Legislature(1993 - 1994)
02/16/1993 01:37 PM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
February 16, 1993
1:37 p.m.
TAPE HFC 93-23, Side 1, #000 - end.
TAPE HFC 93-23, Side 2, #000 - end.
TAPE HFC 93-24, Side 1, #000 - #235.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee to order
at 1:37 p.m.
PRESENT
Co-Chair Larson Representative Hoffman
Co-Chair MacLean Representative Martin
Vice-Chair Hanley Representative Navarre
Representative Brown Representative Parnell
Representative Foster Representative Therriault
Representative Grussendorf
ALSO PRESENT
Representative Ellis; Janice Adair, Assistant Commissioner,
Department of Environmental Conservation; Dick Marcum,
Environment Conservation Manager, Municipal Grants Section,
Department of Environmental Conservation; Gregory Capito,
Environmental Manager, Village Safe Water Section,
Department of Environmental Conservation; Lloyd F. Hames,
Commissioner, Department of Corrections; Steve Schwartz,
Research Analyst, Department of Corrections; Kathy Cristy,
Facilities Planner, Department of Corrections; Jerome
Komisar, President, University of Alaska; Marsha Hubbard,
Director of Budget, University of Alaska; Arthur H. Snowden,
II, Administrative Director, Alaska Court System.
SUMMARY INFORMATION
HB 60 "An Act making appropriations for capital
projects; and providing for an effective date."
OVERVIEWS: University of Alaska
Department of Environmental Conservation
Department of Corrections
Alaska Court System
UNIVERSITY OF ALASKA
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JEROME KOMISAR, PRESIDENT, UNIVERSITY OF ALASKA gave a brief
overview of the University of Alaska's FY 94 capital
improvement project (CIP) requests. He provided members
with list of the University's CIP requests (Attachment 1).
He noted that the University's CIP requests are divided into
seven categories:
* Code - $6.672.0 million dollars;
* ADA Compliance - $5.0 million dollars;
* Deferred Maintenance - 5 year plan - $33,737.0
million dollars;
* Building Completions - $24,700.0 million dollars;
* Equipment - $8.088.0 million dollars;
* Construction for Growth $25,850.0 million dollars;
* Planning for Growth - $2,978.0 million dollars;
* Governor's Additions.
President Komisar noted that the first four categories are
restricted in choice. He noted that the first category will
bring facilities into legal code compliance. Category two
will bring facilities into compliance with the Americans
With Disabilities Act. The third category would address the
$150 million dollar backlog in deferred maintenance. He
explained that the University has designed a five year
program to resolve the deferred maintenance problem. The
fourth category will complete buildings under construction.
President Komisar discussed capital improvements the
University has undertaken without state aid. He noted that
the University has purchased a building in Anchorage for
classroom and administration use. The University is
examining means to build a research building in Fairbanks
based on federal funding. The University is seeking
additional funding for dormitories through the private
sector.
Co-Chair MacLean noted that the University's $6,672.0
request for code compliance was reduced by the Governor.
President Komisar relayed that the University will attempt
to complete repairs with the reduced funding.
Representative Martin asked if the Butrovich building will
be completed. President Komisar anticipates that the
Butrovich building will be completed if the FY 94 request is
appropriated.
Representative Martin asked if student fees will be used to
match funding for the Super Computer Center. President
Komisar assured him that student fees will not be used to
fund the Center.
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Representative Therriault asked if the University should
acquire land in Homer when it is not in a position to
expand. President Komisar clarified that the University
already has a facility adjacent to the proposed land
acquisition. He emphasized that the University would expand
the existing facility. He added that the Homer facility has
more use per square foot than any facility in the
University.
Representative Hoffman noted that the Governor reduced the
University's $3,550.0 million dollar request for fiber
optics equipment at the UAA campus. He asked how the
University will spend the remaining funds. President
Komisar replied that fewer buildings will be included in the
system.
