Legislature(2009 - 2010)SENATE FINANCE 532
03/17/2009 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| Alaska Railroad Overview | |
| SB75 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| += | SB 75 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
March 17, 2009
9:06 AM
9:06:36 AM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 9:06 a.m.
MEMBERS PRESENT
Senator Bert Stedman, Co-Chair
Senator Lyman Hoffman, Co-Chair
Senator Charlie Huggins, Vice-Chair
Senator Donny Olson
Senator Joe Thomas
MEMBERS ABSENT
Senator Johnny Ellis
ALSO PRESENT
Senator Gene Therriault; Patrick Gamble, President & CEO,
Alaska Railroad Corporation; Bill O'Leary, Chief Financial
Officer, Alaska Railroad; Amanda Ryder, Director, Division
of Administrative Services, Department of Commerce,
Community and Economic Development;
PRESENT VIA TELECONFERENCE
SUMMARY
Alaska Railroad Overview
SB 75 "An Act making and amending appropriations,
including capital appropriations, supplemental
appropriations, and appropriations to capitalize
funds; and providing for an effective date."
^Alaska Railroad Overview
9:08:24 AM
PATRICK GAMBLE, PRESIDENT & CEO, ALASKA RAILROAD
CORPORATION, provided members with a power point
presentation, "About the Alaska Railroad, March 2009" (copy
on file).
BILL O'LEARY, CHIEF FINANCIAL OFFICER, ALASKA RAILROAD,
introduced himself to the committee.
9:10:28 AM
Mr. Gamble began his overview of the Alaska Railroad
Corporation (ARRC). He stated that employees of ARRC are
not state workers. He described the corporation as a
private enterprise transferred to the state of Alaska in
1985. The Alaska Railroad Corporation runs as a quasi-
independent organization with the flexibility and freedom
to operate in a dynamic business world. As a normal
corporation, the railroad has a mission, a vision, core
values, goals, strategies and staff rules, but it is also
inextricably tied to Alaska state government through a
board of directors and by legislation. The Alaska Railroad
Corporation has existed under this business model for 24
years.
Mr. Gamble turned to the "Alaska Railroad Quick Facts" on
page 3 of the power point. He pointed out that employee
numbers are dropping, and the overall size of the railroad
is going down. He remarked that ARRC pays for a benefits
program out of its own earnings and takes seriously the
responsibility to keep the package whole for its non-state
employees over the long-term and upon retirement.
Mr. Gamble observed ways in which ARRC differs from other
state agencies on page 4.
9:12:46 AM
Mr. Gamble talked about the three pillars of the railroad:
passengers, freight, and the 36,000 acre real estate
endowment. The Corporation Act of 1985 directed the
railroad to operate on a sustainable basis and to develop
the land given to it to support transportation assets into
the future. For example, the organization could never opt
to dispose of state land outright, and would need the
approval of the legislature to sell. The Alaska Railroad
Corporation chooses instead to lease or trade land with the
federal government; it negotiates with municipalities at
rates lower than appraised property values but leases to
private businesses at assessed worth.
Mr. Gamble referred to graphs depicting freight, passenger
and real estate revenue from 2004 to 2009. He commented on
the growth observed across all three sources, and predicted
a flattening out or downward turn in each area for the
coming year.
9:14:32 AM
Mr. Gamble touted the chart "ARRC Fund Flow Model: 2008
Data," as an excellent pictorial of the dynamic flow of
money at the railroad.
9:15:03 AM
Mr. Gamble cited the slide "Overall Growth Pattern" with an
increase in total assets between 2001 and 2008. He spoke
about people as "faces, spaces, dollars or full time
equivalents" (FTE). He elaborated on the term FTE to
account for capital and expense employees as well as
overtime hours. Mr. Gamble arrived at the FTE calculation
by adding the total number of hours of everything worked
and dividing by 2080 (a year's worth of work at straight
time hours). He remarked that the capital program and FTE
alongside have grown considerably but expected to see both
eventually level off and start back down again.
