Legislature(2005 - 2006)SENATE FINANCE 532
04/25/2006 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB231 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 231 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
MINUTES
SENATE FINANCE COMMITTEE
April 25, 2006
9:08 a.m.
CALL TO ORDER
Co-Chair Lyda Green convened the meeting at approximately
9:08:17 AM.
PRESENT
Senator Lyda Green, Co-Chair
Senator Gary Wilken, Co-Chair
Senator Con Bunde, Vice-Chair
Senator Bert Stedman
Senator Fred Dyson
Senator Lyman Hoffman
Senator Donny Olson
Also Attending: GREG O'CLARAY, Commissioner, Department of Labor
and Workforce Development; BILL NOY, Commissioner, Department of
Commerce, Community and Economic Development; NICO BUS, Acting
Director, Division of Support Services, Department of Natural
Resources; PAM VARNEY, Executive Director, Legislative Affairs
Agency, MIKE BARTON, Commissioner, Department of Transportation
and Public Facilities
Attending via Teleconference: There were no teleconference
participants.
SUMMARY INFORMATION
SB 231-BUDGET: CAPITAL & OTHER APPROPRIATIONS
The Committee introduced a new committee substitute and heard FY
2007 capital budget testimony from the Department of Labor and
Workforce Development, the Department of Commerce, Community and
Economic Development, the Department of Natural Resources, the
Legislative Affairs Agency and the Department of Transportation
and Public Facilities. The bill was held in Committee.
SENATE BILL NO. 231
"An Act making appropriations, including capital
appropriations and appropriations to capitalize funds; and
providing for an effective date."
This was the third hearing for this bill in the Senate Finance
Committee.
Co-Chair Green communicated that the purpose of today's hearing
would be to allow departments to address their concerns
regarding the proposed FY 2007 (FY 07) capital budget.
Department of Labor and Workforce Development
9:09:06 AM
GREG O'CLARAY, Commissioner, Department of Labor and Workforce
Development stated that the three Department capital budget
projects included in Finance committee substitute, Version 24-
GS2034\F, are located on page 14 line 24 through page 15 line 4.
Continuing, however, he pointed out that three "equally critical
projects" pertaining to the main campus of the Alaska Vocational
Technical Education Center (AVTEC) in Seward were "missing" from
the bill. The projects had been included in the capital budget
bill proposed by Governor Frank Murkowski.
Commissioner O'Claray identified AVTEC as a State operated
vocational training center. The department refers to AVTEC as
Alaska's "diamond in the rough with respect to vocational
training". AVTEC's "small dedicated staff" trains approximately
1,500 Alaskans each year to be welders, able seamen, facility
maintenance workers, diesel and heavy equipment operators, or
licensed practical nurses. The Seward campus also "operates an
allied health training program out of Anchorage".
"Unfortunately", the Seward AVTEC campus is experiencing
significant maintenance and replacement issues, particularly in
regard to twelve facilities that range from 25 to 55 years of
age.
Commissioner O'Claray clarified that the $2,500,000 AVTEC
facilities allocation depicted on page 14 line 26 of Version "F"
would address deferred maintenance needs of several buildings,
but would not address the entirety of the needs detailed on a
list [copy not provided] previously distributed by the
Department.
Commissioner O'Claray noted that expanding the bill to include
the three AVTEC projects "would enable AVTEC to complete one new
distance training facility, completely retrofit AVTEC's 30-plus
year old dormitory, replace a dilapidated maintenance building
and begin the design of a new applied technology facility."
These projects are critical "in maintaining and improving
vocational training" for the citizens of the State.
Commissioner O'Claray detailed the three projects. A $423,000
general fund match would be requested to complete the new
distance training facility, also referred to as the video
conferencing project. "The United States Department of Commerce
Economic Development Administration awarded a two million dollar
grant to AVTEC for the construction of a technology center
building for statewide distance training in Seward." While this
award required a match of $623,000, AVTEC has "identified in-
kind matches of $200,000 from private corporations". A State
allocation of $423,000 would allow construction to begin in July
2006, with a completion date of January 2007.
