Legislature(2013 - 2014)SENATE FINANCE 532

02/19/2013 09:00 AM FINANCE

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09:02:19 AM Start
09:03:32 AM SB18
09:03:32 AM Department Overview: Alaska Court System
09:15:53 AM Department Overview: Department of Public Safety
09:40:33 AM Department Overview: Department of Law
09:49:15 AM Department Overview: Department of Corrections
09:53:21 AM Department Overview: University of Alaska
10:18:40 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Heard & Held
Alaska Court System
Department of Public Safety
Department of Law
Department of Corrections
University of Alaska
Bills Previously Heard/Scheduled
SENATE BILL NO. 18                                                                                                            
     "An  Act   making  appropriations,   including  capital                                                                    
     appropriations   and   other   appropriations;   making                                                                    
     appropriations to  capitalize funds; and  providing for                                                                    
     an effective date."                                                                                                        
9:03:32 AM                                                                                                                    
^DEPARTMENT OVERVIEW: ALASKA COURT SYSTEM                                                                                     
9:03:32 AM                                                                                                                    
DOUG WOOLIVER, DEPUTY  ADMINISTRATIVE DIRECTOR, ALASKA COURT                                                                    
SYSTEM,  (COURT)  discussed  the PowerPoint,  "Alaska  Court                                                                    
System, Senate  Finance Capital Projects Overview"  (copy on                                                                    
Mr. Wooliver discussed slide 2, "SB 18 Court Projects -                                                                         
     -Anchorage Campus Court Renovation                                                                                         
     -Electronic Filing/Records Management System                                                                               
     -Juneau Superior Court Remodel                                                                                             
     -Court Security Projects                                                                                                   
     -Deferred Maintenance Projects                                                                                             
Mr. Wooliver looked at slide 3, "Anchorage Campus Court                                                                         
Renovation - 413152."                                                                                                           
     -$6.1 million: complete seven-year remodel of the                                                                          
     Boney Courthouse; extend useful life: minimum 20 years                                                                     
     -Nesbett Courthouse: full to capacity when opened in                                                                       
     -Growth in trial court operations necessitated remodel                                                                     
Mr. Wooliver discussed slide 4, "Anchorage Campus Court                                                                         
Renovation - 413152 (cont.)."                                                                                                   
     -Secure prisoner transport                                                                                                 
     -Construction of holding cells                                                                                             
     -Additional courtrooms                                                                                                     
     -Court proceedings on Saturdays                                                                                            
     -Seismic structural upgrades                                                                                               
Mr. Wooliver highlighted slide 5, "Anchorage Campus Court                                                                       
Renovation - 413152 (cont.)."                                                                                                   
     -Additional $8.32 million needed for Nesbett Remodel                                                                       
     -Additional courtroom and hearing room                                                                                     
     -Accommodate large juries                                                                                                  
     -Relocate Probate Department  and Children's Court from                                                                    
     Boney to Nesbett                                                                                                           
Mr. Wooliver discussed slide 6, "Electronic Filing/Records                                                                      
Management System - 52410"                                                                                                      
     -$5.9 million for second phase of multi-year project                                                                       
     -Electronic  transmission  of  documents with  goal  of                                                                    
     moving to "paperless"                                                                                                      
     -Electronic exchange  of data between  justice agencies                                                                    
     (Law, DPS, Munis, Cities)                                                                                                  
     -Improved  justice  system efficiencies  and  potential                                                                    
     cost savings                                                                                                               
9:08:38 AM                                                                                                                    
Mr. Wooliver looked at slide 7, "Juneau Superior Court                                                                          
Remodel - 57097."                                                                                                               
     -$998,600  -  Addition  of  courtroom  and  grand  jury                                                                    
     hearing room                                                                                                               
     -Current hearing  room too  small to  accommodate grand                                                                    
     -Second  highest superior  court  filings per  superior                                                                    
     court judge                                                                                                                
     -Increase operational  efficiency and reduce  delays in                                                                    
     cases and hearings                                                                                                         
Mr. Wooliver discussed slide 8, "Court Security Projects -                                                                      
     -SB  18  includes  $1.3 million  of  the  $5.1  million                                                                    
     requested - statewide, multi-year project                                                                                  
     -Physical security  for public, judges,  staff, jurors,                                                                    
     and others court users                                                                                                     
     -Integrate security operations  and technology with the                                                                    
Mr. Wooliver highlighted slide 9, "Court Security Projects                                                                      
(cont.) - 47151."                                                                                                               
     -Access control and physical barriers                                                                                      
     -Badging systems, screening  equipment, single point of                                                                    
     entry, cameras                                                                                                             
     -Segregated prisoner  delivery paths and  elevators and                                                                    
