Legislature(1993 - 1994)
02/03/1993 09:03 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 50 - Act making appropriations for capital
projects;
and providing for an effective date.
FY 94 Capital Budget Overviews were conducted
for:
Dept. of Labor
Alaska Court System
Dept. of Military & Veterans Affairs
Dept. of Community & Regional Affairs
DEPARTMENT OF LABOR
CHARLES MAHLEN, Commissioner, Dept. of Labor, came before
committee. He explained that the department is requesting
five capital projects which total approximately $1 million.
The department has taken budget cuts beyond that in the last
few years and is now at a point where automation is needed
to ease the flow of work.
Mr. Mahlen explained that the department's top priority is
to join three computer systems in labor standards and safety
into a network to streamline operations and make electronic
communications and data sharing easier and more efficient.
This project is critical to public health and safety. The
project is intended to:
1. Computerize clerical, technical, and reporting to
accommodate staff decreases.
2. Share data and automate scheduling decisions
so that inspectors can focus on areas where
problems currently exist.
The request for $168.1 for labor standards & safety program
automation consists of $70.0 for programming and the
remainder for hard and software. A potential reduction in
personnel will justify the cost.
The second priority is $495.7 for a records managing imaging
system for workers' compensation records automation. The
workers' compensation division maintains approximately
80,000 active files which are updated frequently and often
transferred between Juneau, Anchorage, and Fairbanks. Some
files contain several thousand documents. The division
microfilms 17,000 to 20,000 inactive files, annually, in
response to requests to copy more than 7,000 pages per
month. The Dept. of Labor faces increasing costs for paper
handling and storage, delays in processing due to cumbersome
file tracking and updating procedures, potential loss of
files through the physical transfer of paper records, and
the security risk associated with transfer of medical
records. Continued cost increases and deterioration will be
unavoidable unless an imaging system is made available.
The Dept. of Labor will cooperate with other departments to
ensure statewide imaging compatibility and low overall
system costs. Imaging will offer quick and easy access to
files, including remote retrieval of documents and
simultaneous access to files. It will also provide
increased security, reduce exposure to loss, and deliver
better service to the client population through more
efficient and complete retrieval and distribution of claim
information. Increased productivity will result from an
interface between document processing and other data
collection and reporting.
The initial cost estimate is $495.7 for the two-year
process. Firm cost estimates cannot be produced until the
extent of cost sharing, storage, and other system
requirements are determined. The Telecommunication
Information Conference on imaging subgroups is preparing an
RFP for consulting services. The department expects to
comply with all recommendations adopted by TIC.
The third priority is $78.6 for mechanical inspection
equipment purchases for labor standards and safety. It
would purchase a photo licensing system to enhance the
certificate of fitness program. The department issues
certificates for hazardous painting, explosive handling, and
other craft areas. It will soon begin issuing certificates
for electrical and mechanical administrators. The system
must provide accurate record keeping and prevent fraudulent
use of certificates. Personal protective equipment will
ensure that staff is adequately protected as inspections are
conducted.
Commissioner Mahlen noted various items of office furniture
and equipment associated with the latter purchase and
advised that purchase of a CD Rom system for the boiler code
will reduce the time required to write citations.
The fourth priority, at a cost of $67.6, would purchase
additional equipment for occupational safety and health.
The equipment is necessary for effective delivery of
services and will allow both enforcement and consultation
field staff to better evaluate and correct workplace hazards
that could result in injury and illnesses. Requested
improvements will allow the division to:
1. Replace unserviceable or inadequate office
equipment.
2. Purchase training equipment to expand training
opportunities for employers and employees.
3. Purchase personal protection and electronic
testing
equipment for use by field staff.
The fifth priority is $172.0 for economic and demographic
information equipment upgrade. The request is intended to
improve the appearance and effectiveness of information
produced by the department. The department received over
11,000 requests for this type of information in FY 92. Many
of those requests were from businesses considering locating
in Alaska or expanding ongoing operations. The department
can better promote Alaska by improving the display of
census, reapportionment, economic information, customized
charts and maps, etc.
Co-chair Pearce posed questions regarding the proposed WANG
memory upgrade in light of WANG'S bankruptcy. DON STUDY,
Director, Labor Standards and Safety, Dept. of Labor, noted
that the department is presently tied into the WANG system.
