Legislature(2007 - 2008)SENATE FINANCE 532
03/13/2008 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB289 | |
| SB221 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 289 | TELECONFERENCED | |
| *+ | SB 221 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
SENATE BILL NO. 221
"An Act making appropriations, including capital
appropriations, supplemental appropriations, and
appropriations to capitalize funds; and providing for
an effective date."
DEPARTMENT OF REVENUE
JERRY BURNETT, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF REVENUE, listed the requests for the
Department of Revenue.
Project #42933
Permanent Fund Dividend Computer Replacement Project
$125,000 PFD Funds
Mr. Burnett explained that it is the fourth year of a
cyclical PFD replacement project for desktop computers,
printers, servers, and office support equipment.
Project #42945
Child Support Services Computer Replacement Project
$128,040 Federal Receipts
$65,960 Receipt Services
AT-EASE: 9:42:20 AM
RECONVENE: 9:43:06 AM
Mr. Burnett continued to explain the Child Support Services
Computer Replacement Project, which is also part of a
replacement cycle for office equipment and computers.
9:45:47 AM
Mr. Burnett turned to Information Technology projects that
were funded out of FY 08 funds.
Senator Thomas asked if the PFD Computer Replacement Project
- Phase 4, is the end of the funding request. Mr. Burnett
clarified that it is a continuous four-year replacement
process for a similar amount each year.
Project #45340
Oil and Gas Production Tax System Replacement
$2,620,800 General Funds
Mr. Burnett reported that the new tax system would replace
the old one.
Senator Elton recalled a recommendation during the special
session to buy a program "off the shelf". Mr. Burnett
replied that the cost to do an analysis for that would be in
the $20 million range.
9:48:04 AM
Project #45343
Corporate Tax/Motor Fuel Tax System Replacement
$830,000 General Funds
Mr. Burnett reported that the allocation would fund a new
system to replace the old one. There is a risk with the
Motor Fuel Tax System now because it's not stable.
Project #45344
Mining Tax System Replacement
$460,000 General Funds
Mr. Burnett addressed the need for a new mining tax system
due to the increase in mining in the state.
Project #45545
PowerBuilder Replacement Feasibility Study
$300,000 General Funds
Mr. Burnett explained that the PowerBuilder is a program
language that the department has been using to build an
integrated tax system. It is no longer the state standard.
9:50:17 AM
Senator Elton asked if the previous three technology
requests were PowerBuilder. Mr. Burnett said they were.
Senator Elton asked why $4 million was requested for
PowerBuilder when it was going to be replaced. Mr. Burnett
explained that the PowerBuilder system was familiar to the
programmers and contractors. Newer versions are compatible
with the state's current system and an attempt is being made
to not have to rewrite the system. Senator Elton pointed
out that $4 million was being spent on the old system, which
may be replaced. Mr. Burnett shared a concern with the
production tax system, which should not be a manual process
in light of new information reporting requirements. The
solution needs to be in the near term.
Co-Chair Stedman requested all of the items be ranked. Mr.
Burnett agreed to do that.
9:53:42 AM
ALASKA HOUSING FINANCE CORPORATION
DAN FAUSKE, CEO/EXECUTIVE DIRECTOR, ALASKA HOUSING FINANCE
CORPORATION (AHFC), DEPARTMENT OF REVENUE, reported on the
successes of AHFC.
LES CAMPBELL, DIRECTOR, BUDGET, ALASKA HOUSING FINANCE
CORPORATION, DEPARTMENT OF REVENUE, addressed the
department's requests. The first three projects have to do
with the administration of AHFC.
Project #45379
AHFC Public Housing Software Replacement Project
$1,250,000 AHFC Division
Mr. Campbell explained that the purpose of the program is to
purchase, implement, support, and provide training for a
software system that will help manage the Corporation's
public housing programs. The current software is outdated
and a new system is critical to support AHFC's rental
housing programs. A new system would make compliance with
HUD regulations much easier.
9:56:13 AM
Project #45382
AHFC Phone System Replacement
$450,000 AHFC Division
Mr. Campbell related the reason for the request: to replace
AHFC's phone system with a Voice-Over-IP (VOIP)
infrastructure.
Project #45383
AHFC Human Resources/Payroll Implementation
$387,900 AHFC Division
Mr. Campbell said the request is to complete the process of
a new HR payroll function for AHFC. The current system is
over 15 years old and does not have the capabilities to
provide needed reports and information, or capture the
employee information required. The new system will fully
integrate human resources, benefits administration, and
payroll functions.
9:58:06 AM
Project #37918
AHFC Housing Loan Program/Teacher Health and Public Safety
Professionals Housing
$8,000,000 AHFC Division
Mr. Campbell explained that this is an on-going request and
provides gap funding to increase homeownership and rental
units throughout the state. The program is designed to help
retain desirable professionals in high-cost areas. The
projected outcomes would include an addition of 62 new
units, increased affordability for housing purchases by low
income families, lower interest rate on mortgage programs,
and a statewide housing conference.
Project #6323
AHFC Supplemental Housing Development Program
$8,000,000 AHFC Division
Mr. Campbell noted that the request would supplement federal
HUD funds and would be used to cover costs related to water,
sewer, and electrical systems, as well as for road
construction to project sites and site development. The
funds are limited to 20 percent of HUD's total development
cost per unit and cannot be used for administrative
purposes.
Project #6332
AHFC Low Income Weatherization
$6,000,000 AHFC Division
$2,000,000 Federal Receipts
Mr. Campbell explained the purpose of the program to provide
cost-effective energy improvements to homes of low-income
families. Weatherization provides for fire safety through
furnace and electrical repairs, education, chimney and
woodstove repairs, and egress windows. It is the same
program that was funded in the supplemental budget.
