Legislature(2001 - 2002)
05/02/2001 09:43 AM Senate FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 76(FIN)
"An Act providing for and relating to the issuance of
certificates of participation to finance construction of a new
facility to be known as the Alaska Psychiatric Institute;
giving notice of and approving the entry into and the issuance
of certificates of participation in a lease-purchase agreement
for construction of a new facility to be known as the Alaska
Psychiatric Institute; giving notice of the intent and
approval to retain investment income from pertinent
appropriations to be applied to the cost of construction of a
new facility to be known as the Alaska Psychiatric Institute;
relating to the construction of a facility to be known as the
Alaska Psychiatric Institute; and providing for an effective
date."
This was the first hearing for this bill in the Senate Finance
Committee.
CAREN ROBINSON, Chair, Mental Health Trust Authority, informed
the Committee that the Trust has been working on this project for
many years.
JEFF JESSEE, Executive Director, Mental Health Trust Authority,
Department of Revenue, addressed the concern that the proposed size
of the Alaska Psychiatric Institute (API) is "too small." He stated
that in 1983, API housed 200 people, and now it averages less than
70 people because of statewide efforts to develop community-based
services. He stressed that this approach can and should continue
and that "privatizing health care at the local level of service and
providing available short-term, inpatient services throughout the
state is good public policy." He informed that the Trust does not
want to build a bigger hospital, and that twenty of the beds in the
new facility are designated because other options are not currently
available in Anchorage as they are in other communities. He
informed that Anchorage does not have these alternative services
because API has been in operation in Anchorage.
SFC 01 # 92, Side B 10:35 AM
Mr. Jessee shared that the Trust has a joint agreement with
Providence Hospital, the University of Alaska, and the Department
of Health and Social Services whereby the Trust would be making
land available in Anchorage with the understanding that services
such as "designated evaluation and treatment will be provided in
the private sector." He continued that other areas of the state,
such as Mat-Su, Kenai, and Kodiak, could also consider privatizing
some health care services and serve people closer to home through
use of the private sector.
Mr. Jessee addressed concerns regarding a proposed road through
this parcel that was "put in abeyance" until the Municipality of
Anchorage and the Trust determined the location of the new API
facility. Mr. Jessee commented that the Trust has no position on
whether a road is constructed on the parcel or not. He continued
that the plans to construct the new API facility between the
current building and the hill should go forward regardless of the
outcome of a more involved public process regarding whether the
area's transportation needs require a road. He stressed that the
Trust is only concerned that there is road access to the site. He
said the road issue requires a lot more public process and a lot
"more deliberation by the Municipality."
Ms. Robinson voiced support for the establishment of new community
services and the size of the new API building, contrary to recent
testimony of a consumer group before the Committee that did not
support construction of a new building.
NELSON PAGE, Trustee, Mental Health Trust Authority, noted that the
bill before the Committee is the keystone of an agreement that was
reached between the Municipality of Anchorage, the Department of
Health and Social Services, University of Alaska, Providence
Hospital, API and the Mental Health Trust Authority. He stressed
that it appears that all parties are in agreement on this "core
issue about the importance of their existence and their future." He
urged support of the bill.
RANDALL BURNS, CEO, Alaska Psychiatric Institute, stated that the
replacement of the current API building is important because the
"facility is forty years old; fire and life safety systems are worn
out; it is permeated with asbestos; it doesn't meet seismic codes;
and was never designed as a psychiatric hospital." He noted that as
recently as March of this year, a survey was done that determined
it would cost $75 to $81 million to replace the current building on
its present site, and the request in this bill for a new API
facility is a total cost of construction of $41.7 million. He
commented that it is much more economical to build a new facility
than to demolish and renovate the existing one.
Mr. Burns stressed that the agreement between these groups has had
the following results: enabled the size of the facility to be
reduced resulting in significant cost savings; to be constructed
using a design-build approach; has eliminated the cost of
demolition at this time; and the new API building will be a multi-
story building on eight acres instead of single story building on
16 acres thereby providing additional land availability for
exchanges with Providence Hospital or the University of Alaska.
Mr. Burns explained that the demolition was isolated from the costs
of the new building project because the Department would be seeking
federal funds for that purpose before the Department requested any
expenditure of general funds.
Mr. Burns detailed the requested expenditure components in the bill
and asked for the Committee's support.
Co-Chair Kelly stated the bill would be HELD in Committee.
Senator Wilken asked the Department to supply the Committee with a
five to ten year occupancy projection for the new API facility.
Senator Ward requested the Department to provide the Committee an
engineering study on the remaining lifespan of the existing
building and what the remodeling costs would be on extending that
lifespan.
RECESSED TO THE CALL OF THE CHAIR 11:45 AM/3:43 PM
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