Legislature(2013 - 2014)BARNES 124
02/18/2013 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB32 | |
| HB71 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 32 | TELECONFERENCED | |
| *+ | HB 71 | TELECONFERENCED | |
HB 71-AK REGIONAL ECONOMIC ASSISTANCE PROGRAM
3:49:16 PM
CHAIR OLSON announced that the final order of business would be
HOUSE BILL NO. 71, "An Act extending the termination date of the
Alaska regional economic assistance program; and providing for
an effective date."
3:49:31 PM
REPRESENTATIVE SHELLEY HUGHES, Alaska State Legislature, stated
HB 71 would extend the Alaska Regional Development Organization
(ARDOR). She explained this bill would extend the ARDOR program
from 2013 - 2018. She highlighted that the ARDOR program was
established in 1988, and will celebrate its silver jubilee this
year. The DCCED has been encouraged to formation of these
organizations. The department offers grants each year to
qualifying ARDOR organizations that provide technical assistance
to communities. Currently, 12 ARDOR organizations exist
statewide, at a cost of approximately $62,000 per year per
ARDOR. The ARDORs require one-third in matching funds,
including 20 percent from local sources, she stated. The ARDORS
have been successful in leveraging state funding by a three to
one ratio, with some ARDORS obtaining an eight to one funding
ratio. Since inception in 1988, the ARDORS have not been
audited. Thus she is currently requesting an audit be
performed, which will go to the Legislative Budget & Audit
Committee for consideration. She offered her belief that the
ARDORs are working well, but there may be some ways to improve
the organization's functions. ARDORs were formed, based on the
belief that a locally driven initiative, partnering with state
and other entities would be the best combination to figure out
good economic development ideas. Surely this would allow for
healthier communities, and for stronger local sustainable
economies, she also said. She related an audit could be
completed in about two years.
3:52:43 PM
REPRESENTATIVE SADDLER asked for the number of staff for the
program.
REPRESENTATIVE HUGHES answered that the ARDOR program has one
coordinator although was not certain about additional staff
since each ARDOR is governed by its own board.
3:53:31 PM
REPRESENTATIVE HERRON asked whether it would be appropriate to
change the sunset date to two years in the bill since it would
take two years to conduct the audit.
REPRESENTATIVE HUGHES agreed.
CHAIR OLSON suggested an audit might take three years and he
offered to further discuss this with the LB&A committee.
3:54:24 PM
SHELLY WRIGHT, Executive Director, Southeast Conference, Alaska
Regional Development Organization (ARDOR), Department of
Commerce, Community & Economic Development (DCCED), said the
Southeast Conference is the ARDOR for Southeast Alaska. She
asked to speak briefly about the advantages of ARDORs, noting
each region is different. She emphasized the value of having
ARDORs is the ability to partnership with the state in planning
processes and in collaboration efforts. She highlighted that
the state helps organize the ARDORs and assists them in getting
together periodically, which is very valuable for regional
development organizations statewide. She reported the funding
for ARDORs is unrestricted funding and most funding is received
through the grant process and is project-oriented funding. The
Southeast Conference receives grants and contracts on specific
projects for the program to keep the administrative costs low,
and allow the project funding to be spent on the specific
project.
3:56:22 PM
MS. WRIGHT related that Southeast Conference has been in
existence since 1958. She said she is privileged to serve in a
seasoned organization, noting the Southeast Conference is a
membership organization. She pointed out information in
members' packet that more fully describes the funding process,
how the money is leveraged, and lists ARDOR's top ten
priorities. She characterized the Southeast Conference as a
very active development organization that works with 23
incorporated and 21 unincorporated communities. The group meets
biannually to work on annual and five-year plans. She asked to
speak in favor of the five-year extension to the ARDOR program
since the additional time would provide security for planning
purposes for the ARDORs. She further asked members to consider
funding ardors to the maximum limit.
3:57:51 PM
REPRESENTATIVE MILLETT asked her to speak to successes of the
Southeast Conference. She said she is most familiar with the
energy projects that the Southeast Conference has worked on, but
would like her to speak to the relationship with the DCCED.
MS. WRIGHT answered that the Southeast Conference has been able
to keep the Kake Petersburg Intertie project moving forward
despite the numerous roadblocks. She said the ARDOR works to
keep the environmental impact statement moving forward and to
keep organizations informed, including the U.S. Forest Service
and the DOT&PF. She related that Southeast Alaska Power Agency
(SEAPA) - the utility that will run the project - and Inside
Passage Electric Cooperative (IPEC) - the current utility - have
signed an agreement through facilitation of Southeast
Conference. She mentioned the energy coordinator has also
assisted Reynolds Creek Hydroelectric Project in moving forward,
with a project manager and business plan. She reported that the
Southeast Conference created the Integrated Resource Plan to
help Southeast Alaska communities develop their energy projects.
She stated the Southeast Conference is very interested in the
Alaska Marine Highway System (AMHS), and serves as a
communications conduit between the governor's office and the 180
Southeast Conference members. Additionally, the ARDORs work
with the state agencies, such as the DCCED, on regional
development plans and energy plans. The ARDORs also share
information between organizations. In fact, the Department of
Labor & Workforce Development also uses the ARDORs to provide
them with a link of what is happening in the regions. The
Alaska Workforce Investment Board (AWIB) also works with the
ARDORs to assess what is happening on the ground. She concluded
that the ARDORs support HB 32 and are happy to do so from the
ground up.
