Legislature(2007 - 2008)SENATE FINANCE 532
02/25/2008 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB223 | |
| SB224 |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 223 | TELECONFERENCED | |
| + | SB 224 | TELECONFERENCED | |
| + | SB 236 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
February 25, 2008
9:06 a.m.
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee meeting
to order at 9:06:20 AM.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Kim Elton
Senator Donny Olson
Senator Joe Thomas
MEMBERS ABSENT
Senator Charlie Huggins, Vice-Chair
Senator Fred Dyson
ALSO PRESENT
John Glass, Deputy Commissioner, Department of Public
Safety; Jerry Burnett, Director, Division of Administrative
Services, Department of Revenue; Frank Richards, Deputy
Commissioner of Highways & Public Facilities, Department of
Transportation and Public Facilities; Jeff Ottesen,
Director, Division of Program Development, Department of
Transportation and Public Facilities; Nancy Slagle,
Director, Division of Administrative Services, Department of
Transportation and Public Facilities; James King, Director,
Division of Parks and Outdoor Recreation, Department of
Natural Resources
PRESENT VIA TELECONFERENCE
Matt Tanaka, Engineer, Construction and Operations,
Department of Transportation and Public Facilities; Orin
Dym, Forensic Lab Manager, Department of Public Safety;
Governor Bill Sheffield, Director, Port of Anchorage; John
Duffy, Borough Manager, MatSu Borough; Former Governor Bill
Sheffield, Director, Port of Anchorage
SUMMARY
SB 223 "An Act providing for and relating to the issuance
of general obligation bonds for the purpose of
paying the cost of a scientific crime detection
laboratory; and providing for an effective date."
SB 223 was heard and HELD in Committee for further
consideration.
SB 224 "An Act providing for and relating to the issuance
of general obligation bonds for the purpose of
paying the cost of state transportation projects;
and providing for an effective date."
SB 224 was heard and HELD in Committee for further
consideration.
SB 236 "An Act establishing the Alaska transportation
fund and relating to the fund; and providing for
an effective date."
SB 236 was scheduled but not heard.
9:07:51 AM
SENATE BILL NO. 223
"An Act providing for and relating to the issuance of
general obligation bonds for the purpose of paying the
cost of a scientific crime detection laboratory; and
providing for an effective date."
JOHN GLASS, DEPUTY COMMISSIONER, DEPARTMENT OF PUBLIC
SAFETY, related that the bill seeks funding through general
obligation bonds for a state crime lab. In 2004-5 the
legislature appropriated $4.8 million for the review design
and construction of a scientific crime lab. Based on that
legislation, the Department of Transportation and Public
Facilities (DOT) contracted with Livingston Sloan and
Associates, an architecture firm in Anchorage, who
subcontracted to a firm from Virginia, McClaren, Wilson, &
Lowrie, who put together a proposal for a crime lab into the
future. The plan came back as an 83,000 square foot
building to house current and future needs.
Mr. Glass reported that the 14,000 square foot current crime
lab was built in 1986 to house 14 people. It now houses 41
people. With the onset of DNA testing in 1994, the work
load increased exponentially. The crime lab is only able to
process 350 of 1,000 DNA samples each month, due to a lack
of space.
Mr. Glass noted that 34 properties in Anchorage were
evaluated resulting in 15 acres of land just west of the
current crime lab being selected.
9:11:28 AM
Senator Elton said he was convinced of the need for the
facility. He requested more information about how the
square footage and the price tag for the lab were decided.
Mr. Glass explained that McClaren, Wilson, & Lowrie made
those determinations. It would take 57,000 square feet to
meet today's needs; however, the plan is to build for the
future and for expected expansion. Senator Elton asked who
McClaren, Wilson, & Lowrie are. Mr. Glass reported that
they are an architectural firm specializing in the design of
crime labs. The forensic lab supervisor, Orin Dym, has
participated with Mr. Lowrie in two crime laboratories built
in Arizona. The staff at the crime lab has also contributed
to the design plan.
Co-Chair Stedman asked for more information about the $1,000
per square foot cost.