9:16:22 AM
Mr. Gamble spoke about major capital projects under the
2009 program. He addressed fund sources and an overview of
federal grant money received in the past. The total capital
budget for 2009 is estimated at $138 million; federal
economic stimulus funding will likely add about $26
million.
9:16:54 AM
Mr. Gamble turned to funding by way of the stimulus
package. He projected the total amount of increase to come
to about $25,825,000. The money issues from Formula Fund 49
United States Code (U.S.C.) 5307, which grants resources to
urbanized areas and states for transit related purposes.
Every passenger railroad in the country is entitled to a
share; the Alaska Railroad Corporation is simply receiving
its portion.
Mr. Gamble mentioned the possibility of collecting funds
from the $100 million energy program, but the requirements
for eligibility are not yet clear. He described the
multimodal discretionary fund as a competitive grant fund
for which the ARRC knows it can qualify. The railroad will
have to internally compete with state entities such as the
Department of Transportation and Public Facilities (DOT)
and the ports for a Congress approved national allocation
of between $20 and $300 million. The sum divided by a count
of 50 (states) yields an approximation of the total
expected for Alaska. He explained that the railroad plays a
numbers game when it tinkers with what projects to include
in an attempt to qualify for grants of this nature.
9:18:55 AM
Mr. Gamble summarized the categories where ARRC spends its
capital money. He elucidated that a majority of funds
support safety-oriented construction when the corporation
rebuilds the line and finance the basic building blocks of
a railroad: ties, ballast, rock, etc.
9:19:13 AM
Mr. Gamble pointed out the efficacy of the diagram entitled
"Capital projects started, continued or completed in 2009
are all along the railroad." He emphasized that the
represents the huge workload to which employees contribute
no matter what job they do. He commented on the
considerable level of effort exerted by the company on a
seasonal basis.
9:20:24 AM
Mr. Gamble informed the committee that ARRC leads the
nation in fielding the first Vital Collision Avoidance
System in the country. The company has spent a dozen years
and invested several millions on developmental safety
technology that Congress just recently mandated for all
railroads carrying passenger and hazardous materials. State
railroads that qualify must support an operational control
system by 2015. While the lower 48 will struggle to meet
the deadline, ARRC has already progressed to the testing
stage. The railroad is in good shape and will safely meet
the target date.
Mr. Gamble said that the system essentially prevents on-
track collisions and reduces human error. The multi-phased
project arms locomotives with a Global Positioning System
(GPS) locator and links on-board computer systems to a
dispatch server. The communications network keeps track of
a vehicle's speed, weight and relative location and
computes safe stopping distance. The computer takes control
away from the engineer if the equipment registers a
violation not corrected within a short period of time,
applies the brakes and requires a reset before the train
can continue.
9:22:31 AM
st
Mr. Gamble spoke about the "1 Five Year Plan, 2002-2006."
He introduced it as an intermediary to the more
comprehensive strategic plan that is mailed to all
employees. The forward of the strategic plan summarizes the
intent of the railroad. He touched on methodology,
productivity and employee satisfaction. The First Five Year
Plan impacted ARRC on a tactical level and the company
began a budget to improve areas such as pay, benefits, tool
modernization, training, etc.
9:23:43 AM
Mr. Gamble skimmed the achievements of the first five year
plan. He explained that in 2007, the railroad took an
intervening year to evaluate and build the next five year
plan, which spans 2008 to 2012.
9:24:18 AM
Mr. Gamble directed attention to a table that showed growth
and productivity on the railroad. He summarized that most
of the productivity, other than asset growth, relates to
the measure of work done on the main line. The five year
plan has helped productivity grow considerably from earlier
days.
Mr. Gamble discussed the 2009 budget challenges of the
"Second 5 Year Plan." He mentioned train operations, the
core business of the railroad, as capital intensive and
expensive at the fare box. The Alaska Railroad Corporation
has found it a challenge to match revenue and expense
dollars particularly in the current environment.
