SB 166-G.O. BONDS FOR INFRASTRUCTURE PROJECTS  2:13:40 PM CHAIR MYERS announced the consideration of SENATE BILL NO. 166 "An Act providing for and relating to the issuance of general obligation bonds for the purpose of paying the cost of state infrastructure projects, including construction, major maintenance, and port and transportation projects; and providing for an effective date." 2:13:52 PM SENATOR SHOWER moved to adopt the committee substitute (CS) for SB 166, work order 32-GS2543\B, as the working document. 2:14:02 PM CHAIR MYERS objected for discussion purposes. 2:14:07 PM At ease 2:14:17 PM CHAIR MYERS reconvened the meeting. 2:14:48 PM MICHAELLA ANDERSON, staff, Senator Robert Myers, Alaska State Legislature, reviewed the changes in SB 166, Version B. She reported that SB 166, Version A proposed issuance of general obligation bonds in the amount of $325,175,000. The committee substitute (CS) for SB 166, Version B amends that to $391,171,258. MS. ANDERSON stated that the committee substitute removed two projects from the original bill. The Knik Arm Port Infrastructure for $175 million was removed because the funds did not specify a project or grantee, making it legally questionable. The Juneau Access project for $25 million was removed because no actual construction occurred, which is considered crucial for general obligation bond projects. 2:15:52 PM MS. ANDERSON referred to page 2 and read a list of projects added in the committee substitute (CS) for SB 166, Version B. Municipality of Anchorage - Port of Alaska modernization $75,000,000 City of Emmonak - Port of Emmonak rehabilitation $8,500,000 Haines Borough - Lutak Dock restoration $3,211,000 Kodiak Island Borough - Kodiak fire station was reduced from $15,000,000 to $8,000,000 Lynn Canal Transmission Corporation northern segment of the southeast intertie project- $5,000,000 City of Seward - Seward ship transfer rail extension $4,500,000 2:16:39 PM MS. ANDERSON noted that Chair Myers will propose an amendment to remove the Southeast Conference from page 3, line 3 for the Kenai River Bluffs stabilization. 2:17:08 PM MS. ANDERSON referred to the Department of Education and Early Development projects, which were primarily taken from the School Major Maintenance Fund and deferred maintenance lists. She read: American Charter Academy School: $5,200,000 Anderson K-12 school partial roof replacement: $1,015,574 Chenega Bay K-12 school renovation: $5,759,942 Copper River district office roof replacement: $581,556 Craig Elementary School rehabilitation: $1,905,489 Craig Middle School rehabilitation: $5,668,124 Eagle River Elementary School improvements: $5,422,355 Galena Interior Learning Academy composite building renovation: $5,904,081 Kake schools heating upgrades: $191,618 Mat-Su Central School: $10,400,000 Mt. Edgecumbe High School dining hall renovation: $4,741,000 Tatitlek K-12 school renovation: $6,972,263 Valdez High School and Hermon Hutchens Elementary School domestic water piping replacement: $830,671 West High School partial roof replacement: $4,322,259 2:18:33 PM MS. ANDERSON stated that there was no longer a Department of Health & Social Services section of the bill. She said Sec. 5 relates to the Department of Family and Community Services because the department was split. She identified two projects that were previously vetted in SB 74 and funds were allocated to: Alaska Veterans and Pioneers Home roof replacement: $2,268,000 Fairbanks Pioneer Home roof and flooring replacement: $2,441,800 MS. ANDERSON stated that the following project came from the deferred maintenance list: Sitka Pioneer Home - service entrance door replacement $91,000 2:19:15 PM MS. ANDERSON reviewed Sec. 6, noting that the Department of Health allocated $36,400 for the Sitka Public Health Center handicap ramp repairs and remodel project. 2:19:17 PM MS. ANDERSON reviewed Sec. 7, noting that the Department of Labor & Workforce Development allocated $1,000,000 for the Alaska Vocational Technical Center student housing and services center repairs and renovation project. 2:19:33 PM MS. ANDERSON reviewed Sec. 7, noting that the Department of Military and Veterans Affairs allocated $200,000 for the Kotzebue armory fire alarm panels project. 2:19:46 PM MS. ANDERSON reviewed Sec. 9, noting that the Department of Natural Resources allocated $887,000 for the Alaska Plant Materials Center (APMC) renovation and upgrades project. She stated that this was derived from the deferred maintenance list. She indicated that this would combine all of the $10,000 projects for the APMC in one allocation. 