It would be extremely costly to convert to IBM at this
point. The department thus intends to upgrade, now, and
then wean itself over a longer period of time. Installation
of the Novell operating system on the WANG system will allow
for communication with IBM systems.
ALASKA COURT SYSTEM
ART SNOWDEN, Administrative Director, Alaska Court System,
came before committee. He advised that the court system
requested a number of capital projects, two of which were
included within the Governor's budget.
The first is comprised of remaining funding for the
Anchorage Courthouse Expansion. Mr. Snowden explained that
state courts in Anchorage currently occupy two buildings
(one constructed in 1963 and the other in 1974). In 1981
the courts sought funding to expand. Moneys were provided
for planning and site acquisition. The legislature
subsequently passed a lease-purchase statute and directed
the court to follow that route. Planning under that
scenario was almost complete when the legislature instructed
the court system to build for today's needs rather than
future demand. The legislature then provided $5 million for
redesign. Following redesign, the Governor provided half of
the needed funding last year. Remaining funding is now
being requested, with the expectation that the project will
go to bid in March. Construction is to commence this year.
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There is currently a space deficit of over 100,000 square
feet in the Anchorage court system. Many offices are in
rental space. There are numerous structural problems. Two
nationally known seismic experts have identified major
problems within the district court building. Security
problems are atrocious. Both the court system and Dept. of
Public Safety have testified to that fact. Two mistrials
have been declared as a result of prisoner interaction with
the public and jurors.
Speaking to the $437.5 for court technology enhancements,
Mr. Snowden said that last year the courts requested $875.0
for computerization. The court system is the only branch of
government that is not computerized. The Governor provided
half the funding last year. The other half is being
requested this year.
Mr. Snowden next spoke to court system requests for
renovations at Fairbanks, Kodiak, and Kotzebue and other
requests that were not included by the Governor. He
stressed need to comply with requirements of the Americans
with Disabilities Act, advising that court buildings are the
most accessed state facilities.
Senator Kerttula termed the lease-purchase period a
"fiasco." He added, however, that three, huge, costly
facilities were previously proposed by the court system.
That is why the legislature called for redesign of the court
proposal.
Senator Rieger inquired regarding the type and number of
computers to be purchased for the requested $195.0. Mr.
Snowden answered that approximately 120 units would be
involved. The system would call for bids on 46SX equipment.
A unit cost of $2.2 would provide smart terminals for judges
and clerks.
Senator Rieger observed that both the Dept. of Labor and the
court system have chosen a system of networked personal
computers. Costs for these are substantially less than
departments that propose to return to a centralized,
mainframe approach. He commented that there appears to be
an advantage to a system of linked personal computers. Mr.
Snowden added that most new development is done on personal
computers. Software and new innovations are thus available
in that market long before they are applied to mainframes.
In response to a question from Senator Rieger asking if the
building at Fourth and K, which is proposed for demolition,
could be used for another purpose, Mr. Snowden indicated
that seismic experts have said a total rehabilitation
(estimated to cost $13 million) should be done or the
building should be torn down within five years. That was
five or six years ago. It would be cheaper to start from
the beginning than to attempt rehabilitation.
Responding to a question from Senator Kelly, Mr. Snowden
advised that the buildings would be connected by an
underground tunnel for ease of access by employees and
movement of prisoners.
Further discussion followed between Senator Kelly and Mr.
Snowden concerning parking for the proposed buildings. Mr.
Snowden acknowledged a parking shortage, advising that the
system would provide public parking for the handicapped as
well as some parking for jurors. Parking will not be
provided for employees. The existing garage will be used
for judicial and police parking.
(Co-chair Pearce noted the arrival of Senators Sharp and
Salo.)
Senator Frank asked if the court system had considered
selling the building that is scheduled for demolition. Mr.
Snowden answered negatively, reiterating that it would be
extremely expensive to bring the building up to code.
DEPARTMENT OF MILITARY AND VETERANS' AFFAIRS
JEFF MORRISON, Director, Administrative and Support Services
Division, Dept. of Military and Veterans' Affairs; and Pete
Wuerpel, Division of Emergency Services, Dept. of Military
and Veterans' Affairs, next came before committee.
Mr. Morrison explained that the $3 million in authorization
for federal funds for statewide environmental compliance
restoration projects is primarily for underground storage
tanks. If the entire $3 million is not forthcoming, the
department will expend federal moneys as they become
available. In response to a question from Co-chair Pearce,
Mr. Morrison advised that funding would cover both tank
replacement and site cleanup. Projects primarily include
federal scout armories throughout the state. Funding could
also apply to the dozen or more state armories. The
requested $3 million represents the maximum amount the
department felt it could manage from a larger pool of
federal moneys.