Commissioner O'Claray recognized AVTEC as the State leader "for
delivering vocational education through distance delivery". More
than 240 Alaskans in both urban and rural areas would benefit
from distance learning in FY 2006. Absent the distance delivery
ability, transportation and other expenses would prohibit the
training of these individuals. Students who complete such
training would qualify for higher paying jobs and have more
career opportunities. The number of students enrolled in this
program could double with the completion of the facility.
9:13:26 AM
Commissioner O'Claray identified the second AVTEC project
missing from the committee substitute as a $2,500,000 general
fund request to renovate the Seward campus' 100 student
dormitory. He displayed photos [copies not provided] depicting
the state of the dormitory, which was constructed in the 1970s
with "cheap building materials". The dormitory rooms are not
quiet or conducive to studying but are instead noisy and drafty
with exposed pipes. The building is in need of such things as
safety and security upgrades, insulation and ventilation
improvements, roof and window repairs, and energy efficiency
upgrades.
Commissioner O'Claray stated a "through and comprehensive review
of AVTEC facilities" was conducted in 2001, and independent
engineers concluded that three AVTEC facilities should be
replaced due to foundation and structural issues. Thus, the
Governor's bill had also included a $2,000,000 general fund
request to replace AVTEC's uninsulated metal maintenance
building, which was the first facility identified for
replacement. A picture of the facility was displayed. The new
"basic" maintenance facility would be energy efficient, would
provide more usable space, would meet current maintenance shop
safety standards, and would reduce AVTEC's liability exposure.
Any funds remaining after the completion of that project would
be applied to design and site preparation for the Applied
Technology Shop, the second facility identified for replacement.
Commissioner O'Claray informed the Committee that "a technical
correction" would also be required to address the $166,700
general fund "cost of negotiated salary and benefit increases
negotiated with AVTEC's teachers", which was "effective July 1,
2005, subject to this appropriation".
9:17:10 AM
Co-Chair Green interrupted in order to allow for a motion to
adopt the committee substitute.
Co-Chair Wilken moved to adopt committee substitute Version 24-
GS2034\F as the working document.
Co-Chair Green objected for explanation.
9:17:42 AM
Commissioner O'Claray informed the Committee that the Department
of Commerce, Community and Economic Development (DCED) had
included in its FY 07 capital budget a three million dollar
general fund request "to begin construction of a pipeline
training facility located in Fairbanks". The schematic of the
proposed $6,200,000 facility was displayed [copy not provided].
In 2005, the federal Department of Labor authorized up to three
million dollars toward this facility as part of program to train
workers for the construction of the gas pipeline project. The
federal funds "would not be released to the State" until the
Governor notified the Secretary of Energy that the project would
commence in two years time. It is "critical to our success" that
workers be trained and available when the gas pipeline
construction begins.
Commissioner O'Claray noted that, during the past two years, 170
Alaskans, including women and rural residents, have received
such training at a leased facility. All have received high
paying North Slope jobs. The Department of Labor and Workforce
Development has committed $100,000 toward the facility design.
The three million dollar DCED request would allow the first
phase of the two-phase project to get underway. This phase would
include the construction of a 20,000 square foot training
facility in Fairbanks. The second phase would include the
construction of a 30 student coed dormitory. Maintenance
expenses of the completed facility would be funded by "industry
donations, fees assessed of trade apprenticeship programs,
employers, users fees, and training contracts".
9:21:01 AM
Commissioner O'Claray announced that the training facility
"would create approximately 200 full time jobs and up to 400
jobs" when operating at peak pipeline training. The facility
would also train approximately 1,100 new workers to replace
"retiring journeymen in the various trades" on the North Slope.
This facility would assist the Department's goal "to capture
more of those jobs" for residents of Alaska.
9:21:45 AM
Co-Chair Green asked whether the employees of the training
center would be State, contract, or independent employees.