Mr. Gamble emphasized the nature of the second five-year
plan to confront expenses and keep the railroad profitable
until the economy turns upwards. Economic initiatives such
as transporting gravel or fuel make the railroad
successful. In the ebb and flow of the times, ARRC echoes
the economy of Alaska.
2:25:55
Mr. Gamble described the impact of the economy on
personnel. The Alaska Railroad Corporation examined the
entire workforce and eliminated a number of management and
some labor positions, mostly through attrition rather than
layoffs. The task was accomplished through a hiring freeze
in 2007 that created a number of funded vacancies in the
2008 budget. Mr. Gamble then captured the savings from the
expired positions. Three more management positions were
reclassified from expenses to capital expenditures and an
assistant vice president was eliminated. The corporation
continues the downsizing process and has followed it with a
reorganization and consolidation phase. The result is a
streamlining that has significantly changed some of the
organizations within the railroad.
9:27:09 AM
Mr. Gamble highlighted the results of the first and second
five-year plans on a chart entitled "Forecast Impact on
ARRC Corporate Net Income." He pointed out that 2009 began
with a good budget estimate, but that the railroad expected
the Flint Hill's reduction to have material impact on its
ability to bring off the budget approved by the board in
November.
Mr. Gamble noted that before the market dropped, ARRC's
pension plan was fully funded at 114%, and the railroad was
very close to fully funding post-retirement medical
benefits. He commented that although ARRC took quite a hit,
the chart illustrated that the company weathered the
economic downturn pretty well.
Mr. Gamble turned to the complexities of the "Alaska
Railroad Post Retirement Medical Program." He offered the
summary to committee members as a comparison to the state
plan.
Mr. Gamble revealed a graph that showed the Alaska
Railroad's obligation to the Post Retirement Medical
Program. He remarked that the drop occurred between 2008
and 2009.
9:28:50 AM
Mr. Gamble brought up Flint Hills Resources (FHR) as the
primary issue impacting the Railbelt. Mr. Gamble included
data to refresh the committee's memory although nothing
material had changed from a few months prior.
9:29:31 AM
Mr. Gamble addressed the stimulus package. The railroad
believed itself to be well-off with regards to the initial
intent of the "American Recovery and Reinvestment Act of
2009" aimed at infrastructure building and rails. After the
federal government parceled out stimulus funds, the
railroad essentially just received more of the regular 5307
formula money.
Mr. Gamble said that a total of $26 million had been
apportioned to ARRC, no more and no less.
9:31:05 AM
Mr. Gamble explained the origin of the $26 million
allocation made by the Federal Transit Administration (FTA)
and distributed by the Anchorage Urbanized Area (UZA)
Formula Fund 5307. He delineated funds applicable to the
Anchorage bus system through a mathematical formula based
on population and passenger miles. Mr. Gamble turned to the
"Rail Incentive Tier" awarded at an almost negligible
amount of $1500. The "Rail Non-Incentive Tier" equals the
bulk of the railroad's stimulus monies and is based on rail
coach miles.
Mr. Gamble elaborated on ARRC's eligibility for federal
funding under the "Fixed Guideway Modernization" program,
which encompasses passenger cars and miles exclusive to
railroads in Anchorage. He stated that the funds are not
transferable to Anchorage's People Mover bus system. He
emphasized that railroads and busses are two absolutely
separate items in the federal registry. If money
apportioned does not go to the Alaska Railroad, it will
stay with the federal government.
9:33:34 AM
Co-Chair Stedman asked if the administration agreed with
ARRC's interpretation of the stimulus dollars.
Mr. Gamble expressed confidence that the calculation would
not change. He reviewed the $1.5 million competitive grant
for which several state entities can qualify. He mentioned
the railroad's work in cooperation with DOT to increase
chances that the federal government would fund a mutually-
beneficial project satisfying both. He believed in the
strategy, and thanked Commissioner Von Schaben for the
idea.
