ALASKA STATE LEGISLATURE                                                                                  
            SENATE TRANSPORTATION STANDING COMMITTEE                                                                          
                        February 7, 2008                                                                                        
                           2:02 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Albert Kookesh, Chair                                                                                                   
Senator John Cowdery, Vice Chair (via teleconference)                                                                           
Senator Donald Olson                                                                                                            
Senator Bill Wielechowski                                                                                                       
Senator Gary Wilken                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                              
SENATE BILL NO. 216                                                                                                             
"An Act designating the Alaska Highway and portion of the                                                                       
Richardson Highway as the Purple Heart Trail."                                                                                  
     MOVED CSSB 216(TRA) OUT OF COMMITTEE                                                                                       
                                                                                                                                
SENATE BILL NO. 224                                                                                                             
"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."                                                                  
     MOVED SB 224 OUT OF COMMITTEE                                                                                              
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                              
BILL: SB 216                                                                                                                  
SHORT TITLE: PURPLE HEART TRAIL                                                                                                 
SPONSOR(s): SENATOR(s) ELLIS                                                                                                    
                                                                                                                                
01/16/08       (S)       PREFILE RELEASED 1/4/08                                                                                
01/16/08       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/16/08       (S)       TRA                                                                                                    
02/07/08       (S)       TRA AT 2:00 PM BUTROVICH 205                                                                           
                                                                                                                                
BILL: SB 224                                                                                                                  
SHORT TITLE: G.O. BONDS FOR TRANSPORTATION PROJECTS                                                                             
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
01/16/08       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/16/08       (S)       TRA, FIN                                                                                               
01/31/08       (S)       TRA AT 1:00 PM BUTROVICH 205                                                                           
01/31/08       (S)       -- MEETING CANCELED --                                                                                 
02/07/08       (S)       TRA AT 2:00 PM BUTROVICH 205                                                                           
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
SENATOR JOHNNY ELLIS                                                                                                            
Alaska State Capitol                                                                                                            
Juneau, AK  99801-1182                                                                                                          
POSITION STATEMENT: Sponsor of SB 216.                                                                                        
                                                                                                                                
JESSE CROSS-CALL, Staff                                                                                                         
Senator Ellis                                                                                                                   
Alaska State Capitol                                                                                                            
Juneau, AK                                                                                                                      
POSITION STATEMENT: Presented overview of SB 216.                                                                             
                                                                                                                              
REPRESENTATIVE BERTA GARDNER                                                                                                    
Alaska State Capitol                                                                                                            
Juneau, AK  99801-1182                                                                                                          
POSITION STATEMENT: Sponsor of SB 216.                                                                                        
                                                                                                                                
RON SIEBELS, Chapter Commander                                                                                                  
Chapter 593 Military Order of the Purple Heart                                                                                  
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Supported SB 216.                                                                                         
                                                                                                                                
FRANK RICHARDS, Deputy Commissioner                                                                                             
Department of Transportation and Public Facilities (DOT)                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Answered questions about SB 224.                                                                          
                                                                                                                                
NANCY SLAGEL, Director                                                                                                          
Division of Administrative Services                                                                                             
Department of Transportation and Public Facilities (DOT)                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Answered questions about SB 224.                                                                          
                                                                                                                                
ED LEON, Director of Finance                                                                                                    
Port of Anchorage                                                                                                               
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Answered questions about Port of Anchorage.                                                               
                                                                                                                                
AVES THOMPSON, Executive Director                                                                                               
Alaska Trucking Association                                                                                                     
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Supported SB 224.                                                                                         
                                                                                                                                
JAMES KING, Director                                                                                                            
Division of Outdoor Parks and Recreation,                                                                                       
Department of Natural Resources                                                                                                 
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Answered question about SB 224.                                                                           
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR ALBERT  KOOKESH called  the Senate  Transportation Standing                                                             
Committee meeting to order at 2:02:34  PM. Present at the call to                                                             
order were Senators Wilken, Olson,  Cowdery - via teleconference,                                                               
Wielechowski and Kookesh.                                                                                                       
                                                                                                                              