9:22:02 AM
Commissioner O'Claray responded contract employees funded by
training grants and joint industry and contractor apprenticeship
programs would staff the facility. State funds would be limited
to supporting the training programs.
9:22:25 AM
Department of Commerce, Community and Economic Development
9:22:55 AM
BILL NOLL, Commissioner, Department of Commerce, Community and
Economic Development thanked the Committee for including the
entirety of the Department's FY 07 capital budget requests in
the committee substitute. The majority of capital funds provided
to the Department are from sources other than the general fund.
The few projects being funded by the general fund include
$70,000 for community block grants and approximately $1,200,000
for energy programs. The energy program general fund money would
be leveraged to receive an additional $13 million in federal
funds.
Commissioner Noll noted the Kodiak Launch Complex funding would
consist entirely of federal funds. Other projects would be
receipt supported.
Commissioner Noll stated that he and other Department staff
would be available to answer any questions that might arise
during the budgeting process.
Commissioner Noll pointed out that numerous other State
department capital projects are funded through the Department of
Labor and Workforce Development budget. He could provide a
complete list of those projects, however, he could not comment
on behalf of the affected department. Many of the projects on
the list are extremely important to the local community and are
very worthy. The Office of Management and Budget or the
project's sponsoring department should address projects that
were either partially funded or zeroed out.
Department of Natural Resources
9:25:41 AM
NICO BUS, Acting Director, Division of Support Services,
Department of Natural Resources directed attention to the
Department's $150,000 Interior Alaska Timber general fund
appropriation specified on page 17 line 25 of Version "F". The
Department's original $500,000 request was pared down and
included at $250,000 in the Governor's capital budget bill. That
would be the minimum amount necessary to complete a public land
timber inventory study to support hardwood milling and
manufacturing facilities in the Interior which must provide
proof of adequate material supplies when seeking financial
institution funding. The most recent study was conducted prior
to the early 1990s. Recent forest fires and land acquisitions in
the area force the need for a more recent inventory study. Thus,
the Department would urge the Committee to increase the
allocation to $250,000.
9:28:01 AM
Mr. Bus also requested the Committee to include $625,300 to
address the Juneau Subport Building asbestos abatement project.
The Governor's Office requested the inclusion of this project
via an amendment submitted on April 20, 2006. As a result of a
1994 State settlement with the Alaska Mental Health Trust
Authority, the land on which the Subport and the National Guard
Armory sit were transferred from the Department of Natural
Resources to the Trust. The State's Subport lease with the Trust
would expire in June 2006. The leases required an asbestos and
lead survey to be conducted. The report was completed this
winter, and the "remedy" would cost approximately $523,000.
Associated management expense would cost an additional $100,000.
The Department's goal would be to begin the abatement effort
once the facility is vacated in June. This would allow the Trust
to coordinate with the City and Borough of Juneau's long-range
waterfront plan rather than delaying that effort for a year.
In response to a question from Co-Chair Green, Mr. Bus verified
the amount required for the abatement to be $625,300.
AT EASE 9:29:49 AM / 9:29:59 AM
Co-Chair Green acknowledged the receipt of the abatement project
amendment. It had been received after the Version "F" committee
substitute had been developed.
Mr. Bus apologized for the late submittal of the request. There
had been some confusion as to which department would be
responsible for the effort.
Senator Hoffman asked regarding the $200,000 appropriation for
snowmachine trails, as specified on page 19 line 6.
9:30:33 AM
Mr. Bus identified the snowmachine trail program as an
application-based grant program. Applications are reviewed by a
statewide board and scored on such things as the contributions
from the organization and its volunteer work. The awards are
funded from snowmachine registration fees.
Co-Chair Green affirmed this to be an established program.
Senator Olson asked whether the program would fund such things
as the marking of trails.
Mr. Bus affirmed it would. Other projects could include trail
expansions and safety improvements.