2:20:06 PM MS. ANDERSON reviewed Sec. 10, noting that the Department of Public Safety allocated $15,500,000 for the following projects: Alaska state troopers training academy: $1,500,000 derived from the deferred maintenance list. Interior law enforcement training facility: $14,000,000, which is a project placed in CAPSIS affecting 12 House districts. 2:20:27 PM MS. ANDERSON referred to Sec. 11, noting that the Department of Transportation and Public Facilities (DOTPF) allocated funding for two new projects: Homer slope stability and erosion mitigation program: $3,725,000 Mainline ferry vessel replacement state match: $26,000,000 North State Office Building parking: $5,000,000 2:20:49 PM MS. ANDERSON reviewed Sec. 12, noting that the projects for the University of Alaska were derived from the general obligation bond list and $79,059,000 was allocated to the following projects: Anchorage Campus - energy performance upgrades: $11,171,000 Bartlett and Moore Hall modernization and renewal: $20,500,000, which was increased due to inflation. Juneau campus - Anderson scuba locker and lab repurpose: $350,000 Fire and emergency services training and education facility replacement: $41,800,000 Kenai, Homer, Mat-Su, Kodiak, and Valdez campuses HVAC healthy building upgrades $4,429,000 Ketchikan Campus - maritime center roof replacement: $800,000 2:21:42 PM MS. ANDERSON stated that the committee substitute (CS) for SB 166, Version B, removed the old Sec. 8 that indicated that the Office of Management and Budget (OMB) could request general funds to pay for the bond package before the bonds were issued. She stated that section was removed so OMB must wait until the bonds are issued before funding these projects. 2:22:15 PM CHAIR MYERS removed his objection; found no further objection, and Version B was adopted as the working document. 2:22:40 PM CHAIR MYERS moved to adopt Conceptual Amendment 1. 2:22:54 PM SENATOR SHOWER objected for discussion purposes. 2:22:48 PM CHAIR MYERS read Conceptual Amendment 1, which was handwritten, as follows: pg 3, ln 3 - remove "southeast conference" replace with "City of Kenai." CHAIR MYERS explained that Conceptual Amendment 1 would correct a drafting error. He stated that the funding is for the Kenai River Bluffs stabilization project, which is not a Southeast project. CHAIR MYERS noted that Legislative Legal is directed to make any changes or deletions to the suggested language, including technical, conforming, or bill title changes, in order to accomplish the intent. 2:23:14 PM SENATOR KIEHL asked if a grant recipient needed to be added to the language. 2:23:38 PM NEIL STEININGER, Director, Office of Management and Budget, Office of the Governor, Juneau, Alaska, introduced himself. 2:23:46 PM SENATOR KIEHL asked for the correct grant recipient for the Kenai River Bluffs stabilization project. MR. STEININGER responded that the grant recipient would be the City of Kenai. 2:24:14 PM SENATOR MICCICHE moved to adopt Conceptual Amendment 1 to Conceptual Amendment 1. 2:24:18 PM CHAIR MYERS objected for discussion purposes. 2:24:23 PM SENATOR MICCICHE stated Conceptual Amendment 1 to Conceptual Amendment 1 would add the "City of Kenai" before the hyphen on page 3, line 3, which would read: City of Kenai Kenai River Bluffs stabilization 2:24:38 PM CHAIR MYERS removed his objection; he found no further objection, and Conceptual Amendment 1 to Conceptual Amendment 1 was adopted. CHAIR MYERS noted Conceptual Amendment 1, as amended, was before the committee. 2:24:52 PM SENATOR SHOWER removed his objection. 2:24:54 PM CHAIR MYERS found no further objection, and Conceptual Amendment 1, as amended, was adopted. 2:25:24 PM CHAIR MYERS closed public testimony on SB 166. 2:25:38 PM SENATOR KIEHL noted that Galena was misspelled [on page 3, line 19]. CHAIR MYERS stated that Legislative Legal Services was empowered to make any technical and conforming changes. 2:26:01 PM SENATOR KIEHL stated that school projects were typically identified on a deferred maintenance priority list. He indicated that using the priority list helps keep the state out of court, given some challenges to the equal protection clause of the Alaska Constitution. He noted that two projects listed on page 3, lines 13 and 14 were ones that were not on the deferred maintenance list. He suggested that those projects should receive scrutiny in subsequent committees. 2:27:06 PM SENATOR SHOWER moved to report the committee substitute (CS) for SB 166, work order 32-GS2543\B, as amended, from committee with individual recommendations and attached fiscal note(s). CHAIR MYERS found no objection, and CSSB 166(TRA) was reported from the Senate Transportation Standing Committee.