4:01:46 PM
REPRESENTATIVE SADDLER asked whether the executive director of
Southeast Conference is paid from federal or state funds.
MS. WRIGHT answered that state and federal funding provides
operational funding and covers expenses for staff, rent, and
utilities.
REPRESENTATIVE SADDLER, after reviewing the fiscal note,
remarked that the funding comes from grants and benefits to the
ARDOR organization.
MS. WRIGHT answered yes.
4:02:36 PM
ANDY VARNER, Executive Director, Southwest Alaska Municipal
Conference, (SWAMC), Alaska Regional Development Organization
(ARDORS), Department of Commerce, Community & Economic
Development (DCCED), stated that the SWAMC serves three
subregions of Southwest Alaska: the Aleutian/Pribilofs, Bristol
Bay, and Kodiak. He said the SWAMC is a large ARDOR and
district about the size of Oregon. He stated that Ms. Wright
described the ARDORs quite well and the SWAMC uses its funding
similarly. The ARDOR grant makes up 20 percent of its operating
budget but it also receives federal funds as well as in-kind
support. Besides functioning as an ARDOR, the SWAMC has also
been designated as an economic development district by the
Federal Economic Development Administration. The Alaska
Workforce Investment Board (AWIB) and the ARDORs are figuring
out how to work best together to resolve workforce issues in
regions, noting that the ARDORs are willing partners. The SWAMC
has been working on an upcoming three day summit in Anchorage
and will also hold two board meetings this week. Aside from
economic development planning, SWAMC and other ARDORs have been
working on regional energy planning and signing contracts with
Alaska Energy Association (AEA). He recalled that several years
ago the Southeast Conference began working on energy planning
and signed a contract with AEA in the last year or so. He
reported that SWAMC currently has a contract with AEA on Bristol
Bay and Aleutian regional plans and has also been discussing the
Kodiak regional energy plan. Thus SWAMC may do three energy
plans. He reported that on Wednesday the SWAMC will hold an
energy workshop to discuss energy planning, priorities, and
projects. Further, the SWAMC conducted a Broadband
telecommunications strategy for the Southwest region that
addresses access and adoption issues to improve
telecommunications, infrastructure, and usage. He characterized
this effort as being a big economic linchpin for the regions.
In fact, the SWAMC will attend numerous statewide broadband task
force meetings to ensure the rural regions are covered.
4:07:00 PM
MR. VARNER emphasized that SWAMC concentrates on thinking big
and small, such that by thinking small he means helping mom and
pop businesses, tourism operators, and bed and breakfast (B&B)
operators bridge the digital divide. For example, SWAMC helps
bridge the digital divide by conducting workshops and by
providing support with the current Vista volunteer's expertise.
This effort helps small businesses and the local economy thrive;
however, this region is large that SWAMC must also think bigger
and focus more on the region as a whole. In doing so, SWAMC
focuses on the energy planning previously mentioned, as well as
on infrastructure planning. He pointed out two subregions are
served by the AMHS planning so SWAMC works to communicate the
regional needs to the DOT&PF. The SWAMC has also considered
transshipment in terms of the opening up of Arctic region, which
will be discussed at the economic development summit later this
week. Further, SWAMC has worked to help Southwest Alaskans
participate in fisheries, noting SWAMC's economist is also a
fisherman and researches the region's fisheries. Additionally,
SWAMC participates in the fishery maritime initiative the
University of Alaska is working on to enhance the fisheries
industry. To summarize, the SWAMC works with other ARDORS on
economic development issues, such as food and agriculture,
energy planning, or education programs. For example, SWAMC
partnered with the Anchorage Economic Development Corporation
(AEDC) to tour the Kodiak launch facility with a Lockheed Martin
representative. In conclusion, the ARDORs have been working
together to leverage expertise to move the economy forward and
partner on projects, especially given tighter funding, to move
the economy forward. He emphasized that the ARDOR funding is
extremely important to SWAMC since it "keeps the lights on."
The SWAMC has been an ARDOR for 25 years, which means this year
the ARDORs celebrate their Silver Jubilee. Finally, the SWAMC
has enjoyed working with DCED to make the program as good as it
can be.
4:10:32 PM
REPRESENTATIVE MILLETT asked how much of the $807,539 in funding
SWAMC receives.
MR. VARNER answered $62,122. He explained the funds are evenly
divided among the 12 ARDORs.
4:10:55 PM
REPRESENTATIVE JOSEPHSON asked for the nature of the energy
plans and whether the SWAMC is working on thermal,
hydroelectric, or wind power.
MR. VARNER answered the SWAMC has taken a comprehensive look at
available options and alternatives for communities. For
example, SWAMC traveled to Adak recently with an energy engineer
and two SWAMC staff to meet with different leaders to assess
options and help the community map out an energy future. He
pointed out the area has enormous hydroelectric potential, but
it has never been developed. One thing SWAMC can do is to help
the community and the region prioritize energy projects and
pathways to help the local energy situation, which should also
help the region's economy. In fact, the main reason SWAMC has
been involved is to create economic development opportunities.
Thus, SWAMC will help with resource assessment and to prioritize
projects and alternatives in order to map out an energy future
for the region.
4:12:29 PM
CHAIR OLSON stated that public testimony would be held open.
[HB 71 was held over.]