     security fencing around court perimeters                                                                                   
     -Ballistic shielding  for judicial benches  and clerks'                                                                    
     -Duress  alarms,  surveillance   systems,  and  holding                                                                    
9:11:27 AM                                                                                                                    
Co-Chair  Meyer  wondered  if  the  Anchorage  Campus  Court                                                                    
Renovation  was contained  in  the  governor's request.  Mr.                                                                    
Wooliver  replied that  $6.1 million  was  requested by  the                                                                    
governor,  and  would  finish  the  remodel  for  the  Boney                                                                    
Courthouse.  He furthered  the $8.3  million for  the Nesbit                                                                    
Courthouse was  not included, because the  courtrooms needed                                                                    
to be converted into larger courtrooms.                                                                                         
Mr.  Wooliver  looked  at  slide  12,  "Court  Projects  not                                                                    
included in SB18."                                                                                                              
     -Statewide Remodel Projects                                                                                                
     -Replace  Worn  Furnishings  and Repair  Specialized  -                                                                    
     Finishes in Public Use Spaces                                                                                              
     -Statewide Building  Code and Energy Upgrade  for Court                                                                    
     -Conversion of Audio Records to  Digital Format - Phase                                                                    
Mr.  Wooliver  discussed  slide  13,  "Statewide  Remodeling                                                                    
     -Increased  staff efficiency  and  improved access  for                                                                    
     the public                                                                                                                 
     -Reconstruct judicial benches for new technology                                                                           
     -Video link to reduce cost of prisoner Transport                                                                           
Mr. Wooliver  looked at slide 14,  "Replace Worn Furnishings                                                                    
and Specialized Finishes in Public Use Spaces."                                                                                 
     -Upgrades and repairs for  jury rooms, customer service                                                                    
     areas, courtrooms, and libraries                                                                                           
     -Furnishings worn, damaged, and uncomfortable                                                                              
     -Finishes unsafe, unsightly, and losing structural                                                                         
Mr. Wooliver  discussed slide  15, "Statewide  Building Code                                                                    
and Energy Upgrade for Court Buildings."                                                                                        
     -Earthquake bracing                                                                                                        
     -Energy efficient light fixtures                                                                                           
    -Americans with Disabilities (ADA) compliant doors                                                                          
     -Other miscellaneous upgrades for code and ADA                                                                             
Mr.  Wooliver highlighted  slide  16,  "Conversion of  Audio                                                                    
Records to Digital Format - Phase I."                                                                                           
     -Preserve original electronic court records                                                                                
     -Degradation of media (cassette tapes)                                                                                     
     -Transfer media to server                                                                                                  
9:14:34 AM                                                                                                                    
Co-Chair  Meyer wondered  if the  proposed additional  items                                                                    
were necessary.  He felt that  if the governor could  not be                                                                    
convinced, he  hoped that the  committee could  be convinced                                                                    
of  their  necessity.    Mr.   Wooliver  agreed  to  provide                                                                    
convincing information to the committee.                                                                                        
^DEPARTMENT OVERVIEW: DEPARTMENT OF PUBLIC SAFETY                                                                             
9:15:53 AM                                                                                                                    
JOSEPH MASTERS,  COMMISSIONER, DEPARTMENT OF  PUBLIC SAFETY,                                                                    
(DPS)  displayed  the   PowerPoint,  "Department  of  Public                                                                    
Safety, Capital Budget Overview" (copy on file).                                                                                
Commissioner  Masters  discussed  slide 2,  "FY  14  Capital                                                                    
     Modest capital budget request                                                                                              
     $6,982,000 total funds includes                                                                                            
          -$5,782,000 of general funds                                                                                          
          -$1,200,000 of federal authorization                                                                                  
Commissioner  Masters  looked  at  slide  3,  "Aircraft  and                                                                    
Vessel Repair and Maintenance."                                                                                                 
     Annual request                                                                                                             
    $1,800,000 GF to support repair and maintenance of:                                                                         
          -43 aircraft statewide valued at over $21.7                                                                           
          -39 large vessels statewide valued at over $19                                                                        
          -68 smaller vessels statewide valued at over $1                                                                       
Commissioner  Masters  highlighted  slide 4,  "Alaska  State                                                                    
Troopers Law Enforcement Equipment."                                                                                            
     -Annual request                                                                                                            
     -$400,000 GF to purchase new and replacement equipment                                                                     
     -Vehicle   equipment   (radar    units   and   accident                                                                    
     -All-terrain vehicles and snow machines                                                                                    
     -Digital cameras, recorders, computer equipment                                                                            
Commissioner  Masters discussed  slide  5, "Alaska  Wildlife                                                                    
Troopers Law Enforcement Equipment."                                                                                            
