair Stedman requested a summarization of the existing
project requests pertaining to federal receipt authority.
Commissioner Richards replied that the airport requests
were part of a ten year master plan, which examined the
development needs of the listed airports. He summarized
that runway safety standard compliance, and completion of
existing projects were priorities for the department.
3:27:50 PM
Senator Olson inquired about language on page 54,
specifically the term "Part 77 Navigable Airspace".
Commissioner Richards replied that from the term referred
to the slope on the sides and ends of the runway that
create an imaginary surface that must be taken into account
for aircraft safety.
3:29:27 PM
Co-Chair Stedman continued to the Surface Transportation
Program requests.
CAP RN 32610
Surface Transportation Program
$404,191,240
Commissioner Richards informed the committee that the
appropriation had many sub-allocations and was outlined in
the Statewide Transportation Improvement Plan (STIP).
Co-Chair Stedman requested the committee focus on Page 104,
Alaska Marine Highway System: Fleet Conditions Survey
Update.
CAP RN 38577
Alaska Marine Highway System: Fleet Conditions Survey
Update.
$250,000
Co-Chair Stedman asked if the fleet survey was performed
annually. He suggested CAP RN 38577 and CAP RN 40380 were
analogous. Ms. Baker responded that CAP RN 38577 was
reflected as a deletion in the February 2010 capital budget
amendments.
Senator Ellis queried CAP RN 49117: Arterial Roadway Dust
Control Program. He relayed that he had received complaints
from constituents concerning the cleaning of state roads
under the previous program. Commissioner Richards clarified
that the request was for a new federal project. With the
new Environmental Protection Agency (EPA) permit the
department would be required to sweep all state routes
twice by June 1st, and then twice again on the main
arterial roads by first snowfall. Secondary roads would
require one sweep at the aforementioned times. Commissioner
Richards asserted that the street cleaning situation
throughout the state would improve under the EPA permit
requirements.
3:32:25 PM
Senator Ellis understood that federal requirements
associated with the requested funds would ensure better
performance by the department. Commissioner Richards
replied that the funding was not limited to state routes.
The program covers all the routes within the municipality
and therefore benefits both the city and state. Senator
Ellis asked if better road sweeping could be expected.
Commissioner Richards replied yes.
3:33:34 PM
CAP RN 49140
Coffman Cove: Wander Around Town Trail
$450,000
Co-Chair Stedman directed attention to Page 6 of the
Project Review Listing, Coffman Cove: Wander Around Town
Trail. He questioned the validity of the project.
Commissioner Richards replied that the project included a
ten foot wide paved pathway, which would improve access
safety between the boat harbor and the ferry terminal.
Co-Chair Stedman solicited further questions.
CAP RN 40396
Anchorage Metropolitan Area Transportation Solutions
(AMATS)
$680,000
CAP RN 39103
Anchorage Metropolitan Area Transportation Solutions
(AMATS)
$1,780,000
Senator Ellis expressed support from constituents on the
proposed upgrades.
Co-Chair Stedman continued to Page 7 of the project
listings and solicited questions.
CAP RN 49131
Mat-Su: Off System Bridges
$6,000,000
Senator Ellis asked for an example of an off-system bridge.
Commissioner Richards explained that an off-system bridge
was a bridge found on a municipal road and was not on the
state road system. The bridges in the project were in need
of reconstruction to meet safety standards.
CAP RN 40358
New Seward Highway: Rabbit Creek to 36th Avenue
$23,000,000
Co-Chair Stedman requested clarification of CAP RN 40358.
Commissioner Richards explained that the project would
expand the Seward Highway by two lanes, from Rabbit Creek
to 36the Avenue. The project was a component of the Connect
Anchorage Initiative, which the department had been
laboring over for nearly a decade, and would support the
flow of traffic within Anchorage.
