Legislature(2005 - 2006)SENATE FINANCE 532

04/07/2005 09:00 AM FINANCE


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Audio Topic
09:06:30 AM Start
09:12:59 AM SB46
10:53:02 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 46 APPROP: CAPITAL BUDGET TELECONFERENCED
Heard & Held
Revenue, Courts, DEC, DOT/PF
+ Bills Previously Heard/Scheduled TELECONFERENCED
                              MINUTES                                                                                         
                     SENATE FINANCE COMMITTEE                                                                                 
                           April 7, 2005                                                                                      
                             9:06 a.m.                                                                                        
                                                                                                                                
                                                                                                                              
CALL TO ORDER                                                                                                               
                                                                                                                                
Co-Chair Green convened the meeting at approximately 9:06:30 AM.                                                              
                                                                                                                                
PRESENT                                                                                                                     
                                                                                                                                
Senator Lyda Green, Co-Chair                                                                                                    
Senator Gary Wilken, Co-chair                                                                                                   
Senator Con Bunde, Vice Chair                                                                                                   
Senator Bert Stedman                                                                                                            
Senator Lyman Hoffman                                                                                                           
Senator Donny Olson                                                                                                             
                                                                                                                                
Also Attending:  CHRIS CHRISTENSEN, Deputy Administrative  Director,                                                          
Alaska  Court   System;  SUSAN  TAYLOR,   Director,  Administrative                                                             
Services  Division, Department  of  Revenue; PAUL  DICK, Chief,  PFD                                                            
Operations,   Permanent  Fund  Dividend   Division,  Department   of                                                            
Revenue;  MIKE   MAHER,  Director,   Division  of  Information   and                                                            
Administrative  Services, Department of Environmental  Conservation;                                                            
DAN   EASTON,   Director,   Division   of   Water,   Department   of                                                            
Environmental  Conservation;  KIRSTEN  RYAN, Director,  Division  of                                                            
Environmental  Health,  Department  of Environmental  Conservation;                                                             
MIKE BARTON, Commissioner,  Department of Transportation  and Public                                                            
Facilities;  NANCY  SLAGLE,  Director,  Division  of Administrative                                                             
Services, Department  of Transportation  and Public Facilities;  KIP                                                            
KNUDSON,   Deputy   Commissioner    of  Aviation,    Department   of                                                            
Transportation   and  Public  Facilities;  JOHN  MACKINNON,   Deputy                                                            
Commissioner   of  Highways  &  Public  Facilities;   Department  of                                                            
Transportation and Public Facilities                                                                                            
                                                                                                                                
Attending   via  Teleconference:   From  Anchorage:   TOM   CHAPPLE,                                                          
Director,  Division  of Air  Quality,  Department  of Environmental                                                             
Conservation;  From  Ketchikan:  CAPTAIN  JOHN  F.  FALVEY,  General                                                            
Manager, Alaska Marine  Highway System, Department of Transportation                                                            
and Public Facilities                                                                                                           
                                                                                                                                
SUMMARY INFORMATION                                                                                                         
                                                                                                                                
SB 46-APPROP: CAPITAL BUDGET                                                                                                    
                                                                                                                                
The Committee  heard budget overviews from the Alaska  Court System,                                                            
the  Department   of  Revenue,  the   Department  of  Environmental                                                             
Conservation,  and  the  Department  of  Transportation  and  Public                                                            
Facilities. The bill was held in Committee.                                                                                     
                                                                                                                                
                                                                                                                                
     SENATE BILL NO. 46                                                                                                         
     "An Act making capital appropriations and appropriations to                                                                
      capitalize funds; and providing for an effective date."                                                                   
                                                                                                                                
                                                                                                                                
This  was the sixth  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Alaska Court System                                                                                                           
                                                                                                                                
     Palmer Courthouse Expansion                                                                                                
     $3,900,000 ASLC Bonds                                                                                                      
     Reference No.: 39022                                                                                                       
     Category: Law and Justice                                                                                                  
     Location: Palmer (Richardson/Glenn Highways)                                                                               
     Election District: Richardson/Glenn Highways                                                                               
     Estimated Project Dates: 07/01/2005 - 06/30/2007                                                                           
     The court system requests funding to complete an addition to                                                               
     the Palmer courthouse to accommodate sufficient judicial staff                                                             
     to handle the caseload.                                                                                                    
                                                                                                                                
CHRIS  CHRISTENSEN,  Deputy Administrative  Director,  Alaska  Court                                                            
System, appreciated  the fact that three Court System  projects were                                                            
included in Governor Frank Murkowski's FY 2006 capital budget.                                                                  
                                                                                                                                
Mr. Christensen  shared  that the  City of Palmer  built the  Palmer                                                            
Courthouse in 1988 under  a lease/purchase agreement with the State.                                                            
An expansion  in 1999 provided two  more courtrooms, for  a total of                                                            
five, in order to accommodate  four resident court judicial officers                                                            
as well  as regularly  scheduled  hearings conducted  by a  visiting                                                            
Anchorage  judge. Currently,  six resident  judicial judges  preside                                                            
over court hearings in  Palmer in addition to the visiting Anchorage                                                            
judge, and  the facility's  office and courtroom  capacity  is under                                                            
capacitated  for the  increased staffing  and  workload. The  Palmer                                                            
area's population has increased  approximately 70-percent since 1990                                                            
and consequently the area's  case filings have experienced "dramatic                                                            
increases".  The expectation  is that  the population  growth  would                                                            
continue  to  grow,  and  additional  judicial  positions  are  also                                                            
anticipated.  The proposed  expansion would  increase the number  of                                                            
Courtrooms  from five  to seven.  It would also  provide  additional                                                            
judicial  chambers  and  clerk  space and  would  relocate  the  law                                                            
library. The funding would  provide for project design, bid document                                                            
development, and construction costs.                                                                                            
                                                                                                                                
Co-Chair   Green  recounted   "the  awkwardness"   associated   with                                                            
maneuvering  judicial staff, witnesses,  and those being  prosecuted                                                            
in the current facility.  She asked whether the current building was                                                            
designed for expansion.                                                                                                         
                                                                                                                                
Mr.  Christensen  replied  that  the  Palmer  Courthouse  and  Kenai                                                            
Courthouse  were similarly  designed with  the exception being  that                                                            
Kenai was built  with four rather  than three courtrooms.  While the                                                            
design is  expandable, this  addition would  be the final phase,  as                                                            
the size of the property would not allow for further expansion.                                                                 
                                                                                                                                
Mr. Christensen  communicated that night and weekend  court hearings                                                            
are being  conducted, as  the current space  does not allow  all the                                                            
judges to conduct court hearings "during the standard workday".                                                                 
                                                                                                                                
Co-Chair Green asked whether the parking lot could be expanded.                                                                 
                                                                                                                                
Mr.  Christensen  responded that  while  there would  be  sufficient                                                            
space  to meet code  requirements  for this  proposed expansion,  no                                                            
further expansion would be possible                                                                                             
                                                                                                                                
Co-Chair  Green  noted  that inquiries  about  the  availability  of                                                            
surrounding land have been made.                                                                                                
                                                                                                                                
     Bethel Courthouse                                                                                                          
     $825,000 Bond Funds                                                                                                        
     Reference No.: 40084                                                                                                       
     Category: Law and Justice                                                                                                  
     Location: Bethel                                                                                                           
     Election District: Bethel                                                                                                  
     Estimated Project Dates: 07/01/2006 - 06/30/2011                                                                           
     One-Time Project                                                                                                           
     The court system requests funding for improvements to the                                                                  
     Bethel courthouse facility.                                                                                                
                                                                                                                                
Mr. Christensen  remarked  that this  request is  one of a  two-part                                                            
effort  to address  the needs  of the  Bethel facility.  The  second                                                            
component, which  has been approved in the House of  Representatives                                                            
FY 06 Operating  Budget, is a $92,000  component that would  provide                                                            
for increased  expenses  associated  with space  leases. The  Bethel                                                            
Courthouse  currently leases  10,000  square feet  from the City  of                                                            
Bethel. The Operating Budget  component would increase that by 2,600                                                            
square feet, in the form  of a new addition the City of Bethel would                                                            
be constructing  at the current facility.  This request would  allow                                                            
improvements to be made to the existing space.                                                                                  
                                                                                                                                
Mr.  Christensen  informed  the Committee  that  Bethel  is a  "high                                                            
volume  Superior Court  location".  While the  area's population  is                                                            
less than 20-percent  of that served by the Fairbanks  Court System,                                                            
during   the  previous   year   its   charged  felony   volume   was                                                            
approximately  80-percent and  its sexual  assaults felonies  was on                                                            
par with that  of Fairbanks. Furthermore, while its  felony caseload                                                            
was smaller  than that  of either  Kenai or Palmer,  its civil  jury                                                            
trials  equated  to  both those  communities  combined.  "It  is  an                                                            
incredibly  busy   Court  location  considering   the  size  of  the                                                            
population."                                                                                                                    
                                                                                                                                
9:12:59 AM                                                                                                                    
                                                                                                                                
Mr. Christensen  stated that  currently two  Superior Court  Judges,                                                            
two  Magistrates, and  a visiting  Judge  from Fairbanks  share  the                                                            
facility's single Superior  Courtroom and single District Courtroom.                                                            
The District Courtroom  is inadequate to seat the required number of                                                            
jurors required  for a Superior court  case. The proposed  expansion                                                            
would provide  two Superior Courtrooms, expansion  and soundproofing                                                            
of the jury deliberation  room, improved office areas,  and security                                                            
enhancements.  The funds provided by this request  would support bid                                                            
document preparation, project management, and construction.                                                                     
                                                                                                                                
     Deferred Maintenance Projects                                                                                              
     $300,000 Bond Funds                                                                                                        
     Reference No.: 39018                                                                                                       
     Category: Law and Justice                                                                                                  
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2004 - 06/30/2009                                                                           
     On-Going Project                                                                                                           
     The court requests funding for repairs to building components                                                              
     that have not been sufficiently maintained and whose condition                                                             
     now threatens longevity of the building.                                                                                   
                                                                                                                                
Mr.  Christensen   noted  that  the   Department's  total   deferred                                                            
maintenance needs amount  to approximately one million dollars. This                                                            
request  would allow  the projects  at the top  of the Department's                                                             
priority list to be addressed.  Those projects would include cooling                                                            
and lighting  system  needs at  the Ketchikan  Courthouse and  basic                                                            
maintenance  needs  such  as  bringing   the  Dimond  Courthouse  in                                                            
Juneau's lighting up to code.                                                                                                   
                                                                                                                                
Department of Revenue                                                                                                         
                                                                                                                                
Co-Chair Green reminded  that the Alaska Housing Finance Corporation                                                            
project  overviews, which  comprise  the bulk of  the Department  of                                                            
Revenue's Capital  Budget projects, were presented  to the Committee                                                            
during the March 23rd hearing on this bill.                                                                                     
                                                                                                                                
     Child Support Services IVR KIDS Hotline Replacement                                                                        
     $105,000                                                                                                                   
          $69,300 Fed Rcpts                                                                                                     
          $35,700 Rcpt Svcs                                                                                                     
     Reference No.: 40028                                                                                                       
     Category: Health/Human Services                                                                                            
     Location: Anchorage Areawide                                                                                               
     Election District: Anchorage Areawide                                                                                      
     Estimated Project Dates: 07/01/2005 - 06/30/2007                                                                           
     State Match Required                                                                                                       
     One-Time Project                                                                                                           
     ETS  currently  provides enterprise  shared  Interactive  Voice                                                            
     Response (IVR) systems  support and administration in Anchorage                                                            
     and Juneau  to CSSD and 4 other  agencies. ETS has recommended                                                             
     that these  ages IVR systems  be replaced as soon as  possible.                                                            
     This project would  share the cost of replacing the IVR systems                                                            
     with  the other  agencies  using the  shared  ETS systems,  and                                                            
     would  also replace the  CSSD KIDS Hotline  application  with a                                                            
     reliable  and effective system  for use by clients to  check on                                                            
     payment  information.  Improved  customer  service  is  one  of                                                            
     CSSD's  strategies to achieving  their end result of  improving                                                            
     the  collection and disbursement  of child  support due  to the                                                            
     children served by CSSD.                                                                                                   
                                                                                                                                