9:31:39 AM
Legislative Affairs Agency
Co-Chair Green described her staff as being "enlightened" by a
recent tour of the Capitol Building projects requested by the
Legislative Affairs Agency (LAA).
PAM VARNEY, Executive Director, Legislative Affairs Agency,
noted that LAA capital improvement requests have been
infrequent. However, in January, both elevators in the Capitol
experienced mechanical failures. An elevator consultant was
hired and a request for bids has been let for the repair work
estimated to cost $600,000. The work would entail such things as
new motors, AC drives, and new lifting equipment. Work on the
elevators, which were installed in 1960, has been limited to
upgrading the fire service controls and the interiors of the
cabs.
9:33:18 AM
Ms. Varni noted LAA's second request would be to re-roof the
Capitol Complex, which includes the Capitol Building and the
Terry Miller Building. Ten years has passed since any major work
has been done to the Capitol's roof. Only a portion of the Terry
Miller Building's roof was upgraded when the building was
remodeled in 1999.
Co-Chair Green informed the Committee that the elevator and re-
roofing projects are specified on page 46, lines 28 through 33
of the Version "F" committee substitute.
9:33:46 AM
Ms. Varni displayed a binder [copy not provided] depicting water
catch buckets in the attic space of the Capitol. Numerous roof
leaks are located above Co-Chair Green, Co-Chair Wilken, and
Representative Mike Chenault's offices on the top floor of the
building. Similar roof leaks are occurring in the Terry Miller
Building.
Ms. Varni identified LAA's third request as upgrades to the
Capitol's exterior walls. Significant exterior maintenance work
last occurred in 1993. Such things as resealing mortar joints,
cleaning and sealing exterior walls, recaulking, and repair of
broken and deteriorated sandstone would be addressed.
Co-Chair Green affirmed the roof leak damage. She likened some
of the maintenance needs of the Capitol Complex to those of the
Department of Labor and Workforce Development's AVTEC facility,
which was previously discussed.
Department of Transportation and Public Facilities
9:35:55 AM
MIKE BARTON, Commissioner, Department of Transportation and
Public Facilities expressed appreciation for the "investments"
the Committee has made to the State's transportation system.
However, support of "a few more" projects is sought for the
transportation system which contributes to economic growth,
assists in lowering the cost of goods, improves quality of life,
and reduces operating costs of the State as well as the costs to
the traveler.
Commissioner Barton noted that the photo [copy not provided]
depicting a [unspecified] building in the Matanuska-Susitna
Valley (Mat-Su) is an example of some of the capital project
needs on the Department's priority list.
9:37:28 AM
Commissioner Barton referred the Committee to the Department's
Juneau Access project depicted on page 45, line 15 of Version
"F". The Governor included $45 million for this project in his
capital budget; however, the Version "F" committee substitute
appropriation only specified $25 million. He urged the Committee
to restore the funding level to $45 million, as $25 million
would restrict the project to a point "halfway across Berners'
Bay". This would not be "a logical completion point".
Commissioner Barton explained that the Juneau Access Project
would provide Alaskans road access to the capital city and
improve the State's connectivity with the continental road
system. Currently one must use Alaska Marine Highway System
(AMHS) ferries to travel to Juneau; however, the System "does
not have the capacity to meet" future demand projections of
approximately 500 vehicles per day. The Juneau Access Project
would reduce the State's current transportation expenses on this
route by two-thirds. Traveler costs would be one-fifth current
costs and travel on the route would be more convenient.
9:38:44 AM
Co-Chair Green asked for further details about the $45 million
request; specifically the benefits it would generate in terms of
federal funds.
Commissioner Barton clarified that the $45 million would not
generate any federal match funds. However, $15 million in
federal money was earmarked for this project in the federal
Highway Reauthorization bill. The State match for that $15
million is "contained" in this request. The completion of this
road would result in cost savings, as it would "eliminate 26,000
hours a year from ferry service". The first phase of this
project would allow ferry service to commence from Slate Cove to
Haines and Skagway. The right of way would transit federal land.
