Legislature(2005 - 2006)CAPITOL 17
05/05/2005 07:30 AM House TRANSPORTATION
| Audio | Topic |
|---|---|
| Start | |
| HB237 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 237 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE TRANSPORTATION STANDING COMMITTEE
May 5, 2005
7:32 a.m.
MEMBERS PRESENT
Representative Jim Elkins, Co-Chair
Representative Carl Gatto, Co-Chair
Representative Vic Kohring
Representative Mark Neuman
Representative Bill Thomas
Representative Woodie Salmon
MEMBERS ABSENT
Representative Mary Kapsner
COMMITTEE CALENDAR
HOUSE BILL NO. 237
"An Act relating to international airports revenue bonds; and
providing for an effective date."
- MOVED HB 237 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 237
SHORT TITLE: INTERNATIONAL AIRPORTS REVENUE BONDS
SPONSOR(S): RULES BY REQUEST OF THE GOVERNOR
03/29/05 (H) READ THE FIRST TIME - REFERRALS
03/29/05 (H) TRA, FIN
04/30/05 (H) TRA AT 1:30 PM CAPITOL 17
04/30/05 (H) Heard & Held
04/30/05 (H) MINUTE(TRA)
05/03/05 (H) TRA AT 1:30 PM CAPITOL 17
05/03/05 (S) OVERTAKING/PASSING STATIONARY VEHICLES
05/05/05 (H) TRA AT 7:30 AM CAPITOL 17
WITNESS REGISTER
MIKE BARTON, Commissioner
Department of Transportation & Public Facilities (DOT&PF)
Juneau, Alaska
POSITION STATEMENT: Responded to questions during discussion of
HB 237.
MICHAEL MARTING, Controller
Alaska International Airport System
Department of Transportation & Public Facilities (DOT&PF)
Anchorage, Alaska
POSITION STATEMENT: Responded to questions during discussion of
HB 237.
ACTION NARRATIVE
CO-CHAIR JIM ELKINS called the House Transportation Standing
Committee meeting to order at 7:32:13 AM. Representatives
Elkins, Gatto, Thomas, Kohring, and Salmon were present at the
call to order. Representative Neuman arrived as the meeting was
in progress.
HB 237-INTERNATIONAL AIRPORTS REVENUE BONDS
CO-CHAIR ELKINS announced that the only order of business would
be HOUSE BILL NO. 237 "An Act relating to international airports
revenue bonds; and providing for an effective date."
REPRESENTATIVE KOHRING moved to report HB 237 out of committee
with individual recommendations and accompanying fiscal notes.
CO-CHAIR GATTO objected. He asked if any of the funds were
federal monies.
MIKE BARTON, Commissioner, Department of Transportation & Public
Facilities (DOT&PF), said it would all be paid by the rates and
fees charged at the two airports.
CO-CHAIR GATTO noted that the fees are passed on to the
consumer, and asked how much it will raise ticket prices.
7:34:59 AM
COMMISSIONER BARTON said he doesn't know the formula that an
airline might use, but he said he can approximate it. By
looking at the landing fees, a 737-400 landing in Anchorage will
pay a total of $235, which is an increase of $.72 per passenger.
He said the airlines approved the projects, and obviously ran
the necessary calculations.
CO-CHAIR GATTO said the original "C" terminal was over budget.
COMMISSIONER BARTON agreed that it was very much over budget
because of additional security requirements, added space
requested by the airlines, and permitting issues with the
municipality of Anchorage. He said DOT&PF has a new contract
structure to avoid a cost overrun.
CO-CHAIR GATTO said there is already a ticket price increase
because of the cost of the "C" terminal and there will be an
additional increase to renovate the "A" and "B" terminals.
COMMISSIONER BARTON said 80 percent of the landing fees are
picked up by cargo carriers, and that sthe shippers support the
plan.
CO-CHAIR GATTO noted that rent space tripled recently.
COMMISSIONER BARTON said "they" knew that when "they" voted on
the project. He said the landing fees are the lowest of the
major airports.
7:40:14 AM
REPRESENTATIVE NEUMAN asked what DOT&PF will do if the bill
fails.
COMMISSIONER BARTON said the project would not proceed, adding
that there would be liability to the state because of
deficiencies in the seismic code.
REPRESENTATIVE NEUMAN asked what amount of the money would go to
Fairbanks.
MICHAEL MARTING, Controller, Alaska International Airport
System, Department of Transportation & Public Facilities
(DOT&PF), said there is $105 million for the Fairbanks airport
and the balance would go to Anchorage.
COMMISSIONER BARTON said, "What we're doing is raising the bond
cap so that we can accommodate this $288 million sale."
REPRESENTATIVE NEUMAN asked if the money has been spent.
COMMISSIONER BARTON said it is used and some are paid off and
some are being paid, but it is all invested in capital projects.
7:43:05 AM
REPRESENTATIVE NEUMAN asked if any of this work was included in
prior plans so that the bill covers previous cost overruns.
MR. MARTING said there is $17 million for the A/B retrofit
already in the budget, and the balance is all new money and new
projects.
CO-CHAIR GATTO asked what the "C" terminal cost overrun was.
MR. MARTING said he thought it was $100 million.
CO-CHAIR GATTO said every major project has a cost overrun. He
asked if a 30 percent cost overrun is typical.
COMMISSIONER BARTON said he can't say it is typical, but in the
course of developing projects, unknowns are encountered, such as
terrorist attacks or environmental hazards.
7:45:39 AM
CO-CHAIR GATTO said there is never an under-run.
COMMISSIONER BARTON said it is rare but there have been some
cases, like the Bradley Lake project.
CO-CHAIR GATTO maintained his objection.
A roll call vote was taken. Representatives Salmon, Elkins,
Neuman, Thomas, and Kohring voted in favor of reporting HB 237
from committee. Representative Gatto voted against it.
Therefore, HB 237 was reported from the House Transportation
Standing Committee by a vote of 5-1.
ADJOURNMENT
There being no further business before the committee, the House
Transportation Standing Committee meeting adjourned at 7:47:56
AM.
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