10:00:18 AM
Co-Chair Stedman asked how the request fits into SB 189.
Mr. Campbell explained that it is the same program except
that SB 189 expands the program beyond low income families.
Co-Chair Stedman asked if the request is required since the
bill passed. Mr. Campbell said that if the supplemental
bill is passed, then this item would not be required other
than to utilize the federal receipts.
Project #6334
AHFC Senior Citizens Housing Development Program
$6,000,000 AHFC Division
Mr. Campbell reported that the funds are used for grants for
municipalities and public or private non-profit
corporations, in conjunction with other agencies, for the
development of senior citizen housing. Funds can be used
for the purchase of building sites, site preparation,
materials, construction, and rehabilitation of existing
housing. Organizations qualified to apply include
municipalities and public or private nonprofit corporations.
Additional components include smaller grants for nonprofit
senior organizations to pay for preparation of plans and
project feasibility studies, appraisals, site preparation
and other pre-development activities. This program has
funded 931 units to date.
Project #6347
AHFC Housing and Urban Development Federal HOME Grant
$750,000 AHFC Division
$3,450,000 Federal Receipts
Mr. Campbell reported that the purpose of the request is to
expand the supply of affordable, low- and moderate-income
housing and to strengthen the ability of the state to design
and implement strategies to achieve an adequate supply of
safe, energy-efficient, and affordable housing. This
program has funded 44 rental projects containing 818 units
and rehabilitated 373 low-income homes. It has assisted
another 315 low-income households to purchase homes.
Mr. Fauske asked for clarification about the amount of
federal receipts. Mr. Campbell clarified that the amount is
$3,450,000.
AT-EASE: 10:04:00 AM
RECONVENE: 10:06:16 AM
Mr. Campbell noted a handout with more information regarding
these projects entitled "AHFC Budget Summary" (copy on
file.)
Project #6342
AHFC Housing and Urban Development Capital Fund Program
$3,200,000 Federal Receipts
Mr. Campbell summarized that the purpose of the program is
to renovate and modernize the public housing rental units
statewide.
Project #6348
AHFC Federal and Other Competitive Grants
$1,500,000 AHFC Division
$3,000,000 Federal Receipts
Mr. Campbell related that the request is to allow AHFC to
apply for HUD, other federal agency, and private foundation
grants that target the housing needs and supportive services
of low-income and special needs groups such as: senior
citizens, the mentally, physically, or developmentally
disabled, or the homeless. AHFC will also apply for energy-
related grants as they relate to housing. When required,
AHFC will provide the needed matching funds. Some of the
funds received will be passed through to local non-profit
sub-grantee organizations that deliver housing and/or
services.
Project #6350
AHFC Competitive Grants for Public Housing
$250,000 AHFC Division
$750,000 Federal Receipts
Mr. Campbell explained that this request is similar to the
last request, but is directly related to public housing.
The purpose of the program is to allow AHFC to apply for HUD
and other grants that target housing needs for low-income or
special needs groups.
10:09:32 AM
Project #6351
AHFC Energy Efficiency Monitoring Research
$1,000,000 AHFC Division
Mr. Campbell said that the project would use AHFC funds for
a designated grant to Cold Climate Housing Research Center
to conduct housing construction research, analysis, and
information dissemination among the housing industry and the
public. Data gathering and analysis is being continually
related to energy efficiency technology for homes
constructed in northern building and market conditions.
Project #32526
AHFC State Energy Program Special Projects
$30,000 AHFC Division
$150,000 Federal Receipts
Mr. Campbell related that the program utilizes Federal
Department of Energy and Corporate match funds for State
Energy Program special projects such as building
technologies, Codes and Standards, Wind and Power
technologies, renewable energy for remote areas, or
transportation technologies.
Project #40068
AHFC Statewide Project Improvements
$2,500,000 AHFC Division
Mr. Campbell reported that the purpose of the project is to
provide funding to address known and unknown conditions in
AHFC's housing stock, the rental units. It utilizes AHFC
funds to provide repairs, deferred maintenance, and
improvements to AHFC-owned properties throughout the state.
This project will allow AHFC to keep pace with the
deterioration of existing components of rental properties
such as roofs, sidewalks, and common areas. It will enhance
operations, and allow quick response to ordinance and code
changes. The primary function of this fund is to address
those major or extraordinary work items identified annually
through the Physical Needs Assessments by the public housing
maintenance staff and Asset Supervisors.
10:11:49 AM
Project #41531
Denali Commission Project
$7,000,000 Federal Receipts
Mr. Campbell noted this item is funded by federal receipts.
Project #43076
AHFC Loussac Manor Renovation and Replacement Phase
$2,336,000 AHFC Division
Mr. Campbell explained the request for funds for a project
which would begin the second phase of renovation to replace
all structures in the Loussac Manor. The funds would be
used to replace the housing, following approval last year to
replace the underground utilities and infrastructure for the
entire complex. Following the completion of a professional
site assessment that included cost estimates to renovate or
replace the existing structures, it has been determined that
it is not economically feasible to renovate the structures.
This funding request would replace all structures under a
phased plan that would use existing foundations.
Co-Chair Stedman asked about the phase plan. Mr. Campbell
replied that about the same amount of money is used each
year for four years to replace all 62 units. Co-Chair
Stedman asked how old the units were. Mr. Campbell said
they were built in 1965. There are 21 multi-family
residential buildings. Mr. Fauske added that there has been
discussion of expansion in order to maximize the use of the
property.