                   SB 216-PURPLE HEART TRAIL                                                                                
                                                                                                                                
CHAIR KOOKESH announced consideration of SB 216.                                                                                
                                                                                                                                
2:03:23 PM                                                                                                                    
SENATOR ELLIS,  sponsor, presented an  overview of SB  216, which                                                               
creates  the Purple  Heart Trail,  a  portion of  the Alaska  and                                                               
Richardson Highways.  This bill would join  other states honoring                                                               
recipients of  the Purple Heart,  a distinguished  decoration for                                                               
military men and  women who have served and  sacrificed for their                                                               
country. Senator Ellis  said he comes from a  military family and                                                               
his  father served  in Vietnam.  The project  was brought  to his                                                               
attention   by  Ron   Siebels,   a   distinguished  veteran   and                                                               
constituent. Mr.  Siebels approached Rep. Berta  Gardner, sponsor                                                               
of  the House  legislation  while Senator  Ellis  presents it  in                                                               
Senate.  The   Department  of   Transportation  (DOT)   has  been                                                               
cooperative and reasonable  in the costs of the  project. He said                                                               
he looks forward to honoring recipients in this public way.                                                                     
                                                                                                                                
JESSE CROSS-CALL, staff to Senator  Ellis, said he wanted to make                                                               
sure  the   committee  was  aware   of  the   proposed  committee                                                               
substitute which clarifies  the size and location  of the signage                                                               
proposed by DOT.                                                                                                                
                                                                                                                                
SENATOR  WIELECHOWSKI  moved  to  adopt  the  proposed  committee                                                               
substitute (CS) for  SB 216, labeled 25-LS1280,  Kane, Version C,                                                               
as  the  working  document  of  the  committee.  There  being  no                                                               
objection, Version C was before the committee.                                                                                  
                                                                                                                                
2:06:14 PM                                                                                                                    
SENATOR WILKEN asked if there was a fiscal note.                                                                                
                                                                                                                                
CHAIR KOOKESH  said the attached  fiscal note is  $150,000, which                                                               
includes an  installation of  six major  signs, six  minor signs,                                                               
and three  informational kiosks along the  Richardson Highway for                                                               
one year only.                                                                                                                  
                                                                                                                                
2:07:32 PM                                                                                                                    
REPRESENTATIVE BERTA GARDNER, Alaska  State Legislature, said the                                                               
bill is part of a national  movement to designate a small portion                                                               
of  highway in  every state  to  honor recipients  of the  Purple                                                               
Heart, soldiers  who have been injured  or killed in the  line of                                                               
duty. It's very appropriate for  Alaska with a force of thousands                                                               
of men and women. The  section of highway selected was originally                                                               
built by the military.                                                                                                          
                                                                                                                                
RON  SIEBELS, Chapter  Commander, Chapter  593 Military  Order of                                                               
the  Purple  Heart,  Anchorage,  AK,  said  he'd  like  to  thank                                                               
everyone  for their  support. Many  who travel  the Purple  Heart                                                               
Trail will know or be related  to a wounded veteran. He said this                                                               
can  be the  visual  proof  that the  state  cares  and helps  to                                                               
remember purple hearts  veterans. He said he  doesn't want Alaska                                                               
to  be the  last state  to pass  this legislation.  There are  43                                                               
states and Guam in support of it.                                                                                               
                                                                                                                                
2:10:59 PM                                                                                                                    
SENATOR COWDERY joined the meeting online.                                                                                      
                                                                                                                                
SENATOR WIELECHOWSKI  moved to report CSSB  216(TRA), referred to                                                               
as Version C, from committee  with individual recommendations and                                                               
accompanying fiscal  notes. Hearing  no objection,  CSSB 216(TRA)                                                               
passed out of committee.                                                                                                        
                                                                                                                                
2:12:07 PM                                                                                                                    
CHAIR KOOKESH called an at ease while the bill was signed.                                                                      
                                                                                                                                