9:14:38 AM
MATT TANAKA, ENGINEER, CONSTRUCTION AND OPERATIONS,
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES, replied
that the $1,000 figure is the project cost and excludes site
development and lab equipment costs. The cost per square
foot from $1,000 - $1,300 for laboratories is because they
are full of equipment and very dense.
Co-Chair Stedman asked if there were any overlap of services
from the Fairbanks Virology Lab. Mr. Glass explained that
anything that could be done in the virology lab is already
being done in the crime lab. The science criteria are
different in a virology lab.
Co-Chair Stedman asked about the possibility of a phased
construction plan with the current facility. Mr. Glass
pointed out the increased costs of $6 to $10 million a year
for delaying construction with a phased plan. The current
construction is a 3.5 year plan. He explained how a piece
of evidence moves between labs within the building. Moving
evidence from one building to another brings up cross
contamination and custody issues.
9:17:45 AM
Co-Chair Hoffman asked about the Division of Elections
fiscal note #1. He wondered if the only public information
for about the project would be contained in the election
pamphlet at the cost of $1,500. He asked if there were any
other efforts to convince the general public that the
facility is needed. Mr. Glass replied that there would be
additional presentations to the public. Co-Chair Hoffman
asked if those expenditures were within the Department of
Public Safety budget. Mr. Glass said yes. Co-Chair Hoffman
asked which communities would have presentations. Mr. Glass
offered to go to as many places as he could because he
strongly believes in the need for a new crime lab. Co-Chair
Hoffman thought there needed to be a broad base of support
for the project.
9:20:12 AM
Co-Chair Hoffman asked about operational costs to maintain
the facility. Mr. Glass reported that he only has a rough
estimate of those costs based on the two current state labs;
$1.3 million per year. Co-Chair Hoffman asked if there
would be a need for more than the current number of
positions. Mr. Glass noted that currently there were 41
positions, with the possible addition of only one more
maintenance position.
Co-Chair Stedman wondered why there was a need for more
square footage, but not for more employees. Mr. Glass
explained that 41 employees are working in a 14,000 square
foot building. They will move into a facility with 83,000
square feet. He described the currently crowded conditions.
He referred to a bill from last year which allocated five
new DNA analysts. Down the road more disciplines will be
added. Toxicology is currently being outsourced to
Washington.
Co-Chair Stedman concluded it was a six-time increase in
square footage. He wondered how to sell that concept to the
public. He asked about the need for such a large expansion
and requested more information about what would happen to
the old crime lab building. Mr. Glass reported that the
existing facility would be converted to office space,
preferably for the department. The current building does
not handle the large amount of heat generated well. He
described how cramped the current space is. The garage for
processing vehicles is very crowded and requires moving
items out of the way in order to examine a vehicle.
9:26:16 AM
Senator Olson wondered about locating the crime lab in a
less expensive area of the state, such as Kenai. Mr. Glass
reported that other areas had been considered; however,
Anchorage is the center of transportation. Mr. Glass shared
that 72 percent of the crime lab business is from Anchorage,
and involves custody issues. The department is working
through the Heritage Land Bank to purchase 15.3 acres of
land on a 40-year lease at no cost to the state.
Senator Olson asked what portion of the evidence is time
sensitive and needs to be close to the airport. Mr. Glass
said it is more a matter of convenience. He gave an example
of bringing evidence from Nome and the potential difficulty
of transporting it to places other than Anchorage. Senator
Olson thought it would be cheaper to fly to Kenai than to
drive there.