9:35:17 AM
Mr. Gamble informed that the remainder of the briefing
encompassed the federal rules, reporting requirements and
deadlines associated with the stimulus. He noted the "ARRC
Implementation Plan" on page 8 of the power point
presentation (copy on file).
Mr. Gamble explained that because the stimulus package
stems from FTA money, projects primarily fall into three
categories to meet qualifications: infrastructure, safety,
and passenger facilities. Mr. Gamble reported the need for
approval from ARRC's Board of Directors before presenting
the list of eligible projects to the committee. One such
project is the congressionally mandated positive train
control system.
9:36:58 AM
Co Chair Hoffman asked if the governor or legislature had
the right to modify ARRC's stimulus recommendations. Mr.
Gamble replied that neither the governor nor the
legislature has a say.
In response to Co-Chair Hoffman's question, Mr. Gamble
affirmed that the legislature does not need to take any
action in order to for the state to receive the stimulus
dollars.
9:37:40 AM
Co-Chair Stedman endorsed an expansion of the
infrastructure of the railroad that will remain 10 years
from today.
Co-Chair Hoffman requested criteria used by the railroad to
recommend projects to the board.
9:38:31 AM
Mr. Gamble interjected that reconstruction of the main line
has the lion's share of stimulus money. He described the
project as a continuation and acceleration of the
railroad's ability to build and complete the line from
Anchorage to Fairbanks. He detailed that the project
utilizes welded rail, concrete ties, upgraded track, bridge
repair, improved signaling devices, and newer technologies
that can detect failing wheels or bearings, the major cause
of derailments. He assured the committee of ARRC's basic
focus on infrastructure and the collision avoidance system
in its recommendation to the board.
9:39:45 AM
Senator Huggins inquired into how ARRC communicates with
trains on the track. Mr. Gamble responded that all
communication utilizes very high frequency (VHF) radios.
Senator Huggins wondered at the existence of dead spots at
points along the track using this system.
Mr. Gamble spoke about a series of relay sites built up
over the years through the mountains to maintain
communications. He mentioned redundancy in both data and
radio capability now and into the future that includes
fiber-optic cable running through the line, a microwave
system as back-up and good radio relay.
Senator Huggins questioned whether the railroad had the
Alaska Land Mobile Radio (ALMR) system and interoperability
between radios as a matter of homeland security.
Mr. Gamble acknowledged that with the purchase of new
radios, the railroad will join the ALMR standard for
Alaska. He shared his personal involvement in initiating
the ALMR common radio system when still in uniform back in
1996. He affirmed that the incident command center would
include the railroad and allow it to be linked on the same
ALMR frequency with other federal, state and local safety
responders.
Senator Huggins referenced page 21 of the power point,
"Capital projects started, continued or completed." He
solicited a timeline in the strategic plan for the
extensions of two projects: the Northern Rail Extension and
Port Mackenzie.
Mr. Gamble clarified that the stimulus money cannot be used
for extensions; it can only be used for projects currently
underway. With regard to the Northern Rail Extension, he
observed that ARRC sought preapproval several years ago
from the legislature to sell $500 million in tax free
bonds. The Alaska Railroad Corporation hoped that the
visible sign of support would enable efforts to secure
federal earmark money in Washington, DC.
Mr. Gamble stated that the railroad took the project one
step at a time. The first step involved obtaining $14
million in earmark dollars to prepare an Environmental
Impact Statement (EIS). The draft EIS and record of
decision should be available in summer 2009. The EIS was
conducted along an eighty-mile stretch and took a couple of
years to complete.
9:43:46 AM
Mr. Gamble described that the next step centered around
disagreements on how to handle the Fairbanks bypass. The
ARRC separated the issue out. The next phase consolidated
dollars around the bridge across the Tanana River, the
major feature in the 80-mile extension.
Mr. Gamble mentioned that during the intervening period the
army built up forces in Alaska. With the larger number of
soldiers at Fort Wainwright needing to reach training
ranges across the river, the military declared the bridge a
requirement for the US Army. The ARRC has since collected
$116 million for the project and finds itself $40 million
short in work that involves the corps of engineers
stabilizing the banks upstream to prevent erosion in the
flooding season. The bridge would allow year-round access
across the unpredictable ice.