MARSHA HUBBARD, DIRECTOR OF BUDGET, UNIVERSITY OF ALASKA
added that the University will build a spur from each hub to
connect buildings East to West but not North to South.
President Komisar noted that the University will return with
requests for the remaining funding.
Representative Brown asked if the University performed a
cost benefit analysis on the fiber optics system. President
Komisar replied that they did not complete a cost benefit
analysis. He added that alternatives were considered. The
University concluded that the fiber optics network would be
the best alternative.
Co-Chair Larson noted that the Governor is requesting $219.0
thousand dollars for the Nature Conservancy of Alaska. Ms.
Hubbard added that $464.10 thousand dollars for contaminated
site assessment and cleanup was also included under the
Governor's request. She noted that funding for the Nature
Conservancy has been included in the capital budget during
the last three fiscal years. This represents half of their
budget.
Representative Therriault questioned the contaminated site
request. He asked what justified funding for the request
from the 470 Fund. Ms. Hubbard replied that the site is
located on the equipment yard of the fiscal plant at UAF.
It was contaminated by leaking fuel tanks that were removed
in the 1980's. The Department of Environmental Conservation
will remove contaminated soil. The contaminated water will
not be addressed at this time.
Co-Chair MacLean asked the effect of the $1 million dollar
reduction to space renovation. President Komisar noted that
less space will be renovated.
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Co-Chair MacLean noted that the Governor reduced the
University's request for Aviation Technology construction by
$8 million dollars. President Komisar replied that the
building will not be constructed. A planning assessment
will be completed. A general fund match is required for
federal construction funds. President Komisar spoke in
support of the request. He noted that the University trains
air controllers.
Co-Chair MacLean asked if the University could accomplish
the UAA library planning. President Komisar replied that
further expertise is needed.
Representative Brown asked if the University plans any
closures and how would it dispose of capital assets if
closures occur. President Komisar replied that the
University has no plans to close facilities. He stressed
that the most difficult aspect of a closure would be in
acquitting the University's responsibilities to students and
employees. He noted that Universities are seldom closed and
may be sold.
Representative Therriault asked if the contaminated tanks
were removed with 470 Funds. Ms. Hubbard could not answer.
The Department of Environmental Conservation suggested that
the University seek funding through the 470 fund. She noted
that a recycling water system was developed with a FY 93
appropriation.
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
DICK MARCUM, ENVIRONMENTAL CONSERVATION MANAGER, MATCHING
GRANTS SECTION, DEPARTMENT OF ENVIRONMENTAL CONSERVATION
discussed the 50 percent Matching Grant Program. He noted
that the program was created to provide funding for
construction of water, waste water, and solid waste
facilities in larger communities. Funding is primarily for
first class communities. Communities must provide 50
percent of construction funds. Projects are ranked based on
a questionnaire communities complete. Projects are
evaluated and scored. The Governor's office receives a list
of projects as ranked by the scoring process. The Village
Safe Water Program addresses the needs of communities that
cannot provide a match.
JANICE ADAIR, ASSISTANT COMMISSIONER, DEPARTMENT OF
ENVIRONMENTAL CONSERVATION discussed the Department's CIP
requests. She identified the projects:
* Municipal Matching Grants - $16,152.1 million
dollars will fund 10 of 12 projects.
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* Village Safe Water - $25,985.1 million dollars
will fund 38 of 41 projects. Partial funding is
included for administration. $500.0 - for
preliminary planning and evaluation. $500.0 -
water and sewage service for health clinics.
* Solid Waste Planning Grants - $150.0 thousand
dollars is a shift from the operating and to the
capital budget.
* Data Processing Hardware & Software Replacement -
$300.0 thousand dollars will up grade personnel
computers.