SUSAN   TAYLOR,   Director,   Administrative   Services    Division,                                                            
Department  of  Revenue,  stated that  this  project  would  improve                                                            
interactive  communications   between  the  Child  Support  Services                                                            
Division and custodial  and non-custodial parents. This would result                                                            
in  increased staff  efficiency.  Improvements  in  regards to  this                                                            
"Enterprise  Project"  are also  being pursued  by  the Division  of                                                            
Motor  Vehicles,  Department  of  Administration;  the  Division  of                                                            
Public Assistance,  Department  of Health  and Social Services;  and                                                            
Division of Elections.  The Enterprise Technology  Services division                                                            
of the Department  of Administration  would coordinate the  project.                                                            
                                                                                                                                
9:17:35 AM                                                                                                                    
                                                                                                                                
     Child Support  Services Computer Replacement  Project - Phase 1                                                            
     $162,250                                                                                                                   
          $107,085 Fed Rcpts                                                                                                    
          $ 55,165 Rcpt Svcs                                                                                                    
     Reference No.: 37810                                                                                                       
     Category: Health/Human Services                                                                                            
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2005 - 06/30/2006                                                                           
     State Match Required                                                                                                       
     On-Going Project                                                                                                           
     This is  the start of a second  five-year replacement  cycle of                                                            
     the computer  and printer replacement project.  The first five-                                                            
     year cycle  was initiated in  FY 2000. The agency objective  is                                                            
     to replace personal  computers, printers, and servers that have                                                            
     exceeded  their useful life.  With 274 computers in  use within                                                            
     the division, a five  year replacement plan has 55 computers in                                                            
     that  situation,   as  well  as  several  servers   and  duplex                                                            
     printers.  By replacing  units, we  will be  able to serve  our                                                            
     clients  quicker   and  more  effectively  as  well  as  saving                                                            
     repeated  costly repairs  to  equipment that  has exceeded  its                                                            
     useful life. The end  result is increased customer satisfaction                                                            
     and a better use of state funds.                                                                                           
                                                                                                                                
Ms. Taylor noted that this  would be the sixth year of this computer                                                            
upgrade  endeavor. A  projection of  estimated spending  in the  out                                                            
years, as requested  by the Committee last year, is  included in the                                                            
project's backup material.                                                                                                      
                                                                                                                                
     Permanent Fund Dividend Computer Replacement Project                                                                       
     $117,000 PFD Fund                                                                                                          
     Reference No.: 40051                                                                                                       
     Category: General Government                                                                                               
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2005 - 06/30/2010                                                                           
     On-Going Project                                                                                                           
     This  project  funds  the first  year  of a  newly established                                                             
     replacement  cycle for  desktop computers,  printers,  scanners                                                            
     and  servers.  The cycle  is  based  on warranty  and  expected                                                            
     useful  life.  The  Permanent  Fund  Dividend  Division,  whose                                                            
     mission  is to distribute the  annual PFD dividend in  a timely                                                            
     manner, receives over  two million documents annually that must                                                            
     be scanned  and processed. Regularly  scheduled replacement  of                                                            
     equipment  that has exceeded its useful life  will avoid costly                                                            
     repairs,  equipment  downtime, and  delays  in processing,  and                                                            
     will help  the division achieve  their mission. The  end result                                                            
     of  this  effort  will  be improved  customer  service  to  PFD                                                            
      applicants and maintenance or reduction of staff costs.                                                                   
                                                                                                                                
Ms. Taylor clarified that  this is the first time capital funds have                                                            
been  requested  by  the Permanent  Fund  Division  to  upgrade  its                                                            
computers.  The Division  Director,  seated  by the  Governor  Frank                                                            
Murkowski  Administration,  directed  the  Division to  establish  a                                                            
computer  replacement plan,  as none  had previously  existed.  "The                                                            
Division  is  very   committed  to  technology";  it   has  provided                                                            
tremendous  benefit  by  allowing  the  Division  "to  process  more                                                            
dividends without  increasing budgets".  The online PFD application                                                             
filing system  experienced technical difficulties  the previous year                                                            
but has been improved,  and this year the process is easier and more                                                            
cost effective. More than  200,000 online PFD applications have been                                                            
received  this  year,  and  such technological   advancements  would                                                            
continue to produce cost savings.                                                                                               
                                                                                                                                
Co-Chair Green acknowledged.                                                                                                    
                                                                                                                                
Senator Olson  asked how many areas of the State might  be unable to                                                            
conduct online filing.                                                                                                          
                                                                                                                                
Ms. Taylor  responded  that information  regarding  the communities                                                             
that file online  could be provided. The anticipation  is that there                                                            
would always be those who  would prefer to paper file, and therefore                                                            
that option would be available.                                                                                                 
                                                                                                                                
Senator Olson  asked whether people in Bush Alaska  communities such                                                            
as Shishmaref could conduct online filing.                                                                                      
                                                                                                                                
Ms. Taylor voiced confidence  that people from Shishmaref have filed                                                            
online.  People  from a  variety of  small  communities  as well  as                                                            
people from out-of-State have filed in that manner.                                                                             
                                                                                                                                
PAUL DICK, Chief, PFD Operations,  Permanent Fund Dividend Division,                                                            
Department  of  Revenue,  assured  that the  Division  has  received                                                            
online applications  from Rural areas throughout the  State. 211,464                                                            
online applications have been filed online this year.                                                                           
                                                                                                                                
     Mobility Coalition Project                                                                                                 
     $500,000 Fed Rcpts                                                                                                         
     Reference No.: AMD 40545                                                                                                   
     Category: Health/Human Services                                                                                            
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 10/01/2005 - 09/30/2010                                                                           
     On-Going Project                                                                                                           
     The U.S.  Department of Transportation, Federal  Transportation                                                            
     Act  Section   5309  appropriates   funding  for  fixed   route                                                            
     capability public  transportation projects to the Mental Health                                                            
     Trust Authority  (MHTA). The MHTA will use the  funding for the                                                            
     Coordinated/Non-coordinated    Transportation  and   Assessment                                                            
     project,   which  coordinates   mobility  and  human   services                                                            
     transportation   systems  in   local  communities  by   polling                                                            
     available  resources,  i.e. coordinated  transportation.  Other                                                            
     options  may include  developing  taxi voucher  programs,  taxi                                                            
     accessibility  projects,  convertible  ambulances,  boats,  and                                                            
     snowmobile carts.                                                                                                          
     State Match Required                                                                                                       
                                                                                                                                
Ms. Taylor  stated that these federal  funds have historically  been                                                            
provided  to  the  Alaska  Mental  Health  Trust  Authority  (AMHTA)                                                            
through  an appropriation  to the Department  of Transportation  and                                                            
Public  Facilities  (DOT);   however,  this  year,  the  funds  were                                                            
inadvertently  provided to the AMHTA.  This was corrected  in the FY                                                            
05 Regular  Supplemental bill. Upon  review, it has been  determined                                                            
that future  funds would  be better managed  were the appropriation                                                             
provided to  the Department of Revenue  as the grant administrator.                                                             
This authorization change  is being requested with the FY 06 budget.                                                            
Therefore, were these federal  funds to continue, they would managed                                                            
by the  Department of Revenue.  They would  convey the funds  to the                                                            
DOT to administer the grant program.                                                                                            
                                                                                                                                
Co-Chair Green  asked for further  details about the grant  program.                                                            
                                                                                                                                
Ms. Taylor expressed  that the program would be administered  by the                                                            
DOT;  however,   the  Department   of  Revenue   could  gather   the                                                            
information about the grantees.                                                                                                 
                                                                                                                                
Co-Chair Green  asked that further  information regarding  the grant                                                            
process  be provided;  specifically  whether the  grantees would  be                                                            
required  to  provide  a  program  description  reflecting  how  the                                                            
grantee would  provide maintenance  and upgrade/replacement  funding                                                            
regarding such things as vehicles.                                                                                              
                                                                                                                                
Ms. Taylor agreed to provide the requested information.                                                                         
                                                                                                                                
Co-Chair Wilken noted that  the request specifies a 50-percent State                                                            
match. To that  point, he asked regarding the absence  of that match                                                            
in the funding details.                                                                                                         
                                                                                                                                
Ms. Taylor  replied  that the State  match requirement  had  already                                                            
been appropriated in FY 06 budget.                                                                                              
                                                                                                                                
Senator Olson asked about  the "convertible ambulances" specified in                                                            
the Project Description.                                                                                                        
                                                                                                                                
Ms. Taylor responded that this information would be provided.                                                                   
                                                                                                                                
Department of Environmental Conservation                                                                                      
                                                                                                                                
     Village Safe Water Project Administration                                                                                  
     $2,261,800                                                                                                                 
          $1,696,300 Fed Recpts                                                                                                 
          $  565,500 G/F Match                                                                                                  
     Reference No.: 33820                                                                                                       
     Category: Health/Human Services                                                                                            
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2005 - 06/30/2010                                                                           
     On-Going Project                                                                                                           
     This  project provides  funding for the  operating cost  of the                                                            
     Village  Safe Water Program.  It contributes to the  Division's                                                            
     End  Result 2  - Citizens  are Protected  from Unsafe  Sanitary                                                            
     Facilities. Drinking  water and sewer projects constructed with                                                            
     grant  funds  protect  rural  residents  from  unsafe  sanitary                                                            
     facilities.                                                                                                                
     State Match Required                                                                                                       
                                                                                                                                
MIKE MAHER,  Director, Division  of Information  and Administrative                                                             
Services, Department  of Environmental Conservation,  explained that                                                            
the  $2,261,800 amount  specified  in this  request  would fund  the                                                            
administrative  expenses for the entirety of the Village  Safe Water                                                            
Program projects overseen by the Department.                                                                                    
                                                                                                                                
Co-Chair  Green  asked  for confirmation  that  this  request  would                                                            
support  the  administration   expenses  associated   with  all  the                                                            
projects in this program.                                                                                                       
                                                                                                                                
DAN   EASTON,   Director,   Division   of   Water,   Department   of                                                            
Environmental Conservation affirmed.                                                                                            
                                                                                                                                
Co-Chair  Green specified  that there  would be  no need to  address                                                            
each of  the Safe Water  projects. Each Village  Safe Water  Program                                                            
project's  budget would be  coordinated in  a manner similar  to the                                                            
project model  utilized by the Denali Commission and  as directed by                                                            
the  Governor's  Administrative   Order  regarding  the   selection,                                                            
administration,  and execution  of projects.  The projects  would be                                                            
monitored  and reports would  be required in  order "to restore  the                                                            
authority   and  the   decision  making   to"   the  Department   of                                                            
Environmental Conservation  [DEC] and "the payer." The purpose would                                                            
be to develop,  enhance, and finance  each project "in the  best way                                                            
possible".  Specific language in this  regard would be forthcoming.                                                             
                                                                                                                                
Co-Chair  Wilken  informed the  Committee  that the  Department  has                                                            
developed  and  maintained  a  thorough  spreadsheet  titled  "Rural                                                            
Sanitation  Funding  Database"  that  details  the history  of  each                                                            
Village Safe Water  Program project [copy on file].  Copies would be                                                            
provided to Committee members.                                                                                                  
                                                                                                                                
Co-Chair Green  agreed that the spreadsheet would  be beneficial and                                                            
would  underscore  the reason  to further  the  Denali Commissions'                                                             
model,  the  Governor's  Executive  Order,  and  the aforementioned                                                             
Intent Language.                                                                                                                
                                                                                                                                
     Municipal Water, Sewer  and Solid Waste Matching Grant Projects                                                            
     $11,035,500                                                                                                                
          $6,621,600 ASLC Bonds                                                                                                 
          $4,413,900 Fed Rcpts                                                                                                  
     Reference No.: 33824                                                                                                       
     Category: Health/Human Services                                                                                            
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2005 - 06/30/2010                                                                           
     On-Going Project                                                                                                           
     This  project provides  funding  for grants  to communities  to                                                            
     construct  water,  sewer and  solid  waste facilities  and  the                                                            
     operating   costs  of  the  program.  It  contributes   to  the                                                            
     Division's  End Result 2 - Citizens  are Protected from  Unsafe                                                            
     Sanitary  Facilities.  Drinking water  and wastewater  projects                                                            
     constructed  with  grant  funds protect  citizens  from  unsafe                                                            
     sanitary facilities.                                                                                                       
     State Match Required                                                                                                       
                                                                                                                                