Senator Thomas asked how many apartments there were. Mr.
Campbell said 62 units.
10:16:20 AM
Project #43079
AHFC Prison Expansion and Renovation
$1,000,000 Statutory Designated Program Receipts
Mr. Campbell reported that these Statutory Designated funds
are for a statewide correction facility/prisoner housing
project. Following identification of a building site and
evaluation of costs to provide the necessary infrastructure
and utilities to the proposed Mat-SU Prison site, it was
determined that the construction budget allowed under SB 65
was not sufficient to absorb additional costs. The
Department of Corrections has revised their approach and
identified a strategy to expand existing facilities at
various locations around the state and reduce the size of
the proposed facility. AHFC is currently assisting
Corrections with the initial planning for the new strategy
through a limited RSA and anticipates the need for
additional spending authority in the next fiscal year to
continue to provide planning and construction management
services to the Department of Corrections.
Co-Chair Stedman asked for more information on the regional
site expansions.
BRYAN BUTCHER, LEGISLATIVE LIAISON, ALASKA HOUSING FINANCE
CORPORATION, explained that the project is on hold at this
point. The funds are being requested in case they are
needed. Co-Chair Hoffman asked of there has been a request
by the Department of Corrections regarding other potential
jails in Kodiak, Fairbanks, or Bethel. He thought the
Department of Corrections was having financial difficulties
due to higher construction costs. Mr. Fauske noted there
had been several conversations. He said he did not have a
lot of information, but AHFC is offering technical
expertise.
Senator Elton asked if the RSA was from the MatSu Borough to
AHFC. Mr. Fauske answered that the RSA is between the
Department of Corrections and AHFC. Senator Elton asked if
AHFC has ever done work like this for other state agencies
before. Mr. Fauske shared past projects AHFC has been
involved with: dorms for Alaska Vocational Technical Center,
a project in Seward, purchase of the Atwood Building. He
explained AHFC's role in this project. AHFC was not the
issuer of the debt, but would assist the MatSu Borough in
issuing the debt, by offering technical advice.
Senator Elton asked why this is an AHFC capital request,
rather than from the Department of Corrections. Mr.
Campbell replied that it is related to whatever happens with
the department; however, it allows AHFC to receive the funds
if the project progresses.
10:22:16 AM
Senator Huggins recalled that last year many of these
projects were vetoed. He wondered about the timing of this
request because of inflation. Mr. Campbell agreed that
there was money in last year's budget. He explained that
this year $2 million would not be enough to complete the
project. Senator Huggins voiced concern.
Senator Elton agreed with Senator Huggins regarding a
request to receive funds from an agency that is not
requesting the funds. Mr. Fauske pointed out that AHFC is
being proactive. He clarified that this is a place holder.
10:24:43 AM
Senator Thomas wondered about saving money in the design
cost by using existing prison design plans. Mr. Fauske
replied that there were previous discussions on that matter.
Mr. Butcher explained that the $30 million from last year
was vetoed to $2 million.
Project #45385
AHFC Chugach View Siding & Window Replacement
$2,500,000 Federal Receipts
Mr. Campbell stated that this request is funded by federal
receipts. It is for following up on renovation work
completed several years ago on a 120-unit senior facility.
Co-Chair Stedman asked what kind of windows would be used.
Mr. Campbell thought they would energy efficiency windows.
Mr. Fauske offered to provide that information.
10:29:21 AM
Project #45386
AHFC Etolin Heights Roofing Replacement
$500,000 AHFC Division
Mr. Campbell explained that the project would replace the
existing metal roof on the Market Housing side of Etolin
Heights family housing complex in Wrangell, Alaska. The
roofing was originally installed in 1981 and continues to
leak. Complete replacement is necessary.
Project #45387
AHFC Etolin Heights Mechanical Replacement
$450,000 AHFC Division
Mr. Campbell said that the request would use funds to
upgrade heating systems at the Wrangell family housing
properties. This project would facilitate the conversion of
the existing oil-fired boiler systems at both the Corporate-
owned Market family housing and Low Rent family housing to a
cost effective heating system powered by the local
hydroelectric grid, which is less expensive to operate and
maintain than the current fuel oil heating systems.
10:32:05 AM
Project #45388
Etolin Heights Mechanical Replacement
$500,000 AHFC Division
Mr. Campbell addressed the request for AHFC Statewide Energy
Improvements. He reported that the funds would address
specific recommendations suggested in the required energy
audits performed throughout the state. The audits identify
specific improvements that can be made to the housing to
reduce energy consumption.
Senator Thomas asked if the mechanical replacement was a
replacement of the boiler with an electric unit that heats
water or a replacement of the entire system. Mr. Campbell
explained that it would do away with the oil-fired burner
and be replaced with electrical units, which are cheaper.
Senator Thomas questioned replacing the entire distribution.
He suggested heating and circulating water. Mr. Campbell
referred to EEC recommendations.
10:34:30 AM
Project #45389
AHFC Statewide ADA Improvements
$500,000 AHFC Division
Mr. Campbell explained that the funding is to address
specific recommendations suggested in the required energy
audits performed throughout the state. Projected outcomes
are to begin to address recommendations suggested in the
audit, maintain federal funding by complying with HUD,
increase comfort of tenants, and increase unit rentability.
