Legislature(2021 - 2022)BELTZ 105 (TSBldg)

04/28/2022 01:30 PM Senate TRANSPORTATION

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 231 AK RAILROAD CORP; EXEC BUDGET ACT TELECONFERENCED
Heard & Held
-- Public Testimony <Time Limit May Be Set> --
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= SB 166 G.O. BONDS FOR INFRASTRUCTURE PROJECTS TELECONFERENCED
Moved CSSB 166(TRA) Out of Committee
**Streamed live on AKL.tv**
         SB 166-G.O. BONDS FOR INFRASTRUCTURE PROJECTS                                                                      
                                                                                                                                
2:13:40 PM                                                                                                                    
CHAIR MYERS  announced the consideration  of SENATE BILL  NO. 166                                                               
"An Act  providing for  and relating to  the issuance  of general                                                               
obligation  bonds for  the purpose  of paying  the cost  of state                                                               
infrastructure    projects,    including   construction,    major                                                               
maintenance, and port and  transportation projects; and providing                                                               
for an effective date."                                                                                                         
                                                                                                                                
2:13:52 PM                                                                                                                    
SENATOR SHOWER moved  to adopt the committee  substitute (CS) for                                                               
SB 166, work order 32-GS2543\B, as the working document.                                                                        
                                                                                                                                
2:14:02 PM                                                                                                                    
CHAIR MYERS objected for discussion purposes.                                                                                   
                                                                                                                                
2:14:07 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
2:14:17 PM                                                                                                                    
CHAIR MYERS reconvened the meeting.                                                                                             
                                                                                                                                
2:14:48 PM                                                                                                                    
MICHAELLA  ANDERSON, staff,  Senator Robert  Myers, Alaska  State                                                               
Legislature,  reviewed the  changes  in SB  166,  Version B.  She                                                               
reported  that SB  166, Version  A proposed  issuance of  general                                                               
obligation  bonds in  the amount  of $325,175,000.  The committee                                                               
substitute  (CS)   for  SB   166,  Version   B  amends   that  to                                                               
$391,171,258.                                                                                                                   
                                                                                                                                
MS.  ANDERSON stated  that the  committee substitute  removed two                                                               
projects   from   the   original   bill.  The   Knik   Arm   Port                                                               
Infrastructure  for $175  million was  removed because  the funds                                                               
did  not  specify  a  project   or  grantee,  making  it  legally                                                               
questionable.  The  Juneau Access  project  for  $25 million  was                                                               
removed  because  no  actual   construction  occurred,  which  is                                                               
considered crucial for general obligation bond projects.                                                                        
                                                                                                                                
2:15:52 PM                                                                                                                    
MS.  ANDERSON referred  to page  2 and  read a  list of  projects                                                               
added in the committee substitute (CS) for SB 166, Version B.                                                                   
                                                                                                                                
    Municipality   of   Anchorage    -   Port   of   Alaska                                                                     
     modernization $75,000,000                                                                                                  
        City of Emmonak - Port of Emmonak rehabilitation                                                                        
     $8,500,000                                                                                                                 
                                                                                                                                
     Haines Borough - Lutak Dock restoration $3,211,000                                                                         
                                                                                                                                
        Kodiak Island Borough - Kodiak fire station was                                                                         
     reduced from $15,000,000 to $8,000,000                                                                                     
                                                                                                                                
      Lynn Canal Transmission Corporation northern segment                                                                      
     of the southeast intertie project- $5,000,000                                                                              
                                                                                                                                
      City of Seward - Seward ship transfer rail extension                                                                      
     $4,500,000                                                                                                                 
                                                                                                                                
2:16:39 PM                                                                                                                    
MS. ANDERSON noted that Chair Myers will propose an amendment to                                                                
remove the Southeast Conference from page 3, line 3 for the                                                                     
Kenai River Bluffs stabilization.                                                                                               
                                                                                                                                
2:17:08 PM                                                                                                                    
MS. ANDERSON referred to the Department of Education and Early                                                                  
Development projects, which were  primarily taken from the School                                                               
Major Maintenance Fund and deferred maintenance lists. She read:                                                                
                                                                                                                                