This project, which is "ready to go", would be the State's
"first major highway system expansion" in 30 years.
9:40:05 AM
Senator Stedman understood that, in addition to the request for
$45 million in general funds, federal SHAKWAK money might be
available. Thus, he inquired to the reason for such a "heavy"
demand for general funds.
9:40:35 AM
Commissioner Barton responded that approximately $27 million in
SHAKWAK funds would be available in a few years. The State's
original effort was to have this project included as a $60
million earmark in the federal Highway Reauthorization bill;
however that effort failed. The recourse was to request general
funds.
Senator Stedman asked whether that was the "normal" procedure to
follow when building roads.
9:41:18 AM
Commissioner Barton replied that the State would endeavor to
build a road "however we can build them"; this could include the
use of State funds, federal funds, private funds, or donations.
Senator Stedman, noting that the $20 million federal fund
earmark for the Gravina Island Bridge project in Ketchikan had
been removed, asked whether a general fund request for that
project would be addressed in this discussion.
Commissioner Barton stated he had not "intended to" address
bridge projects since "they're on the federal side" and the
committee substitute had not made any changes in that regard. He
was unsure "where the $20 million went".
Senator Hoffman noted that, even though the Juneau Access
project was not located in his district, his constituents have
lobbied against using these funds to support the road. They
argue the "funds would be better spent on improving" the AMHS.
Thus, he asked the support of the road project verses the
support for improved ferry service to Juneau.
9:42:40 AM
Commissioner Barton responded, "There is a mix of opinions out
there on this project". Some support it and some oppose it. The
road link up Lynn Canal would be "a better investment of the
State's money". The long-term goal of the AMHS would be to
develop short roads connecting to shuttle ferries. This would
improve service and "significantly reduce" AMHS general fund
demands, as less of the larger mainline vessels and crew hours
would be required.
9:43:30 AM
Senator Hoffman understood therefore that by supporting the $45
million road, "we're also supporting the shuttle system" for the
AMHS.
Commissioner Barton identified the road as being "the first
phase" toward the goal of implementing a shuttle system.
9:43:56 AM
Senator Stedman asked the extent of the work the $25 million
would support. Continuing, he asked the total amount required to
conclude the project.
9:44:20 AM
Commissioner Barton specified $45 million as the minimum amount
required to award the contract for phase one, which would "push
the road north" of the Kensington Mine site.
9:44:38 AM
Senator Stedman understood therefore that a $25 million general
fund appropriation would result in delaying the project a year
while the Department sought the additional $20 million.
Commissioner Barton affirmed $45 million would be required to
complete the first phase of the project. At that point, the
expectation is that federal funds would become available. Those
funds would be used to complete the road to the Katzehin River.
The forthcoming federal funds would require a State match.
Senator Stedman asked whether the federal match requirement
would be a 90 percent federal and 10 percent State (90/10)
match.
Commissioner Barton clarified that some of the federal money
would be matchless; some would require either a 90/10 or 80/20
match. Bridge funding is a 80/20 match obligation.
9:45:35 AM
Senator Stedman noted that with the exception of some financing
issues, the Gravina Island Bridge project "is ready to
construct". To that point, he asked the level of general funds
that would be required to provide for the approaches to the
bridge, as the approaches must be provided for prior to any
actual bridge construction begins.
9:46:36 AM
Commissioner Barton responded the information would be provided.
Senator Stedman concluded his remarks by speaking in support of
building the Gravina Island Bridge.
Commissioner Barton stated that the next area of concern would
be the funding request for the second phase of the Alaska
Railroad extension study. The first phase, which is underway,
involved a feasibility study regarding extending the Railroad to
connect with the continental rail system. Phase two would
involve pre-construction activities and an Environmental Impact
Study (EIS). While the Governor included $50 million for phase
two in his capital budget, it was not included in Version "F".
