HOUSE BILL NO. 314 "An Act providing for and relating to the issuance of general obligation bonds for the purpose of paying the cost of state transportation projects; and providing for an effective date." Representative Thomas MOVED to ADOPT CSHB 314(FIN), labeled 25-GH2041\M, Cook, 4/5/08, as the work draft before the Committee. There being NO OBJECTION, it was so ordered. PETE ECKLUND, STAFF, REPRESENTATIVE KEVIN MEYER, discussed the changes in the bill. He referred to a handout entitled "Project Title", which describes the changes (copy on file.) The new total for the G.O Bonds bill is $220,600,000. Mr. Ecklund listed those projects added to the bill. 5:40:44 PM Mr. Ecklund listed the three items removed from the bill. Co-Chair Meyer asked if the Gravina Access was removed in the Transportation Committee meeting. Mr. Ecklund replied that was correct. Co-Chair Meyer asked if the South Denali Access Road project was removed by the Senate. Mr. Ecklund said it was in the Senate version of the capital budget. Co-Chair Meyer reported that it was agreed that the Northern Access Study should not be included in a bond package. Representative Gara asked if the Gravina Access project was included somewhere else. Co-Chair Meyer said it was totally removed. Representative Crawford asked about the grant to Anchorage th for the Victor Road-Dimond Boulevard to 100 Avenue - upgrade and trade. Co-Chair Meyer explained that there are about 7 or 8 state roads in Anchorage that are neighborhood roads now. The City of Anchorage has agreed to take over these roads. Representative Crawford asked what the tradeoff was. Co-Chair Meyer said the state would spend $14 million to upgrade the roads and the city would maintain them. 5:44:29 PM Vice-Chair Stoltze added that in 1990 two roads in his area had a similar arrangement. Representative Thomas noted $10 million for the Port of Anchorage, which had been twice vetoed. Co-Chair Meyer explained that the Governor felt that the project should be in a road bond. Representative Gara wondered what would happen to the Port of Anchorage if it was not funded with $10 million in G.O. Bonds. Co-Chair Meyer thought municipal money should not go to this project because it is a state project. He requested testimony from the Department of Transportation and Public Facilities. 5:47:27 PM FRANK RICHARDS, DEPUTY COMMISSIONER OF HIGHWAYS & PUBLIC FACILITIES, DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES, reported that in conversations with Governor Sheffield, it was noted that there were needs for state funds in order to continue with necessary expansions. The state is involved because the vast majority of cargo comes into this port. Representative Gara said he was just questioning the need for state money; he was not criticizing the project. 5:51:12 PM Co-Chair Meyer MOVED to ADOPT Amendment 1: Page 2, Line 31 Delete: Access Road to Evacuation Center and Insert: Access Road, Evacuation Center and Page 3, Line 7 Delete: Shelter Cove Road Insert: Shelter Cove, Road Construction Page 4, Line 21 Delete: $220,000,000 Insert: $220,600,000 Vice-Chair Stoltze OBJECTED. Mr. Ecklund explained the technical changes in the amendment. Representative Hawker MOVED to ADOPT Conceptual Amendment 1 to Amendment 1, to make the same change on line 24, as on line 21. There being NO OBJECTION, it was so ordered. Vice-Chair Stoltze WITHDREW his OBJECTION to adopt Amendment 1. There being NO OBJECTION, Amendment 1 was adopted, as amended. 5:53:19 PM Representative Joule MOVED to ADOPT Amendment 2: Page 1, line 9: Delete "$220,600,000" and insert "234,600,000" Page 2, line 10: Delete "$196,600,000" and insert "210,600,000" Page 2, line 14, insert: "Aleknagik Wood River Bridge $14,000,000" Page 4, line 21: Delete "$220,000,000" and replace with "$234,000,000" Page 4, line 24: Delete "$220,000,000" and replace with "$234,000,000" Vice-Chair Stoltze OBJECTED. REPRESENTATIVE BRYCE EDGMON, explained that Amendment 2 is also a technical amendment. It proposes to fully fund a bridge that would connect the north and south shores of Aleknagik. Co-Chair Meyer asked if $14 million is the total cost. Representative Edmonds clarified that the total cost is $22 million. Co-Chair Chenault asked if this project is near Dillingham or Naknek. Mr. Edgmon explained that it was 30 miles away from Dillingham. 