Legislature(1995 - 1996)
01/31/1996 01:42 PM House TRA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 352 APPROVE PALMER AIRPORT FIRE BLDG. Number 1911 REPRESENTATIVE SCOTT OGAN, sponsor of HB 352, said HB 352 is a consolidation of the Division of Forestry's (DOF) fire fighting facilities. HB 352 authorizes the state of Alaska to enter into a lease-purchase agreement with the city of Palmer for a fire management facility at the Palmer airport. HB 352 cuts costs and increases efficiency in wild land fire fighting. Currently there are four facilities in Anchorage, Eagle River, Big Lake and Palmer. REPRESENTATIVE OGAN referred to a map of south central Alaska, he said the Anchorage facility houses the management. He said most of the materials, pumps, hoses, hand tools and fire fighting implements are stored at the Eagle River location, Big Lake is where support services are located and Palmer rents out hangar space at the airport for dispatching and running their air operations. Number 2012 REPRESENTATIVE OGAN referred to the Governor's budget summary for fiscal year 1997 mentioned the consolidation of DOF and estimated an $8 million savings over the 20 year project life. The DOF proposed a lease finance approach. He mentioned the city of Palmer's track record and referred specifically to the courthouse which was built under budget and ahead of schedule. REPRESENTATIVE OGAN said Palmer is a good location because the Palmer airport site has undeveloped land, has a paved runway of 6,000 feet in length which can handle the heavy aircraft used to transport fire retardant chemicals. The location is centrally located in the wildland fire protection area and the DOF is currently operating out of this location. Community services and commercial support options are available. Palmer is supportive of HB 352 and has passed a resolution to that effect. He concluded that HB 352 will save the state money and allow for better public protection capabilities. Number 2087 THOMAS H. BOUTIN, State Forester, Director's Office, Division of Forestry, Department of Natural Resources was next to testify. He said DNR supports HB 352. He said the DOF proposed the consolidation because DOF believes that it is cost effective. He mentioned the costs of having four facilities and the logistical problems of being spread out. He said interest rates have dropped dramatically and there would be a net present savings of a little over $2 million. He referred to Representative Ogan's testimony about the courthouse. Number 2148 DEAN BROWN, Deputy State Forester, Management, Central Office, Division of Forestry, Department of Natural Resources was next to testify. She stood by the map and discussed the fire situation from last year. She said last year ground fires had occurred in alder trees, which was the first time DOF had seen that happen. Twenty years ago, she said, having four facilities made sense. Presently the office in Big Lake houses the initial attack. It has fire fighters ready to go with engines. However, in 1993 the population base changed so that DOF could no longer cover this initial attack from Big Lake. At that time, the helicopter attack operation and one of the initial attack crews moved to Palmer. This crew is housed in a trailer with no sewer or water facilities. Number 2230 MS. BROWN said HB 352 is driven by the need to consolidate the fire fighting resources and also by the services DOF provides to the public. These services include woodland wood cutting permits, fire permits, and general forestry information. The DOF location at Big Lake, that handles these public services, is eight miles on an unpaved road and away from the population areas of that region. She said fire needs are served by DOF in a region stretching from the Canadian border, up through McGrath, all the way down to the south and down the Aleutian Chain. She pointed to the map and referred to small warehouse locations which are designed to handle the initial fire attacks. She said DOF has fire retardant airplanes out of McGrath and Palmer which cover the whole region. If the fire situation needs more equipment and personnel then the warehouse can provide, the request is processed through the Anchorage location. A total of 73 crews can be called up for support. Anchorage gets this equipment and personnel through the Eagle River location. Number 2331 MS. BROWN said a few years ago they came up with a plan to consolidate their facilities into one location. This location would house the dispatch, logistics, public services for any permitting, as well as airport and warehouse services. This consolidation will also reduce the amount of time that is needed to organize equipment and crews which might reduce the size of the fires if they can be extinguished sooner. She added that smaller fires are also safer to put out. Number 2433 MS. BROWN discussed the future for the closed facilities. The state owns the facility at Big Lake and there is current interest by other state divisions for that property. The Eagle River warehouse is portable and can be moved. This warehouse is situated on state land and there is interest by the Division of Geological and Geophysical Surveys for this land. The Anchorage space will be vacated at $2.15 a square foot savings. Number 2454 REPRESENTATIVE BRICE asked for information on the size of the Anchorage office. Number 2464 MS. BROWN said she thought is was around 1200 square feet. Later in her testimony it was corrected, the correct amount of the Anchorage office is 4,000 square feet. She said in Palmer, the lease was recently lost for the trailer which houses the initial attack forces. A space is rented above an air service for the logistics, including radio dispatching for both the trucks, crews and aircraft. That facility would be vacated under HB 352. REPRESENTATIVE BRICE asked if this proposed facility was being developed under special design or if it would be just a hangar. MS. BROWN said this facility would essentially handle the aircraft hangar, the shop where pumps and equipment are maintained, the warehouse, and then the administrative offices. REPRESENTATIVE BRICE stated that it appeared there would be no special codes or construction needs for the proposed facicility. This statement was confirmed by Ms. Brown. He asked who might be contracting for the work. Number 2482 MR. BOUTIN said the Palmer courthouse was competitively bid. Number 2480 CHAIRMAN GARY DAVIS said representatives from the city of Palmer were on teleconference