3:38:58 PM
Senator Ellis asked about sound barriers to protect
communities in districts where road improvement projects
were occurring. He stated that in past conversations, the
department had implied that the sound barriers would be
included in the Seward Highway upgrades. He hoped that the
noise impact on the neighborhoods would be taken into
account. Commissioner Richards said that he was not
familiar with the sound barriers with regard to the
specific project. Senator Ellis reiterated his desire for
sound barriers. He added that the planners at DOT were
aware of the need for sound barriers in the project
planning. Commissioner Richards assured Senator Ellis that
the department would consider issue of sound barriers.
3:41:55 PM
Senator Egan thought that $23 million was a low estimate
when considering the amount of work expected on the
project. Commissioner Richards replied that the
construction market was highly competitive, which resulted
in very low bids, and that the department felt comfortable
with the numbers.
3:43:38 PM
CAP RN 36366
Surface Transportation Preconstruction
$50,000,000
Commissioner Richards stated that the request would pay for
the engineering of the project. It allows for preliminary
steps such as; reconnaissance, preliminary engineering and
design, right of way acquisitions, utility relocation,
permit application and other details.
Co-Chair Stedman surmised that if the committee wished to
influence the STIP process, now would be the time to
improve the funding. He expressed concern that legislators
had not been involved enough in the creation of the STIP.
Commissioner Richards replied that the federal process that
the department follows regarding the STIP requires that the
projects be selected by a specific criteria. He echoed the
committee's concerns and characterized the federal process
as challenging and cumbersome.
3:47:23 PM
CAP RN 38304
Whittier: Maintenance and Operations
$2,100,000
CAP AMD RN 48310
Alaska Marine Highways: Alaska Class Ferry: Vessel
Number 1
$60,000,000
CAP AMD RN 49625
Scope Changes for Alaska Marine Highways: Alaska Class
Ferry: Vessel Number 2
$0
3:47:58 PM
JIM BEEDLE, DEPUTY COMMISSIONER, ALASKA MARINE HIGHWAY,
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES, relayed
that the department was seeking the authority to spend $60
million from the Alaska Marine Highway Vessel Replacement
Fund. A STIP had been submitted and approved by the federal
government, who would match the $60 million.
Co-Chair Stedman wondered if the marine highway federal
receipt money could be redirected to highway improvements
in metropolitan areas. He pointed out that the Parks and
Seward Highways needed work and that jobs needed to be
created in the state. He suggested using general funds to
purchase the Alaska Class Ferry, which could then be built
in-state. Mr. Beedle understood that the program was not
considered federalized until the federal process had begun.
However, the 9th Circuit Court had ruled that the instant
federal dollars were used on a project it was thereafter
considered a federalized program. He discussed the federal
process and the limitations of certain funding under the
law.
Co-Chair Stedman stated that the governor had cut $15
million of the $75 million the committee had appropriated
for infrastructure. He felt that in-state hire should be a
main priority. He expressed concern that the appropriation
had been misguided. Mr. Beedle assured that committee that
the department was expecting competitive bids from in-state
businesses. He specifically mentioned Alaska Ship and
Drydock INC. (ASD).
3:53:16 PM
Co-Chair Stedman added that the businesses should be
competitive in the price and quality of the work provided.
He asserted that if the state created policies that built
in-state infrastructure, jobs could be created and
populations in coastal regions would grow. Mr. Beedle
agreed.
3:55:27 PM
Co-Chair Stedman wanted the state to have the ability to
build Alaska Marine Highway Vessels in-state. Mr. Beedle
pointed out to the committee that ASD was not currently a
viable shipyard, and did not have consistent, high quality
employees on a year round-basis. He hoped winning the bid
for the project would improve the motivate ASD to improve
its situation. He reported that in Washington State, the
state provides general funds for marine vessels to be built
in-state. The department had been forced to seek out
federal funding for the project. Accepting federal dollars
for the project has limited project flexibility.
Co-Chair Stedman requested that the department research the
options available to the state and report back to the
committee. He added that state waterfront issues affected
oil and gas discussions.