     American Charter Academy School: $5,200,000                                                                                
                                                                                                                                
         Anderson K-12 school partial roof replacement:                                                                         
     $1,015,574                                                                                                                 
                                                                                                                                
     Chenega Bay K-12 school renovation: $5,759,942                                                                             
                                                                                                                                
         Copper River district office roof replacement:                                                                         
     $581,556                                                                                                                   
                                                                                                                                
     Craig Elementary School rehabilitation: $1,905,489                                                                         
                                                                                                                                
     Craig Middle School rehabilitation: $5,668,124                                                                             
                                                                                                                                
     Eagle River Elementary School improvements: $5,422,355                                                                     
                                                                                                                                
      Galena Interior Learning Academy composite building                                                                       
     renovation: $5,904,081                                                                                                     
                                                                                                                                
     Kake schools heating upgrades: $191,618                                                                                    
                                                                                                                                
     Mat-Su Central School: $10,400,000                                                                                         
                                                                                                                                
       Mt. Edgecumbe High School dining hall renovation:                                                                        
     $4,741,000                                                                                                                 
                                                                                                                                
     Tatitlek K-12 school renovation: $6,972,263                                                                                
                                                                                                                                
     Valdez High School and Hermon Hutchens Elementary                                                                          
     School domestic water piping replacement: $830,671                                                                         
                                                                                                                                
     West High School partial roof replacement: $4,322,259                                                                      
                                                                                                                                
2:18:33 PM                                                                                                                    
MS.  ANDERSON stated  that there  was no  longer a  Department of                                                               
Health &  Social Services section  of the  bill. She said  Sec. 5                                                               
relates  to  the  Department of  Family  and  Community  Services                                                               
because  the department  was split.  She identified  two projects                                                               
that were  previously vetted  in SB 74  and funds  were allocated                                                               
to:                                                                                                                             
                                                                                                                                
     Alaska Veterans and Pioneers Home roof replacement:                                                                        
     $2,268,000                                                                                                                 
                                                                                                                                
     Fairbanks Pioneer Home roof and flooring replacement:                                                                      
     $2,441,800                                                                                                                 
                                                                                                                                
MS.  ANDERSON stated  that the  following project  came from  the                                                               
deferred maintenance list:                                                                                                      
                                                                                                                                
     Sitka Pioneer Home - service entrance door replacement                                                                     
     $91,000                                                                                                                    
                                                                                                                                
2:19:15 PM                                                                                                                    
MS.  ANDERSON reviewed  Sec.  6, noting  that  the Department  of                                                               
Health  allocated  $36,400 for  the  Sitka  Public Health  Center                                                               
handicap ramp repairs and remodel project.                                                                                      
                                                                                                                                
2:19:17 PM                                                                                                                    
MS.  ANDERSON reviewed  Sec.  7, noting  that  the Department  of                                                               
Labor  &  Workforce  Development  allocated  $1,000,000  for  the                                                               
Alaska Vocational  Technical Center student housing  and services                                                               
center repairs and renovation project.                                                                                          
                                                                                                                                
2:19:33 PM                                                                                                                    
MS.  ANDERSON reviewed  Sec.  7, noting  that  the Department  of                                                               
Military  and   Veterans  Affairs  allocated  $200,000   for  the                                                               
Kotzebue armory fire alarm panels project.                                                                                      
                                                                                                                                
2:19:46 PM                                                                                                                    
MS.  ANDERSON reviewed  Sec.  9, noting  that  the Department  of                                                               
Natural  Resources  allocated  $887,000   for  the  Alaska  Plant                                                               
Materials  Center (APMC)  renovation  and  upgrades project.  She                                                               
stated that this was derived  from the deferred maintenance list.                                                               
She  indicated  that  this  would  combine  all  of  the  $10,000                                                               
projects for the APMC in one allocation.                                                                                        
                                                                                                                                
2:20:06 PM                                                                                                                    
MS. ANDERSON reviewed Sec. 10, noting that the Department of                                                                    
Public Safety allocated $15,500,000 for the following projects:                                                                 
                                                                                                                                
     Alaska  state  troopers  training  academy:  $1,500,000                                                                    
     derived from the deferred maintenance list.                                                                                
                                                                                                                                