     -Annual request                                                                                                            
     -$400,000 GF to purchase new and replacement equipment                                                                     
     -Radar and GPS units                                                                                                       
     -Boats, all-terrain vehicles and snow machines                                                                             
     -Outboard motors and trailers                                                                                              
     -Digital cameras, recorders, computer equipment                                                                            
Commissioner  Masters looked  at  slide  6, "Village  Public                                                                    
Safety Officer Equipment."                                                                                                      
     -Annual request                                                                                                            
     -$400,000 GF to purchase new and replacement equipment                                                                     
     for existing VPSOs                                                                                                         
     -Snow machines and all-terrain vehicles                                                                                    
     -Tasers and uniforms                                                                                                       
9:20:09 AM                                                                                                                    
Co-Chair Meyer queried the difference  between a Taser and a                                                                    
stun gun. Commissioner Masters replied  that "Taser" was the                                                                    
brand of stun gun that DPS was using.                                                                                           
Co-Chair Meyer  wondered if  DPS had  an adequate  number of                                                                    
Tasers.  Commissioner Masters  responded that  DPS currently                                                                    
issued a  number of Tasers  to VPSOs and State  Troopers. He                                                                    
stressed that  Tasers had a  lifespan, and  therefore needed                                                                    
to be upgraded on a regular basis.                                                                                              
Vice-Chair  Fairclough wondered  how  Tasers were  recycled:                                                                    
were   they  put   back  on   the   market,  or   destroyed.                                                                    
Commissioner Masters  believed that  the Tasers  were turned                                                                    
into the manufactures when they expire.                                                                                         
Senator Bishop  looked at  item 45300,  and wondered  if the                                                                    
radar guns  for the wildlife  safety officers were  used for                                                                    
traffic  monitoring.  Commissioner  Masters  responded  that                                                                    
some wildlife safety officers were  assigned to some traffic                                                                    
Senator Bishop noted that DPS  had 68 small vessels under 20                                                                    
feet, and wondered if any  of the wildlife troopers used the                                                                    
small  vessels.   Commissioner  Masters  replied   that  the                                                                    
wildlife troopers  used the small  vessels, but  those small                                                                    
vessels  did  not  include the  safety  equipment  that  was                                                                    
attached to the large vessels.  He furthered that funds were                                                                    
utilized for major repairs for the vessels.                                                                                     
Vice-Chair  Fairclough felt  that there  were many  items in                                                                    
the bill  that should  have been  included in  the Operating                                                                    
Senator Olson stressed that the  weapons had a limited shelf                                                                    
life, and wondered  why the requests were not a  part of the                                                                    
Operating  Budget. Commissioner  Masters responded  that the                                                                    
items had historically been in the capital budget.                                                                              
Senator Olson felt that the  DPS equipment requests were not                                                                    
commonly a part of the Capital Budget.                                                                                          
Co-Chair  Meyer felt  that the  requests should  be properly                                                                    
organized  between  the  Capital Budget  and  the  Operating                                                                    
9:26:32 AM                                                                                                                    
Commissioner   Masters  discussed   slide   7,  "New   APSIN                                                                    
Transitional Contract Support."                                                                                                 
     -$975,000 GF one time request                                                                                              
     -Alaska Public Safety Information Network (APSIN) is                                                                       
     critical law enforcement information database                                                                              
     -July  2013  production  of   server  based  system  to                                                                    
     replace mainframe based system                                                                                             
     -Transitional year from contractor to department staff                                                                     
Commissioner Masters looked at slide 8, "Bethel Public                                                                          
Safety Hangar Repair and Renovation."                                                                                           
     -Phased request of $300,000 GF                                                                                             
     -30 year old hangar with 10,000 square feet                                                                                
     -Storage  of 4  DPS  aircraft and  2  Civil Air  Patrol                                                                    
     -Electrical,  mechanical,  heating and  energy  repairs                                                                    
     based on 2011 engineers report                                                                                             
Commissioner Masters displayed slide 9, "Marine Fisheries                                                                       
Patrol Improvements."                                                                                                           
     -Annual  request  of $1,200,000  federal  authorization                                                                    
     from NOAA                                                                                                                  
     -Joint  Enforcement   Agreement  (JEA)   with  National                                                                    
     Marine Fisheries Service                                                                                                   
     -Equipment and  support of Alaska Wildlife  Troopers in                                                                    
     coastal communities                                                                                                        
Commissioner Masters discussed slide 10, "Alaska Wildlife                                                                       
Troopers Enforcement Activities."                                                                                               