9:29:41 AM
Co-Chair Hoffman asked about page 2, section 3 of the bill
regarding the amount referred to in the fiscal note. It
says there will be a laboratory project fund of $100 million
and up to $6 million in anticipated investment earnings. He
wondered if it is the intent that the $100 million would be
set up in an investment account once the bonds were sold
and, before the construction commences, the department would
earn $6 million. He questioned if it is $6 million above
and beyond the $100 million. Mr. Glass replied that the $6
million would be in addition to the $100 million. Co-Chair
Hoffman said the fiscal note was not correct. Mr. Glass
explained that the fiscal note is correct in that $100
million is requested and $6 million is interest. Co-Chair
Hoffman clarified that the interest on $100 million would be
$6 million in investment earnings. Mr. Glass said that is
what is anticipated. Co-Chair Hoffman asked how long it
would take to earn the $6 million. The fiscal note states
that there would be approval by November 2008 and the debt
service would commence by 2010, which would allow
approximately two years to construct the funds. He
requested a time table as to how the money would be
invested.
9:32:37 AM
Co-Chair Hoffman asked if $100 million would include
necessary equipment. Mr. Glass said it would.
Senator Thomas asked if the building is a re-creation of the
other two previous designs with savings in mind. Mr. Tanaka
related that it is the third project he has managed in
Alaska. He explained that there are some commonalities
between the labs, but crime labs are very specific in their
needs and require custom design. He said reported on how
the crime lab was designed with the expertise of Bill
Lowrie.
Senator Thomas asked if a crime lab worked well in another
state, would it be possible to eliminate some of the design
work for an Alaskan model. He asked if the design cost is
about 10 percent of the total project. Mr. Tanaka agreed
that it was about 10 percent. He explained what the design
work entails. He assured the committee of the design team's
credentials.
Senator Thomas asked where DNA is handled now and how much
it costs.
ORIN DYM, FORENSIC LAB MANAGER, DEPARTMENT OF PUBLIC SAFETY,
explained that all DNA criminal casework is done in the
crime lab. The database samples have been outsourced;
however, with the HB 90, those will be moving in house. The
staff is currently 41 people with the need for one more
custodial position. Over twenty years the staff would
increase to 62 employees.
9:38:46 AM
Senator Olson asked about the $4.8 million allocated for
design money. Mr. Tanaka replied that money was part of
project costs. The money requested in the current bill is
for completion of the design and construction of the
building.
Senator Elton asked how the cost per square foot compares to
the DEC lab cost. He wondered if the people involved in the
design of the crime lab are involved in the design of the
DEC lab. He mentioned several problems with the DEC lab
design. Mr. Tanaka said he was the project manager of the
DEC lab and the virology lab. The same architect,
Livingston Sloan was used for both of those labs as well as
for the Public Health Lab Medical Examiners facility. He
reported on the risks and problems in designing complex
labs. He described a high rate of confidence in his team.
Senator Elton requested the cost per square foot of the DEC
lab. Mr. Tanaka reported that the DEC lab cost about $950
per square foot, the virology lab cost $1,140 per square
foot, and the crime lab will cost about $1000 per square
foot. The differences in cost are not that significant.
The DEC and virology lab costs were based on market prices
and based on real construction dollars. He further
explained how the figures were determined for the crime lab.
9:43:47 AM
Co-Chair Stedman requested a written response to Senator
Elton's question regarding financial comparisons of the
projects, including beyond square footage costs and
contingency numbers.
Senator Thomas asked if the project was out to bid and how
contractors were selected. Mr. Tanaka replied that they are
using a project delivery system called the construction
management general contractor approach which involves
competitive solicitation nationally. Contractors are
brought on as an advisor during the design phase. They are
currently in the schematic design phase - about 25 percent
complete. The contractors, architect, and engineers base
costs on a partially completed design. The contractor is
retained as a part of the team through completion.
Co-Chair Stedman asked what has been appropriated so far.
Mr. Tanaka replied that a $4.8 million appropriation was
made for the planning phase with the intent to apply for a
supplemental request. Co-Chair Stedman summarized that $4.8
million was appropriated in 2006. He asked what the balance
was. Mr. Tanaka reported that there was about $3 million
left. Co-Chair Stedman thought the appropriation was
charitable. Mr. Tanaka emphasized that it all would be
needed. Co-Chair Stedman asked about the supplemental
appropriation request. He corrected that it was just an
appropriation. Mr. Tanaka said that was correct; it is an
appropriation to finish the project.