     Interior    law    enforcement    training    facility:                                                                    
     $14,000,000,  which  is  a  project  placed  in  CAPSIS                                                                    
     affecting 12 House districts.                                                                                              
                                                                                                                                
2:20:27 PM                                                                                                                    
MS. ANDERSON referred to Sec. 11, noting that the Department of                                                                 
Transportation and Public Facilities (DOTPF) allocated funding                                                                  
for two new projects:                                                                                                           
                                                                                                                                
                                                                                                                                
     Homer slope  stability and erosion  mitigation program:                                                                    
     $3,725,000                                                                                                                 
                                                                                                                                
     Mainline   ferry   vessel  replacement   state   match:                                                                    
     $26,000,000                                                                                                                
                                                                                                                                
     North State Office Building parking: $5,000,000                                                                            
                                                                                                                                
2:20:49 PM                                                                                                                    
MS. ANDERSON reviewed  Sec. 12, noting that the  projects for the                                                               
University  of Alaska  were derived  from the  general obligation                                                               
bond  list  and  $79,059,000  was   allocated  to  the  following                                                               
projects:                                                                                                                       
                                                                                                                                
     Anchorage   Campus  -   energy  performance   upgrades:                                                                    
     $11,171,000                                                                                                                
                                                                                                                                
     Bartlett  and  Moore  Hall modernization  and  renewal:                                                                    
     $20,500,000, which was increased due to inflation.                                                                         
                                                                                                                                
     Juneau  campus   -  Anderson   scuba  locker  and   lab                                                                    
     repurpose: $350,000                                                                                                        
                                                                                                                                
     Fire  and  emergency  services training  and  education                                                                    
     facility replacement: $41,800,000                                                                                          
                                                                                                                                
     Kenai, Homer, Mat-Su, Kodiak, and  Valdez campuses HVAC                                                                    
     healthy building upgrades $4,429,000                                                                                       
                                                                                                                                
     Ketchikan  Campus - maritime  center roof  replacement:                                                                    
     $800,000                                                                                                                   
                                                                                                                                
2:21:42 PM                                                                                                                    
MS. ANDERSON  stated that  the committee  substitute (CS)  for SB
166, Version  B, removed the old  Sec. 8 that indicated  that the                                                               
Office  of  Management and  Budget  (OMB)  could request  general                                                               
funds to pay  for the bond package before the  bonds were issued.                                                               
She stated  that section was removed  so OMB must wait  until the                                                               
bonds are issued before funding these projects.                                                                                 
                                                                                                                                
2:22:15 PM                                                                                                                    
CHAIR MYERS  removed his objection;  found no  further objection,                                                               
and Version B was adopted as the working document.                                                                              
                                                                                                                                
2:22:40 PM                                                                                                                    
CHAIR MYERS moved to adopt Conceptual Amendment 1.                                                                              
                                                                                                                                
2:22:54 PM                                                                                                                    
SENATOR SHOWER objected for discussion purposes.                                                                                
                                                                                                                                
2:22:48 PM                                                                                                                    
CHAIR MYERS  read Conceptual Amendment 1,  which was handwritten,                                                               
as follows:                                                                                                                     
                                                                                                                                
     pg 3, ln 3 - remove "southeast conference"                                                                                 
             replace with "City of Kenai."                                                                                      
                                                                                                                                
CHAIR MYERS  explained that Conceptual Amendment  1 would correct                                                               
a drafting  error. He stated  that the  funding is for  the Kenai                                                               
River  Bluffs stabilization  project,  which is  not a  Southeast                                                               
project.                                                                                                                        
                                                                                                                                
CHAIR MYERS noted that Legislative  Legal is directed to make any                                                               
changes  or  deletions  to   the  suggested  language,  including                                                               
technical,  conforming,  or  bill  title  changes,  in  order  to                                                               
accomplish the intent.                                                                                                          
                                                                                                                                
2:23:14 PM                                                                                                                    
SENATOR KIEHL  asked if a grant  recipient needed to be  added to                                                               
the language.                                                                                                                   
                                                                                                                                
2:23:38 PM                                                                                                                    
NEIL  STEININGER,  Director,  Office of  Management  and  Budget,                                                               
Office of the Governor, Juneau, Alaska, introduced himself.                                                                     
                                                                                                                                