Mr.  Easton  communicated  that  this  appropriation  would  support                                                            
water, sewer,  and solid waste infrastructure in communities  larger                                                            
than those  provided for  by the Village  Safe Water Program.  While                                                            
State  Funds  are primarily  utilized,  federal  grant  funds  would                                                            
support  certain projects.  The ratio of  federal/State funds,  when                                                            
applicable,  is   75/25  percent  respectfully.  The   13  projects,                                                            
Reference Numbers  40130 through 40142,  that would be addressed  by                                                            
this appropriation  are individually  described in the Department's                                                             
Project Review material.                                                                                                        
                                                                                                                                
Co-Chair  Green asked the  Committee to  independently review  those                                                            
projects, as  they would not be individually  addressed during  this                                                            
hearing.                                                                                                                        
                                                                                                                                
     Village Safe Water Feasibility Studies                                                                                     
     $755,000                                                                                                                   
      $565,900 Fed Rcpts                                                                                                        
      $189,100 G/F Match                                                                                                        
     Reference No.: 33821                                                                                                       
     Category: Health/Human Services                                                                                            
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2005 - 06/30/2010                                                                           
     On-Going Project                                                                                                           
     This project  provides funding for grants to  small communities                                                            
     to  plan water  and sewer  facilities.  It contributes  to  the                                                            
     Division's  End Result 2 - Citizens  are Protected from  Unsafe                                                            
     Sanitary   Facilities.  Drinking   water  and  sewer   projects                                                            
     constructed  with  grant  funds protect  rural  residents  from                                                            
     unsafe sanitary facilities.                                                                                                
     State Match Required                                                                                                       
                                                                                                                                
Mr. Easton specified  that this appropriation request  would provide                                                            
for the feasibility  study associated with each of  the Village Safe                                                            
Water projects  provided for in Reference Number 33824.  The studies                                                            
would be  the basis  for the planning  of each  of the 12  projects,                                                            
Reference  Numbers 40143  through 40154,  and the  funding ratio  is                                                            
75/25 percent  federal to State respectfully  project. This  funding                                                            
is  separate  from  the  construction  funds  associated  with  each                                                            
project.                                                                                                                        
                                                                                                                                
     Village Safe water Projects                                                                                                
     $78,922,700                                                                                                                
          $  2,378,000 ASLC Bonds                                                                                               
          $59,140,500 Fed Rcpts                                                                                                 
          $17,404,200 G/F Match                                                                                                 
     Reference No.: 33822                                                                                                       
     Category: Health/Human Services                                                                                            
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2005 - 06/30/2010                                                                           
     On-Going Project                                                                                                           
     This project  provides funding for grants to  small communities                                                            
     to  design  and  construct  water   and  sewer  facilities.  It                                                            
     contributes  to  the Division's  End  Result 2  - Citizens  are                                                            
     Protected  from Unsafe Sanitary Facilities. Drinking  water and                                                            
     sewerage  projects constructed  with grant funds protect  rural                                                            
     residents from unsafe sanitary facilities.                                                                                 
     State Match Required                                                                                                       
                                                                                                                                
Mr. Easton  stated  that this appropriation  would  provide for  the                                                            
construction of  67 Village Safe Water projects as  reflected on the                                                            
Project  Review Listing  material, Reference  numbers 40155  through                                                            
40222.  Funding is  again 75-percent  federal  and 25-percent  State                                                            
match.                                                                                                                          
                                                                                                                                
     Regional Haze Trans-boundary Monitoring Project                                                                            
     $750,000 Fed Rcpts                                                                                                         
     Reference No.: 40129                                                                                                       
     Category: Natural Resources                                                                                                
     Location: Southcentral Alaska                                                                                              
     Election District: Southcentral House Districts 12-36                                                                      
     Estimated Project Dates: 07/01/2005 - 06/30/2008                                                                           
     One-Time Project                                                                                                           
     To establish  a monitoring network  that will generate  quality                                                            
     date  which  can  be used  to  determine  the  contribution  of                                                            
     internationally   transported   pollutants  to  regional   haze                                                            
     impacts within  three of Alaska's Class I areas  - Denali Park,                                                            
     Tuxedni   Island(lower   Cook  Inlet),   and  Simeonof   Island                                                            
     (southwest of Kodiak).                                                                                                     
                                                                                                                                
TOM  CHAPPLE,  Director,  Division  of Air  Quality,  Department  of                                                            
Environmental  Conservation,   testified  via  teleconference   from                                                            
Anchorage  to  explain  that  this project  would  provide  for  air                                                            
quality monitoring  in the  four national parks  and refuges  in the                                                            
State, including  Denali  National Park. Federal  rules require  the                                                            
Department  to "manage  and  reduce human  caused  haze in  national                                                            
parks  and  refuges."  Because  the majority  of  the  State's  haze                                                            
problem comes from places  such as Siberia, China, and Europe rather                                                            
than from within,  this federally  funded project is more  of effort                                                            
to document  effects imposed  by other countries  in order  to avoid                                                            
"inappropriately"  controlling  "our  own  activities  more than  is                                                            
necessary" to control haze pollution.                                                                                           
                                                                                                                                
     Data Integration and Network Readiness                                                                                     
     $910,000 Fed Rcpts                                                                                                         
     Reference No.: AMD 39963                                                                                                   
     Category: Natural Resources                                                                                                
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2005 - 06/30/2010                                                                           
     One-Time Project                                                                                                           
     This   project  is  to  consolidate,   upgrade  and   integrate                                                            
     Department  of Environmental Conservation data  stores to allow                                                            
     program information  to be shared among divisions,  other state                                                            
     and  federal agencies  and, to provide  information for  senior                                                            
     department  management to make  informed decisions in  a timely                                                            
     fashion.                                                                                                                   
                                                                                                                                
Mr. Maher stated that this request is being withdrawn.                                                                          
                                                                                                                                
      Contaminant Monitoring and Incident Response Capability                                                                   
     $1,500,000 Fed Rcpts                                                                                                       
     Reference No.: AMD 40550                                                                                                   
     Category: Health/Human Services                                                                                            
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2005 - 06/30/2010                                                                           
     Amendment                                                                                                                  
     This  project   captures  federal  funding  to   build  routine                                                            
     environmental   monitoring,   food  supply  surveillance,   and                                                            
     incident response  capacity for toxic, chemicals and biological                                                            
     contaminating  substances  or  agents.  It contributes  to  the                                                            
     department's  End Result #2 by protecting against  unsafe food.                                                            
                                                                                                                                
KRISTIN   RYAN,  Director,   Division   of   Environmental   Health,                                                            
Department  of Environmental  Conservation,  informed the  Committee                                                            
that  this  request  would utilize  federal  funds  to  provide  the                                                            
necessary  equipment   to  test  for  toxins  in  our  environment.                                                             
Acquiring this equipment  would allow tests to be conducted in-house                                                            
rather  than contracting  with outside  laboratories  at a per  test                                                            
price of  $3,000. Primary  sampling  relates to  such things  as the                                                            
monitoring of PCBs, PBDEs,  which is a very effective fire retardant                                                            
that is  unfortunately "very  persistent" and  is being absorbed  in                                                            
the food chain, pesticides,  and dioxins, which are the byproduct of                                                            
burning plastic.                                                                                                                
                                                                                                                                
Ms. Ryan, responding to  a question from Co-Chair Green, stated that                                                            
a laboratory in Canada currently conducts the tests.                                                                            
                                                                                                                                
9:37:32 AM                                                                                                                    
                                                                                                                                
     Animal Disease Surveillance and Monitoring                                                                                 
     $400,000 Fed Rcpts                                                                                                         
     Reference No.: AMD 40471                                                                                                   
     Category: Health/Human Services                                                                                            
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2005 - 06/30/2010                                                                           
     One-Time Project                                                                                                           
     Amendment                                                                                                                  
     This project  will build monitoring  and surveillance  capacity                                                            
     for  animal diseases  such as  Chronic Wasting  Disease  (CWD),                                                            
     Bovine  Spongiform  Encephalopathy  (Mad  Cow) and  Scrapie  in                                                            
     domestic  livestock, game farm animals and wildlife  in Alaska.                                                            
     It contributes to  the department's End Result #2 by protecting                                                            
     against unsafe  food and providing information  associated with                                                            
     risks from animal diseases.                                                                                                
                                                                                                                                
Ms. Ryan  communicated that  this federal  funding would  complement                                                            
previous federal  funding of $150,000 that the Department  received.                                                            
This    would   further    surveillance    capabilities    regarding                                                            
Transmittable  Spongiform Encephalopathies  (TSEs)  such as  Mad Cow                                                            
Disease and  Chronic Wasting  Disease (CWD).  The latter is  of more                                                            
concern  in Alaska  as it  is a disease  that  impacts animals  with                                                            
antlers  such as  moose, reindeer,  and  deer. These  efforts  would                                                            
assist  in determining  whether  CWD "is  a problem"  in the  State.                                                            
Efforts are being coordinated  with the Department of Fish and Game.                                                            
                                                                                                                                
Senator Bunde  asked whether the State  has ever experienced  a case                                                            
of CWD.                                                                                                                         
                                                                                                                                
Ms. Ryan  responded  that while no  case has  been identified,  very                                                            
little  CWD investigative  work has,  to date,  been afforded.  This                                                            
funding  would further  that endeavor.  The key  to controlling  the                                                            
disease is to  locate and eradicate it swiftly. Otherwise,  it could                                                            
spread rapidly.                                                                                                                 
                                                                                                                                
Senator Olson  understood that some of these diseases  might produce                                                            
a sub-viral  strain  that could  infect  humans; to  that point,  he                                                            
asked whether any such situation has occurred.                                                                                  
                                                                                                                                
9:40:13 AM                                                                                                                    
                                                                                                                                
Ms.  Ryan responded  in  the negative.  She  reminded  that Mad  Cow                                                            
disease  could affect  humans.  This disease  is tested  for at  the                                                            
Palmer slaughter  facility and no  positive tests have occurred.  No                                                            
CWD disease or other animal  to human transmitted infection has been                                                            
proven. One case of an  illness relating to the consumption of moose                                                            
meat was suspected but not proven.                                                                                              
                                                                                                                                
In response  to a  question from  Senator Olson,  Ms. Ryan  affirmed                                                            
that  in that case,  the  victim, who  was a woman  from  Fairbanks,                                                            
died. She reiterated  that no linkage  to wild game consumption  was                                                            
confirmed.                                                                                                                      
                                                                                                                                
Senator Olson  spoke in favor of this project, as  a breakout of one                                                            
of these diseases would be "significant".                                                                                       
                                                                                                                                
     Denali Commission and Alaska Native Tribal Health Consortium                                                               
     Safe Water Projects                                                                                                        
     $12,500,000 Fed Rcpts                                                                                                      
     Reference No.: AMD 40551                                                                                                   
     Category: Health/Human Services                                                                                            
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2005 - 06/30/2010                                                                           
     On-Going Project                                                                                                           
     Amendment                                                                                                                  
     This project  provides funding for grants to  small communities                                                            
     to  design  and  construct  water   and  sewer  facilities.  It                                                            
     contributes  to  the Division's  End  Result 2  - Citizens  are                                                            
     Protected  from Unsafe Sanitary Facilities. Drinking  water and                                                            
     sewerage  projects constructed  with grant funds protect  rural                                                            
     residents from unsafe sanitary facilities.                                                                                 
                                                                                                                                
Mr. Easton  communicated that  this amendment  is the result  of the                                                            
receipt of additional  monies provided by the Indian  Health Service                                                            
to the Denali  Commission and designated for the Village  Safe Water                                                            
program.  This  amendment   would  provide  the  authority   to  the                                                            
Department to receive those funds.                                                                                              
                                                                                                                                
Co-Chair   Green  asked   whether  these   funds  would  support   a                                                            
predetermined project.                                                                                                          
                                                                                                                                
Mr. Easton  responded in the negative,  the request simply  reflects                                                            
funds that would be anticipated in FY 06.                                                                                       
                                                                                                                                
Co-Chair  Green asked whether  the Department  would participate  in                                                            
"the grant  process  and the  decisions-making"  pertinent to  these                                                            
funds.                                                                                                                          
                                                                                                                                
