Legislature(2001 - 2002)
04/20/2001 01:46 PM House FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
HOUSE BILL NO. 76
"An Act authorizing the commissioner of health and
social services to provide for the design and
construction of psychiatric treatment facilities to
replace the facilities of the Alaska Psychiatric
Institute."
Co-Chair Mulder MOVED to ADOPT proposed committee substitute
work draft 22-LS0349\P, Utermohle 4/20/01. There being NO
OBJECTION, it was so ordered.
RUSS WEBB, DEPUTY COMMISSIONER, DEPARTMENT OF HEALTH AND
SOCIAL SERVICES testified in support of the legislation. He
stated that the legislation would be an effective means to
replace API, which has been a long-standing problem. He
noted that the Department of Health and Social Services,
Alaska Mental Health Trust Authority, University of Alaska,
and Providence Medical Center have worked together to
develop better land use in the area. The Department of
Health and Social Services will not use the old facility
under their site plan. He pointed out that the committee
substitute reduces cost.
Co-Chair Mulder explained that the objective was to provide
a price tag that the state could afford. The original cost
was $56 million dollars. A ranch style approach was
consolidated into a two story, which dropped the cost to $45
million dollars. A competitively bid design build achieved
an additional savings for a total cost of $41.744 million
dollars. A little over $19 million dollars remains from a
previous appropriation to the Department of Health and
Social Services. The Alaska Mental Health Trust Authority
has made available an additional $3 million dollars to help
with construction costs. An additional $3.5 million dollars
in interest earnings from the remaining $19 million dollar
appropriation would be reappropriated. The remaining project
cost would be $16 million dollars, which would be paid with
the issuance of a 15-year note of $1.6 million dollars a
year. He observed that it would not cost the state "any cash
out of the pocket."
Representative Hudson asked if the debt retirement on the
bond issuance would be offset with reduced energy costs.
RANDALL BURNS, EXECUTIVE DIRECTOR, ALASKA PSYCHIATRIC
INSTITUTE noted that the current heating cost is $300
thousand dollars a year. He felt confident that these costs
would be reduced.
Representative Hudson suspected that the cost would be
reduced. Mr. Burns observed that the boiler and mechanical
systems are not very efficient. He thought that there would
be significant savings within the utilities.
Co-Chair Mulder noted that the proposal has brought the
competing interests of the Department of Health and Social
Services, Alaska Mental Health Trust Authority, University
of Alaska, Providence Medical Center and the Municipality of
Anchorage together. All the parties signed the memorandum of
agreement. He referred to item #8 of the memorandum of
agreement.
Co-Chair Mulder referred to the legislation as it pertains
to removal of the facility:
The Memorandum of Understanding contemplates a road
extension through the property presently occupied by
the Alaska Psychiatric Institute facility. The road
construction will be addressed separately, possibly
through federal funding.
Co-Chair Mulder clarified that the demolition costs were not
included in the legislation and are estimated at $13 million
dollars. A fiscal note would include the demolition costs.
He emphasized the importance of timing. He expressed
confidence that federal funding would be forthcoming for the
demolition.
CAREN ROBINSON, CHAIRMAN, ALASKA MENTAL HEALTH TRUST
AUTHORITY provided information relating to the legislation.
She discussed the memorandum of agreement, Track E. She
noted that a due diligence finding would be provided. It is
the intent to carry forward and utilize the land with the
understanding that when the University of Alaska is ready,
they would have the first right to purchase the land.
Representative John Davies noted that the university's
concern is that there could be some action taken in respect
to the land that would make it not in the university's
interest to subsequently acquire it. The university would
like the Trust to work with them regarding actions that
might be taken which could be negative in respect to future
acquisition.
Ms. Robinson stressed the importance of working with all the
involved individuals. She noted that they have worked with
the University of Alaska and felt that they would continue a
close relationship to assure that the lands are utilized in
an appropriate way.
Co-Chair Mulder observed that the University is concerned
that the land could be used to expand the McLaughlin Youth
facility. He stressed the importance of working with the
University on any future activities that utilize the
property.
Representative Hudson noted that there are some private
landholders and questioned if they have been contacted. Ms.
Robinson acknowledged that South central Foundation owns
some of the adjoining property. There is also a Respite
Center on parcel D. The city might want to build a health
facility on parcel E. There are concerns regarding the
neighborhood.
Representative Croft referred to page 3, line 8 - 9: The
replacement facility must include a forensic psychiatric
unit. Mr. Webb responded that the state is committed to
maintaining the forensic unit, but it will not be expanded.
TAPE HFC 01 - 89, Side B
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