* Cooperative Environmental Research & Development -
$160.9 thousand dollars will be used in
partnership with the University of Alaska, $63.4
thousand dollars - Paralytic Shellfish Poisoning
(PSP) Toxins, $97.5 - Lab Instrument Methodology
for heavy trace metals
Ms. Adair explained that PSP in crab has caused some
products to be embargoed before shipment. She observed that
the problem exists along the West Coast. She emphasized
that tests will be administered in the field. The time the
product must be held would be reduced by three to four days.
Ms. Adair noted that the Department of Environmental
Conservation commonly needs to perform hard metal research.
She observed that conducting heavy metal research with the
University of Alaska is a natural partnership.
Ms. Adair continued to outline the Department's CIP
requests:
* Impaired Waterbody Assessment - $300.0 thousand
dollars is the second year of a three year
project. 39 water bodies must legally be brought
into compliance.
* Northern Panhandle Household Hazardous Waste
Removal -$34.1 thousand dollars will dispose of
collected waste.
* Community Hazardous Waste Storage and Transfer
Facility - $260.0 thousand dollars will establish
a fixed transfer system in Prince William Sound
and Southwest. The communities will be
responsible for operation costs.
* Laboratory Operations Instrument Acquisition &
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Installation - $120.0 thousand dollars will
purchase equipment for EPA and OSHA requirements.
* Satellite Data Telemetry Development - $125.0
thousand dollars to establish at the Pokerflats,
Fairbanks facility sensors to connect with
satellite and monitor remote water bodies.
Representative Martin noted that $25 million dollars were
appropriated to Village Safe Water (VSW) in FY 93. Ms.
Adair noted that the grant program is similar to the
Municipal Matching Grant Program described by Mr. Marcum.
(Tape Change, HFC 93-23, Side 2)
GREGORY CAPITO, ENVIRONMENTAL MANAGER, VILLAGE SAFE WATER
SECTION, DEPARTMENT OF ENVIRONMENTAL CONSERVATION gave a
overview of the VSW program. He noted that the program was
established by statute in 1972. It provides planning,
design, engineering and construction services for
communities without public works departments. Services are
provided to first class cities with populations under 600,
second class communities and unicorparated areas of with
populations of between 600 - 2,500 people. Projects are
begun with a feasibility study. Alternatives are
researched. Department of Environmental Conservation staff
work with village councils and communities.
Representative Martin asked if all villages would be
completed if appropriations continued at the same level for
the next two years. Mr. Capito clarified that about a third
to half of the projects are continuations from previous
years. He anticipated that the growth of communities would
necessity the projects existence beyond five years. He
emphasized that federal funds have increased the program's
appropriations.
Representative Hoffman asked the status of Primacy in the
State. Ms. Adair clarified that the Environmental
Protection Agency (EPA) has notified the State of Alaska
that it will withdraw the program in thirty days if surface
drinking water regulations are not to the Governor. The
regulations should have reached the Governor on February 16,
1993. If the State does not comply administration of the
program will return to EPA. The State receives federal
funding for the drinking water program.
Representative Hoffman asked the Department's long range
plan for VSW and the Municipal Matching Grant program. Mr.
Capito referred to the Alaska Sanitation Task Force. He
observed that the Task Force published, "A Commitment to
Alaska." He noted that the Task Force projected CIP
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requests for the next five years. He stressed that Native
and rural groups have reviewed and endorsed the projected
CIP requests. He pointed out that the current CIP request
exceeds recommendations by the Task Force.
Representative Brown asked how reductions in the
Department's Community Hazardous Waste Storage and Transfer
Facilities request would effect the projects. Ms. Adair
clarified that the communities would need to scale back
their plans. The funding would be split evenly between the
communities. The project is new. The general household
hazardous waste cleanup is a separate program and will
continue.
Representative Brown referred to the Satellite Data
Telemetry Demonstration Project. She noted that the Master
Transceiver Set is listed at $125.0 thousand dollars.