Due to the fact that this project is a joint effort between
Alaska and Canada, the State has requested both Canada and
United States Congress to match the State's $50 million
appropriation. The feasibility study, which was addressed in
phase one of the project, would be completed in July. Were it to
conclude that the project was not feasible, the $50 million
would not be utilized. However, at this point, the money is
being requested to continue the project's "momentum".
Commissioner Barton credited the effort behind the joint project
to Governor Frank Murkowski and Premier Dennis Fentie of Yukon,
Canada, who signed a memorandum furthering the endeavor.
9:48:40 AM
Commissioner Barton stated the plan would be to extend the
railroad to either Fort Nelson or Dease Lake in the Yukon. This
extension would benefit the proposed gas pipeline construction
and would "bolster Alaska's case for the gas liquids and
petrochemical facilities" in the State. It could also lessen
pressure on west coast ports "in terms of containerized freight"
to the State.
In response to a question from Senator Stedman, Commissioner
Barton affirmed the committee substitute did not include the
funding.
9:49:48 AM
Commissioner Barton spoke to the Parks Highway project specified
on page 45, line 29 of the bill. This six-year program would
eliminate weight restrictions on the Parks Highway. While the
Governor had allocated $10,500,000, only half that amount was
included in Version "F".
Co-Chair Green voiced the understanding that the $10,500,000
amount would be allocated over a two-year period.
9:50:26 AM
Commissioner Barton stated no, $10,500,000 must be allocated in
this budget to maintain the six-year project timeline.
Co-Chair Green understood therefore that the full amount would
be required to keep the project on schedule.
Commissioner Barton affirmed.
Co-Chair Green disclosed that during the development of the
capital budget, partial funding of several multi-year projects
had been deemed acceptable.
Commissioner Barton did not support that funding approach for
Department projects.
9:51:05 AM
Commissioner Barton noted that truckers who transit the Parks
Highway are very enthusiastic about this project. The
improvements would provide many benefits including reduced costs
of goods.
9:51:24 AM
Commissioner Barton brought to the Committee's attention the
omission of funding for Stampede Road in Version "F". The
Governor included nine million dollars in his budget proposal
for this project. The Committee approved funds in FY 06 to
extend the road five miles; this funding would allow the
Department to extend it another 14 miles. This extension would
enhance access to State land on the north side of Denali State
Park, would provide additional tourism opportunities, and "could
be the precursor to a road up the Upper Kuskokwim and to
McGrath".
9:52:26 AM
Commissioner Barton also noted that a Juneau channel-dredging
project was omitted from the Senate budget. The Governor had
included seven million dollars in his bill. This project would
benefit the area's commercial fishing fleet.
9:52:37 AM
Senator Hoffman referred to the Commissioner's remarks about the
Stampede Road extension; specifically as to who might be
requesting road access to the Kuskokwim area of the State. He
was unaware of any discussion in that regard.
Commissioner Barton clarified his remarks to be forward
thinking. A road project in that area might be considered in the
future.
Senator Hoffman communicated that, at this time, he knew of no
local support for road access to the Kuskokwim area.
9:53:32 AM
Commissioner Barton continued his remarks about the dredging
project proposed for the Gastineau Channel in Juneau. Dredging
is also being considered for Dry Straits near Wrangell and
Petersburg. The endeavor would shorten transit time for
commercial fishing vessels and reduce fuel consumption. The
routes would also be safer to travel. Dredging of the Gastineau
Channel most recently occurred in the late 1960s.
Senator Stedman noted that, due to a geological occurrence known
as tectonic plate uplifting, the area of Gastineau Channel
slated for dredging is dryer than the area being considered for
dredging in Dry Straits. As a result, the Gastineau dredging
project would be more expensive and "more challenging now" than
the dredging that occurred in the 1960s. An [unspecified]
Internet site he recently visited provided plate prediction lift
information in addition to tide schedules for Southeast Alaska.
Uplifting is more prevalent in the northern region of Southeast
Alaska than in the southern region.