Mr.  Easton  affirmed   that  the  Department  would   "conduct  the                                                            
decision-making".                                                                                                               
                                                                                                                                
Senator  Bunde commented  that while  "many small  communities  have                                                            
been very concerned  about the lack  of revenue sharing"  monies, it                                                            
appears that the federal  government is providing revenue sharing to                                                            
them.                                                                                                                           
                                                                                                                                
Co-Chair Green replied that such things are being considered.                                                                   
                                                                                                                                
This  concluded  the  Department  of  Environmental  Conservation's                                                             
capital budget requests.                                                                                                        
                                                                                                                                
9:42:31 AM                                                                                                                    
                                                                                                                                
Department of Transportation and Public Facilities                                                                            
                                                                                                                                
Co-Chair Green  informed the Committee that their  packets contain a                                                            
Department  of Transportation  and Public  Facilities (DOT)  Project                                                            
Review Listing Packet as  well as a Project Detail packet containing                                                            
project backup  material [copies on  file]. The Department  would be                                                            
presenting  a general  overview of  its Capital  Budget projects  as                                                            
opposed  to discussing  individual  projects. Therefore,  she  urged                                                            
Committee   Members  to  study  and   review  the  detailed   packet                                                            
independently.                                                                                                                  
                                                                                                                                
MIKE BARTON, Commissioner,  Department of Transportation  and Public                                                            
Facilities  remarked  that the  Department's  FY 06  Capital  Budget                                                            
requests should be viewed  as "an investment" in the State's future.                                                            
Even though it is "a substantial"  request, "it barely scratches the                                                            
surface of  the more than eight billion  dollars that Alaskans  have                                                            
identified" in transportation needs.                                                                                            
                                                                                                                                
Co-Chair Green  communicated that an effort was made  to present the                                                            
projects in the  twelve-page Project Review Listing  summary by fund                                                            
source and area of interest.                                                                                                    
                                                                                                                                
Co-Chair  Wilken,  noting  that  Members'   packet  contain  several                                                            
versions  of the  listings, asked  the  date of  the material  being                                                            
referenced.                                                                                                                     
                                                                                                                                
NANCY  SLAGLE,  Director,   Division  of  Administrative   Services,                                                            
Department  of Transportation and  Public Facilities specified  that                                                            
the packet being referenced  is dated February 23, 2005. It includes                                                            
the  Department's  original  requests  as  well  as  the  Governor's                                                            
amendments. Additional amendments would be addressed separately.                                                                
                                                                                                                                
Commissioner  Barton  expressed  that the  Department's  request  is                                                            
"based   on  our   best  estimate   of  how   the  federal   highway                                                            
reauthorization bill" would develop.                                                                                            
                                                                                                                                
Co-Chair Green asked the status of that federal legislation.                                                                    
                                                                                                                                
Commissioner   Barton  stated  that   the  Congressional   House  of                                                            
Representatives  has passed the bill, and the Senate  is considering                                                            
it. Alaska Senator  Lisa Murkowski is a member of  the Senate Energy                                                            
and  Public  Works   Committee,  which  is,  of  the   three  Senate                                                            
committees  that  review the  bill,  the primary  committee.  Alaska                                                            
Representative  Don  Young worked  diligently  on getting  the  bill                                                            
passed  by the  House. Nonetheless,  the  bill is  one and  one-half                                                            
years behind schedule.  The Senate anticipates taking  action on the                                                            
bill  this month  and a  Conference Committee  is  expected to  meet                                                            
later this month.  "The current Continuing Resolution"  would expire                                                            
on May 31,  2005. Therefore, that  is the target date for  the bill.                                                            
                                                                                                                                
Commissioner  Barton  communicated  that the  delay  at the  federal                                                            
level  has made  the program  difficult  to manage  because  federal                                                            
funding  "has  been   allocated  in  pieces,  two   to  three  month                                                            
expenditures  at a time". It is difficult  to award large  contracts                                                            
under the circumstances.                                                                                                        
                                                                                                                                
Co-Chair  Green surmised  therefore  that  the process  utilized  in                                                            
developing  the Capital Budget  could be likened  to "a best  guess"                                                            
scenario.                                                                                                                       
                                                                                                                                
Commissioner Barton favored the term "best estimate".                                                                           
                                                                                                                                
Commissioner  Barton stated that the  FY 06 Capital Budget  projects                                                            
being  proposed   includes  approximately  $600  million   in  roads                                                            
including approximately  $145 million of Governor's Initiatives that                                                            
provide  for   such  things  as  congestion   relief  and   economic                                                            
development   for   tourism,   mining,   and  the   development   of                                                            
infrastructure  to support gas pipeline  construction activities  by                                                            
the year 2009.                                                                                                                  
                                                                                                                                
Co-Chair  Green asked whether  a review of  those projects  would be                                                            
provided.                                                                                                                       
                                                                                                                                
Commissioner Barton affirmed.                                                                                                   
                                                                                                                                
Commissioner Barton  stated that the FY 06 projects  also include in                                                            
excess of $400 million  in federal matches relating to the Statewide                                                            
Transportation  Improvement  Program  (STIP)  and  $410  million  in                                                            
aviation  components   including  $210  million  for  international                                                             
airport projects  specifically a new airport terminal  in Fairbanks,                                                            
two new  concourses at the  Anchorage airport,  and $200 million  in                                                            
Rural  airport projects.  Other  projects  include  $11 million  for                                                            
Department  facilities and $12 million  designated for harbors.  The                                                            
total budget request  would amount to approximately  $1,100,000,000.                                                            
The projects  would  be supported  by a variety  of funding  sources                                                            
including  federal  funding such  as  Federal Highway  and  Aviation                                                            
funds and Congressional  earmarks, Amerada Hess Bonds, State general                                                            
funds, International  Airport Bonds,  and the International  Airport                                                            
Revenue  Fund.  Approximately  $16  million would  come  from  other                                                            
miscellaneous funding sources.                                                                                                  
                                                                                                                                
Commissioner  Barton explained  that in addition  to the  Governor's                                                            
Transportation  Initiative  which would include  traffic  congestion                                                            
relief projects,  the Governor's Transportation Access  to Resources                                                            
Initiative  would further  roads and economic  development  projects                                                            
such as the Bullen Point  Road which would transit east from Prudhoe                                                            
Bay to access  prospective oil and gas areas and the  Foothills West                                                            
Road which would  segment off the Dalton Highway in  the vicinity of                                                            
Pump  Station  2.  The  Foothills  West   Road  would  provide  both                                                            
independent  and large  producers  access to  State resource  areas.                                                            
Several   bridge   projects,   passing   lanes,   and  intersection                                                             
improvements  in  the Fairbanks  area  would assist  in alleviating                                                             
congestion  relief.  Other  projects  in the  Fairbanks  area  would                                                            
provide for  pipeline transportation  infrastructure. Road  upgrades                                                            
such as the five  million dollar road upgrade proposed  for Stampede                                                            
Road would benefit tourism industry operations.                                                                                 
                                                                                                                                
Co-Chair Green asked the location of Stampede Road.                                                                             
                                                                                                                                
Commissioner  Barton  noted that  Stampede  Road is  located in  the                                                            
Healy area just north of Denali Park.                                                                                           
                                                                                                                                
Commissioner  Barton  overviewed  other  Governor's  Transportation                                                             
Initiative projects including  the $30 million improvements proposed                                                            
for the Glenn  Highway and Bragaw  Street intersection in  Anchorage                                                            
that would provide  congestion relief for both Anchorage  and Mat-Su                                                            
Valley commuters.  Numerous other  Anchorage projects would  provide                                                            
congestion  relief, and in  addition, would  assist in streamlining                                                             
industrial traffic from  the Port of Anchorage to points outside the                                                            
City.                                                                                                                           
                                                                                                                                
9:52:44 AM                                                                                                                    
                                                                                                                                
Commissioner  Barton  noted that  Wasilla  and other  Mat-Su  Valley                                                            
communities'  congestion issues  would also  be addressed under  the                                                            
Governor's   Transportation   Initiative   projects.  Environmental                                                             
studies pertaining  to the Tanana/Wasilla Highway  expansion and the                                                            
Parks Highway corridor expansion would also be provided for.                                                                    
                                                                                                                                
Co-Chair  Green understood  that the discussions  pertaining  to the                                                            
Parks  Highway corridor  have  been tumultuous  in  regards to  such                                                            
things as the proposal to bypass communities such as Wasilla.                                                                   
                                                                                                                                
Commissioner Barton  affirmed. He noted that the Alaska  Railroad is                                                            
participating in the endeavor.                                                                                                  
                                                                                                                                
Co-Chair  Green  asked  whether  Alaska   Railroad  funds  might  be                                                            
involved in this project.                                                                                                       
                                                                                                                                
Commissioner Barton understood  that the Railroad would participate.                                                            
                                                                                                                                
Co-Chair Green asked whether  the Mat-Su Borough has participated in                                                            
the discussion.                                                                                                                 
                                                                                                                                
Commissioner  Barton assured  that the Department  has included  the                                                            
Borough in these on-going discussions.                                                                                          
                                                                                                                                
Commissioner  Barton  noted  that  other projects  included  in  the                                                            
Governor's  Transportation  Initiative  would be  the McCarthy  Road                                                            
maintenance.  This long-term project  is in its final environmental                                                             
impact study (EIS)  stages. The end result would be  improved access                                                            
to Denali  Park  and the  community of  McCarthy.  The Copper  River                                                            
Highway Rehabilitation  project would  also improve road  conditions                                                            
from Cordova to  the Cordova airport. The 11-mile  Kalifornsky Beach                                                            
Road in Kenai would also be improved.                                                                                           
                                                                                                                                
9:55:51 AM                                                                                                                    
                                                                                                                                
Co-Chair  Green  understood   that  the  Governor's  Transportation                                                             
Initiative projects would be primarily funded by Bond funds.                                                                    
                                                                                                                                
Commissioner  Barton  affirmed.  The proposal  would  be to  utilize                                                            
Amerada Hess bond funds.                                                                                                        
                                                                                                                                
Senator Bunde  asked whether  the costs associated  with the  Bullen                                                            
Point Road and the Foothills  West Road EIS studies were included in                                                            
the Governor's  Transportation Access to Resources  Initiative total                                                            
of $37,000,000.  In other words, was their listing  a subcategory of                                                            
the  Governor's  Transportation   Access  to  Resources   Initiative                                                            
heading.                                                                                                                        
                                                                                                                                
Commissioner Barton  clarified that those EIS studies  were included                                                            
in the $37,000,000 total.                                                                                                       
                                                                                                                                
9:57:12 AM                                                                                                                    
                                                                                                                                
     Governor's Transportation Access to Resources Initiative                                                                   
     $37,000,000 Bond Funds                                                                                                     
     Reference No.: 40448                                                                                                       
     Category: Transportation                                                                                                   
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2005 - 06/30/2010                                                                           
     Resource Roads                                                                                                             
                                                                                                                                
     North Slope: Foothills West Road EIS                                                                                       
     $4,000,000,000 Bond Funds                                                                                                  
     Reference No.: 40420                                                                                                       
     Category: Transportation                                                                                                   
     Location: North Slope Borough                                                                                              
     Election District: Arctic House District                                                                                   
     Estimated Project Dates: 07/01/2005 - 06/30/2010                                                                           
     Complete NEPA process necessary to construct 50-mile road from                                                             
     Pump Station 2 on Dalton Highway westerly into area of oil and                                                             
     gas leases on state land.                                                                                                  
                                                                                                                                
Senator Bunde  understood therefore that the North  Slope: Foothills                                                            
West Road EIS,  Reference Number 40420  project was included  in the                                                            
$37 million  specified in  the Governor's  Transportation Access  to                                                            
Resources Initiative Reference Number 40448.                                                                                    
                                                                                                                                
Commissioner  Barton  clarified  that  Reference  Number  40420  was                                                            
included  in the  $37 million  Governor's Transportation  Access  to                                                            
Resources Initiative total allotment, Reference Number 40448.                                                                   
                                                                                                                                
Senator  Bunde asked  the  difference  between the  State  Equipment                                                            
Fleet Replacement  project, Reference Number 30628,  and the Capital                                                            
Improvement Program Equipment  Replacement project, Reference Number                                                            
32534.                                                                                                                          
                                                                                                                                