9:48:39 AM
Co-Chair Hoffman asked about plans for the existing
facility. Mr. Glass explained plans to move the department
into the space for several purposes: a sexual offender
registration office, Alcohol Beverage Control (ABC) Board,
and an investigative unit. He explained the amount of foot
traffic associated with the ABC Board. A university lab has
also been considered. The building belongs to the
Department of Public Safety. Co-Chair Hoffman asked if
there would be costs for renovation for the use described.
Mr. Glass said there would be, but he could not provide
specific details about costs.
Co-Chair Hoffman asked about the possibility of a long-term
lease rather than purchasing the land. Mr. Glass replied
that the Bureau of Land Management has given the land to
Anchorage and there are federal requirements.
9:51:40 AM
Co-Chair Stedman asked about the 40-year lease contingency
plan. Mr. Glass said that there are several contingency
plans. One is a 10-year reopener. Currently, there are no
charges for laboratory services. Nationwide no agencies
charge for state services. Mr. Glass maintained that he
does not want the state to be stuck with charging for lab
services. A 10-year reopener would address that. The 40-
year lease is a long term lease with options after that,
such as two 10-year options or two 20-year options. This is
still being negotiated with the Department of
Administration.
Senator Thomas asked how big the property is. Mr. Glass
said 15.3 acres. Senator Thomas asked about any plans for
intervention to prevent crime. Mr. Glass agreed that there
needs to be more prevention. He pointed out that DNA
testing also releases innocent people.
9:55:28 AM
JERRY BURNETT, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF REVENUE, in response to a question
from Co-Chair Stedman, explained that the $1,000 request is
for paperwork and analysis.
SB 223 was heard and HELD in Committee for further
consideration.
9:56:53 AM
SENATE BILL NO. 224
"An Act providing for and relating to the issuance of
obligation bonds for the purpose of paying the cost of
state transportation projects; and providing for an
effective date."
FRANK RICHARDS, DEPUTY COMMISSIONER OF HIGHWAYS AND PUBLIC
FACILITIES, DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES, referred to a handout entitled, "Alaska
Department of Transportation & Public Facilities - GO Bond
Projects" (copy on file.) He explained that the projects
requested in SB 224 are spread throughout the state and
address four of the department's goals: to increase safety,
promote economic development, reduce congestion, and
preserve existing assets.
Mr. Richards reported that the project on pages 2-4 "Dowling
Road: Old Seward Highway to Minnesota Drive" is a congestion
relief project. It upgrades Dowling Road from two lanes to
four lanes from Old Seward Highway to Minnesota Drive. This
project and the Highway to Highway Connection are the two
largest projects in the Connect Anchorage Initiative, a 10-
year congestion relief program funded by state, federal, and
local funds. It is part of the municipality's long-range
plan.
Mr. Richards explained that this project is located in the
geographic center of the Anchorage bowl, which lacks
east/west corridors. It would relieve congestion in the
heart of the city. Mr. Richards explained the various
phases of the project as depicted on the chart on page 3.
Mr. Richards related that this upgrade would divert 23,000
vehicles per day to Dowling Road. Tudor and Diamond have 3
of the top 12 accident locations within Anchorage and this
project would greatly increase safety by reducing accidents.
9:59:44 AM
Mr. Richards turned to pages 5-7 to explain the "Northern
Access to University - Medical District Study". It is an
economic development project and would improve traffic
conditions in the University - Medical District. Mr.
Richards used the diagram on page 6 to depict the currently
congested northern access to the University - Medical area.
He pointed out that this area has more employees than
downtown Anchorage, and he predicted that job growth would
outpace both state and city averages. It is hoped that this
project would improve safety in this area.
Mr. Richards described the "Dalton Highway M & O Proposed FY
09 Project" on pages 8-9. It would improve 121 miles of the
Dalton Highway, the lifeline to the oil fields in Prudhoe
Bay, which is a challenge in the extreme Arctic. Improving
this road would meet the needs of access to the oil fields
and to future gas line fields.