Representative Grussendorf observed that Anchorage Municipal
Matching Grant projects are not scored. They are listed as
unspecified. Mr. Marcum noted that the Municipality of
Anchorage, Governor's Office and Legislators met with the
Department in regards to the difficulty of scoring projects
which cross district lines. It was decided that projects
would be ranked by the Municipality. Representative Brown
observed that the projects are unranked but eligible for
participation.
Co-Chair MacLean asked about unspecified Solid Waste
Planning Grants. Ms. Adair clarified that the Department
will solicit applicants when the Department knows how much
money will be available.
Co-Chair MacLean required more information regarding VSW,
Preliminary Planning Project. Mr. Capito observed that some
communities have additional problems which need to be
addressed in order to ensure that a water or sanitation
solution can be successful. The Department proposes to send
a team of experts to assist communities. Some of the
experts would be personnel of the Department of Community
and Regional Affairs. The communities may receive
assistance in budgeting, accounting and utility management.
A profile of the community will aid VSW engineers to design
a facility the community can operate, maintain and manage.
Mr. Capito noted that local government specialists within
the Department of Community and Regional Affairs have
developed a concept called Remote Utility Business Advisors
(RUBA). The Department of Environmental Conservation hopes
to RSA funds to the Department of Community and Regional
Affairs for RUBA activities. The Governor's reduction would
cut the amount available for RUBA support.
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Mr. Capito explained that the Department of Health and
Social Services would also be involved in working with
communities' health and hygiene education and headstart
programs in elementary schools. Children will be taught the
connection between water born disease such as hepatitis A
and hygiene.
Co-Chair MacLean noted that the Department's backup states,
"Once we are convinced that a village has the capability to
protect the State's capital investment, we will include a
request for funding in a subsequent capital budget
submittal." She asked if this will impact communities that
do not have the ability to pay. Mr. Capito pointed out that
the Department has instituted a pilot project called the
Local Utility Matching Program in the Northwest Arctic. The
program looks at options to generate local revenue to
provide the level of service necessary and commensurate with
the community's ability to pay. He stressed that no current
projects would be eliminated due to their inability to pay.
Co-Chair MacLean asked if the Department's request for
$300.0 thousand dollars, Data Processing Hardware and
Software Replacement, has been through TIC review. Ms.
Adair clarified that the request has been submitted to TIC
and is part of the statewide management plan. Ms. Adair
explained that newer versions of software are incompatible
with the older computers.
ALASKA COURT SYSTEM
ARTHUR H. SNOWDEN, II, DIRECTOR, ALASKA COURT SYSTEM noted
that only two of the Alaska Court System's CIP requests were
approved by the Governor. He mentioned projects not
included by the Governor:
* Fairbanks Courthouse Renovation,
* Kodiak Courthouse Renovation,
* Kotzebue Facility Repairs,
* Law Library - Earthquake Bracing,
* Juneau Courthouse Renovation,
* Americans with Disability Act Compliance.
Mr. Snowden pointed out that the HB 60 contains funding
requests for the Anchorage Courthouse Phase II and Court
Technology Enhancements.
Mr. Snowden stressed that the old Anchorage Courthouse has
tremendous problems. The request will construct the
modified version of the Anchorage Courthouse. He stressed
that the courthouse will be full upon completion. He
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clarified that forward funding is needed to allow the bid to
be completed. He clarified that the bid was broken into
components to allow Alaskan bidders. Reduced appropriations
would result in a one year delay and increased costs.
Mr. Snowden discussed the earthquake potential of the
Anchorage Courthouse District Building. He observed that
the building was built in 1962 and was weakened by the 1964
earthquake. He stated that the old building will be
demolished.
Mr. Snowden noted that the Alaska Court System's request for
Technology Enhancements would continue the FY 93 capital
appropriation. Personal computers will replace mainframe
connections. Personal computers provide backup technology.
Funds would also be used for electronic imaging. He
stressed that the Alaska Court System must retain records
indefinitely. In addition, a portion of the request is for
a pilot Computerized Litigant Assistance System ($35.0
thousand dollars). The system would be used to assist the
public in filling small claims cases.