     -One-time request  of $200,000  of criminal  fines from                                                                    
     the Fish and Game fund                                                                                                     
     -Support marine  enforcement program  with surveillance                                                                    
     platforms and equipment                                                                                                    
     -Criminal restitution funds from P/V Pavloff case                                                                          
     -Supported by Fish and Game                                                                                                
Commissioner Masters looked at slide 11, "Deferred                                                                              
Maintenance, Renewal, Repair and Equipment."                                                                                    
     -Annual request of $1,307,000 GF                                                                                           
     -Over 160 facilities in 66 locations                                                                                       
     -Over  $6  million   backlog  in  deferred  maintenance                                                                    
     -Electrical, mechanical, energy and security projects                                                                      
     -Four allocations listed on next page                                                                                      
Commissioner   Masters   displayed   slide   12,   "Deferred                                                                    
Maintenance, Renewal, Repair and Equipment - Allocations."                                                                      
     -Fairbanks detachment repair and maintenance $225,000                                                                      
     - security improvements and public restrooms                                                                               
     -Sitka training academy energy upgrades $225,000 -                                                                         
     energy and lighting improvements                                                                                           
     -Rural trooper housing repair and improvements 225,000                                                                     
     - siding/window replacement and security improvements                                                                      
     -Statewide facilities deferred maintenance $632,000 -                                                                      
     emergency        generators,        security        and                                                                    
     electrical/mechanical repairs                                                                                              
9:31:54 AM                                                                                                                    
Co-Chair Meyer stated  that that he was the  chairman of the                                                                    
Department of  Commerce, Community and  Economic Development                                                                    
(DCCED) subcommittee. He stated  that there was an increment                                                                    
of the transfer of the  Alcohol Beverage Control (ABC) Board                                                                    
from  DPS  to DCCED,  so  there  should be  a  corresponding                                                                    
savings  in DPS.  He  understood that  it  was an  Operating                                                                    
Budget  item,  so  he  would  save  that  issue  until  that                                                                    
Vice-Chair  Fairclough referred  to slide  7, and  commented                                                                    
that   the   federal    government   collected   statistical                                                                    
information  from states  when they  issue murder  and other                                                                    
crime  statistics.  She queried  the  name  of that  system.                                                                    
Commissioner  Masters  responded  that it  was  the  Uniform                                                                    
Crime  Reporting  (UCR)  system,   which  was  an  index  of                                                                    
selected  major crimes  that allowed  for  states to  access                                                                    
crime rate statistics in specific areas.                                                                                        
Vice-Chair   Fairclough  wondered   if   the  $975,000   was                                                                    
affecting  the system  in  how Alaska  reports  to the  UCR.                                                                    
Commissioner Masters  replied that  it would not  affect UCR                                                                    
reporting,  but   it  would   affect  Alaska's   ability  to                                                                    
interface   with   the   new  records   manage   system   to                                                                    
automatically report.                                                                                                           
Vice-Chair Fairclough wondered if  DPS was hand reporting or                                                                    
digitally  transmitting  information   for  the  UCR  codes.                                                                    
Commissioner  Masters replied  that DPS  was hand  verifying                                                                    
the  reported information  delivered to  DPS by  the various                                                                    
police agencies across the state.                                                                                               
Vice-Chair Fairclough  remarked that she worked  at Standing                                                                    
Together  Against Rape  (STAR), and  had consistently  asked                                                                    
why the  State of  Alaska did  not digitize  and standardize                                                                    
the way  that data and  information was collected.  She felt                                                                    
that  Alaska needed  its own  way  of digitizing  reporting,                                                                    
because  the UCR  only used  the most  extreme crime;  other                                                                    
associated  crimes  would   not  be  a  part   of  the  UCR.                                                                    
Commissioner Masters                                                                                                            
9:36:28 AM                                                                                                                    
Vice-Chair Fairclough wondered if  and when the system could                                                                    
be more comprehensive and cost  effective. She stressed that                                                                    
she had  been working on the  issue for more than  a decade.                                                                    
She  stressed  the  importance   of  local  law  enforcement                                                                    
agencies  partnering  with the  State  system,  in order  to                                                                    
electronically  transmit  the  information to  the  national                                                                    
system. Commissioner  Masters responded  DPS could  and will                                                                    
adapt  to a  system that  was more  cost effective  that may                                                                    
provide services  to the local  law enforcement  agencies at                                                                    
low  or no  cost.  He  furthered that  there  could also  be                                                                    
imputative measures  of withholding state grants  from those                                                                    
agencies  that  do  not participate  in  a  data  collection                                                                    
Co-Chair   Meyer   agreed   with   Vice-Chair   Fairclough's                                                                    