Mr. Gamble emphasized the project's timeline, which relies
upon the financials within the state and federal government
and successful cooperation with the army to move slowly
forward. He indicated that the bridge could begin
construction this spring on the assumption that a record of
decision exists and a $40 million source identified. The
bridge will be state-owned; the railroad will cross it en
route to Delta Junction and will earn state revenue
carrying freight and passengers.
9:46:38 AM
Senator Huggins questioned the ability of the railroad to
take on a significant amount of heavy freight from enabler
projects and the natural gas pipeline in the next 5 to 6
years to help preserve the roads.
Mr. Gamble emphasized that the value of a railroad is
measured in moving high volume, low margin products. He
stressed that the railroad is a cheaper method of transport
to support resource development.
Mr. Gamble noted two points in connecting the rail to the
Yukon River System. The extension would offer year-round
rail-line access to villagers that now only have one way
out during the wintertime. Trains could also provide a nice
piece of intermodal infrastructure helping to move goods
traditionally on barges, which are trying to make their way
north in October before the river freezes. The railroad
could haul fuel right to the water and a distributor could
pick it up and move it up the river on the ice. He stressed
again that ARRC generates no state bills for operations or
maintenance after capital expenditures.
9:49:54 AM
Senator Huggins mentioned that state officials continue to
pursue the implications of synfuel production in Alaska. He
wondered whether the railroad would find a "big customer"
in synfuel manufacturers both internally and through
exportation to Department of Defense (DOD) entities in the
Pacific Rim.
Mr. Gamble responded that the question relied on the
specific scenario. The Alaska Railroad Corporation could
find a large potential customer depending on the location
of a plant and what would power the facility. He continued
that hauling several million tons of coal would mean big
business while supporting technologies that convert gas to
liquid would call for less support from the railroad.
Mr. Gamble noted two synfuel initiatives in the early
stages of discussion, both of which would support military
requirements requirements and the Flint Hills refinery. The
Air Force recently closed an intended operation in Montana,
and the Defense Logistics Agency (DLA) made a serious offer
last week in Anchorage to put a plant in Alaska. The
bureau's proposal encouraged private industry to suggest
the best model and guaranteed purchase by DOD of a certain
quantity of synfuel annually for so many years. The Alaska
Railroad Corporation knew more about the second initiative
in Fairbanks, which requires the transport of coal and
could prove a very profitable undertaking.
9:52:54 AM
Senator Thomas asked if the oil industry was contacted in
regards to rail transportation and truck traffic through
Fairbanks. Mr. Gamble noted that several options were
reviewed. There are a couple of promising private yards
that have highway access on one side and rail on the other.
He concluded that Fairbanks will need all options if the
big gas line is built.
Senator Thomas referred to a pipe yard, which was located
where the box stores are currently. He suggested pipe would
even come through Haines. He mentioned north expansion and
questioned if the assumption would be that the pass would
be tunneled.
9:55:04 AM
Mr. Gamble had not surveyed the route, but he thought that
previous surveys indicated it would be usable for the
railroad. He did not think the pass would pose a problem.
The pass would require more locomotives with operating at a
slower speed. The northern route has been reflected on but
there "is nothing concrete going on there." The railroad
has been in conversations with the oil companies.
9:56:49 AM
Senator Huggins reviewed slide 58 - and noted that there
are 14 Special Services. Mr. Gamble clarified that 11 of
the 14 are high school tour guides. The overall group was
downsized.
Senator Huggins asked if the rail engineers have access to
simulators. Mr. Gamble affirmed and explained that the
visual display was designed after portions of the actual
rail line. The simulators help to standardize operating
procedures for fuel efficiencies and emergency procedures.