The $3,165.2 for army guard deferred maintenance statewide
is the department's number one priority. Total general fund
deferred maintenance needs at national guard armories is
slightly less than $6 million. The departmental request was
for that amount. The Governor allocated $2 million. The
project includes authorization for the full amount of
federal funds necessary to bring facilities to standard.
That would provide a continuing federal authorization. The
department would not have to seek additional authorization
if total federal moneys are not received this year.
Discussion followed between Mr. Morrison and Senator Frank
regarding expected federal funding. Mr. Morrison advised
that if the committee proposed to reduce the authorization,
"$1 million would probably be more than sufficient."
Senator Frank noted that an open-ended authorization was
unusual. In response to a further question from the
Senator, Mr. Morrison said that past funding has fluctuated
wildly. Alaska has been fortunate in having projects on the
board and ready to go. If the National Guard has available
funds at the end of the year, Alaska is one of the first in
line. In the past, the state has received as much as $1
million and as little as $200.0.
The second priority is the $1.5 million for emergency
operations center enhancements. PETE WUERPEL, Chief of
Operations, Division of Emergency Services, Dept. of
Military and Veterans' Affairs, next spoke before committee.
He directed attention to a diagram (Attachment A) of the
basement in the new armory at Ft. Richardson. The armory
was first occupied mid 1991. The department is now able to
identify what is required to bring the operation center to
full capability. The legislature has, through earlier
funding, provided approximately $1 million for equipment
that is already installed. The current request should
complete the facility. Mr. Wuerpel noted that relocation of
the trooper dispatch center from its current location to the
armory would be particularly advantageous and provide
twenty-four-hour, seven-day-a-week capability.
Responding to questions from Senator Kelly, Mr. Wuerpel
indicated that the operation center is located underground.
It meets code for a critical facility.
Senator Kelly observed that information provided by the
department indicates that the armory does not have a backup
generator. Mr. Wuerpel concurred in that observation. He
further acknowledged the need and explained that it was
deferred due to need for an Alaska Energy Authority
engineering analysis.
Mr. Morrison noted that the current request does not reflect
the entire project but merely the equipment within the EOC.
The cost of relocating the troopers will be $430.0. The
cost of the emergency generator is also not included.
Discussion followed between Co-chair Pearce and Mr. Wuerpel
regarding who would be involved and how the facility would
function in the event of a disaster such as an earthquake.
Mr. Wuerpel explained that federal response elements would
be co-located in the armory. All state agencies, local
government personnel, and industry representatives would
also operate out of the armory.
In response to a question from Co-chair Pearce, Mr. Morrison
advised that the EOC was significantly funded by the federal
government. It is to serve as the national guard emergency
center in addition to an emergency center for the state.
Long-range plans propose to incorporate the rescue
coordination center as well.
Speaking to the department's final project, Fairbanks armory
design, Mr. Morrison explained that the requested $100.0 is
needed to supplement a previous $450.0 appropriation for
design completion and preparation of bid documents. The
federal government has tentatively approved construction
moneys. Because of limitations on the capital budget, the
department was unable to ask for construction funds in the
current year. Those will be sought in the future.
Construction will require approximately $1.3 million in
general funds to be matched by $3.6 in federal moneys.
Co-chair Pearce directed that the meeting be briefly
recessed pending arrival of representatives from the Dept.
of Community and Regional Affairs.
RECESS - 9:45 A.M.
RECONVENE - 9:50 A.M.
Upon reconvening the meeting, Co-chair Pearce noted the
presence of Senators Phillips and Halford.
DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS
REMOND HENDERSON, Director, Division of Administrative
Services, Dept. of Community and Regional Affairs, came
before committee. He advised of three requests in the
department capital budget:
1. Computer purchase, $600.0.
2. Organizational grants, $600.0
3. Community services and development block
grant program request for authority to
receive $4 million in federal funds.
The $600.0 organizational request is comprised of:
1. $200.0 for second year incorporation of the City
and Borough of Yakutat.
2. $400.0 unspecified
A. $300.0 for anticipated city and borough
formation
B. $100.0 for formation of two anticipated
cities.