who could answer that question. TAPE 96-3, SIDE B Number 000 CHAIRMAN GARY DAVIS asked if some space in the Anchorage office would be retained. MR. BOUTIN said that some federally funded programs, urban and community stewardship, a federally funded entomologist, et cetera would remain in the Frontier Building, but the fire fighting logistics would be moved. Other people from the various locations would also be placed in the new facility. Number 030 CHAIRMAN GARY DAVIS repeated his question whether some space would be retained. MR. BOUTIN said yes, some space would be kept in the Frontier Building. CHAIRMAN GARY DAVIS asked if there have been discussions regarding a lease billed situation. Number 040 MR. BOUTIN said there has been on going discussion on this issue. The city of Palmer is aware of DOF's needs especially in regards to specific needs such as hangar space, shop space, et cetera, as well as compliance with the Americans with Disabilities Act. Number 049 CHAIRMAN GARY DAVIS received clarification that there is no water or sewer services at the initial attack location in Palmer, but Palmer has full facilities including natural gas at the airport where the new building will be located. Number 070 TOM SMITH, City Manager, City of Palmer testified via teleconference from Palmer. He pointed out the city of Palmer resolution which supports the proposed project. Palmer will work with the DOF to obtain authorization from the state for the certificate of participation to help finance such a project. Number 120 CHAIRMAN GARY DAVIS asked the proposed timing for the completion of the facility. Number 130 MS. BROWN said if HB 352 were approved this session, the next step would be for the city of Palmer to issue certificates of participation for the design and construction of the facility. Two years from this spring would be the date it would be ready for occupancy. Number 150 CHAIRMAN GARY DAVIS asked if the fiscal note showing $9 million savings over the next 20 years was based on expected growth within the division and whether it allowed for expansion in the DOF. Number 167 MS. BROWN said that despite increased wild land urban interface and increased population within these areas, situations would have to be handled with emergency fire fighters because of the budget outlook. Number 179 REPRESENTATIVE BRICE asked if there had been any preliminary discussions with contractors. Number 191 MR. SMITH said they haven't as they will go through a competitive bidding process. Number 206 LARRY TEAGUE, Building Inspector, City of Palmer testified via teleconference from Palmer. He explained the courthouse project. He said initially the court system approved the project. The city of Palmer then put the project out to bid and oversaw the actual project construction and documentation agreements. Then the city turned over the facility to the state for occupancy. The contract was won by a construction company that is no longer in business. The facility proposed under HB 352 would be put out for competitive bid by state rules. Number 235 REPRESENTATIVE DON LONG asked when the new facility is constructed, what will happen to the old facilities. Number 250 MS. BROWN said that in Anchorage and Palmer the lease will not be renewed. In Eagle River and Big Lake, which are on state land other state agencies have expressed interest in those land areas. Number 309 CHAIRMAN GARY DAVIS said it appeared that the amount to lease the new facilities would be less expensive then leasing the four facilities. Number 339 REPRESENTATIVE OGAN made the comment that with today's budget environment we are looking for more efficient cost-effective plans and HB 352 does this. He made a note that there are approximately 100 buildings that the state leases out and cited specific examples. Number 390 CHAIRMAN GARY DAVIS asked what the proposed footage of the new lease facility. Number 400 MS. BROWN said it was 80,000 square feet. Number 410 REPRESENTATIVE BRICE proposed that in HB 352, on line seven after the period in Palmer airport, a new sentence be started saying, "the city of Palmer shall enter into a project labor agreement for it's construction". He said this is to ensure that, on these types of state projects, employment opportunities should be geared towards Alaskans. REPRESENTATIVE OGAN deferred to the city of Palmer to comment on this proposed amendment. Number 520 MR. SMITH said the city of Palmer has a code which gives a 5 percent preference to state and local businesses. He said the Davis-Bacon regulation would also be in effect. Number 542 REPRESENTATIVE LONG said he objected to the proposed amendment. He said it should be under the discretion of the city of Palmer as they are investing money into the project. Number 562 REPRESENTATIVE BRICE said the state of Alaska is being asked to authorize HB 352 which means that the state is ultimately responsible for this project. He said there are already stipulations in HB 352 from the state to the city of Palmer. Number 616 REPRESENTATIVE JAMES objected to the amendment. She then stated concerns over the purchasing of buildings due to the bad track record in Alaska of the state maintaining public facilities. She said leasing a building provides for building maintenance. Number 660 CHAIRMAN GARY DAVIS said he agreed with both Representative Long and Representative James in that it is important to give the city of Palmer flexibility in their procedures to construct this facility. He supported a lease-purchase agreement and felt the proposed amendment would restrict that opportunity. Number 696 REPRESENTATIVE OGAN mentioned the 5 percent bidder option in Palmer which gives the edge to the local and state contractors. He added that the cost of maintenance is figured into the 20 year lease- purchase option for those 20 years. Number 747 CHAIRMAN GARY DAVIS said he shared Representative James concern over the lack of maintenance and expressed hope that within 20 years this problem would be addressed. Number 773 REPRESENTATIVE BRICE proposed the adoption of Amendment 1 to HB 352. Representative Brice voted yea. Representatives Davis, Masek, Williams, James, and Long voted nay. The motion to adopt Amendment 1 to HB 352 failed. Number 825 REPRESENTATIVE MASEK made a motion to pass HB 352 out of committee with zero fiscal note and individual recommendations. Hearing no objections HB 352 was moved out of the House Standing Committee on Transportation.
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