9:58:49 AM
Senator Huggins spoke to hybrid locomotives
(diesel/elective) and asked if there is an initiative to go
to the next step. Mr. Gamble suggested that the
diesel/elective hybrid is the next step. The "state of the
art" comes in the diesel motor itself and some of the
efficiencies in the transfer of the energy down to the
wheels.
RECESSED: 10:00:14 AM
RECONVENED: 10:05:25 AM
SENATE BILL NO. 75
"An Act making and amending appropriations, including
capital appropriations, supplemental appropriations,
and appropriations to capitalize funds; and providing
for an effective date."
10:05:36 AM
DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT
AMANDA RYDER, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC
DEVELOPMENT provided information regarding the department's
capital budget requests.
Reference No. 40056
Organization Grant $100,000
Ms. Ryder explained that the grant would defray the cost of
incorporation for the third and final payment to the city
and borough of Wrangell for incorporation as required by
statute.
Reference No. 38950
Alaska Energy Authority (AEA) Projects $31 million
Ms. Ryder explained that the request supports longstanding
(mostly federal) grants. The department expects $4 million
in federal funds from the Denali commission for bulk fuel
upgrades to replace tank farms with new refurbished
facilities that meet all applicable safety and
environmental standards. The program began in 1997 and has
expanded since FY 99 with federal Denali Commission funds.
When the work began there were 1,100 above ground tank
farms in 171 remote communities. She explained that $30
million is needed to complete the upgrades for the
remaining 25 communities on the list.
Co-Chair Stedman asked for a list of the communities. Ms.
Ryder agreed to provide a list after the meeting.
10:09:08 AM
In response to a question by Co-Chair Stedman, Ms. Ryder
observed that Alterative Energy grants were included in the
request because they are part of AEA's energy projects. The
Alternative Energy and Energy Efficiency program is a long
standing federal program that receives grants for diesel
generation, hydroelectric project development pass through
federal grants, wind energy, biomass geothermal, ocean
energy and energy cost reduction. The program does not deal
with the renewable energy grant projects that are funded
from the $100 million dollar fund created by the
legislature.
Ms. Ryder observed that the request also includes: $7
million for Rural Power System upgrades from the Denali
Commission, $1 million to develop the statewide Alaska
Energy Plan, and $2 million for Renewable Energy Grant Fund
projects. No state match is required for the Denali
Commission projects in this request.
Reference NO. 47877
AEA - Denali Commission $10 million
Match for rural power system upgrades
Ms. Ryder explained that the funding would come from the
Capital Income Fund. The Denali Commission asked the state
to provide a match to what had been 100 percent federally
funded projects.
10:13:41 AM
Reference No. 38946
Community Block Grant $6.1 million.
Ms. Ryder observed that the request contains $6,030.0
million in federal funds and $70 thousand in general funds
for grants to improve the quality of life for low income
rural Alaskans through RurAL CAP a non-profit community
agency. The request also includes funding for Food and
Nutrition Grants, Community Development Block Grants, and
Emergency Shelter Grants.
Reference No. 47006
Grants Tracking System $255 thousand
Ms. Ryder observed that the grants tracking system would
provide software to assist the department with its tracking
of grants and expand reporting capacity.
Co-Chair Stedman assumed that the requests were ranked in a
priority order. Ms. Ryder was uncertain but offered to
report back.
10:16:15 AM
Reference No. 41789
Kodiak Launch Complex Infrastructure $17.5 million
Ms. Ryder explained that $14 million of the request would
come from federal funds. The remaining $3.5 would be
general funds. This is the second year appropriation to
build a dedicated rocket motor facility and an additional
launch pad, which would allow multiple launches.
Reference No. 40242
Manufacturing Extension Program $806,401
Ms. Ryder highlighted the request which would support the
federal program set up to support small and medium
manufacturers. The request funds the state's third of the
project.
10:18:08 AM
Reference No. 38943
Community Development and Assistance $2.63 million.