10:02:33 AM
Mr. Richards explained that the "Kenai Peninsula Borough
Roads" project on page 10 addresses safety needs, economic
development, and quality of life within the Kenai Borough.
Project funds would be used to improve drainage, resurface
deteriorating pavement, and pave existing gravel roads.
This project would supplement the Borough's project funding
for its 5-year plan.
Mr. Richards turned to pages 11 and 12, "Snake River Bridge
- Nome", which he termed a safety project. This road
provides access to the city's power plant, port, and post
office hub. All freight must cross the bridge. It is a
safety issue for aircraft. The bridge would be relocated to
the east. Mr. Richards described the damage the bridge has
sustained.
Mr. Richards reported on the "Parks Highway Weight
Restriction Elimination Program" on pages 13 and 13. There
is a goal to reduce weight restrictions in the spring by
making improvements to the road. The project would be
focused on Milepost 72 - 90. He described the damage due to
water during thawing. He explained the economic cost of
weight restrictions.
10:05:44 AM
Mr. Richards described the project entitled "Windy Corner
Seward Highway PM 105-107", on pages 15-18, as a safety
project due to traffic congestion and to wildlife viewing.
This area is a major attraction with Dahl Sheep near the
highway. The project would move the highway and the
railroad out into Turnagain Arm and create a safe sheep
viewing area. He shared statistics about fatalities on the
road. The legislature did appropriate $2 million in 2006 to
construct passing lanes; however, environmental restrictions
require shifting the road out into Turnagain Arm.
10:08:17 AM
Mr. Richards explained the "Southeast Region Pavement
Rehabilitation" on pages 19 - 23. It would resurface
failing sections of three highways: Mitkof Highway, Craig to
Klawock Highway, and Glacier Highway. He described the
reasons for paving the various highway sections.
Mr. Richards related that the "Steese Highway/Johansen
Expressway Area Traffic Improvements" are shown on pages 24
- 26. The focus of the work would be on turn lanes, signing
and signal improvements, and pedestrian access. He pointed
to the causes of increased traffic in the area.
Co-Chair Hoffman asked if any of these projects are in the
Statewide Transportation Improvement Program (STIP)
federally funded project.
10:11:27 AM
JEFF OTTESEN, DIRECTOR, DIVISION OF PROGRAM DEVELOPMENT,
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES, reported
that none of the projects are Statewide Transportation
Improvement Programs. Co-Chair Hoffman asked if they would
be eligible. Mr. Ottenson said they would be eligible. Co-
Chair Hoffman commented about a project that could have been
included in the bond package. Deputy Commissioner John
McKinnon felt that the project should have been included due
to safety concerns on the Wood River Bridge. Co-Chair
Hoffman reported that he received documents saying that the
project met the highest standard of public safety concerns.
He noted that the needs of Southeast and Western Alaska
districts, which compromise about 25 percent of the
population, are very lean. He voiced concern that most of
the dollars are going to repairs to existing road systems.
Mr. Richards responded that the projects listed on the GO
Bond package were presented by the department to the
Governor's office keeping in mind the Governor's desire to
keep the projects, both the general fund capital projects
and the bond projects, to a reasonable level. There were
projects that did not make the cut.
Co-Chair Stedman requested a list of projects be submitted
to the committee.
10:15:07 AM
Co-Chair Hoffman noted that many of the projects are to
address Anchorage's transportation problems. He pointed out
that Tudor Road has caused many problems, yet there are no
specific projects aimed at resolving that situation. Mr.
Richards reported that work was completed in 2006 on the
Tudor Road Project and the Elmore Road was completed, which
relieved congestion on Tudor Road. He spoke again of the
Connect Anchorage Initiative and how the department is
working to help relieve congestion. Co-Chair Hoffman said
he did not see solutions to the Lake Otis and Tudor Road
congestion. Mr. Richards explained that new alternate
routes would relieve congestion at that intersection.
10:17:53 AM
Senator Elton expressed frustration at the pavement
rehabilitation on Glacier Highway. He stressed that safety
needs are the first priority. He pointed out the hazards in
the mile and a half section of that road: a major highway
past three university entrances, a major federal facility
located on a blind corner, four different speed changes, a
major intersection, a major harbor, a private harbor,
several businesses, a grade school, and a fire department.