         SB 224-G.O. BONDS FOR TRANSPORTATION PROJECTS                                                                      
                                                                                                                              
2:13:02 PM                                                                                                                    
CHAIR KOOKESH announced consideration of SB 224.                                                                                
                                                                                                                                
FRANK    RICHARDS,    Deputy    Commissioner,    Department    of                                                               
Transportation   and  Public   Facilities  (DOT),   presented  an                                                               
overview of the projects addressed  in SB 224, defining the needs                                                               
and benefits  of each  of the projects.  The projects  are spread                                                               
out  geographically across  the  state and  address four  primary                                                               
goals  of  the  department:  increase  safety;  promote  economic                                                               
development; reduce congestion; and  preserve existing assets. He                                                               
said  the  first  project  is a  congestion  relief  project,  an                                                               
upgrade  of  the Dowling  Road  to  four  lanes from  Old  Seward                                                               
Highway to Minnesota. It is  part of a ten-year congestion relief                                                               
project funded  by state, federal  and local funds.  Past funding                                                               
for the  "Connect Anchorage" projects  were included in  the 2002                                                               
bond package. This  portion of the Dowling Road is  in the center                                                               
of   the  Anchorage   bowl,  which   currently  lacks   east/west                                                               
corridors.  This will  relieve  congestion in  the  heart of  the                                                               
city. The upgrade  of this road will  divert approximately 23,000                                                               
vehicles per day.  The focus of the project has  three of the top                                                               
12 accident locations in Anchorage.                                                                                             
                                                                                                                                
The second project  is an economic development  project that will                                                               
augment  a city  of Anchorage  project looking  at the  alignment                                                               
into the  university medical district school.  DOT estimates that                                                               
traffic growth will continue.                                                                                                   
                                                                                                                                
SENATOR WIELECHOWSKI asked what DOT will do there.                                                                              
                                                                                                                                
MR.  RICHARDS said  the connection  would  provide a  north/south                                                               
route in the area where  Northern Lights Boulevard runs east/west                                                               
and Elmore Road runs north/south.                                                                                               
                                                                                                                                
SENATOR  WIELECHOWSKI said  that's  been  very controversial  and                                                               
asked if it's  been approved by the Anchorage  assembly and local                                                               
community councils.                                                                                                             
                                                                                                                                
MR. RICHARDS replied that Anchorage  provided the initial funding                                                               
for the study and this funding would augment that.                                                                              
                                                                                                                                
SENATOR WIELECHOWSKI asked if this is  only a study or if it will                                                               
be actual road construction.                                                                                                    
                                                                                                                                
MR. RICHARDS replied that this is a study.                                                                                      
                                                                                                                                
SENATOR COWDERY  asked what  process was  used to  determine what                                                               
would be on the list.                                                                                                           
                                                                                                                                
MR.  RICHARDS  replied that  the  department  created a  list  of                                                               
projects that  were needed around  the state and submitted  it to                                                               
the governor's office which then came up with the list.                                                                         
                                                                                                                                
SENATOR COWDERY said  he noted there were funds  included for the                                                               
Port  of Anchorage  that the  governor vetoed  appropriations for                                                               
last year and asked what has changed.                                                                                           
                                                                                                                                
NANCY  SLAGLE,  Director,  Division of  Administrative  Services,                                                               
DOT, replied  the Port Authority request  is not part of  the DOT                                                               
presentation today. She  said Mr. Ed Leon may be  online and able                                                               
to answer those questions.                                                                                                      
                                                                                                                                
2:19:12 PM                                                                                                                    
ED LEON,  Director of Finance,  Port of Anchorage, said  the port                                                               
was not  included in  the DOT  but is part  of the  Department of                                                               
Commerce and Economic Development.                                                                                              
                                                                                                                                
SENATOR  COWDERY asked  that since  the port  project was  vetoed                                                               
last year, what changed to include it this year.                                                                                
                                                                                                                                
MR. LEON said the port gave  a slide presentation and tour to the                                                               
governor. He  said people have not  been aware of the  impact the                                                               
Port  of Anchorage  has  on  the state.  He  said  75 percent  of                                                               
consumer goods  that come to the  state come through the  Port of                                                               
Anchorage.  Most  of the  fuel  and  dry  goods  that go  to  the                                                               
villages depart via barges.                                                                                                     
                                                                                                                                
