SENATE BILL NO. 105 An Act relating to reimbursement to municipalities by the Department of Transportation and Public Facilities for debt incurred by those municipalities for certain capital projects; and providing for an effective date. JOHN WEISE, STAFF, SENATOR LYMAN HOFFMAN, noted that the Legislature passed HB 528 in 2002 as debt reimbursement for certain capital projects. Included in the list of projects was a small boat harbor in Unalaska approved for $5 million dollars debt reimbursement through the Department of Transportation & Public Facilities. It has been delayed due to the exhaustive permitting requirements, a process started in 1996 and completed in 2006. The Corps of Engineers Civil Branch is responsible for the construction and maintenance of the outer breakwaters for the project and the City is responsible for construction of the inner harbor improvements, providing utilities for the project. The Corps undertook and completed an Environmental Impact Statement (EIS) in 2004 but the Record of Decision was not signed until six months ago due to staffing retirements in Washington D.C. The total permitting cost was over $3 million dollars. The City of Unalaska is prepared to move forward as soon as the Corps of Engineers receives funding, however, the deadline for the debt reimbursement is June 30, 2007. SB 105 allows the City to complete the design, prepare bid documents and obligate the funds in time to finish the project. 8:56:47 AM Co-Chair Chenault asked about the fencing around the project was because it was close to the airport. Mr. Weise did not think the airport was nearby. 8:57:37 AM CHRIS HLADDICK, (TESTIFIED VIA TELECONFERENCE), CITY MANAGER, UNALASKA, spoke in support of the bill, commenting that the process has been long and drawn out. The City of Unalaska is waiting for a federal appropriation. Co-Chair Chenault asked about the fencing around the harbor. Mr. Hladdick explained that the harbor it is not near the airport but rather closer to the bridge. Representative Kelly asked if the delay could affect the funding. Mr. Weise acknowledged the funding was capped; all other small boat harbors from the original bill are complete. The only one not yet complete is in Anchorage because they did not want to bond. PUBLIC TESTIMONY CLOSED 9:01:19 AM Representative Foster MOVED to REPORT CS SB 105 (TRA) out of Committee with individual recommendations and with the accompanying zero notes. There being NO OBJECTION, it was so ordered. CSSB 105 (TRA) was reported out of Committee with a "do pass" recommendation and with zero note #1 by the Department of Community & Economic Development and zero note #2 by the Department of Transportation & Public Facilities. 9:02:24 AM