The department is requesting the foregoing due to past need
for funds to be available once a new entity is formed. As
an example, Mr. Henderson explained that the City and
Borough of Yakutat was formed in September of 1992. Yakutat
has not yet received its funding and will not receive it
until the current year supplemental is passed. Budgeting
capital moneys will allow the department to provide funding
at the time of incorporation. The department has been
meeting with representatives from potential boroughs at
Wrangell, Meyers Chuck, Pelican, and Gustavus. Potential
cities include Nikiski, Nelson Lagoon, Anchor Point,
Takotna, and Hyder.
The request for $4 million in federal authority is comprised
of:
1. The community services block grant, anticipated to
be
approximately $1.7 million.
2. The community development block grants of
approximately $2 million.
Community development block grants are used for economic
development. A portion of the funding is combined with
moneys from the rural economic development initiative.
Funds are also used for community development projects as
well as technical assistance and planning grants.
Funding for community services block grants flows to
Ruralcap. It is primarily for emergency community services
for the homeless, food nutrition items, etc.
Senator Frank requested a list of projects funded last year
by community development block grants. Mr. Henderson agreed
to provide a list of FY 92 awards. Award of grants is made
through a competitive RFP process.
Discussion followed between Senator Frank and Mr. Henderson
regarding methods of rating proposals prior to award of
grants. Senator Frank requested copies of development block
grant RFPs.
Senator Sharp raised a question regarding restrictions under
federal laws governing block grants eligibility. Mr.
Henderson voiced his belief that the grants apply to
communities where the population is 100,000 or less.
Senator Frank requested information relating to criteria and
examples of community services block grants. He then asked
why services to the homeless and nutritional programs are
not handled within the Dept. of Health and Social Services.
Mr. Henderson explained that of the $1.7 million for
community services, only $150.0 is for the homeless and $5.0
to $15.0 is used for nutrition. While there may be similar
programs within the Dept. of Health and Social Services,
they are likely to be restrictive and project- specific
while block grant moneys are more flexible and may be used
for a number of things.
Mr. Henderson explained that the $600.0 for computer upgrade
would eliminate the present WANG system. The system now
costs $90.0 to $100.0 per year to maintain. Further, it is
no longer effective in light of microcomputer capabilities
and decreasing costs. The WANG system is slow, downtime is
increasing, and the effect on productivity is negative. The
fact that WANG has filed bankruptcy causes further concerns.
At this time, 65% of the staff within the department is
using microcomputers. The capital request would allow the
remaining 35% to receive similar equipment and
microcomputer-based file services. The new system is
estimated to reduce operating costs to approximately $20.0.
The department has been working with the division of
information services which provided estimates for
replacement of the existing system.
Discussion of computer needs and operations followed between
Senator Kelly and Mr. Henderson. Mr. Henderson stressed
need for department computers to be able to communicate with
field offices.
Further discussion followed between Senator Rieger and Mr.
Henderson regarding data bases maintained by the department.
Mr. Henderson acknowledged that the department no longer
maintains records for the housing loan program since its
transfer. The department continues to maintain records for
the child care program as well as revenue sharing and
municipal assistance. The $600.0 would cover the purchase
of approximately 50 computers as well as file services for
Anchorage, Juneau, Bethel, Nome, etc. Cable costs and
printers are also included. Senator Rieger noted that the
request from the court system proposes to purchase 200
terminals for $195.0. The Dept. of Labor also presented a
detailed list of computer equipment at a cost of $186.0.
Requests have been as high as $2.75 million. The range thus
appears to be very broad.
Senator Rieger next inquired regarding input and
coordination by the division of information services. Mr.
Henderson explained that the Dept. of Community and Regional
Affairs approached the Dept. of Administration asking for
assistance in establishing a system to accommodate both IBM
and MacIntosh users. The Dept. of Community and Regional
Affairs continues to pursue options through private vendors.
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Senator Sharp noted pressure from manufacturers and software
companies to purchase specific brands and programs. He
spoke to difficulty associated with attempts to get a
legitimate analysis of needs, and advised that much money
and false direction is often involved.
Mr. Henderson said the department has been working on
changes in its computer system for at least the past three
years. This is the first year the effort was approved by
the Office of Management and Budget. OMB now recognizes the
need. Much thought has gone into the request.
ADJOURNMENT
The meeting was adjourned at approximately 10:17 a.m.
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