Project #45384
AHFC Bethel Community Room and Shop
$2,000,000 AHFC Division
Mr. Campbell related that the funds would be used for a new
community room in Bethel. The project combines the need to
replace the existing office/shop and provide a community
space for the 117 units of family housing at Bethel Heights
in Bethel. An existing design that has been previously
constructed for AHFC properties in Kodiak, Sitka, and Juneau
will be used that includes a shop area, community room, and
supporting offices.
Co-Chair Stedman asked for a definition of the shop area.
Mr. Campbell explained that it is where maintenance would
store tools and inventory.
Senator Thomas thought in rural areas it would be common to
have the maintenance shop located in the facility. Mr.
Campbell agreed that they are usually located within the
grounds of the project.
10:37:23 AM
Project #6359
AHFC Homeless Assistance Program
$1,000,000 AHFC Division
$500,000 General Funds/Mental Health
$500,000 Mental Health Trust Funds
Mr. Campbell explained that the funds are for grants to
local communities/agencies to help develop programs to
prevent homelessness by providing assistance to families in
imminent danger of becoming homeless or those who are
currently homeless. Corporate funds will be matched by
Mental Health Trust Authority funds and be administered by
AHFC.
Project #6360
AHFC Beneficiary and Special Needs Housing
$1,750,000 AHFC Division
Mr. Campbell related that the program would provide funds
for Alaskan nonprofit service providers and housing
developers to increase housing opportunities to Alaska
Mental Health Trust beneficiaries and other special needs
populations throughout Alaska. The program has developed
118 units since FY 2000. In FY 2008, 18 units were funded
for persons with severe mental illness and development
disabilities.
Mr. Campbell shared the projected outcomes: add 16
congregate housing units for people with mental illness or
developmental disabilities, reduce recidivism amongst
clients in institutions, provide supportive housing for
people who qualify, and provide transitional housing for
newly recovering alcoholics and addicts.
Project #43318
AHFC Emergency Assistance Grants for Mental Health Trust
Beneficiaries
$200,000 Mental Health Trust Funds
Mr. Campbell said that these are funds for grants to support
beneficiaries of the Alaska Mental Health Trust Authority to
prevent loss of housing that might occur due to unforeseen
events such as institutionalization.
Project #45390
Housing Trust
$2,500,000 MHTAAR
$2,500,000 General Fund/MH
$2,500,000 SD
$2,500,000 Corporate Receipts
Mr. Campbell reported that the request is to create a trust
that would address two main issues in Alaska: preventing
homelessness and creating affordable housing for low-
moderate income renters and homeowners. Funds would be used
to assist projects that provide housing for the homeless, to
prevent homelessness, and to create long-term affordable
housing. Eligible projects would include new construction,
rehabilitation, rental assistance and homeless services.
Mr. Campbell reported that the outcomes would be a reduction
in the number of homeless persons that interact with the
social service system, a reduction in the public cost of
emergency and institutional services that treat the
homeless, an expansion of the community based mental health
system, and a strong evaluation component.
Co-Chair Stedman asked if the last item was the lowest
priority. Mr. Campbell reported that all programs have
equal priority. Co-Chair Stedman requested a prioritized
list. Mr. Fauske agreed to do that.
AT-EASE: 10:44:03 AM
RECONVENED: 10:53:41 AM
DEPARTMENT OF EDUCATION
MARK LEWIS, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT OF
EDUCATION AND EARLY DEVELOPMENT, explained the department's
allocations.
Project #45623
Mt. Edgecumbe High School Deferred Maintenance
$1,914,000 ASLC Bonds
Mr. Lewis reported that the request was originally funded
through Alaska Student Loan Corporation bonds, but it has
been switched to the Alaska Capital Investment funds or
miscellaneous earnings. He shared the history of updating
the 6-year Capital Improvement Plan (CIP) master plan for
Mt. Edgecumbe. He described the items mentioned in the
facility audit.
Co-Chair Stedman noted appreciation for the Department of
Education's project ranking lists. He requested an
explanation of the rankings of the projects before the
committee. Mr. Lewis described how the department ranks its
requests.
10:58:12 AM
Co-Chair Hoffman asked what the current status of the
Kasayulie Case.
EDDY JEANS, DIRECTOR, EDUCATION SUPPORT SERVICES, DEPARTMENT
OF EDUCATION AND EARLY DEVELOPMENT, replied that in the
Kasayulie Case, the judge issued a decision, but there was
additional work to be done on the trust fund that is still
pending. The department continues to follow the CIP process
where districts submit applications. The applications are
prioritized on the major maintenance and school construction
lists and those are presented to the legislature. Co-Chair
Hoffman pointed out that no school that would have addressed
the Kasayulie Case has been submitted by the Administration.
He questioned if there was a need to address those schools
at this time. Mr. Jeans replied that since the decision was
issued for the Kasayulie Case, the legislature has funded
numerous projects statewide, throughout rural Alaska,
through various funding mechanisms. The department
continues to follow the process that was established in
1994. Co-Chair Hoffman wondered why the department is not
coming forth with more construction projects.
Co-Chair Stedman reported on the list of ranked items.
MatSu High School is listed as number one, with Anchorage
East high at number 21. In between, the rankings from 2-20
vary, from Lower Yukon and Lower Kuskokwim, to Hyder. He
asked how the department interacts with the group that
compiles the prioritized list. Mr. Lewis explained that the
department creates the priority lists and submits both lists
to the Office of Management and Budget (OMB). They then
request $100 million a year to address the facility needs
around the state. The department works with OMB to
determine how $100 million will be allocated between the two
lists. Co-Chair Stedman said $100 million total. Mr. Jeans
reported that $100 million has been the department's
standing request for at least the last ten years.