SENATOR COWDERY said  that most of the military  ships go through                                                               
there as well.                                                                                                                  
                                                                                                                                
2:20:51 PM                                                                                                                    
MR. LEON confirmed that all  deployments come through the Port of                                                               
Anchorage. In  2004 there  were four  deployments; in  2005 there                                                               
were six;  in 2006, there were  three; and last year,  there were                                                               
another three.                                                                                                                  
                                                                                                                                
SENATOR COWDERY said he has supported this project for years.                                                                   
                                                                                                                                
2:22:49 P M                                                                                                                   
SENATOR OLSON joined the meeting.                                                                                               
                                                                                                                                
MR. RICHARDSON  said the university district  has more employment                                                               
than downtown  Anchorage and they  need a  north/south connector.                                                               
He said  the university hopes  to expand and ultimately  create a                                                               
town center and sports arena.  The Northern Lights connection and                                                               
University of Alaska Anchorage (UAA)  drive is one of Anchorage's                                                               
top  ten accident  locations. He  said by  having the  connection                                                               
some  of those  accidents would  be eliminated.  The project  has                                                               
been part of Anchorage's long range transportation plan.                                                                        
                                                                                                                                
The Dalton Highway  project is about economic  development on the                                                               
North Slope.  The  highway is the life line to  the oil fields of                                                               
Prudhoe Bay. This  provides another $14 million that  will add an                                                               
upgrade of 121 miles of road.                                                                                                   
                                                                                                                                
SENATOR WILKEN asked how this  works with the original $9 million                                                               
commitment. He asked  if it would be $9 million  plus $14 million                                                               
or would it be $14 million one year and then back to $9 million.                                                                
                                                                                                                                
MR. RICHARDS replied that in  the capital budget this year, there                                                               
is $5  million instead of $9  million. This would augment  the $5                                                               
million if the bond package is passed. It will be an addition.                                                                  
                                                                                                                                
SENATOR WILKEN asked it that means  there will be $19 million for                                                               
one year and then go back to  $9 million for another year or does                                                               
that end the agreement of $9 million for 5 years.                                                                               
                                                                                                                                
MR.  RICHARDS said  the goal  is  to continue  with that  funding                                                               
level to be able to continue work on the Dalton Highway.                                                                        
                                                                                                                                
SENATOR  OLSON asked  if there's  been any  significant wear  and                                                               
tear on  the highway from  carrying by-pass  mail up the  road to                                                               
Prudhoe Bay as opposed to flying it.                                                                                            
                                                                                                                                
MR. RICHARDS said there has  been increased traffic from mail and                                                               
also from hauling fuel. The 18-wheelers do pound the surface.                                                                   
                                                                                                                                
SENATOR OLSON asked  about the bridges, especially  the one going                                                               
across the Yukon River.                                                                                                         
                                                                                                                                
MR.  RICHARDS replied  they  are improving  the  surface on  that                                                               
bridge and also  fixing deep-fill culverts. He said  he'd like to                                                               
invite  members of  the committee  on  their annual  trip up  the                                                               
Dalton  Highway to  show  the legislature  the  benefits of  this                                                               
project. SENATOR WILKEN was one of  the first members to join the                                                               
outing, riding in the cab of an 18-wheeler.                                                                                     
                                                                                                                                
CHAIR KOOKESH asked how long the trip is.                                                                                       
                                                                                                                                
MR. RICHARDS  replied that they  do it as a  day trip.   They fly                                                               
people to Prudhoe  Bay, put them in truck cabs  and drive, with a                                                               
stop for  lunch, to Jim  River where a  plane takes them  back to                                                               
Fairbanks and Anchorage.                                                                                                        
                                                                                                                                
SENATOR WILKEN said it's a remarkable trip.                                                                                     
                                                                                                                                