concerns, specifically  related to procurement.  He stressed                                                                    
the importance  of being electronically compatible.  He felt                                                                    
that a universal electronic system  should be a goal for DPS                                                                    
and all law enforcement agencies across the state.                                                                              
Commissioner  Masters shared  that  DPS was  re-constituting                                                                    
the Criminal  Justice Information  Advisory Board,  in order                                                                    
to  discuss information  sharing  data  systems and  uniform                                                                    
platforms to share data.                                                                                                        
Vice-Chair    Fairclough    expressed    appreciation    for                                                                    
Commissioner Masters's leadership.                                                                                              
Co-Chair Meyer  would like  to see  a centralized  effort to                                                                    
streamline data  sharing, while also understanding  the cost                                                                    
of such upgrades.                                                                                                               
^DEPARTMENT OVERVIEW: DEPARTMENT OF LAW                                                                                       
9:40:33 AM                                                                                                                    
RICHARD   SVOBODNY,   DEPUTY  ATTORNEY   GENERAL,   CRIMINAL                                                                    
DIVISION,  DEPARTMENT OF  LAW, (DOL)  explained that  he did                                                                    
not provide  a PowerPoint presentation because  DOL only had                                                                    
two  items  in  the  capital budget  that  were  related  to                                                                    
RN 56509                                                                                                                        
Electronic Data Sharing                                                                                                         
Mr. Svobodny  explained that this project  will implement an                                                                    
electronic  data  sharing  system to  interface  with  other                                                                    
criminal justice  entities within the State  of Alaska. This                                                                    
system  will allow  for the  efficient transfer  of criminal                                                                    
justice  data  between   multiple  agencies,  including  the                                                                    
Department of  Law, the Alaska Court  System, the Department                                                                    
of Public Safety, the Department  of Revenue, the Department                                                                    
of  Health   &  Social   Services  and  the   Department  of                                                                    
Administration. This  supports the Governor's  priorities by                                                                    
facilitating   Law's  mission   of  public   protection  and                                                                    
successfully  prosecuting both  civil  and criminal  matters                                                                    
via the efficient sharing of  data between multiple criminal                                                                    
justice minded entities.                                                                                                        
RN 56972                                                                                                                        
New Case Management System                                                                                                      
Mr.  Svobodny  stated  that  this  project  will  allow  the                                                                    
Department of  Law to acquire  and implement a  new criminal                                                                    
case management  system. This is  a full  system replacement                                                                    
to be provided  by a third party vendor.  The current system                                                                    
needs to be  replaced because vendors no  longer support the                                                                    
underlying   infrastructure.   Should   the   current   case                                                                    
management system  fail, it  would significantly  impact the                                                                    
department's  ability to  efficiently prosecute  cases. This                                                                    
project supports  the Governor's priorities  by facilitating                                                                    
the   department's   mission   of  public   protection   and                                                                    
successfully  prosecuting  criminal  matters,  e.g.,  sexual                                                                    
assault and family violence cases.                                                                                              
^DEPARTMENT OVERVIEW: DEPARTMENT OF CORRECTIONS                                                                               
9:49:15 AM                                                                                                                    
LESLIE   HOUSTON,   DEPUTY   COMMISSIONER,   DEPARTMENT   OF                                                                    
CORRECTIONS,  (DOC)  highlighted  the capital  requests  for                                                                    
RN 50675                                                                                                                        
Regional  and  Community   Jails  Repairs,  Renovations  and                                                                    
Ms. Houston  explained that this project  provides essential                                                                    
safety and  security repairs, renovation, and  equipment for                                                                    
15 local government  jails under contract with  the State of                                                                    
Alaska,  Department  of  Corrections.  These  jails  require                                                                    
repairs and modifications to  continue operations in support                                                                    
of the Department of Correction's  mission to provide secure                                                                    
offender confinement, thus enhancing community safety.                                                                          
RN 45637                                                                                                                        
Annual Facilities Maintenance and Repairs                                                                                       
Ms.  Houston  stated  that this  project  provides  renewal,                                                                    
replacement,   renovation,   remodeling,   and   repair   of                                                                    
essential electrical,  mechanical, roofing, walls,  fire and                                                                    
life  safety, security,  structural, food  service, pavement                                                                    
and site  drainage systems  at all  correctional facilities.                                                                    
This  work  is  required  to  enable  continued  secure  and                                                                    
efficient operation of  the 24-hour incarceration facilities                                                                    
in order  to keep the  community safe from  offenders placed                                                                    
in the department's custody.                                                                                                    
9:49:40 AM                                                                                                                    