Co-Chair Hoffman asked how many years it would take to go
through the current major maintenance and construction
priority lists. Mr. Jeans replied about ten years.
Co-Chair Stedman commented that $350 million three years ago
took out the entire major maintenance list. He noted that
there is currently a similarly-sized list as three years
ago.
11:04:04 AM
Mr. Jeans requested that the committee go by the November 5
CIP list due to several recent changes. Co-Chair Stedman
asked if both the major maintenance and new construction
lists from November 5 should be considered. Mr. Jeans said
the only changes were on the major maintenance list.
RECESSED: 11:06:23 AM
RECONVENED: 2:47:06 PM
UNIVERSITY
Co-Chair Stedman asked that the university begin with
priorities and rank their requests.
PAT PITNEY, UNIVERSITY OF ALASKA, BUDGET AND PLANNING,
addressed priorities.
Project #45326
Maintaining Existing Facilities and Equipment Renewal and
Renovation (R & R) Annual Requirement
$40,000,000 AK Cap Inc
$1,000,000 Univ Rcpt
Ms. Pitney related that major renewal and renovation (R & R)
is the first priority, a $50 million annual need. The
second priority is the UAF BIOS Facility, and the third
priority is the UAA Health Sciences Building. After that
the priority is backlog on R & R. She noted the Governor's
budget allots $40 million for major R & R.
Co-Chair Stedman clarified that those are requests for
consideration by the Senate Finance Committee. She agreed
they were in the Governor's original budget, not the current
CS.
Project #45648
Statewide Annual Capital Renewal and Renovation Requirement
$500,000 AK Cap Inc
$1,000,000 Univ Rcpt
Ms. Pitney elaborated upon the allocation for statewide
annual R & R for data center upgrades.
Ms. Pitney expressed several general statements about the
University's Major R & R. It has been the Board's top
capital priority over the last ten years. The request is
split between $50 million and $70 million. $50 million is
the annual capital need for major projects. The Board
requires every campus dedicate a minimum of 1.5 percent of
the facility value to its maintenance funding. She
explained the difference between major R & R and daily
maintenance.
She reported that the university has dedicated funds to
maintain facilities, but due to the aging of the facilities
major R & R is needed. She went on to say that there is a
backlog of $700 million in major R & R. She explained that
the request represents long-term planning for facilities.
Co-Chair Stedman requested more information about Project #
45648. Ms. Pitney said the funds were to upgrade the
Butrovich Data Center Office of Information Technology. The
$1 million receipt authority is a shared renovation project
with The Arctic Region Super Computer.
Project #45644
UA-Fairbanks and Tanana Valley Campus Annual Capital Renewal
and Renovation Requirement
$19,587,419
She explained that the allocation of the $50 million is
based on space and age of facility. She acknowledged that
there are more requests than the total appropriation can
accommodate. She provided examples. In Fairbanks there are
four projects that would be addressed because not all
projects on the list can be renovated this year.
Co-Chair Hoffman asked how much the various phases for the
Arctic Health Research Building cost.
MARK WOHLFORD, SENIOR PROJECT MANAGER, UNIVERSITY OF ALASKA,
FAIRBANKS (UAF), responded that the first phase cost $5.7
million, phase 3 is about $7-$8 million, and phase 4 will be
approximately $25-$30 million. Co-Chair Hoffman requested
information about the timeframe for phases 3 and 4. Mr.
Wohlford replied that phase 3 is scheduled for FY 2011 and
phase 4 is scheduled for FY 2013.
Co-Chair Hoffman summarized that the project totals in
excess of $70 million in repairs. Mr. Wohlford agreed.
Senator Elton wanted to know how management decisions are
made with regards to which fisheries research projects occur
in the UAF building and which ones occur in the new Juneau
Fisheries Lab next to the NOAA Lab. Ms. Pitney offered to
get back to the Committee with that information.
Ms. Pitney explained the phases of the renovation of the old
Fairbanks Courthouse for UAF. Co-Chair Hoffman asked where
the explanation was located in the University of Alaska
Fiscal Year 2009 Operating & Capital Budget Request book -
"Redbook". Ms. Pitney said it was on pages 34 and 40.
Co-Chair Hoffman asked if the projects were listed in order
of priority. Ms. Pitney said the list was prioritized on
page 34.
Co-Chair Hoffman asked how much were phases 1 and 3 in the
Barnette Exterior Renovation. Mr. Wohlford replied that the
first phase cost $4 million and is being used now. Phase 3
is scheduled for FY 2011 for $14 million. Co-Chair Hoffman
summarized a total of a little over $36 million.
Co-Chair Stedman ask how prioritization is done between
different areas. Ms. Pitney said priorities are based on
several factors, one being whether or not a full project is
ready to go. Each campus has several urgent projects. She
reiterated that the $40 million does not cover beyond the
first few priorities of any campus.
Co-Chair Hoffman asked what the appropriation for the
Kuskokwim campus was last year. Ms. Pitney said it was for
$4 million. Co-Chair Hoffman asked if the Kuskokwim project
was funded last year. Ms. Pitney itemized what had been
funded for Kuskokwim. She listed the prioritized
appropriations.
3:08:28 PM
Project #45645
UAF-Community Campuses Annual Capital Renewal and Renovation
Requirement
$677,403 AK Cap Inc
Ms. Pitney reported on the funding that would be directed
toward critical deferred renewal at the Northwest Campus.
Co-Chair Hoffman asked how far down the list this
appropriation goes. Ms. Pitney responded that it goes a
quarter of the way into the first project. Co-Chair Hoffman
asked if other projects are partially funded. Ms. Pitney
said that they are this year, but they were not last year.