MR.  RICHARDS said  it's a  long 12-hour  day and  the department                                                               
will probably do it again in June.                                                                                              
                                                                                                                                
2:28:55 PM                                                                                                                    
The next project he spoke  about was safety improvement, economic                                                               
development, and  quality of  life issues  in the  Kenai Borough.                                                               
Project  funds  will  be  used  to  improve  drainage,  resurface                                                               
deteriorated  pavement and  pave existing  gravel roads.  The DOT                                                               
project will supplement borough funding.                                                                                        
                                                                                                                                
Another  project, the  Snake River  Bridge,  is a  vital link  to                                                               
Nome's  city  power plant,  the  port  and  the postal  hub.  All                                                               
freight must cross this bridge.  The bridge has structural issues                                                               
but it's also a safety  issue for aircraft. When large commercial                                                               
trucks longer  than fifteen  feet are on  the bridge,  there's an                                                               
airspace obstruction. The FAA has  consistently cited the DOT for                                                               
this issue and it's something that must be addressed.                                                                           
                                                                                                                                
CHAIR KOOKESH asked how this would be done.                                                                                     
                                                                                                                                
MR.  RICHARDS  replied that  the  bridge  would  be moved  to  an                                                               
alternate location away  from the airspace and the  old one would                                                               
be removed. There's been damage  from ice floes, and the abutment                                                               
has  deteriorated requiring  the bridge  to close  frequently for                                                               
repairs.                                                                                                                        
                                                                                                                                
Another  project the  DOT  hopes will  reduce  consumer costs  in                                                               
interior Alaska is to prevent  damage from heavily loaded trucks.                                                               
The  current weight  limit  is  85 percent  of  legal loads.  The                                                               
damage  is  causing  rutting and  cracking,  creating  an  unsafe                                                               
surface. Pavement  rehabilitation will bring the  highway back to                                                               
full structural strength. The damage  of one 80,000-pound tractor                                                               
trailer truck  is equal  to 10,000  passes of  a vehicle.  In the                                                               
springtime there's thaw directly below  the pavement and water is                                                               
trapped because of the frozen  layer beneath and the truckload on                                                               
top.  This  creates  an  undulating   surface  which  cracks  the                                                               
pavement.  The DOT  plans  to bring  in  a non-frost  susceptible                                                               
embankment  to prevent  trapping water.  The economic  benefit is                                                               
that truckers  won't have to break  down their loads to  meet the                                                               
legal requirement.                                                                                                              
                                                                                                                                
2:32:25 PM                                                                                                                    
SENATOR COWDERY  asked about a  study on the northern  roads five                                                               
years  ago from  the  University of  Alaska  that determined  the                                                               
problem wasn't the  size of the truck. The  study determined that                                                               
southbound lanes had  more damage than northbound  lanes and this                                                               
was attributed to the bounce of the empty trailers.                                                                             
                                                                                                                                
MR. RICHARDS said  he didn't know about the study  and would look                                                               
into it.                                                                                                                        
                                                                                                                                
He spoke  next about the  Seward Highway Safety Project  at Windy                                                               
Corner.  There is  traffic congestion  during the  summer due  to                                                               
wildlife  viewing, specifically  Dall  sheep coming  down to  the                                                               
road. The  project will move  both the  railroad and the  road to                                                               
the west near Turnagain Arm.  The revised highway will not affect                                                               
the  sheep  habitat, but  will  provide  off-highway viewing  and                                                               
parking so there won't be  pedestrians on the Seward Highway. The                                                               
Seward Highway now follows the  contours of the mountain creating                                                               
poor long-range  visibility. Cutting into the  cliff that creates                                                               
the  obstruction would  adversely  affect the  sheep. Moving  the                                                               
road  will  require  significant  expense  but  is  necessary  to                                                               
accommodate  the safety  needs of  the highway.  There have  been                                                               
eight fatalities in  this two-mile section of road  over the past                                                               
25 years.  The legislature  appropriated $12  million in  2006 to                                                               
construct passing  lanes here, but escalating  construction costs                                                               
and consideration of  the habitat requires the  move to Turnagain                                                               
Arm.                                                                                                                            
                                                                                                                                