     State Equipment Fleet Replacement                                                                                          
     $10,000,000 Hwy Capiti                                                                                                     
     Reference No.: 30628                                                                                                       
     Category: General Government                                                                                               
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2005 - 06/30/2007                                                                           
     On-Going Project                                                                                                           
     Replacement  and/or  refurbishment  of equipment  and  vehicles                                                            
     which have reached  the end of their useful life cycles and all                                                            
     extension  periods,  and continued  conversion  of vehicles  to                                                            
     alternate  fuel and  related alternate  fuel program  expenses.                                                            
     This  project  contributes   to  the Department's   Mission  by                                                            
     reducing  injuries,  fatalities,  and  property  damage and  by                                                            
     improving the mobility of people and goods.                                                                                
                                                                                                                                
     Capital Improvement Program Equipment Replacement                                                                          
     $1,500,000 CIP Rcpts                                                                                                       
     Reference No.: 32534                                                                                                       
     Category: Transportation                                                                                                   
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2005 - 06/30/2007                                                                           
     Replace  equipment  through  a  usage fee  charged  to  capital                                                            
     projects.   Types   of  equipment   to  be   replaced   include                                                            
     specialized  instruments used  in designing projects,  copiers,                                                            
     plotters and computers.  The project will also pay for eligible                                                            
     useage  rate   costs  reimbursed  through  the   Indirect  Cost                                                            
     Allocation Plans.  This project contributes to the Department's                                                            
     Mission  by reducing injuries,  fatalities and property  damage                                                            
     and by improving the mobility of people and goods.                                                                         
                                                                                                                                
Ms.  Slagle explained  that  Reference  Number 30628  would  replace                                                            
fleet  vehicles such  as Alaska  State  Trooper vehicles  and  heavy                                                            
equipment,  which are  funded by  the Highway  Working Capital  Fund                                                            
through  receipts  from user  agencies.  Reference  Number 32534  is                                                            
funded  by  Department   construction  projects;  specifically   for                                                            
construction  equipment  needs.  Equipment  could  not  be  directly                                                            
charged to  a capital project as such  a purchase would not  qualify                                                            
under Office  of Management and Budget  requirements. The  equipment                                                            
that  is  purchased  would  support  Department  programs  in  their                                                            
entirety rather  than a specific project.  This equipment  would not                                                            
include vehicles but would  include other types of equipment such as                                                            
re-pavers.                                                                                                                      
                                                                                                                                
9:59:38 AM                                                                                                                    
                                                                                                                                
Senator Bunde  understood therefore  that one project would  pertain                                                            
to vehicles and  the other would pertain to construction  equipment.                                                            
He asked that  particular attention be provided to  Reference Number                                                            
32534 as private  enterprise has conveyed  to him their frustration                                                             
"with  the State  buying  construction  equipment that  the  private                                                            
sector  could  easily  supply".  The State  might  be  competing  in                                                            
business with the private sector.                                                                                               
                                                                                                                                
Senator  Olson  shared the  public's  concern  that such  things  as                                                            
drilling rigs have been purchased by the State for limited use.                                                                 
                                                                                                                                
Commissioner Barton voiced  being aware of the drilling rig concern.                                                            
That issue has been reviewed and the findings could be shared.                                                                  
                                                                                                                                
10:01:37 AM                                                                                                                   
                                                                                                                                
Senator Olson  voiced the importance  of the State not competing  or                                                            
phasing out the private sector.                                                                                                 
                                                                                                                                
Co-Chair  Wilken,  Chair of  the  Finance Committee  Transportation                                                             
subcommittee,  informed  that  the subcommittee  has  reviewed  this                                                            
concern. In  FY 04, approximately  one to four percent of  the total                                                            
money  the State  spent on  road maintenance  was  conducted by  the                                                            
State.  These were  primarily "helter-skelter"  jobs  that were  not                                                            
sought  after by  the private  sector.  While he  had heard  similar                                                            
concerns, it would appear  that "there was smoke" but not much fire.                                                            
He concluded that the Department  was utilizing people and equipment                                                            
appropriately", in conducting  work, at least in the Interior region                                                            
of the area, that the private  sector did not find attractive. While                                                            
there  might  be drilling  rig  issues,  one  situation  should  not                                                            
"taint" the  entire effort to use  DOT to provide road maintenance.                                                             
The  majority  of  the  money  is awarded,  "as  it  should  be"  to                                                            
contractors.                                                                                                                    
                                                                                                                                
10:03:26 AM                                                                                                                   
                                                                                                                                
Commissioner Barton affirmed  that supporting documentation could be                                                            
provided in this regard.                                                                                                        
                                                                                                                                
     Statewide: Civil Rights Program                                                                                            
     $200,000 Fed Rcpts                                                                                                         
     Reference No.: 36185                                                                                                       
     Category: Transportation                                                                                                   
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2005 - 06/30/2010                                                                           
     Phased Project                                                                                                             
     On  the  job training  to  provide  training  opportunities  on                                                            
     construction  jobs. Also, provides on-site construction  review                                                            
     to  assure compliance  with  Civil  Rights laws.  This  project                                                            
     contributes  to the Department's Mission by increasing  private                                                            
     investment.                                                                                                                
     State Match Required                                                                                                       
                                                                                                                                
Senator Bunde asked for  further information regarding the "role" of                                                            
the Department pertaining to this program.                                                                                      
                                                                                                                                
Ms.  Slagle  explained  that  the Federal  Highways  Administration                                                             
requires the Department  to "administer certain" federally  required                                                            
programs relating  to disadvantaged  business enterprises  and equal                                                            
employment  opportunities  (EEO).  Therefore,  the  Department  must                                                            
monitor contractor  and subcontractor activities in  order to assure                                                            
that they are  adhering to federal civil rights and  EEO guidelines.                                                            
                                                                                                                                
Senator Bunde  opined that this request  should be in the  Operating                                                            
rather than the Capital Budget.                                                                                                 
                                                                                                                                
Ms.  Slagle stated  that  due  to the  Department's  billing  system                                                            
constraints,  the majority  of federal funds  are identified  in the                                                            
Capital Budget  but are included in the Operating  Budget as Capital                                                            
Improvement  Project (CIP)  receipts. Therefore,  this Civil  rights                                                            
project is  reflected in  the Operating Budget  and the funding  for                                                            
the  associated  positions   is financed   by  this  Capital  Budget                                                            
allocation.                                                                                                                     
                                                                                                                                
     Selawik: Landfill Access Improvements                                                                                      
     $1,800,000 Fed Rcpts                                                                                                       
     Reference No.: AMD 40582                                                                                                   
     Category:  Transportation                                                                                                  
     Location: Selawik                                                                                                          
     Election District: Arctic                                                                                                  
     Estimated Project Dates: 07/01/2005 - 06/30/2010                                                                           
     One-Time Project                                                                                                           
     Construct  a landfill  access road, approximately  one  mile in                                                            
     length, to  the new Selawik landfill. This project  contributes                                                            
     to the Department's  Mission by reducing injuries,  fatalities,                                                            
     and  property damage  and by improving  the mobility of  people                                                            
     and goods.                                                                                                                 
     Amendment                                                                                                                  
                                                                                                                                
Senator  Bunde inquired  as to whether,  in addition  to building  a                                                            
road  to the landfill,  the  Department  would also  be involved  in                                                            
building landfills.                                                                                                             
                                                                                                                                
Commissioner   Barton  shared  that  in  situations   in  which  the                                                            
Department  of Environmental Conservation  and a community  might be                                                            
developing  or  improving  their  landfill,   the  Department  would                                                            
attempt to coordinate  any road improvements that  might be required                                                            
at the same time.                                                                                                               
                                                                                                                                
Senator Olson shared that  he had recently visited Selawik, and that                                                            
a new landfill  was desperately needed  there as the current  one is                                                            
contaminating the river.                                                                                                        
                                                                                                                                
Senator  Bunde  noted  that  the  Legislature  is  Constitutionally                                                             
directed  to  develop   a  Capital  Budget  that  would   equate  to                                                            
approximately  one-third of the total  Operating Budget.  It appears                                                            
that  the  Department  of  Transportation   and Public  Facilities'                                                             
Capital  Budget  "would fill  the  whole  Capital Budget".  To  that                                                            
point,  he asked  Co-Chair Green's  goal  in regard  to the  Capital                                                            
Budget.                                                                                                                         
                                                                                                                                
Co-Chair  Green responded  that the  Capital Budget  is still  being                                                            
developed.                                                                                                                      
                                                                                                                                
Co-Chair Green  voiced disappointment that the aforementioned  Civil                                                            
Rights project  had not included the placement of  signage along the                                                            
Parks Highway  and other Rural roads  to direct people to  places of                                                            
business.                                                                                                                       
                                                                                                                                
     King Salmon Airport Improvements                                                                                           
     $8,500,000 Fed Rcpts                                                                                                       
     Reference No.: 40285                                                                                                       
     Category: Transportation                                                                                                   
     Location: King Salmon                                                                                                      
     Election District: Bristol Bay/Aleutians                                                                                   
     Estimated Project Dates: 07/01/2005 - 06/30/2010                                                                           
     Phased-new                                                                                                                 
     Project  to provide  improvements to  the King Salmon  Airport.                                                            
     Stage 1 will  construct full runway safety areas.  State 2 will                                                            
     make other safety  areas improvement and address parking areas.                                                            
     This  project  contributes   to  the Department's   Mission  by                                                            
     reducing  injuries,  fatalities  and  property  damage  and  by                                                            
     improving the mobility of people and goods.                                                                                
     State Match Required                                                                                                       
                                                                                                                                
Senator Hoffman  asked the status of the State's agreement  with the                                                            
Federal Aviation  Administration (FAA)  in regards to the  operation                                                            
of the control tower at  this airport. It was his understanding that                                                            
the  House  has  included  $70,000  in its  budget  to  support  the                                                            
agreement.  He asked  whether further  discussion  of the  agreement                                                            
might occur.                                                                                                                    
                                                                                                                                
Commissioner  Barton affirmed  the  existence of  an agreement.  The                                                            
Department  has  been  working  with  the FAA  to  more  develop  an                                                            
equitable sharing  agreement. He shared that he had  made a personal                                                            
commitment  to  the  director  of  the FAA  to  continue  the  tower                                                            
operations while the funding issue was being addressed.                                                                         
                                                                                                                                
KIP  KNUDSON,  Deputy   Commissioner  of  Aviation,   Department  of                                                            
Transportation  and Public  Facilities informed  the Committee  that                                                            
the $68,000  subsidy included in the  Department's Operating  Budget                                                            
would  provide  approximately  15-percent  of  the  salary  expenses                                                            
associated  with staffing the King  Salmon airport tower.  "The King                                                            
Salmon  Tower is  one of  four contract  towers in  the State".  The                                                            
conditions  of  the  federal  contract  tower  program  specify  the                                                            
federal/local cost ratio components relating to such towers.                                                                    
                                                                                                                                
10:10:24 AM                                                                                                                   
                                                                                                                                
Mr. Knudson  stated  that the State  is currently  contributing  15-                                                            
percent less than  the current specified obligation  level. Weighing                                                            
the  expense  and   the  risks  are  the  issues  of   the  on-going                                                            
State/federal  debate regarding  this tower.  The State anticipates                                                             
that  the traffic  at the  airport would  increase to  a level  that                                                            
would enable  the funding  to reach a benefit/cost  ratio of  one at                                                            
which point the State's subsidy would crease.                                                                                   
                                                                                                                                
Co-Chair  Green asked whether  the anticipated  increase in  traffic                                                            
would  be  attributed  to increased  development   in the  area  and                                                            
improved fishing conditions.                                                                                                    
                                                                                                                                
Mr. Knudson affirmed.                                                                                                           
                                                                                                                                
Senator Bunde  asked the  current population  of Kokhanok,  which is                                                            
another community slated to undergo airport improvements.                                                                       
                                                                                                                                
Mr.  Knudson  replied   that  170  people  reside   there.  This  is                                                            
considered  "a fairly decent size  village" relative to other  Rural                                                            
airport communities.                                                                                                            
                                                                                                                                
Senator  Bunde  wondered   to the  per  capita   cost  of  providing                                                            
$3,100,000  in airport improvements  funding  to a community  of 170                                                            
people.                                                                                                                         
                                                                                                                                