Co-Chair Hoffman asked why community campuses are not high
on the list. Ms. Pitney reiterated that the priorities are
based on space and age of facility. She explained how full
projects are executed.
Co-Chair Hoffman inquired, of the $100 million being
requested, if the $677,000 is for rural community campuses.
Ms. Pitney clarified that the amount is $677,000 under a $40
million scenario and only the top one or two priorities are
addressed. She noted that the list on page 34 equals a
total of $700 million over several years.
Project #45646
UA-Juneau Annual Capital Renewal and Renovation Requirement
$10,200,000 AK Cap Inc
Ms. Pitney explained that this project has been on the R & R
list for 10 years. The use of the facility is changing from
the school of fisheries research facility to the primary
science building for UAS.
Senator Elton noted that if this issue had been addressed
sooner, it would have cost less. He referenced project item
#45326 and quoted, "allows appropriate flexibility to adjust
the scope of work" and "with FY 09 funding and complete the
projects with future year funding." He thought the language
imprecise and would allow the projects too easily to be
phased in. He requested some assurance that the Anderson
facility would be completed.
Ms. Pitney said it is the intention to move the Anderson
project to completion. Ms. Pitney explained that the
language was needed to provide some flexibility in the four
Fairbanks priorities. Senator Elton clarified that the
wording "adjust the scope of work" is not referring to the
Anderson Building. Ms. Pitney agreed.
JOHN PUGH, CHANCELLOR, UNIVERSITY OF ALASKA, SOUTHEAST,
supplied specifics of the dialog around the Anderson
building and its completion, as it has been on the books for
some time.
Co-Chair Stedman asked if the allocation would be the same
if the appropriation were $70 million. Ms. Pitney related
that the allocations would be based on the square footage of
the buildings. The distribution would follow the
established criteria, as shown on page 30 of the Redbook.
3:16:29 PM
Project #45647
UAS-Community Campuses Annual Capital Renewal and Renovation
Requirement
$356,392 AK Cap Inc
Co-Chair Stedman noted that Ketchikan and Sitka have a total
of $5.7 million in projects. He asked how long the wait
would be to fund these smaller projects. Ms. Pitney noted
that the Ketchikan facility has been almost completely
refurbished.
Mr. Pugh pointed out that the Sitka project comes under the
$70 million scenario and would be fully funded. The Paul
Building is part of the $50 million scenario.
3:19:17 PM
Project #45642
UAS-Anchorage Annual Capital Renewal and Renovation
Requirement
$7,255,548 AK Cap Inc
Ms. Pitney listed the Anchorage priorities: UAA Campus Roof
Replacement, UAA Fire Alarm Panel Upgrade, UAA Gas
Extraction System at Merrill Field, and UAA Campus Heating,
Ventilation, and Air Conditioning (HVAC) Upgrades. These
represent the top 4 priorities of the 20 listed on page 33
of the Redbook.
Senator Thomas asked if the same criteria are used as they
have been in the past. Ms. Pitney confirmed; the added
criterion is program usefulness. She added that if it is a
safety issue it needs to be fixed or shut down.
3:23:45 PM
Project #45643
UAA-Community Campuses Annual Capital Renewal and Renovation
Requirement
$1,423,238 AK Cap Inc
Ms. Pitney explained the two-part request: fire system
upgrades and cable plant renewal. She added that there
would be further requests if it is funded at $70 million.
Co-Chair Stedman asked about technology issues, specifically
the acquisition of fiber optics. He wondered if there is a
need for funds for that purpose. Mr. Pugh said for
Southeast campuses, the cable systems are fine and ready to
be hooked up to the new system. He noted that 30 percent of
students at Sitka and Ketchikan are enrolled in distance
education.
Ms. Pitney reported on future scenarios relating to funding
R & R. She emphasized adequate and consistent R & R
funding.
3:28:53 PM
Project #43218
Planning, Design, and Capital Projects Receipt Authority
$20,000,000 University Receipts
Ms. Pitney outlined the use of the Planning, Design, and
Capital projects receipt authority and provided examples.
She described past projects.
Co-Chair Stedman requested clarification about the potential
receipt authority needed from FY 2009 to FY 2014, instead of
from FY 2009 to FY 2010. Ms. Pitney explained that it was
established on a 6-year horizon. There are no particular
projects in mind; however, the idea is to make the request
for the authority, so when small projects come up they can
be funded.
Co-Chair Stedman asked if the number was cut in half, would
the University be able to add funds later. Ms. Pitney
explained that there is no revenue in hand requiring the
authority; it was a matter of timing.
3:32:40 PM
Project #45339
UAA Small Business Development Center
$550,000 General Funds
Ms. Pitney related that this request has always been in the
capital budget. There is a move in the House to move it to
the operating budget. The University has no preference, but
thought it was more appropriate in the operating budget.
Co-Chair Stedman asked why this item was not at the top of
the priority list. Ms. Pitney explained that this request
is a traditional capital appropriation, a "must".
Co-Chair Stedman suggested that it be listed as a top
priority.
3:34:06 PM
Project #43209
UAA Student Housing - Phase 2
$7,900,000 University Receipts
Ms. Pitney explained that additional funding would be needed
to complete this project. The housing fees cover the bond
payments on housing structure and cannot fund the full
amount that would be required. She noted that the request
is listed under additional capital needs.
Co-Chair Stedman asked for comments on the challenge of
deciding which requests to fund if there are limited funds.
Ms. Pitney shared that the Board of Regents' priorities are
clear: maintaining existing facilities is the number one
priority. She informed the Committee of the financial
benefits leveraged by research, which is dependent on space.