He wondered why there was no discussion of the dangerous
elements on this section of road. He argued that new
pavement will not address those issues. He requested more
consideration for that stretch of road.
10:20:58 AM
Mr. Richards recalled the study regarding realigning that
section of the road. He did not know where that study
stands. He explained that the project described addresses
the unsafe surface of the road. Co-Chair Stedman asked Mr.
Richards to get back to the committee on accident studies on
that section of highway. Mr. Richards agreed to that.
10:23:05 AM
Co-Chair Stedman requested information about the life cycle
of pavement upgrades.
Mr. Richards talked about the life cycle of asphalt. There
are preventative actions to be taken that can extend the
life of pavement up to 30 years.
Co-Chair Stedman said the roads he drives do not appear to
be lasting that long. Some are very rough and hard to
drive. He requested more information on the subject. He
also wondered why normal maintenance would need to be
bonded. Mr. Richards thought that this was an opportunity
to get in on the existing bond market where bonds can be
purchased for a relatively low amount and keep the general
fund capital budget in the $300 million to $400 million
range.
Co-Chair Stedman questioned the size of the request for
major upgrades. He mentioned other projects such as the
Gravina Access Bridge and the replacement of ferries, which
would have a longer life than any paving project.
10:27:54 AM
Co-Chair Stedman had concerns about the policy call
regarding which projects were selected and why they were
selected. He termed it too narrow of a scope and not taking
the opportunity to drive the economy forward. He requested
the analysis for how non-STIP items were flushed out and how
they were processed to create the project list. The
committee needs to have a better understanding of why the
projects were selected. He also requested to know if there
was any public involvement to the selection or if it was
internally generated without public input.
Co-Chair Hoffman referred to Sections 4-5 in the bill, which
were not mentioned in the presentations. One involves a
grant to Anchorage of $10 million for a port expansion, and
the other is for $9 million for a South Denali Access
project. He wondered how the two projects fit with the
department's goals and other criteria to develop the list.
10:30:39 AM
Co-Chair Stedman thought that presentation might be coming
up.
Co-Chair Hoffman reiterated a request to receive information
on how the projects fit the criteria used.
Mr. Richards responded that there were representatives who
could speak about those two projects. Co-Chair Hoffman
pointed out that the only local government project in the
whole package is a grant to Anchorage. He questioned if
other communities would benefit by a grant.
Mr. Richards pointed out that there was a project for Kenai
Peninsula Borough roads.
Co-Chair Hoffman turned to page 2, line 12, and asked about
the department's flexibility to reallocate between projects.
He thought that provision was too permissive and gave the
department too much leeway.
Co-Chair Stedman requested that the department rank the list
of projects on page 2 of the bill.
NANCY SLAGLE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES,
explained that the allocation language was put in the bill
to give flexibility to move monies between capital
construction projects, to do a "revised program". It
requires the approval of the Governor's Office of Management
and Budget, and justification has to be provided for any
money being transferred. Legislative Finance is informed of
the revised programs.
10:34:03 AM
Co-Chair Stedman suggested that the committee does not have
a high comfort level with DOT's prioritization of the
selected projects. Mr. Richards offered to get back to the
committee with more information. The department did look at
the specific projects using criteria, scored them, and then
ranked them. Mr. Richards noted that they were not STIP
projects, but he offered to evaluate them as such and then
provide that information.
Co-Chair Stedman did not believe there was a lot of validity
in the STIP process. He wished to have the legislature more
involved with DOT in the evaluation process over the next
several years as the state prepares for the large gas
pipeline project. He maintained that the STIP process
changes too often. He voiced concern that there was not
enough input from the public. He suggested when updating
the 30-year plan, to remember that the legislature is the
appropriating body. He urged DOT to work with the
legislature in order to facilitate projects that are funded.