     Sand Point: Runway Rehabilitation and Extension                                                                            
     $3,800,000 Fed Rcpts                                                                                                       
     Reference No.: 38407                                                                                                       
     Category: Transportation                                                                                                   
     Location: Sand Point                                                                                                       
     Election District: Bristol Bay/Aleutians                                                                                   
     Estimated Project Dates: 07/01/2005 - 06/30/2010                                                                           
     Phased Project- Underway                                                                                                   
     Construct  runway embankment to extend runway  and safety area.                                                            
     Move  runway  centerline,  and  pave runway  and  safety  area.                                                            
     Relocate   navigational  and   glide  slope  aids  and   remove                                                            
     obstructions  from  bluffs  east of  the runway.  This  project                                                            
     contributes  to the Department's Mission by reducing  injuries,                                                            
     fatalities  and property damage  and by improving the  mobility                                                            
     of people and goods.                                                                                                       
     State Match Required                                                                                                       
                                                                                                                                
Senator  Hoffman noted  that this  budget would  provide  $3,800,000                                                            
towards the rehabilitation  and expansion of the Sand  Point Airport                                                            
and, to that  point, he asked the  status of a separate one  million                                                            
dollar  appropriation   that  had   previously  been  allocated   to                                                            
rehabilitate the Sand Point Airport Terminal.                                                                                   
                                                                                                                                
Mr. Knudson  understood that one million  dollars had been  included                                                            
in the FY 05  Supplemental Budget;  however, he expressed  that that                                                            
money must  have been earmarked  as DOT does  not build or  maintain                                                            
passenger terminals.                                                                                                            
                                                                                                                                
Senator Hoffman affirmed that it was federal earmarked funding.                                                                 
                                                                                                                                
Mr. Knudson stated that  that money was included in the Supplemental                                                            
budget.                                                                                                                         
                                                                                                                                
Co-Chair Green understood  therefore that the one million dollars is                                                            
not included in the $3,800,000 specified in the Capital Budget.                                                                 
                                                                                                                                
Mr. Knudson  stated that  the money included  in the Capital  Budget                                                            
would be exclusively utilized for runway work.                                                                                  
                                                                                                                                
Senator  Hoffman asked whether  the terminal  improvements  provided                                                            
for by those federal funds would come to fruition.                                                                              
                                                                                                                                
Mr.  Knudson  stated  that  it  would,  provided   there  was  local                                                            
community support.                                                                                                              
                                                                                                                                
Senator  Bunde  pointed  out that  Pilot  Station  is also  a  small                                                            
community whose airport is slated to receive $12,300,000.                                                                       
                                                                                                                                
Senator Olson  stated that Pilot Station,  which is in his  election                                                            
district, has 474 residents.                                                                                                    
                                                                                                                                
Commissioner  Barton expressed  that  "Rural airports  are not  only                                                            
important to the  community in which they are located,  but they are                                                            
also  important"  to both  general  and  commercial  aviation.  "The                                                            
entire system",  rather than  being viewed  as individual  airports,                                                            
must be considered.                                                                                                             
                                                                                                                                
Senator Olson  recalled a DC-6 airplane  accident that had  occurred                                                            
in a remote area of the  State and noted that Senator Bunde, being a                                                            
former  DC-6 pilot,  was aware of  "the importance"  of airports  in                                                            
remote areas. They could  provide a safety net in times of distress.                                                            
                                                                                                                                
10:15:28 AM                                                                                                                   
                                                                                                                                
Co-Chair  Green commented  that, while  she is  unfamiliar with  the                                                            
operational  support provided at various  airports sizes,  it is the                                                            
policy at major airports  for airlines to financially participate in                                                            
the operations  of the airport  such as scheduling.  To that  point,                                                            
she asked  whether such  things as  landing fees  or other fees  are                                                            
incorporated at small airports.                                                                                                 
                                                                                                                                
Mr. Knudson  responded that  there is "a  series of aviation  fees":                                                            
the international  airports in Anchorage  and Fairbanks incorporate                                                             
such fees as  a federal passenger  facility charge, fuel  flow fees,                                                            
and passenger  terminal  rental  fees. "International  airports  are                                                            
governed  by  either  the Commissioner   or an  agreement  with  the                                                            
airlines." Rural airports  fees are governed by the Legislature. The                                                            
only fee currently  in place for the Rural airport  system is a fuel                                                            
tax on  low-lead and  jet fuel.  In addition,  there are land  lease                                                            
fees,   "which  are   generally  held   by  airlines   serving   the                                                            
communities".  Approximately  150 of the total  259 airports  in the                                                            
State  receive scheduled  passenger  service.  The  majority of  the                                                            
airports  listed in  the Project  Review Listing  provide  passenger                                                            
service.                                                                                                                        
                                                                                                                                
10:17:19 AM                                                                                                                   
                                                                                                                                
Co-Chair   Green  characterized   previous   discussions   regarding                                                            
amending Rural airport fees as "exciting".                                                                                      
                                                                                                                                
Senator Bunde commented  that the DC-6 aircraft incident referred to                                                            
by Senator Olson had little  to do with the size of the airport, but                                                            
was rather  the result of people being  on the runway. He  suggested                                                            
that were the  airport projects to  include runway fencing  then the                                                            
investment could be viewed as addressing a safety issue.                                                                        
                                                                                                                                
Senator Olson  stated that another  reason for having good  airports                                                            
is to allow  people to travel from  small villages to larger  cities                                                            
to shop. He is "a strong proponent for good safe airports …".                                                                   
                                                                                                                                
Co-Chair  Green  reiterated  the importance  of  discussing  whether                                                            
airlines could  participate more in the financial  aspect of airport                                                            
operations.  Airliners  would  benefit by  improved  scheduling  and                                                            
reduced delays; however  those efforts might incur costs that should                                                            
be shared  by the  users, as  it is "a  great shock"  to see  such a                                                            
substantial amount of federal funds supporting small airports.                                                                  
                                                                                                                                
Commissioner Barton  stated that "we all recognize"  "the importance                                                            
of  aviation"  in  the  State.  In  many  situations,  there  is  no                                                            
alternative  to  air  travel;  this is  recognized  by  the  federal                                                            
government.  He  voiced  being  grateful  for  the  federal  funding                                                            
provided  to Rural airports.  The  State would not  be permitted  to                                                            
shift these federal funds  to other projects; that is not an option.                                                            
                                                                                                                                
Co-Chair Green agreed.                                                                                                          
                                                                                                                                
Commissioner  Barton allowed  that were  such an  attempt made,  the                                                            
State might "just lose the money".                                                                                              
                                                                                                                                
10:21:12 AM                                                                                                                   
                                                                                                                                
Commissioner  Barton  explained that  when contemplating  fees,  the                                                            
distinction  between  international  and  Rural airports  should  be                                                            
foremost in the decision  making process. At international airports,                                                            
"the air carriers pay all the costs".                                                                                           
                                                                                                                                
Co-Chair  Green agreed.  Nonetheless,  she  voiced that  there is  a                                                            
fairness  issue here.  Most  private pilots  are  delighted to  have                                                            
small safe airports "in  time of need". The question is whether that                                                            
service should be free.                                                                                                         
                                                                                                                                
10:21:56 AM                                                                                                                   
                                                                                                                                
Co-Chair  Wilken noted  that there  is $260 million  in the  Amerada                                                            
Hess fund  account. It would  be interesting  to determine  which of                                                            
the  projects  proposed  to  receive  Amerada   Hess  funding  might                                                            
"qualify  for  federal match  money".  He  asked whether  the  Kenai                                                            
Peninsula $11 million Kalifornsky  Beach Road rehabilitation project                                                            
would  be entirely  funded by  Amerada  Hess funds  or whether  that                                                            
amount might  be subject to a federal  match. He suggested  that the                                                            
entirety  of projects in  the Governor's  Transportation  Initiative                                                            
and the  Governor's Transportation  Access  to Resources  Initiative                                                            
should be re-evaluated in this regard.                                                                                          
                                                                                                                                
Commissioner  Barton  responded   that,  "a  vast  majority  of  the                                                            
projects  would  be eligible  for  federal  money": some  would  not                                                            
qualify and there are some  to which it "would be a mistake" to fund                                                            
with  federal  dollars.  He  warned that  in  the  determination  of                                                            
whether  or not  to utilize  federal money,  "it should  be kept  in                                                            
mind"  that there  would  be  "a lot  of strings  attached"  to  the                                                            
project were federal funds  utilized. "In general, it would lengthen                                                            
the  time of  the project  and  increase the  cost  of the  project.                                                            
Typically the  increase in time might  run from one to three  years"                                                            
depending on the type of  project. Costs might increase between "ten                                                            
to  thirty percent".  These  are  the reasons  that  the  Department                                                            
decided  to use "non-federal  money  for these  projects". The  work                                                            
could be conducted "faster and cheaper".                                                                                        
                                                                                                                                
10:24:16 AM                                                                                                                   
                                                                                                                                
Co-Chair Wilken  asked whether the  typical match would have  "a ten                                                            
to one" match requirement.                                                                                                      
                                                                                                                                
Commissioner  Barton   responded  that  road  projects  "typically"                                                             
require  a ten-percent match;  bridges have  a twenty-percent  match                                                            
requirement.                                                                                                                    
                                                                                                                                
Co-Chair Wilken  understood therefore that "in order  to save a year                                                            
to three years  and in order to save  ten to thirty percent,  we are                                                            
going to  spend ten times  as much of our  money just to have  those                                                            
two things." It is difficult  "to understand the logic behind that."                                                            
                                                                                                                                
Commissioner Barton expressed  that the actions being proposed would                                                            
"expand  the total investment".  That  is the key,  as "the  STIP is                                                            
fiscally constrained.  This is an effort to increase  the investment                                                            
in transportation in Alaska; not just re-slice it."                                                                             
                                                                                                                                
Co-Chair  Wilken  understood  therefore  that  the discovery  of  an                                                            
alternate funding  avenue that would  allow the State to  access the                                                            
federal ten to one match  "would be okay as long as the projects are                                                            
built".                                                                                                                         
                                                                                                                                
Commissioner Barton asked for further information.                                                                              
                                                                                                                                
Co-Chair  Wilken  suggested  that  perhaps one  million  dollars  of                                                            
Garvee Bonds  could be utilized  to fund  several of the  Governor's                                                            
Transportation  Initiative  projects  including  the  Glenn  Highway                                                            
Corridor  and Kalifornsky  Beach  Road. Such  usage  of those  funds                                                            
would essentially "amount to free roads".                                                                                       
                                                                                                                                
Commissioner  Barton replied  that that could  be done; however,  he                                                            
recommended  against  the  use of  Garvee  Bonds. He  recalled  that                                                            
$103,000,000 of Garvee  Bonds were issued in the year 2003; however,                                                            
the end result is that  the State would be spending "$135,000,000 to                                                            
get  $103,000,000  worth  of  pavement".  Furthermore,  "that  money                                                            
counted  against   the  STIP  allocations",  therefore,   the  State                                                            
actually  "reduced  the amount  of  money  going into  pavement"  by                                                            
approximately $33,000,000.                                                                                                      
                                                                                                                                
10:26:41 AM                                                                                                                   
                                                                                                                                
Commissioner   Barton  continued  that  other  projects   that  were                                                            
scheduled  in the STIP  were delayed  in order  to accommodate  that                                                            
payment.  "Any device that  adds to the  transportation investment:                                                             
would be supported;  however, he does not support  the use of Garvee                                                            
Bonds. While they "could  be a useful tool, this is not the place to                                                            
use them".                                                                                                                      
                                                                                                                                
Co-Chair Green  asked for suggestions as to where  the use of Garvee                                                            
Bonds would be "a good solution".                                                                                               
                                                                                                                                
Commissioner Barton  responded that Garvee Bonds could  be used in a                                                            
situation in which there would be "no alternative funds".                                                                       
                                                                                                                                
Co-Chair Wilken continued  to voice dismay at spending ten times the                                                            
amount necessary "to build  a road in order to save three years". He                                                            
questioned why the State  would make a decision to build a road with                                                            
a 9-percent investment  in it verses a 100-percent investment in it.                                                            
                                                                                                                                