She explained the current ratio of space to research. The
University is maxed out on space, so a financial investment
in new facilities is needed in order to increase research.
Co-Chair Stedman asked for an explanation of bonding for
some of the larger requests. Ms. Pitney replied that
General Obligation bonds are an acceptable way to finance
new facilities. Revenue bonds and the use of operating
sources are not doable.
3:39:00 PM
Co-Chair Hoffman asked about the source of funding for
student housing listed in the Redbook on page 45. Ms.
Pitney replied that the $9.720 million is not included in a
budget, therefore even if the receipt authority of $7.9
million is received, the project could not go forward.
Project #45331
UAF Alaska Regional Research Vessel Additional Receipt
Authority
$45,000,000 Federal Receipts
Ms. Pitney said this is fully funded with federal dollars.
The request is the remainder of the federal receipt
authority to cover the construction of the research vessel.
It is a National Science Foundation project and the School
of Fisheries is the lead contract.
Co-Chair Stedman asked where the ship is located and where
and when funds would be requested.
3:41:38 PM
Ms. Pitney explained that the construction of the ship is in
the design phase. Once it goes to bid, it is three years to
operation. It would be docked at the Seward facility where
the School of Fisheries has a research facility. She noted
that the University operates and maintains the ship;
however, the ship contracts out for use by the scientific
community nationwide. Operating costs would be externally
funded.
Co-Chair Stedman asked why the ship would not be located in
Juneau.
Mr. Pugh said he was not clear why the decision was made for
the ship to be located in Seward, except that perhaps the
ship would often go out to the Bering Sea. Seward is closer
than Juneau to the Bering Sea.
3:45:14 PM
Senator Olson asked how far out the agreement with the
National Science Foundation goes. Ms. Pitney said those
details could be provided at a later date. She added that
the lifespan of the ship was the duration of the last
agreement.
Senator Elton asked if the cost of the dock facilities could
be done through bonding. Ms. Pitney explained that she did
not think that possible due to set operating costs. She
offered to look further into that.
Co-Chair Stedman suggested that some docks are dormant in
the winter, so the ship could be docked elsewhere.
3:47:53 PM
Senator Elton asked how much is being spent on charter
vessels. Ms. Pitney said the expenses would be associated
with research grants and are generally built into the grant.
Senator Dyson assumed there were federal rules prohibiting
the use of surplus moorage. Ms. Pitney informed the
Committee that she could provide further information.
3:50:14 PM
Ms. Pitney referred to a list of BOR Priority Capital Needs
on page 29 of the Redbook. The Anchorage Health Sciences
Building, which hadn't been previously mentioned, is one of
the top priorities.
Co-Chair Hoffman commented that campuses other than
Anchorage, Fairbanks, and Juneau are doing well in the
capital budget; however, rural campuses are being ignored.
AT EASE: 3:51:46 PM
RECONVENED: 4:10:51 PM
DEPARTMENT OF PUBLIC SAFETY
4:11:32 PM
DAN SPENCER, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF PUBLIC SAFETY, addressed the project request
list. He noted a revised priority list dated 3/13 (copy on
file.)
Project #40007
Anchorage Aircraft Hangar Replacement
$3,000,000 General Funds
JOHN GLASS, DEPUTY COMMISSIONER, DEPARTMENT OF PUBLIC
SAFETY, explained the history of the Anchorage Aircraft
Hangar. In the past several years, OSHA has failed numerous
areas of the hanger and the storage facility was condemned.
He added that recently the city of Anchorage notified the
department that the two office buildings are in violation of
municipal code and have been given a one-year period of
grace. The request is for a new hanger on the present
building space.
4:15:27 PM
Mr. Spencer explained the details of the repairs needed.
Project #6121
Aircraft Vessel Repair and Maintenance
$1,000,000 General Fund
Mr. Spencer said that this is an annual request. He noted
that backup was provided to the members and some
circumstances have changed since the organizing of requests.
Project #37774
AST Law Enforcement Equipment Replacement
$500,000 General Funds
Mr. Spencer outlined the specifics of the equipment used by
the Alaska State Troopers.
Project #41788
Facilities Deferred Maintenance, Repairs, and Improvements
$1,715,000
Mr. Spencer noted a variety of allocations. The first two
refer to the aircraft hanger project #6121. Until the new
hanger is built, the old one must be maintained. The design
cost of the new Lake Hood Aircraft hanger is listed
separately. The design and construction costs could be
combined.
4:19:28 PM
Senator Olson asked where the new hangar would be. Mr.
Spencer said the intent is to use existing land. Senator
Olson asked if there is space for it there. Mr. Glass
responded with details regarding the building of the new
hangar.
Senator Olson asked if the master plan for the Anchorage
airport has approved the project. Mr. Glass said they had
not talked to the airport directly. He noted that the
property belongs to DPS. Senator Olson related that there
are height restrictions. He wanted to know about long-term
plans for building future hangers. Mr. Glass reported that
due to the numbers of planes on floats, there is a need for
hanger space at Lake Hood.
4:21:43 PM
Mr. Spencer turned to the allocation for Crime Lab facility
repair and improvements including security system upgrade
and fuel storage tank replacement.
Mr. Spencer reported that the Bethel office repair and
renovation would include wiring, insulation, energy
efficient windows, and related refurbishment and a security
system at the Trooper Post.
Mr. Spencer described the Dillingham office foundation
repair and renovation, underground storage tank removal.