2:23:46 PM                                                                                                                    
SENATOR  KIEHL asked  for  the correct  grant  recipient for  the                                                               
Kenai River Bluffs stabilization project.                                                                                       
                                                                                                                                
MR. STEININGER  responded that the  grant recipient would  be the                                                               
City of Kenai.                                                                                                                  
                                                                                                                                
2:24:14 PM                                                                                                                    
SENATOR  MICCICHE  moved  to  adopt  Conceptual  Amendment  1  to                                                               
Conceptual Amendment 1.                                                                                                         
                                                                                                                                
2:24:18 PM                                                                                                                    
CHAIR MYERS objected for discussion purposes.                                                                                   
                                                                                                                                
2:24:23 PM                                                                                                                    
SENATOR  MICCICHE stated  Conceptual  Amendment  1 to  Conceptual                                                               
Amendment 1  would add the "City  of Kenai" before the  hyphen on                                                               
page 3, line 3, which would read:                                                                                               
                                                                                                                                
     City of Kenai  Kenai River Bluffs stabilization                                                                            
                                                                                                                                
2:24:38 PM                                                                                                                    
CHAIR  MYERS   removed  his  objection;   he  found   no  further                                                               
objection, and  Conceptual Amendment 1 to  Conceptual Amendment 1                                                               
was adopted.                                                                                                                    
                                                                                                                                
CHAIR MYERS noted Conceptual Amendment  1, as amended, was before                                                               
the committee.                                                                                                                  
                                                                                                                                
2:24:52 PM                                                                                                                    
SENATOR SHOWER removed his objection.                                                                                           
                                                                                                                                
2:24:54 PM                                                                                                                    
CHAIR MYERS found no further  objection, and Conceptual Amendment                                                               
1, as amended, was adopted.                                                                                                     
                                                                                                                                
2:25:24 PM                                                                                                                    
CHAIR MYERS closed public testimony on SB 166.                                                                                  
                                                                                                                                
2:25:38 PM                                                                                                                    
SENATOR KIEHL noted  that Galena was misspelled [on  page 3, line                                                               
19].                                                                                                                            
                                                                                                                                
CHAIR MYERS stated that Legislative  Legal Services was empowered                                                               
to make any technical and conforming changes.                                                                                   
                                                                                                                                
2:26:01 PM                                                                                                                    
SENATOR  KIEHL   stated  that  school  projects   were  typically                                                               
identified on a deferred maintenance  priority list. He indicated                                                               
that using the  priority list helps keep the state  out of court,                                                               
given  some challenges  to  the equal  protection  clause of  the                                                               
Alaska Constitution.  He noted that  two projects listed  on page                                                               
3,  lines 13  and 14  were  ones that  were not  on the  deferred                                                               
maintenance  list.  He  suggested   that  those  projects  should                                                               
receive scrutiny in subsequent committees.                                                                                      
                                                                                                                                
2:27:06 PM                                                                                                                    
SENATOR SHOWER moved to report  the committee substitute (CS) for                                                               
SB 166, work  order 32-GS2543\B, as amended,  from committee with                                                               
individual recommendations and attached fiscal note(s).                                                                         
                                                                                                                                
CHAIR MYERS  found no objection,  and CSSB 166(TRA)  was reported                                                               
from the Senate Transportation Standing Committee.                                                                              

Document Name Date/Time Subjects
SB166 version B draft.pdf STRA 4/28/2022 1:30:00 PM
SB 166
32-GS2543B Legal Memo.pdf STRA 4/28/2022 1:30:00 PM
SB 166
Port of Alaska Source of Funds Proposed SB166 GO Bond Grants.pdf STRA 4/28/2022 1:30:00 PM
SB 166
northern_intertie_and_dock_electrification_april_2020.pdf STRA 4/28/2022 1:30:00 PM
SB 166
University - FY23 GO Bond Projects Packet.pdf STRA 4/28/2022 1:30:00 PM
SB 166
Mat-Su FY 23 GO Bond Information Packet.pdf STRA 4/28/2022 1:30:00 PM
SB 166
DEED FY23MaintenanceFinalList.pdf STRA 4/28/2022 1:30:00 PM
SB 166