RN 49376                                                                                                                        
Deferred Maintenance, Renewal, Repair and Equipment                                                                             
Ms. Houston  explained that  this project  provides critical                                                                    
maintenance for  117 state-owned buildings. It  will address                                                                    
deferred    maintenance    requirements   for    electrical,                                                                    
mechanical,  roofing, walls,  safety, security,  structural,                                                                    
pavement and  site drainage systems.  This work  is required                                                                    
to enable  continued secure and  efficient operation  of the                                                                    
24-hour  incarceration  facilities  in  order  to  keep  the                                                                    
communities safe  from offenders placed in  the department's                                                                    
Co-Chair  Meyer wondered  if there  were any  current budget                                                                    
items  related  to  the  Goose  Creek  Prison.  Ms.  Houston                                                                    
responded  that there  were no  current budget  requests for                                                                    
Goose Creek.                                                                                                                    
Vice-Chair  Fairclough  wondered   if  the  transaction  was                                                                    
complete to increase  the perimeter of the  land by Highland                                                                    
Correctional Center.  Ms. Houston  replied that  the project                                                                    
was almost  complete. She furthered that  January, 29, 2013;                                                                    
the Anchorage  Assembly had a  unanimous vote  that approved                                                                    
the transaction.  She stated that DOC  was currently waiting                                                                    
for  snow and  ice to  melt in  order to  locate the  survey                                                                    
markers to conduct the appraisal.                                                                                               
Senator Olson queried the status  of the holding facility or                                                                    
jail in Kotzebue.   Ms. Houston responded  that Kotzebue had                                                                    
maintained  their  contract  through the  fiscal  year.  She                                                                    
furthered that  there was an  item in the  Operating Budget,                                                                    
which  was phase  two to  complete the  project. She  stated                                                                    
that  DOC had  allocated  money to  make  all the  community                                                                    
jails  whole   in  their  requests  and   expenditures.  She                                                                    
explained  that DOC  wanted to  enter a  five year  contract                                                                    
with  the  jails with  one  year  option  to renew,  with  a                                                                    
consumer price index for the areas  to keep up with the cost                                                                    
of living increases.                                                                                                            
^DEPARTMENT OVERVIEW: UNIVERSITY OF ALASKA                                                                                    
9:53:21 AM                                                                                                                    
PATRICK  GAMBLE,  PRESIDENT,   UNIVERSITY  OF  ALASKA,  (UA)                                                                    
discussed University of Alaska  FY 14 Capital Budget Request                                                                    
Summary,  UA  Board  of   Regents'  compared  to  Governor's                                                                    
Proposed" (copy  on file).  He stated  that there  were only                                                                    
two capital requests in UA's budget.                                                                                            
MICHELLE RIZK, ASSOCIATE  VICE PRESIDENT, STATEWIDE PLANNING                                                                    
AND BUDGET, UNIVERSITY OF ALASKA,  thanked the committee for                                                                    
allowing UA to present their budget requests.                                                                                   
RN 45326                                                                                                                        
Deferred Maintenance, Renewal, Repair and Equipment                                                                             
Ms.  Rizk explained  that this  is  the fourth  year of  the                                                                    
Governor's  five-year plan  to reduce  the State's  deferred                                                                    
maintenance  backlog,  and  this   project  will  allow  the                                                                    
University  of Alaska  to continue  addressing their  system                                                                    
wide  maintenance  backlog.  The  highest  priority  DM  and                                                                    
Restore and  Renewal projects at  the main campuses  are the                                                                    
UAA  Beatrice  McDonald  Building in  Anchorage,  UAF  Cogen                                                                    
Heating  Plant  Required  Upgrades to  Maintain  Service  in                                                                    
Fairbanks, and  UAS Auke Lake Way  Campus Entry Improvements                                                                    
and Road  Realignment in Juneau.  The UA owns  and maintains                                                                    
over 400 buildings, totaling 6.7  million gross square feet,                                                                    
with an adjusted value that currently exceeds $2.5 billion.                                                                     
RN 57085                                                                                                                        
UAF  Cold   Climate  Housing  Research   Center  Sustainable                                                                    
Village Phase 2-4                                                                                                               
Ms.  Rizk stated  that  in 2008,  the  University of  Alaska                                                                    
Fairbanks  (UAF)  identified  the  need  to  create  a  more                                                                    
sustainable    campus.   Since    then,   the    Office   of                                                                    
Sustainability  was created  as  a  partnership between  the                                                                    
Chancellor's  Office  and  the  UAF student  body  with  the                                                                    
shared  goal of  creating a  sustainable housing  village to                                                                    
accommodate students.  This village's sustainability  at UAF                                                                    
will  be  furthered  through a  partnership  with  the  Cold                                                                    
Climate  Housing   Research  Center's   (CCHRC)  Sustainable                                                                    
Northern  Communities program.  In each  phase, four  houses                                                                    
will  be construct  to accommodate  16 students.  The houses                                                                    
are  designed to  test  sustainable,  durable, healthy,  and                                                                    