5:55:49 PM ADAM BERG, STAFF, REPRESENTATIVE BRYCE EDGMON, explained that the bridge has $2.2 million in funding already secured. The requested amount would complete the project. Co-Chair Meyer and Vice-Chair Stoltze recalled visiting the site. 5:56:59 PM Representative Crawford asked for information about the bridge. Representative Edgmon said it was a vehicle bridge. He explained why it was needed to transport children to school. Vice-Chair Stoltze asked if a mineral development controversy was involved. Mr. Edgmon replied that it was not. Representative Nelson recalled that the request has been around for a number of years. She spoke in support of the bill for various reasons. Representative Gara agreed that the bridge has been needed for years. Representative Edgmon related further reasons for the need for a bridge. 6:00:48 PM Co-Chair Meyer noted the attempt to seek a balance in the G.O. Bond package. He asked the Committee not to accept the amendment. Representative Edgmon deferred to the will of the Committee. Representative Joule WITHDREW Amendment 2. Representative Joule MOVED to ADOPT Amendment 3: Page 1, line 9: Delete "$220,600,000" and replace with "$223,100,000" Page 2, line 10: Delete $196,600,000" and replace with "$199,100,000" Page 2, line 18, add: "Port of Bristol Bay Dock Expansion/Repair $2,500,000" Page 4, line 21: Delete "$220,000,000" and replace with "$222,500,000" Page 4, line 24: Delete "$220,000,000" and replace with "$222,500,000" Vice-Chair Stoltze OBJECTED. Representative Edgmon explained the amendment is for money that would be used to help fully fund the expansion of the Bristol Bay dock. Co-Chair Meyer said there was money in the capital budget for this project. Mr. Ecklund agreed. Co-Chair Meyer preferred to not have this item in the bond package. Representative Joule WITHDREW Amendment 3. 6:05:28 PM Representative Thomas asked if the Dalton Highway project is in the capital budget. Co-Chair Meyer thought that it was not in the capital budget and that the Governor had requested it be in a road bond package. Mr. Richards said there was $4 million in the capital budget for the Dalton Highway. Co-Chair Meyer summarized that there was $4 in the Senate capital budget and a request for $14 million in the G.O. bond bill. Mr. Richards concurred. Mr. Richards corrected that it was a $5 million project and was removed from the Senate version of the budget. Vice-Chair Stoltze asked about the language "bikeway" on page 2, line 30. Co-Chair Meyer asked if it could be changed. Mr. Richards said the intent is that improvements outside of the paved roadway be included. Representative Hawker offered "multi-modal pedestrian facilities". Representative Gara thought that bikeway was appropriate as a tourist attraction. 6:10:50 PM Representative Gara asked about the Ketchikan project for $10 million: Harriet Hunt Lake to Shelter Cove Road. REPRESENTATIVE KYLE JOHANSEN, explained that the road is part of the Ketchikan Coastal Management Plan. It has been approved by the Forest Legacy Program, the Department of Natural Resources, the Ketchikan City Council, Tongass Land Management Plan, and the Department of Transportation and Public Facilities. It is part of the Ketchikan Borough's 20-20 plan and has a multi-use purpose. It Connects Cape Fox with 10 miles of road that will tie into 100 miles of logging roads. Co-Chair Meyer asked if it is a state road. Representative Johansen reported that it is a borough road and accesses Mental Health Trust lands. AT-EASE: 6:15:38 PM RECONVENED: 6:27:58 PM Representative Hawker noted that the project was on the Roads to Resources Initiative. Co-Chair Meyer asked about the Department of Revenue fiscal note. JERRY BURNETT, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF REVENUE, said the department would provide the Committee with a debt service fiscal note with annual payments of about $17, 254, 046.30. Representative Foster MOVED to REPORT CSHB 314(FIN) out of Committee, as amended, with individual recommendations and the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. CSHB 314(FIN) was REPORTED out of Committee with a "do pass" recommendation and with fiscal note #1 by the Office of the Governor and a new fiscal note by the Department of Revenue. 6:32:38 PM