MR. RICHARDS said that pavements  in Southeast Alaska are failing                                                               
with  stress cracking  and major  potholes. Another  project will                                                               
resurface and improve drainage along:  14 miles of Mitkof Highway                                                               
in  Petersburg, providing  a link  to the  new terminal  at Blind                                                               
Slough as  well as providing  the only access to  residential and                                                               
recreational  areas   beyond  Scow   Bay;  seven  miles   of  the                                                               
Craig/Klawock/Hollis Highway on Prince of  Wales Island, the only                                                               
road link between the two largest communities on the island; and                                                                
the Glacier  Highway in  Juneau, from  the Brotherhood  Bridge to                                                               
the ferry terminal.                                                                                                             
                                                                                                                                
2:37:47 PM                                                                                                                    
MR. RICHARDS said the  Steese Highway/Johansen Expressway Project                                                               
at  a cost  of  $15 million  is a  safety  and congestion  relief                                                               
project.  The DOT  will improve  intersections,  add turn  lanes,                                                               
improve  signs and  signals, provide  pedestrian facilities,  and                                                               
improve   drainage,  traffic   flow,  and   circulation  of   the                                                               
surrounding  area. He  indicated on  a  slide some  of the  worst                                                               
congested intersections  partly due to  major box stores  and new                                                               
residential subdivisions.                                                                                                       
                                                                                                                                
SENATOR WILKEN  asked if  the $15 million  addresses each  of the                                                               
intersections identified on the slide.                                                                                          
                                                                                                                                
MR. RICHARDS said he was not sure.                                                                                              
                                                                                                                                
2:40:19 PM                                                                                                                    
AVES THOMPSON,  Executive Director, Alaska  Trucking Association,                                                               
Anchorage, AK,  said his  organization is  statewide representing                                                               
more than 200 member companies  from Barrow to Ketchikan. Freight                                                               
movement represents  a large  chunk of the  economy. "If  you got                                                               
it, a truck  brought it." Federal funding does  not meet Alaska's                                                               
transportation  needs in  the  short  or long  term.  This is  an                                                               
appropriate use  of general  fund dollars.  ATA supports  the DOT                                                               
funded projects  in this bill.  Some projects have  ATA priority:                                                               
the Parks Highway weight restriction  upgrade; the Dalton Highway                                                               
improvements;  the Anchorage  projects; the  Windy Corner  on the                                                               
Seward Highway;  and the Steese/Johansen  projects. ATA  does not                                                               
take a position on bonding  versus general fund, but supports the                                                               
projects identified in SB 224.                                                                                                  
                                                                                                                                
SENATOR COWDERY asked Mr. Aves  if he remembers the study Senator                                                               
Cowdery talked about earlier.                                                                                                   
                                                                                                                                
MR. AVES said he had only  a vague recollection. He said when the                                                               
truckers aren't able to carry full  legal loads, the cost goes up                                                               
and is  borne by the shipper  or the receiver. He  said this bill                                                               
should therefore be seen as a benefit to the consumer.                                                                          
                                                                                                                                
JAMES KING,  Director, Division of Outdoor  Parks and Recreation,                                                               
Department  of Natural  Resources,  said the  project  for a  new                                                               
visitor center  represents an  effort to  provide more  access to                                                               
public lands and  share the Denali experience  with more Alaskans                                                               
and visitors and to help build  a more sustainable economy in the                                                               
area.                                                                                                                           
                                                                                                                                
2:45:24 PM                                                                                                                    
MR. KING  said the plan  is for a  new visitor center  complex in                                                               
the  south Denali  area.  He  indicated on  the  slide the  areas                                                               
representing Denali National  Park and Denali State  Park as well                                                               
as where the new complex is  proposed. He showed a map indicating                                                               
the  Parks Highway  and  said  the proposed  center  would be  at                                                               
milepost 134.5. He  said the concept is to build  a road from the                                                               
Parks   Highway  up   onto  Curry   Ridge.  There   would  be   a                                                               
transportation  center near  the  Parks Highway  where buses  and                                                               
cars could  be left  near a transit  system that  would transport                                                               
visitors. The  $8.9 million proposed  in the bond package  is for                                                               
building those four miles of road  to get people up to the ridge.                                                               
The  proposed  center  would   provide  accommodations  for  many                                                               
different user  groups. It  is planned  as a  year-round facility                                                               
unlike many of the visitor centers  in the state which are closed                                                               
in non-summer months.                                                                                                           
                                                                                                                                