cost effective  building technologies  for people  living in                                                                    
the Circumpolar North.                                                                                                          
President  Gamble explained  that  the deferred  maintenance                                                                    
requests  were  divided  throughout the  entire  system.  He                                                                    
stated  that  they were  prioritized  based  on age  of  the                                                                    
buildings,  a  digitized   formula,  and  actual  "eye-ball"                                                                    
method  to determine  the real  problems. The  determination                                                                    
was based on a subjective  value assessment to divide up the                                                                    
money throughout the entire system  to include the community                                                                    
Co-Chair Meyer  requested more information about  some items                                                                    
that were not contained in the governor's proposal.                                                                             
9:55:51 AM                                                                                                                    
President  Gamble  explained  that  UA  was  approaching  an                                                                    
overlap of  several high priority  needs. He  explained that                                                                    
the deferred  maintenance need required  a very  high budget                                                                    
request. He stressed that the  deferred maintenance need was                                                                    
more than  $750 million  for over  400 buildings.  He shared                                                                    
that  UA was  reviewing  those buildings  with an  objective                                                                    
assessment method, because the buildings  had a value to the                                                                    
mission of  the university. While the  buildings held value,                                                                    
they  also were  very  old; therefore  UA  had to  determine                                                                    
whether or not the building  should be rebuilt. He explained                                                                    
that UA was  developing a system to determine  how to decide                                                                    
if  buildings should  be destroyed  across  the system.  The                                                                    
determination was  based on a  balance of value  versus age.                                                                    
He  furthered that  the deferred  maintenance cost  could be                                                                    
eliminated, if the building was demolished.                                                                                     
President Gamble stated that there  were also extremely high                                                                    
costs related  to the age of  the power plant, and  the risk                                                                    
assessment  with   regard  to   that  power  plant   at  the                                                                    
University UAF.  He stressed that  the power plant  was coal                                                                    
fired and  passed its  service life.  He explained  that the                                                                    
there was  discussion related to  the access to a  supply of                                                                    
natural gas to  fill the gap of time between  a clean energy                                                                    
plant and the coal fired plant.                                                                                                 
10:00:11 AM                                                                                                                   
Co-Chair  Meyer  wondered  if  there  was  a  need  for  one                                                                    
college's  engineering  building  request  to  be  completed                                                                    
before another.  President Gamble replied that  the need was                                                                    
based  on the  fact that  neither college  could accommodate                                                                    
the total number  of engineers that were  needed for Alaska.                                                                    
He stressed that  the demand for engineers  was high enough,                                                                    
so both colleges needed to  graduate the engineers to be put                                                                    
in the work force.                                                                                                              
Co-Chair Meyer  surmised that  the Fairbanks  campus focused                                                                    
on petroleum  engineering and  the Anchorage  campus focused                                                                    
more on  civil and mechanical engineering.  President Gamble                                                                    
responded  that   the  Anchorage  campus  also   focused  on                                                                    
electrical engineering.                                                                                                         
Vice-Chair  Fairclough   queried  the  number   of  students                                                                    
enrolled  in   each  of  the  UA   campuses:  Anchorage  and                                                                    
Fairbanks.   President  Gamble   agreed   to  provide   that                                                                    
10:03:38 AM                                                                                                                   
Vice-Chair Fairclough  felt that  there may  be an  issue of                                                                    
choosing  which facility  took greater  precedence based  on                                                                    
cost and need.                                                                                                                  
President Gamble shared that UA  may propose that the option                                                                    
should be about  moving both projects forward,  at a reduced                                                                    
cost for each project.                                                                                                          
Vice-Chair  Fairclough noted  that there  was a  tuition cap                                                                    
for  the upcoming  school year,  and wondered  if there  was                                                                    
operating  budget   money  to   support  the   two  proposed                                                                    
buildings. President  Gamble replied that UA  would need new                                                                    
operating budget  money. He furthered  that there was  not a                                                                    
system set  up for  operating dollars for  new construction.                                                                    
He  shared  that  there  was a  proposal  for  a  university                                                                    
building  fund  that  would provide  the  money  before  the                                                                    
building was open.                                                                                                              
Vice-Chair Fairclough  supported the concept, but  felt that                                                                    
there  may  not  be  money available,  because  the  revenue                                                                    
projections did not reflect a growing general fund.                                                                             
Senator Dunleavy felt a compromise  would be to place one of                                                                    
the  buildings at  the  Mat-Su campus.  He  wondered if  the                                                                    