Commissioner  Barton stated that one  example would be the  negative                                                            
impact  of  not completing  the  construction  of  a bridge  in  the                                                            
Fairbanks area in the timeframe  that is required. This action might                                                            
delay the construction  of the pipeline project. The  cost of such a                                                            
delay should be considered.                                                                                                     
                                                                                                                                
Co-Chair   Wilken  agreed   that   each  project   must  be   viewed                                                            
independently.  It would be  difficult "to  imagine" that a  project                                                            
such  as  the  Fairbanks:  Richardson  Highway  -  Northbound  Chena                                                            
Overflow  Bridge for  Gas Pipeline,  Reference Number  40444 in  the                                                            
Governor's Transportation  Access to Resources Initiative  could not                                                            
be constructed  "in a matter  of three to  four years". But  to just                                                            
ask  for  a  substantial  amount  of  bonded  indebtedness   without                                                            
reviewing  other  funding   sources  "just  to  save  time  and  the                                                            
heartache  of an  EIS" should  be  questioned. "That's  the  fallacy                                                            
behind the Governor's Amerada Hess proposal".                                                                                   
                                                                                                                                
Commissioner Barton  reiterated that the funding mechanisms  for the                                                            
projects  "would   expand  the  total  dollar  we're   investing  in                                                            
transportation".  The use of Garvee  Bonds would not allow  for such                                                            
expansion.                                                                                                                      
                                                                                                                                
Co-Chair  Wilken   stated  that  this  discussion  should   continue                                                            
"another  day".  It  would  be beneficial   "to know  which  of  the                                                            
proposed projects would qualify for federal match funds".                                                                       
                                                                                                                                
Commissioner Barton stated  that this information would be willingly                                                            
provided.                                                                                                                       
                                                                                                                                
Co-Chair Green  stated that work is being conducted  "to reconstruct                                                            
the previous  STIP" as  such things as  road classification  changes                                                            
have  occurred. It  has been  argued  that changes  to construction                                                             
projects have  occurred as the result of the Garvee  Bond usage. The                                                            
affect  of that  is  being investigated.  Use  of the  general  fund                                                            
rather  than a  federal  match might  also be  the  goal. A  balance                                                            
should be obtainable.                                                                                                           
                                                                                                                                
Co-Chair  Wilken  stated that  the  use of  Amerada  Hess funds  for                                                            
projects could be the focal  point of the issue. While allowing that                                                            
the Commissioner has more  experience with Garvee Bonds, he remained                                                            
unconvinced that they were not a viable option.                                                                                 
                                                                                                                                
Co-Chair  Wilken pointed  out that while  the Fairbanks:  University                                                            
Avenue-Geist-Johansen  Intersection  improvement project,  Reference                                                            
Number 40510,  "is a  nice thing",  the real need  "is to widen  the                                                            
bridge".  That,  combined  with  widening  the  entire  road,  would                                                            
eliminate the  bottleneck. This "is one of the most  dangerous roads                                                            
in Alaska."                                                                                                                     
                                                                                                                                
Co-Chair Wilken stated  that the Governor's Transportation Access to                                                            
Resources  Initiative   North  Slope:  Bullen  Point   EIS  project,                                                            
Reference Number  40447, has also  been appropriated funding  in the                                                            
FY 05 Fast Track Supplemental  bill. To that point, he asked whether                                                            
the combination of these  two funding sources would be sufficient to                                                            
complete the EIS process.                                                                                                       
                                                                                                                                
Commissioner  Barton  stated  that  the  total  cost  could  not  be                                                            
calculated until the reconnaissance work is completed.                                                                          
                                                                                                                                
JOHN   MACKINNON,  Deputy   Commissioner   of   Highways  &   Public                                                            
Facilities,  Department  of Transportation  and  Public Facilities,                                                             
shared that  the Department  is coordinating  this project  with the                                                            
Department of  Natural Resources. The "goal is to  permit the right-                                                            
of-way and  the entire transportation  corridor for road,  pipeline,                                                            
and any other  utilities" that might  be needed from Prudhoe  Bay to                                                            
Bullen Point.  The Department has  not issued guidelines  in regards                                                            
to how the road  or the corridor should be constructed;  the goal is                                                            
to have "it  poised so that it is  in position to be constructed  by                                                            
some entity".  Both  departments are  endeavoring  "to have the  EIS                                                            
completed  and an entity  created that can  accept the right-of-way                                                             
and a project ready to go".                                                                                                     
                                                                                                                                
     Industrial Road Program                                                                                                    
     $10,000,000 Bond Funds                                                                                                     
     Reference No.: 39356                                                                                                       
     Category: Transportation                                                                                                   
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/20005 - 06/30/2010                                                                          
     Phased - new project                                                                                                       
     Funding for  Colville River Bridge and other  industrial roads.                                                            
     This  project  contributes   to  the Department's   Mission  by                                                            
     improving  the  mobility of  people  and goods  and  increasing                                                            
     private investment.                                                                                                        
                                                                                                                                
Co-Chair  Wilken  asked  regarding  the  Crooked  Creek  and  Yukon-                                                            
Kuskokwim River Ports and  Roads component of the request that would                                                            
construct a road to connect  the Donlin gold properties to a port on                                                            
the Kuskokwim  River,  as he  had understood  that  the gold  mining                                                            
companies rather than the State were to build that access road.                                                                 
                                                                                                                                
Mr. MacKinnon  explained that during negotiations  with Placer Dome,                                                            
"the likely  developer of the Donlin  property", a request  was made                                                            
that the State not participate  in the construction of the road from                                                            
the mine property  to the river; that  road would be constructed  by                                                            
Placer  Dome and would  not terminate  at the  community of  Crooked                                                            
Creek. Thus, the current  proposal is that the State's participation                                                            
would  be to  construct  a connecting  road  from that  road to  the                                                            
community of Crooked Creek.                                                                                                     
                                                                                                                                
Co-Chair Wilken  surmised therefore that this road  project could be                                                            
a lower priority  than the other components  of the Industrial  Road                                                            
Program.                                                                                                                        
                                                                                                                                
Mr. MacKinnon concurred.                                                                                                        
                                                                                                                                
     Congressional Earmark Match                                                                                                
     $15,000,000 Bond Funds                                                                                                     
     Reference No.: AMD 39037                                                                                                   
     Category: Transportation                                                                                                   
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2005 - 06/30/2010                                                                           
     One-Time Project                                                                                                           
     Funds  needed   to  match  congressional  earmarks   for  State                                                            
     infrastructure.  This project  contributes to the Department's                                                             
     Mission  by improving the mobility  of people and goods  and by                                                            
     increasing private investment.                                                                                             
                                                                                                                                
Co-Chair Wilken  asked whether this  request could be considered  as                                                            
"just  a  place holder"  or  whether  specific  projects  have  been                                                            
identified to receive this funding.                                                                                             
                                                                                                                                
Commissioner  Barton replied  that  the federal  funds pertinent  to                                                            
this request  would be anticipated  over a five or six-year  period.                                                            
The funds would  be dependent on the outcome of the  Reauthorization                                                            
Bill.  The  funds  requested  in  this  request  would  support  the                                                            
Department's "anticipated first-year need".                                                                                     
                                                                                                                                
Co-Chair  Wilken   asked  whether  a  list  of  projects   has  been                                                            
identified  or whether the funds would  support earmarked  projects.                                                            
                                                                                                                                
Commissioner  Barton  replied that  these  funds would  provide  the                                                            
State Match to Congressional  earmarked projects. The funds would be                                                            
divvied up according to that finalized project list.                                                                            
                                                                                                                                
Co-Chair Green  understood that the earmark match  requirement would                                                            
be approximately ten or 20 percent.                                                                                             
                                                                                                                                
Commissioner Barton concurred.                                                                                                  
                                                                                                                                
Co-Chair   Wilken  continued   to  ask  whether   a  list   totaling                                                            
$15,000,000 has been developed.                                                                                                 
                                                                                                                                
Commissioner  Barton replied that  there is a list of earmarks  that                                                            
would  total approximately   $15,000,000.  He reiterated  that  this                                                            
request  is "a  best estimate"  of what  might be  forthcoming  from                                                            
Congress.                                                                                                                       
                                                                                                                                
Co-Chair  Wilken understood  therefore that  the $15,00,000  "is not                                                            
attached to any particular project".                                                                                            
                                                                                                                                
Commissioner   Barton  agreed.  "It  is  a  composite   of  all  the                                                            
earmarks."                                                                                                                      
                                                                                                                                
Co-Chair  Wilken  surmised therefore  that  the total  funding  need                                                            
could  fluctuate.   "It  could  be  become  $20  [million]   or  ten                                                            
[million]"  depending  on the  actions  of Congress.  Therefore,  he                                                            
characterized the request as being "a placeholder".                                                                             
                                                                                                                                
Commissioner Barton noted  that a similar request would be presented                                                            
each year for  the balance of the reauthorization  period, depending                                                            
on the funds provided by Congress.                                                                                              
                                                                                                                                
Senator   Stedman   echoed   Co-Chair  Wilken's   request   that   a                                                            
"comprehensive  breakdown"  of  the  projects  proposed  to  receive                                                            
Amerada  Hess  funding  be  provided;  it  would  be  beneficial  to                                                            
understand  which  of those  projects  might  qualify  for  matching                                                            
funds.                                                                                                                          
                                                                                                                                
Commissioner   Barton  affirmed  that  this  information   would  be                                                            
provided.                                                                                                                       
                                                                                                                                
10:37:01 AM                                                                                                                   
                                                                                                                                
Senator Hoffman  asked the total of  federal receipts that  would be                                                            
expected, including the amended requests.                                                                                       
                                                                                                                                
Commissioner  Barton  stated  that  approximately   $460,000,000  in                                                            
federal highway  dollars "including the expected earmarks"  would be                                                            
anticipated.                                                                                                                    
                                                                                                                                
10:38:33 AM                                                                                                                   
                                                                                                                                
     Alaska  Marine Highway  System - Vessel  and Terminal  Overhaul                                                            
     and Rehabilitation.                                                                                                        
     $6,500,000 Bond Funds                                                                                                      
     Reference No.: 30624                                                                                                       
     Category: Transportation                                                                                                   
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2005 - 12/31/2006                                                                           
     On-Going Project                                                                                                           
     Annual  maintenance and overhaul  on vessels and at  terminals,                                                            
     particularly  component  or system failures  which will  impact                                                            
     service  in the  short term.  This project  contributes to  the                                                            
     Department's  Mission  by  reducing  injuries,  fatalities  and                                                            
     property  damage and  by improving the  mobility of people  and                                                            
     goods.                                                                                                                     
                                                                                                                                
Senator  Stedman understood  that  the State  has experienced  "some                                                            
challenges" in  respect to some vessels with aluminum  construction.                                                            
Further discussion of this issue might occur at a later time.                                                                   
                                                                                                                                
     Corps of Engineers - Harbors Program Formulation                                                                           
     $100,000 G/F Match                                                                                                         
     Reference No.: 7091                                                                                                        
     Category: Transportation                                                                                                   
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2005 - 06/30/2010                                                                           
     On-Going Project                                                                                                           
     Participation   with   the  Corps   of  Engineers   and   local                                                            
     governments   in  harbor  breakwaters,  dredging,  feasibility                                                             
     studies,  and program assistance.  This project contributes  to                                                            
     the Department's  Mission by reducing injuries,  fatalities and                                                            
     property  damage and  by improving the  mobility of people  and                                                            
     goods.                                                                                                                     
                                                                                                                                
Co-Chair  Green  asked  for further  information  regarding  the  GF                                                            
match.                                                                                                                          
                                                                                                                                
Ms. Slagle responded that  the Harbors Program Rehabilitation is the                                                            
funding that  the State  utilizes when working  with communities  to                                                            
develop  harbor projects  that would  be submitted  to the Corps  of                                                            
Engineers. These projects  would include such things as breakwaters,                                                            
dredging, and  feasibility studies. The ultimate goal  would be that                                                            
the  Corps would  provide  the  funding to  actually  construct  the                                                            
project. This is an annual  request to fund the project preparation.                                                            
                                                                                                                                