Ms. Ryder observed that the general fund portion would be
$430 thousand. The request supports multiple federally-
funded programs providing grants and development
opportunities and assistant to communities and non-profits
for community development. The request includes funding for
the Alaska Floodplain and Erosion Management program,
business development, and the Coastal Zone Management
program.
Reference No. 47007
Licensing MyAlaska Integration $310 thousand
Ms. Ryder noted that the project goal is to integrate each
of the division's on line applications so that users do not
have to apply for separate ID's and passwords. She
concluded that the project would offer greater security and
ability to view accounts online.
Reference No.47878
Denali Commission Match/Rural Transportation $5 million
Ms. Ryder explained that the funding would come from the
Capital Income Fund. The purpose of the request is to
assist the Denali Commission's effort to fund cost
effective road construction and waterfront development
projects in rural Alaska. The request would benefit rural
Alaska by reducing the cost of goods and services,
improving village to village connections, providing access
to resources, and helping to create jobs and economic
development. She observed that there is 30,000 miles of
shoreline and that Alaska's marine facilities are an
integral part of local, statewide, and international
transportation of goods and services. The Denali Commission
previously funded 100 percent of these projects but has
requested state participation.
10:20:56 AM
Reference No. 47847
Shishmaref Beach Erosion $3 million
Ms. Ryder observed that the request funds phase III of a
four phase project. This phase would construct 550 feet of
ocean side protection for the washeteria and sewage lagoon.
She noted that phases I and II are complete.
Co-Chair Hoffman asked if these improvements would prevent
relocation of Shishmaref. Ms. Ryder understood that the
project would provide Shishmaref with time to plan. She did
not know how much time the project would buy.
10:22:51 AM
Reference No. 47987
Kenai River Bluff Erosion Project $5 million
Ms. Ryder explained that the request is the result of
erosion and is the number one priority for the city of
Kenai. The total cost of the project is $20 million ($13
million in federal funds). The local match is $2 million.
This request provides the state's portion.
Reference No. 41956
Municipality of Anchorage $10 million
Expansion of the Port of Anchorage
Ms. Ryder observed that the Port of Anchorage serves 80
percent of Alaska's population and is the entry point of 90
percent of the consumer goods shipped to Alaska. The port
is securing funding of $350 million to $400 million through
a combination of state, federal and local resources. The
total federal cost is 52 percent; 48 percent would come
from state grants, port retained earnings and loan
proceeds. The state has so far appropriated $55 million for
this purpose.
Reference No. 47879
Alaska Marine Exchange 0
Ms. Ryder clarified that the governor removed this item
that would have expanded the vessel tracking system due to
the state's fiscal situation.
10:25:40 AM
Co-Chair Stedman noted that the original request for the
marine exchange system was $650 thousand and questioned if
the cruise ship head tax would be an appropriate fund
source. Ms. Ryder was unable to answer but offered to
discuss the issue with OMB. Co-Chair Stedman questioned if
deletion of the request would impact cruise ship tracking
and monitoring of discharge. He asked if other areas would
be increased and questioned the long term "deal" with the
transmitter network of the Alaska Marine Exchange. He
wanted to ascertain if the deletion was temporary. Ms.
Ryder responded that she was unable to comment on the
policy issues behind the deletion but offered to talk with
OMB.
10:28:35 AM
Reference No. 38713
Arctic Power $120 thousand
Ms. Ryder explained that the grant would support eduation
efforts in opening up ANWR for oil and gas exploration and
development.
Reference No. 41959
Arctic Winter Games Team Alaska $250 thousand
Ms. Ryder clarified that the request would support
participation in the 2009 Arctic Winter Games.
Reference No. 38948
NPR-A Impact Grant Program $15,967,840
Ms. Ryder explained that the request funds fifteen grants
to communities impacted by oil and gas lease sales and
development within the National Petroleum Reserve of
Alaska.
Co-Chair Stedman asked about a list of the grants and
applications that were not funded. Ms. Ryder agreed to
provide the list and pointed out that the grants were
ranked.
Co-Chair Hoffman asked the reason for the amendment that
reduced the request by $7 million.