request that  related to  Chinook Salmon  Production Decline                                                                    
Research  was in  conjunction with  the $10  million request                                                                    
from  Department of  Fish  and Game  (DFG)  for King  Salmon                                                                    
studies.  President Gamble  responded that  the request  was                                                                    
separate. He furthered that the  intent of DFG was to engage                                                                    
UA with their program.                                                                                                          
Senator Dunleavy surmised that  the UA request was developed                                                                    
separately from DFG. President Gamble agreed.                                                                                   
Ms.   Rizk   furthered   that    the   two   requests   were                                                                    
complementary. She stated that UA  was working with DFG, and                                                                    
understood that approximately $700,000  of DFG's request may                                                                    
go to UA for process studies.                                                                                                   
10:08:27 AM                                                                                                                   
President  Gamble stated  that there  was also  funding that                                                                    
was  not  included  in the  governor's  request  related  to                                                                    
Alaska-focused   research.   He  remarked   that   buildings                                                                    
required  repurposing approximately  20  to  30 years  after                                                                    
construction. He explained that  it was common to accumulate                                                                    
an account  in a  privatized housing  project that  would be                                                                    
available  at the  25-year point  to  repurpose that  entire                                                                    
housing unit.  He explained that  UA did not have  that kind                                                                    
of account. He stressed that the  amount for the size of the                                                                    
UA  real   estate  and  age   of  the  square   footage  was                                                                    
approximately $50 million  per year. He furthered  that if a                                                                    
contribution were  made to  an account  each year,  it would                                                                    
prevent   projects  from   accumulating   on  the   deferred                                                                    
maintenance list.                                                                                                               
Co-Chair  Meyer  noted that  there  was  a project  for  UAF                                                                    
Arctic  Oil Spill  prevention partnership.  President Gamble                                                                    
replied  that  those  were  line  item  research  items.  He                                                                    
stressed that those issues were  in place, because that item                                                                    
was   specifically  directed   toward  Alaskan   issues  and                                                                    
problems. He pointed out that  the item was offered in order                                                                    
to  encourage  companies  to   hire  consultants  that  were                                                                    
specifically trained in Alaska for Alaskan issues.                                                                              
Co-Chair  Meyer stressed  that the  research  on Arctic  oil                                                                    
spills  was   a  very   relevant  issue.   President  Gamble                                                                    
responded that UA would like  to be the prominent university                                                                    
for oil and gas research.                                                                                                       
10:13:09 AM                                                                                                                   
Co-Chair Meyer  wondered if  UA had  benefited from  the tax                                                                    
credit that was enacted in  the year prior. President Gamble                                                                    
responded that  UA had benefited  from that tax  credit, but                                                                    
furthered that  it was  not of  potential interest  to those                                                                    
that UA assumed would be interested in that money.                                                                              
Ms. Rizk  agreed to provide  more information  regarding the                                                                    
specifics  of  the  tax  credit  benefit.  President  Gamble                                                                    
furthered  that  there  was  no  question  that  people  had                                                                    
benefited  from the  credit, but  there was  no overwhelming                                                                    
Co-Chair Meyer  remarked that Shell  may help in  the Arctic                                                                    
oil  spill  research,  if  they   had  seen  a  better  year                                                                    
financially. He added that there  were some mining companies                                                                    
that had  taken advantage of  the tax credit.  He understood                                                                    
that  the power  plant was  a concern  at UAF,  but was  not                                                                    
comfortable with  the rest of Fairbanks  lacking heat, while                                                                    
UAF was  heated efficiently.  He also felt  that it  was odd                                                                    
that UAF had  its own power plant, because  UAA used private                                                                    
power companies.  He understood that the  infrastructure was                                                                    
not in place at UAF.                                                                                                            
President Gamble  shared that the  power plant was  built in                                                                    
the 1970s.  At that time,  separate power plants  were built                                                                    
across  the   town.  He  stressed   that  the  cost   of  an                                                                    
environmentally   sound  power   plant,  as   it  approached                                                                    
billions  of dollars,  needed to  be  deemed a  State or  UA                                                                    
Co-Chair  Meyer agreed,  and stated  no  objection to  using                                                                    
coal to power.                                                                                                                  
President  Gamble stressed  that the  decision about  how to                                                                    
adjust the  power plant was  on the horizon. He  pointed out                                                                    
that the  current day's meeting  was a presentation  of UA's                                                                    
relevant issues.                                                                                                                
SB  18  was   HEARD  and  HELD  in   committee  for  further                                                                    

Document Name Date/Time Subjects
FY14 SB18 University Requests 021913.pdf SFIN 2/19/2013 9:00:00 AM
SB 18
Alaska Court System Senate Finance Capital Projects - Final.pptx SFIN 2/19/2013 9:00:00 AM
SB 18
DPS hoover sfc response.pdf SFIN 2/19/2013 9:00:00 AM