     Corps of Engineers - Harbors Program Construction                                                                          
     $2,600,000 G/F Match                                                                                                       
     Reference No.: 36453                                                                                                       
     Category: Transportation                                                                                                   
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2005 - 06/30/2010                                                                           
     Phased Project                                                                                                             
     Participation   with   the  Corps   of  Engineers   and   local                                                            
     governments   in  harbor  breakwaters,  dredging,  feasibility                                                             
     studies,  and program assistance.  This project contributes  to                                                            
     the Department's  Mission by reducing injuries,  fatalities and                                                            
     property  damage and  by improving the  mobility of people  and                                                            
     goods.                                                                                                                     
                                                                                                                                
Ms. Slagle  explained that  this request "is  to actually match  the                                                            
Corps of Engineers' funding"  for the Wrangell Heritage Harbor Float                                                            
Construction,  Chignik  Harbor Float  Construction,  and the  Haines                                                            
Harbor Design project.                                                                                                          
                                                                                                                                
     Hoonah Harbor Deferred Maintenance and Transfer                                                                            
     $3,500,000 Bond Funds                                                                                                      
     Reference No.: 37885                                                                                                       
     Category: Transportation                                                                                                   
     Location: Hoonah                                                                                                           
     Election District: Cordova/Southeast Islands                                                                               
     Estimated Project Dates: 07/01/2005 - 06/30/2010                                                                           
     One-Time Project                                                                                                           
     The  city of  Hoonah has actively  pursued  local ownership  of                                                            
     their  harbor facilities, subject  to the State addressing  the                                                            
     deferred  maintenance  issues, since  2002.  The Hoonah  Harbor                                                            
     consists  of the  City float  and Hoonah  Harbor. This  project                                                            
     contributes  to the Department's Mission by reducing  injuries,                                                            
     fatalities  and property damage  and by improving the  mobility                                                            
     of people and goods.                                                                                                       
                                                                                                                                
Co-Chair  Green   elaborated  that  the  Deferred  Maintenance   and                                                            
Transfer program is the  State's continuing attempt to transfer "the                                                            
authority and  responsibility" for  harbors to the local  community.                                                            
                                                                                                                                
Commissioner Barton concurred.                                                                                                  
                                                                                                                                
Co-Chair Green  noted that this endeavor would require  the State to                                                            
invest  in upgrading  harbors  to certain  standards  prior to  that                                                            
transfer.                                                                                                                       
                                                                                                                                
Commissioner Barton affirmed.                                                                                                   
                                                                                                                                
Senator  Stedman  asked the  amount  of remaining  Bond  Fund  money                                                            
designated to support this endeavor.                                                                                            
                                                                                                                                
Commissioner  Barton communicated  that the  Legislature  authorized                                                            
the sale  of these  Bonds to support  this program.  While a  dollar                                                            
amount had been  specified for each community; the  communities have                                                            
deemed the  amounts insufficient.  He could  not recall the  current                                                            
Fund balance,  but allowed  that an  infusion of  "50 percent  more"                                                            
might satisfy the amounts specified by the communities.                                                                         
                                                                                                                                
Senator Stedman requested  that the Fund balance and any claims upon                                                            
that  balance  be   provided.  He  would  have  expected   that  the                                                            
Petersburg: North Harbor  Deferred Maintenance and Transfer project,                                                            
Reference  Number  39912,   would  have  been  one  of  the  harbors                                                            
designated on the initial transfer list.                                                                                        
                                                                                                                                
Commissioner Barton informed  the Committee that the Harbor Transfer                                                            
Bond  funds  in  its  entirely  has  "been  targeted"   to  specific                                                            
communities.  Communities have  requested that  their allocation  be                                                            
increased. None-the-less,  the Department has attempted to honor the                                                            
Legislative   intent  regarding  the   amount  specified   for  each                                                            
community.                                                                                                                      
                                                                                                                                
Mr. MacKinnon  informed Senator  Stedman that  the Petersburg  North                                                            
Harbor was not included  in the original two-year old transfer list.                                                            
                                                                                                                                
Co-Chair Green  understood that each community would  be required to                                                            
fund  the   upgrades  and  then  the   State  would  reimburse   the                                                            
expenditures 100-percent, up to the specified limit.                                                                            
                                                                                                                                
Mr. MacKinnon  affirmed that a specified  amount was determined  for                                                            
each  of  the  26  or  27  harbors  in  ten  communities.   Transfer                                                            
agreements  have been reached  with nine  communities. The  delay in                                                            
reaching  an agreement with  the tenth community  was due to  an FAA                                                            
right-of-way concern regarding  a seaplane float. That community was                                                            
able to  accept three of  its harbors because  they were within  the                                                            
city limits; however,  two others that were outside  the city limits                                                            
could not yet  be accepted. Efforts  are continuing in that  regard.                                                            
                                                                                                                                
Senator Stedman  understood the "philosophical differences"  between                                                            
the communities'  harbor  upgrade  needs and  the State's  community                                                            
allotments. The $2,500,000  request associated with the North Harbor                                                            
transfer  would not  meet the $4,500,000  in  upgrades required  for                                                            
that  harbor. While  dissimilar  to the  gas pipeline,  this  harbor                                                            
transfer program  could be included in the discussion  regarding the                                                            
best use of Amerada Hess funds.                                                                                                 
                                                                                                                                
10:47:11 AM                                                                                                                   
                                                                                                                                
Co-Chair Green  asked whether the amount specified  for North Harbor                                                            
was the initial determination.                                                                                                  
                                                                                                                                
Mr. MacKinnon affirmed  that $2,500,000 was the original allocation.                                                            
                                                                                                                                
CAPTAIN  JOHN F.  FALVEY,  General Manager,  Alaska  Marine  Highway                                                            
System,  Department   of  Transportation   and  Public  Facilities,                                                             
testified   via  teleconference  from   Ketchikan  to  address   any                                                            
Committee questions.                                                                                                            
                                                                                                                                
Senator Stedman asked about  the aluminum problems being experienced                                                            
by some  State vessels,  as referenced  in an  April 1, 2005  letter                                                            
[copy  not  provided]   from  Tom  Lawson,  Director,   Division  of                                                            
Administrative Services, Department of Fish and Game.                                                                           
                                                                                                                                
Captain Falvey  explained that while  there has been a problem  over                                                            
the past few  years with marine grade  aluminum, which is  a blended                                                            
aluminum, that aluminum  has been identified and does not affect the                                                            
State's new fast  ferries, the M/V Fairweather and  the M/V Chenega.                                                            
The "bad"  aluminum  experienced cracking  in  certain stress  areas                                                            
such as vessel transoms  and steering components. The Marine Highway                                                            
System has been  monitoring this issue closely. He  noted that it is                                                            
possible  that one of the  Department of Fish  and Game boats  might                                                            
contain some of the bad aluminum.                                                                                               
                                                                                                                                
Senator  Stedman  shared that  one  aluminum-boat  manufacturer  who                                                            
constructed a variety of  boat sizes, including some "substantially"                                                            
large vessels,  has gone out of business. The aluminum  manufacturer                                                            
had warranted  and  replaced numerous  boats,  including large  ones                                                            
such as the aforementioned Fish and Game vessel.                                                                                
                                                                                                                                
Captain Falvey  affirmed that the  aluminum has been identified  and                                                            
that the vessels built  with that aluminum have been identified. The                                                            
manufacturers or shipyards are correcting the problem.                                                                          
                                                                                                                                
Senator Stedman  asked whether the  correction might include  a full                                                            
vessel replacement  as opposed  to limiting  the replacement  to the                                                            
"below waterline" exposure of vessel.                                                                                           
                                                                                                                                
Capt  Falvey responded  that  in some  extreme cases,  the  complete                                                            
vessel has  been replaced. He was  unsure of the extent of  the work                                                            
the Fish and Game vessel might require.                                                                                         
                                                                                                                                
Senator Stedman responded that further discussions in this regard                                                               
would occur with the Department of Fish and Game.                                                                               
                                                                                                                                
     Facilities Deferred Maintenance and Critical Repairs                                                                       
     $8,000,000 Bond Funds                                                                                                      
     Reference No.: 30632                                                                                                       
     Category: Transportation                                                                                                   
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2005 - 09/30/2006                                                                           
     On-Going Project                                                                                                           
     To  address the  most critical  deferred  maintenance needs  at                                                            
     Department   of  Transportation  maintained  facilities.   This                                                            
     project  contributes to  the Department's  Mission by  reducing                                                            
     injuries,  fatalities and property damage and  by improving the                                                            
     mobility of people and goods.                                                                                              
                                                                                                                                
     Willow Maintenance Station Replacement                                                                                     
     $350,000 Bond Funds                                                                                                        
     Reference No.: 36801                                                                                                       
     Category: Transportation                                                                                                   
     Location: Willow                                                                                                           
     Election District: Rural Mat-Su                                                                                            
     Estimated Project Dates: 07/01/2005 - 06/30/2010                                                                           
     One-Time Project                                                                                                           
     Construction  of the Willow maintenance shop  will begin in the                                                            
     Spring   of  2005  and   continue  into   2006.  This   project                                                            
     contributes  to the Department's Mission by reducing  injuries,                                                            
     fatalities  and property damage  and by improving the  mobility                                                            
     of people and goods.                                                                                                       
                                                                                                                                
     Chandalar Maintenance Station Replacement                                                                                  
     $2,445,000 Gen Fund                                                                                                        
     Reference  No.: AMD 32478                                                                                                  
     Category:  Transportation                                                                                                  
     Location:  Chandalar Lake                                                                                                  
     Election District: Interior Villages                                                                                       
     Estimated Project Dates: 07/01/2005 - 06/30/2010                                                                           
     One-Time Project                                                                                                           
     Funding  is  for installation   of essential  items  needed  to                                                            
     complete  the new shop facility  being constructed near  Atigun                                                            
     Pass.  This included  the HVAC (heating,  ventilation,  and air                                                            
     handling)  system, vehicle  exhaust system,  electrical  system                                                            
     and  overhead   crane.  This   is  one  of  the  most   hostile                                                            
     environments  on  the  highway  system.  It  is  impossible  to                                                            
     operate equipment  in this area without adequate  warm storage.                                                            
     This project contributes to the Department's Mission by                                                                    
     reducing injuries, fatalities and property damage and by                                                                   
     improving the mobility of people and goods.                                                                                
                                                                                                                                
10:53:02 AM                                                                                                                   
                                                                                                                                
Ms. Slagle stated  that this request would address  the Department's                                                            
facilities  deferred maintenance and  replacement needs.  Typically,                                                            
the  budget  has allowed  for  "an  adequate  level  of operation".                                                             
Inadequate  preventable  maintenance  funds could  result in  system                                                            
failures or delayed  roof repairs. The list of deferred  maintenance                                                            
needs is large  and includes such things as door replacements,  roof                                                            
repairs,  and other  issues. The  Willow and  Chandalar Maintenance                                                             
Stations  were  structurally   inadequate  and   in  need  of  being                                                            
replaced. The work on the  new facilities has begun and this funding                                                            
would complete those projects.                                                                                                  
                                                                                                                                
Co-Chair Green  recalled that the Chandalar project  was included in                                                            
the Fast Track Supplemental bill.                                                                                               
                                                                                                                                
Ms. Slagle  clarified that  the funding included  in the Fast  Track                                                            
Supplemental  bill provided  the funding to  construct the  shell of                                                            
the Chandalar  building. This  request would  provide the funds  for                                                            
the finishing work.                                                                                                             
                                                                                                                                
Co-Chair  Green asked regarding  the cost  overruns associated  with                                                            
the project.                                                                                                                    
                                                                                                                                
Ms.  Slagle explained  that  the  bids for  the  shell construction                                                             
exceeded  the  Department's  projections;  thus,  the need  for  the                                                            
supplemental request.                                                                                                           
                                                                                                                                
Co-Chair Green opined that, "Chandalar must be very special".                                                                   
                                                                                                                                
Co-Chair Wilken  provided the Members  copies of the aforementioned                                                             
Village Safe water  "Rural Sanitation Funding Database,  Division of                                                            
Water" spreadsheet  [copy on file] that pertained  to the Department                                                            
of Environmental Conservation presentation.                                                                                     
                                                                                                                                
Co-Chair Green ordered the bill HELD in Committee.                                                                              
ADJOURNMENT                                                                                                                 
                                                                                                                                
Co-Chair Green adjourned the meeting at 10:56 AM.                                                                               

Document Name Date/Time Subjects