10:31:40 AM
Ms. Ryder answered that one of the lease sales did not
occur. The appropriation was based on the actual lease
sales.
Co-Chair Stedman reiterated his request for a list of grant
applications that were declined.
Reference No. 47031
Electrical Emergencies Program $250 thousand
Ms. Ryder clarified that the request is a long standing AEA
program that funds technical support when an electrical
utility has lost or is in danger of losing the ability to
generate power, creating a situation that is a threat to
health, life and/or property. A language appropriation is
also included to reappropriate the cash balance of the
Rural Electrification Revolving Loan Fund ($80.4 thousand).
The total cost would be $330.4 thousand.
Reference No. 45662
Climate Change Impact Mitigation Program $300 thousand
Ms. Ryder explained that the program provides planning
assistance to the most at risk villages and provides a
planned approach to shoreline protection, building
relocation and/or the eventual relocation of the village.
The request would fund approximately five grantees.
10:33:59 AM
Reference No. 47898
Cruise Ship-Related Grant Projects $22.54 million.
Ms. Ryder noted that the grants to municipalities use the
Cruise Ship Impact Fund. The Department of Transportation
and Public Facilities worked with the department to rank
and review the projects based on need and cruise ship
industry impact to the communities and specific projects.
Co-Chair Stedman asked for more information on the process
used to collect and rank projects. Ms. Ryder observed that
OMB outlined the ranking process in a letter dated February
26, 2009. The Department of Transportation and Public
Facilities gathered project information and prioritized
projects based on OMB's letter.
Co-Chair Stedman did not see Petersburg on the list. Ms.
Ryder did not know which communities had proposals. Co-
Chair Stedman asked for more information on the pool of
requests and ranking. He observed that there are still some
funds available and noted that some projects requested in
the previous year were not funded. He asked for any
information provided by the industry that was used in
ranking with the objective to keep the industry in the loop
in regards to the selected grants project. He pointed out
that Fairbanks and Anchorage receive cruise ship visitors.
10:37:56 AM
OFFICE OF THE GOVERNOR
Reference No. 47009
Banking and Securities Imaging $580 thousand
Ms. Ryder added that a number of the department's
information and technology projects were placed under the
Office of the Governor. She observed that an imaging
project for the Banking and Security Management System
remains. The project uses an imaging system previously
developed for the Division of Insurance as a base for the
new project. Imagines are currently stored in hard copy
format. The request would improve document accessibility
and eliminates the cost of paper.
Ms. Ryder discussed the items that were deleted.
Reference NO. 47005
Community and Regional Affairs Imaging $690 thousand
Ms. Ryder observed that the request was deleted due to the
state's fiscal situation.
Reference NO. 47010
Banking and Securities Management System $890 thousand
Ms. Ryder explained that the request was removed due to an
incident that convinced the administration to start on the
project prior to FY 10. The request encompasses systems
that address STAR, ANCSA and Native corporations. The STAR
system was deemed at risk and the request was added to the
supplemental appropriation. Co-Chair Stedman observed that
the intent was to remove capital from the supplemental.
10:42:10 AM
Co-Chair Stedman suggested that the department's request be
stacked in priority order.
Co-Chair Stedman asked for information regarding
applications for climate impact mitigation funding. Ms.
Ryder noted that applications were ranked by the department
but did not know how the applications were submitted. She
observed that some applications have been returned for more
information.
10:45:04 AM
Co-Chair Stedman referred to economic stimulus funding for
the department. Ms. Ryder observed that requests for
economic stimulus funding would be made for longstanding,
existing programs. Co-Chair Stedman observed that the issue
would be given further review.
10:46:46 AM
ADJOURNMENT
The meeting was adjourned at 10:52 AM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| DCCED Kodiak AADC Overview.pdf |
SFIN 3/17/2009 9:00:00 AM |
SB 75 |
| AK Railroad briefing 31709.ppt |
SFIN 3/17/2009 9:00:00 AM |