2:52:08 PM                                                                                                                    
MR. KING  said the  design and construction  would happen  in the                                                               
next three  years. The federal  government, through  the national                                                               
parks  and  Alaska's congressmen,  has  said  that if  the  state                                                               
starts  the project,  it  will  complete it.    His division  has                                                               
worked  closely with  the  Matsu Borough,  the  park service  and                                                               
businesses to develop this project.                                                                                             
                                                                                                                                
He has heard  concern that this will compete for  visitors to the                                                               
national park and  to Fairbanks, but he said  this facility would                                                               
only be  a little over two  hours from Anchorage versus  a three-                                                               
day excursion to the national park.  It also will not provide the                                                               
wildlife viewing opportunities to be had in the national park.                                                                  
                                                                                                                                
2:55:27 PM                                                                                                                    
SENATOR WIELECHOWSKI asked if this would be near Byers Lake.                                                                    
                                                                                                                                
MR. KING  said no.  He said Byers  Lake is in  the center  of the                                                               
park while this  would be within three miles of  the lower border                                                               
of the park.                                                                                                                    
                                                                                                                                
SENATOR WIELECHOWSKI  asked if the  $20 million  dollars expected                                                               
from the federal  government would be an earmark or  if there are                                                               
assurances from the  National Park Service (NPS) that  it will be                                                               
included in their budget.                                                                                                       
                                                                                                                                
MR. KING said  there's $260 million in  the Centennial Initiative                                                               
through the National  Park Service (NPS), a  matching program for                                                               
projects  like this.  The plan  is  to apply  for the  Centennial                                                               
Initiative  funds  upon receipt  of  the  $8.9 million.  The  NPS                                                               
thinks that  at some point  the Parks  Highway will get  too much                                                               
traffic and see this center as  an alternative. The NPS has added                                                               
the project  to their budget  process. The project has  also been                                                               
earmarked by the congressional  delegation and private businesses                                                               
have offered funding support.                                                                                                   
                                                                                                                                
SENATOR WIELECHOWSKI asked if there is any opposition.                                                                          
                                                                                                                                
2:59:02 PM                                                                                                                    
MR. KING said that the  original proposal, begun seven years ago,                                                               
was  in  the  Peters  Hills area  and  very  controversial  among                                                               
miners,  snow machine  users, skiers,  "quiet rights"  people and                                                               
others. The park  service talked with the  opponents to determine                                                               
what  the real  demand  and need  was.  They conducted  extensive                                                               
studies  and  surveys.  With  the   new  location,  he  said  the                                                               
opposition has  been replaced  by support. It  is better  for the                                                               
"quiet rights"  people because visitors  would not be  getting as                                                               
far into  undisturbed areas. The environmentalists  said this was                                                               
a   good  opportunity   to  interpret   the  wilderness   without                                                               
detracting from  it. The  business community  said it  was within                                                               
reach of existing facilities with land nearby that could be                                                                     
developed to provide further support facilities. The miners and                                                                 
snow machine users also approved of the new location.                                                                           
                                                                                                                                
SENATOR WILKEN said as the Senator from Fairbanks he supports                                                                   
the project.                                                                                                                    
                                                                                                                                
3:02:37 PM                                                                                                                    
SENATOR WIELECHOWSKI moved to report SB 224 from committee with                                                                 
individual recommendations and attached fiscal note(s). There                                                                   
being no objection, the motion carried.                                                                                         
                                                                                                                                
There being no further business to come before the committee,                                                                   
CHAIR KOOKESH adjourned the meeting at 3:03:16 PM.