Mr. Spencer addressed the Fairbanks state trooper post
repair/renovation including HVAC, water heater replacement,
ceiling and light replacement, and evidence cold-storage
construction.
Mr. Spencer explained the Ketchikan trooper office deferred
maintenance including roof replacement, waterline
repair/replacement. The facility was acquired three years
ago and the roof has always been problematic.
4:23:36 PM
Mr. Spencer reported on the allocation for $383,958 for the
rural trooper office and housing repairs. He explained that
maintaining facilities in rural areas is costly. Money
would be reallocated as necessary.
Mr. Spencer related that the next allocation was for the
Sitka training academy repair/renovation including heating
control upgrades.
Mr. Spencer explained that the last allocation is for the
Soldotna state trooper post facility deferred
maintenance/repair/renovation/improvements including fire
alarm and lighting upgrades and impound lot construction.
Project #AMD45300
AWT Law Enforcement Equipment Replacement
$475,000 General Funds
Mr. Spencer described the allocation as an equipment request
in order to "keep doing our jobs." He noted that the
allocation could change during the course of the year.
Project #AMD45337
AST Mobile Data Computers
$480,000 General Funds
Mr. Spencer noted the companion projects. The intent is to
establish a data system and get away from the paper-based
reporting system.
Senator Dyson mentioned a spin-off of the data system which
could identify whether there is a parolee or foster child at
a residence. Mr. Spencer deferred to Mr. Holloway who
concurred.
4:28:06 PM
Co-Chair Hoffman asked if this appropriation includes
training on the new system. Mr. Spencer said no.
AUDIE HOLLOWAY, COLONEL, DIRECTOR, DIVISION OF ALASKA STATE
TROOPERS, DEPARTMENT OF PUBLIC SAFETY, said that training
can be accommodated with present funds. Co-Chair Hoffman
asked if the funds requested would cover all trooper
vehicles.
Mr. Holloway said that it would accommodate most vehicles.
Co-Chair Hoffman asked if it would be more than 80 percent.
He also wanted to know which areas of the state would have
these computers installed. Mr. Holloway clarified that they
would be statewide.
Senator Olson asked if the troopers in Emmonek would have
the computer in their vehicles. Mr. Holloway said they
would. Mr. Holloway explained all the services the computer
can provide.
4:30:57 PM
Senator Olson asked if other law enforcement agencies are
using this type of system. Mr. Holloway reported that
almost all other law enforcement agencies are using this
system.
Project #42920
Fire Training Engine for Southeast Regional Training Center
$350,000 General Funds
Mr. Spencer explained that in FY 06 a training engine in
Fairbanks was funded. It is essential for firemen to have
training equipment to work on that is new. This training
engine would be located in Southeast Alaska.
Senator Olson asked if the fire engine would be also used
for fighting fires. Mr. Spencer said it is only for
training.
Project #45325
Crime Laboratory Equipment Replacement
$100,000 General Funds
Mr. Spencer said the project would replace aging and
outdated equipment. He explained how equipment replacement
works.
Project #45304
AST Communication Equipment
$500,000 General Funds
Mr. Spencer reported that the allocation would allow the
department to buy additional portable vehicle mounted,
vessel mounted, and aircraft mounted radios, and transition
to Alaska Land Mobile Radios (ALMR).
4:33:50 PM
Senator Elton clarified that this equipment replacement is
phase 1. He asked what the expected costs for the other
phases would be. Mr. Spencer said there will be additional
costs, but they are not known.
Senator Huggins said there is some skepticism regarding how
much ALMR will cost. He noted concern with this.
Mr. Spencer understood the concern. The fact is that there
is uncertainty regarding costs. Senator Huggins understood
there are hardware costs and user costs. Mr. Spencer
agreed. He listed the governance concerns.
Senator Huggins asked if there are multiple vendors for the
equipment. Mr. Spencer said there are.
4:39:00 PM
Senator Elton noted that the rational states "these funds
would also support efforts to carry ALMR into areas where it
is not currently available to troopers." He assumed that
does not include paying for costs for the ground
infrastructure. He wondered if it is attempt to expand the
area covered by ALMR.
4:40:55 PM
Mr. Spencer said he would get back to the Committee with
that information. He noted communication issues even
outside the major grid. Senator Elton concluded that the
funds would not be used for transmitters or for expanding
the geographical area in which ALMR is available. Mr.
Spencer concurred.
Project #45524
Facilities Engineering Assessments, Repair, and Improvements
$350,000 General Funds
Mr. Spencer said there needs to be a comprehensive look at
all facilities and a long-range plan developed. It has been
15 years since that was done.
Project #45319
Fairbanks Regional Fire Training Center Burn Building
$395,000 General Funds
Mr. Spencer reported that they would like to build a new
two-story fire building for training.
Co-Chair Stedman asked how many fire training burn buildings
there are in the state.
DAVE TYLER, DIRECTOR, STATE FIRE MARSHALL, DIVISION OF FIRE
PREVENTION, DEPARTMENT OF PUBLIC SAFETY, said there is one
in Juneau that is state funded and this one is being
requested in Fairbanks. Mr. Spencer clarified that there is
an existing training center in Fairbanks.
Project #35825
Marine Fisheries Patrol Improvements
$2,000,000 Federal Receipts
Mr. Spencer reported that this has been included in the
capital budget, but may belong in the operating budget.
Some of the funding will cross state fiscal years. It has
been used as a capital project.
Project #38479
Rural Law Enforcement Training and Equipment
$1,000,000 Federal Receipts
Mr. Spencer reported that this is federal funds and includes
training for village police officers and tribal police
officers.
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