3:58:04 PM
CAP RN 30633
Airport Deferred Maintenance
$3,500,000
Co-Chair Hoffman stated that the backlog of airport
deferred maintenance totaled $90 million. He expressed
concern for future funder for airport deferred maintenance.
Ms. Baker clarified that the deferred maintenance projects
had been in the governor's original capital bill, but have
since been separated out as the deferred maintenance bill.
The $3.5 million in the request if for airport deferred
maintenance.
3:59:52 PM AT EASE
4:01:04 PM RECONVENE
Senator Thomas inquired about the improvement of
intersections on the new and old Steese Highway, which had
been listed in a general obligation (GO) bond that was
passed in 2008. He hoped that the bonds had been sold and
that he project was ready to be bid. Commissioner Richards
replied that the project had been discussed and was in the
development stages. He was not aware which bonds the
project was tied to. He said that he would report back to
the committee as to when the project would be going out to
bid. Senator Thomas expressed frustration with the extended
amount of time it took to complete projects when federal
dollars were involved. Commissioner Richards relayed that
the department had worked with a tight federal government
timeline to receive and obligate federal stimulus dollars.
The process had required staff to put GO bond projects on
hold. He stressed that the department was working on
federal projects, general fund projects and GO bond
projects, and working diligently to use funds efficiently.
Senator Thomas referenced the capital request for $450,000
to fund the Wander Around Town Trail. He reported that he
had inquired of the department about the cost of a one mile
bike path in Fairbanks and was told that it would cost $3
million. He thought that was extreme. Commissioner
Richards highlighted that the Wander Around Town Trail was
only ten feet wide, not ten miles long.
4:05:56 PM
Co-Chair Stedman requested that Commissioner Richards get
back to the committee with answers to bike path concerns.
4:07:23 PM AT EASE
4:07:51 PM RECONVENE
DEPARTMENT OF NATURAL RESOURCES
LETA SIMONS, DIRECTOR OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF NATURAL RESOURCES, testified that the $4
million deferred maintenance request was made up of two
allocations; one for state parks, and one for the Division
of Agriculture Plant Materials Center. There are 21
deferred maintenance projects, 20 are in state parks.
DM AMD RN 49370
State Parks Deferred Maintenance and Equipment
Replacement
$3,480,000
Ms. Simons detailed the projects 1-20 found on Pages 42-43
of the deferred maintenance requests (copy on file).
Co-Chair Stedman requested more information on the House of
Wickersham. Senator Egan requested that the Gruening Cabin
and Wickersham House deferred maintenance projects be
separated. Co-Chair Stedman requested an energy report on
the Governor's Mansion.
4:13:30 PM
Co-Chair Hoffman inquired about the Wood Tikchik Area
request. He wondered why an air management program was
under the parks request. Ms. Simons responded that the
project included major upgrades to state parks. Co-Chair
Hoffman questioned whether the project belonged in the
state parks section of the deferred maintenance request.
Ms. Simons said that they could be considered under a
different listing.
JAMES KING, STATE PARKS DIRECTOR, DEPARTMENT OF NATURAL
RESOURCES (via teleconference), spoke to the reasoning for
the funding in the budget. He stated that there was one
plane in the division, located in Dillingham. The plane was
used to patrol hunters, search and rescue, and cabin
observation. He added that the plane was the main
transportation in and out of the park. Co-Chair Stedman
requested a written response concerning the airplane.
4:16:09 PM
Senator Olson asked what patrolling hunters entailed. He
also wondered if search and rescue efforts could be left to
the Department of Public Safety.
Mr. King replied that the staff and the plane were based
close to the Wood Tikchik Area Park, which often results in
park staff being the first responders in emergency
situations. Hunters are monitored for compliance with
licensing requirements. Senator Olson asked if the
department was doing enforcement work and citing hunters
for violations. Mr. King replied that the first response
was to educate but that a ranger was assigned to the park
to issue citations if necessary.
Co-Chair Stedman reiterated the need to keep The People's
House, commonly known as The Governor's Mansion, in
excellent condition.
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