10:37:09 AM
Co-Chair Hoffman mentioned a project he has been working on
for 15 years that was originally included in the STIP
program. The Wood River Bridge is ready for construction
and is a public safety issue in the Dillingham region.
Senator Stevens has spent vast amounts of money on other
projects, but this Dillingham project has still not been
brought forward. Co-Chair Hoffman reported that he received
assurance from Mr. McKinnon that the project met all
qualifications. He maintained that the project has been
ignored by DOT for the last 15 years.
Senator Olson spoke of personal experience with having lived
in Dillingham. He added that Dillingham has no access over
its river and it is a safety issue. He spoke in favor of
the project.
Senator Thomas inquired about the Windy Corner Seward
Highway project. He asked if materials from the hillside of
the road could not be removed due to sheep habitat. Mr.
Richards reported that the environmental issue is that
cutting thru the hillside affects the sheep feeding habitat.
Senator Thomas asked where the fill material will come from.
Mr. Richards explained that the material for the railroad,
the turnout, and the passing lane will come from commercial
sources in Anchorage or Girdwood. Senator Thomas thought
there might be usable material from the uphill side.
10:41:41 AM
Senator Elton expressed a need to understand how the
projects were selected. He wished they had been run through
STIP criteria. He reported that his understanding of the
process is that it was a lot less rigorous than the one used
last year by the Senate on capital construction projects
where members of the community were consulted about what was
needed. He noted that Co-Chair Stedman had already
requested information on how these projects were chosen. He
summarized that the selection process lacked the rigorous
review it should have had.
10:43:55 AM
JOHN DUFFY, BOROUGH MANAGER, MATSU BOROUGH, related that he
was encouraged that the legislature and Governor are
considering the funding of needed transportation
improvements throughout Alaska. He expressed particular
interest in the proposed Parks Highway weight restriction
elimination portion of the legislation. He maintained it
would be more prudent to invest money in the Parks Highway
Church Road to Big Lake segment, which is currently rated as
the second most dangerous road in Alaska.
Mr. Duffy expressed interest in and support for the access
road to the proposed South Denali Visitors' Center, which is
included in the bill. He related that an Institute of
Social and Economic Research (ISER) study concluded that the
Center would require additional construction and provide
more jobs, resulting in a large economic impact to the
borough.
10:46:35 AM
FORMER GOVERNOR BILL SHEFFIELD, DIRECTOR, PORT OF ANCHORAGE,
explained that the project for expansion of the Port of
Anchorage is a statewide project. He pointed out that 75
percent of all freight that comes to Alaska comes through
this port. It is old and needs updating. There will be
seven slips built. The project requires $100 million over
next 5 years to complete. The recommendation was for $20
million in general funds and $80 million in bonds. There is
a need for $20 million this year in general funds to keep
the project going. Some federal and local funds contribute
to the project.
Co-Chair Stedman recognized that the Governor vetoed the
Port's $10 million request last year.
10:50:54 AM
JAMES KING, DIRECTOR, DIVISION OF PARKS AND OUTDOOR
RECREATION, DEPARTMENT OF NATURAL RESOURCES, informed that
committee that the South Denali Visitor Center project has
been talked about for 40 years. For the first time the
majority of the people are now behind the project. The
proposed project is to build a four-mile access road to
Curry Ridge for a new visitor center which would serve
Alaskans and visitors to Alaska, providing an opportunity to
share Denali. It will be a year-round visitor center with
many proposed uses. It would provide an economic benefit to
the area with jobs and support services. The funding would
involve $8.9 million from the bond package as well as
federal government funds, National Park Service funds, and
other sources, such as from Scenic Byways. The state needs
to step up first with the $8.9 million for building the
road. It is a partnership involving the state, MatSu
Borough, National Park Service, businesses, and the public.
Co-Chair Stedman pointed out that State Parks would testify
in the future, in more depth, about this project.
SENATE BILL NO. 236
"An Act establishing the Alaska transportation fund and
relating to the fund; and providing for an effective
date."
SB 236 was scheduled but not heard.
ADJOURNMENT
The meeting was adjourned at 10:54 AM.
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