DEPARTMENT OF CORRECTIONS
LLOYD H. HAMES, COMMISSIONER, DEPARTMENT OF CORRECTIONS
noted that the Department has eight CIP requests. He
discussed the first project, Agricultural Rehabilitation
Program (Operation Hope) for $1,750.0 million dollars. He
noted that the State owns four farms in the Matanuska
Valley. The Department of Corrections intends to redevelop
the farms using relocatable buildings for inmate housing and
support services.
Representative Brown questioned the wisdom of further
investment in the farms. She noted that the Department
intends to sell the farms after redevelopment at a low price
to the private sector farming interest. Commissioner Hames
clarified that the Department's primary concern is in
targeting young offenders for skill advancement. He
observed that no major site development would be needed. He
stressed that the properties are depreciating and the
project could enhance their value. Representative Brown
asked for further information.
Representative Larson felt that the Point MacKenzie farms
failed due to debt overhead. He expressed concern that the
improvements to the land not be wasted. Commissioner Hames
stressed that the farms are in close proximity to the Palmer
Correctional Facility. The Palmer Correctional Facility
could provide access to heavy equipment to maintain the
property. The Palmer facility also contains a large vehicle
maintenance shop.
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Co-Chair MacLean asked how the Department's request of $1.5
million dollars for a Special Purpose Facility - Anchorage,
fits into the master plan.
KATHY CRISTY, FACILITIES PLANNER, DEPARTMENT OF CORRECTIONS
gave a brief overview of the Department's Special Purpose
Facility request. She noted that the request would fund the
initial phase of programming, design and site development of
a facility to meet the needs of three segments of the inmate
population.
(Tape Change, HFC 93-24, Side 1)
Ms. Cristy noted that the proposed complex will provide:
* 104 bed full-service facility for women
* 60 beds for the mentally ill
* 30 beds medical/geriatric facility
Ms. Cristy stressed that the project would increase
efficiency for care of mentally ill offenders at a
centralized corrections facility. She noted that the
project would allow the State to meet Cleary requirements.
She observed that high security women offenders currently
housed outside of the State would be returned. She
emphasized that a new women's facility is a critical step
toward closing the Sixth Avenue facility. She underscored
the importance of the facility to the master plan. She
noted that funding within the Department of Health and
Social Services would only address acute care of mental
health offenders. The total construction cost will be
approximately $25 million dollar.
Representative Brown recalled that Commissioner Hames
assured members during House Finance Committee Budget
Subcommittee hearings that there would be no new facilities.
She asked if $500.0 thousand dollars appropriated in FY 92
to the Department was for design.
Commissioner Hames clarified that the special purpose
facility is not a new facility. He stated that the beds
will be provided by a satellite to an existing facility. He
stressed that food service and other needs will be provided
through the existing facility.
Ms. Cristy explained that the $500.0 thousand dollars the
Department received in FY 92 was for the master plan.
Co-Chair MacLean asked if the Department's Management
Information System request has received Telecommunications
Information Council (TIC) review.
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STEVE SCHWARTZ, FINANCIAL MANAGER, DEPARTMENT OF CORRECTIONS
pointed out that the project will be given to TIC for
approval after the Information Systems Projects Review
Committee in the Department of Administration (ISPRC)
review.
Co-Chair MacLean asked when the system assessment will be
completed. Commissioner Hames stated that the assessment
will be accomplished after the first of the fiscal year.
Co-Chair MacLean felt that the assessment should be
completed before the request is appropriated.
Commissioner Hames spoke in support of the Department's
request for $1.5 million dollars for a Management
Information System. He noted that several offices do not
have access to the current system.
Representative Brown spoke in support of a coordinated data
base for the entire criminal justice system. Commissioner
Hames assured her that the Department is involved in a
working group aimed at achieving a unified data base.
ADJOURNMENT
The meeting adjourned at 2:35 p.m.
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