Senator Stedman noted that none of his constituents familiar
with the Dry Strait area have communicated support for the
dredging project. Those he has talked with disagree with the
position that the project would shorten transit time, as shorter
alternative routes exist. In addition, the cost of keeping the
Stikine River silt flow at bay would be immense. His remarks
were based on local knowledge of the area rather than scientific
studies.
Commissioner Barton agreed that the Stikine River is a large
influence on the area. The project "would be challenging".
9:55:53 AM
Commissioner Barton remarked that the Senate bill did not
include any funding for Bradfield Canal projects. The Governor
included two million dollars in his budget to support an EIS for
a project that would construct a road up the Bradford Canal. The
project would also include construction of an electrical
intertie grid system following that road. This grid would
connect with the Canadian electrical grid system. The goal would
be to provide power southward into west coast states.
Commissioner Barton informed the Committee that a private
developer was considering constructing a hydropower dam in
Thomas Bay, north of Petersburg. This would allow for the
exportation of hydropower. "There is a great deal of interest in
the Lower 48 for this power." Canadian officials are supportive
of the endeavor, which would require Canada to upgrade its
electrical grid system. He urged the Committee to fund the
project, which "would be the catalyst" for furthering other
electric intertie projects being considered in Southeast Alaska.
9:58:06 AM
Senator Stedman noted that Bradfield Canal is located in a
valley south of the Stikine River drainage. The construction of
a road there would provide road access to Southeast Alaska. With
the exception of road access at Haines and Skagway at the
northern end of Lynn Canal, no other road access exists to
Southeast Alaska. Therefore, in addition to providing a power
grid route, the Bradford Canal Road would allow freight and
people to move into Southeast Alaska.
Senator Stedman informed the Committee that the intertie would
transit power from the yet to be developed Thomas Bay Hydro
Authority. The Tyee Lake Dam, which is currently only utilizing
30 percent of its power capacity, and a future dam at West
Baranof, would eventually be included in the intertie project.
More power loads would be required to further the intertie, as
"you can't build a dam until you can sell virtually all the
power". Therefore, the sale of power to the North American power
grid would be required. This would further the effort to provide
hydropower to Southeast Alaska.
Therefore, "in the spirit of compromise" he urged the Committee
to reduce the Juneau Access project funding from $25,000,000 to
$23,000,000 and provide that $2,000,000 balance to the Bradfield
EIS study. This action "would drive both projects at the same
time". Since $25,000,000 "can't build a road", reducing the
amount to $23,000,000 would not do any further harm.
10:01:02 AM
Commissioner Barton advised the Committee of the Department's
concern regarding the $4,000,000 Alaska Marine Highway System
Vessel and Terminal Overhaul and Rehabilitation allocation as
specified on page 23, line 28. The Governor included a request
of $6,000,000 in his budget bill. While this project has
historically received $5,000,000, the recent addition of three
new vessels prompted the increase. This money is used to ready
ferries for the coast guard certification, which allows them to
carry passengers.
10:01:48 AM
Commissioner Barton identified the omission of funding for the
McCarthy Road rehabilitation project as the Department's final
request. The Governor's bill included a request of $2,000,000 to
address the most problematic needs of the road. "It is a
terrible mess." This road is an access route to the Wrangell St.
Elias area and "distributes the visitor load to Denali" State
Park. Improvements to it would enhance the visitor experience.
It would also reduce Department maintenance expenses. He urged
the Committee to restore this funding.
Commissioner Barton concluded his remarks.
Co-Chair Green stated this would conclude the department capital
budget presentations scheduled for today's hearing. Testimony
from the University of Alaska, the Department of Law, the
Department of Public Safety, the Department of Revenue, the
Department of Administration, the Alaska Court System, the
Department of Fish and Game, the Department of Health and Social
Services and the Department of Military and Veterans Affairs
would be heard during the April 26, 2006 Committee hearing.
[NOTE: No action was taken on the motion to adopt committee
substitute, Version "F".]
ADJOURNMENT
Co-Chair Lyda Green adjourned the meeting at 10:03:40 AM.
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