Legislature(1993 - 1994)
04/18/1994 08:30 AM House FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
April 18, 1994
8:30 A.M.
TAPE HFC 94 - 129, Side 1, #000 - end.
TAPE HFC 94 - 129, Side 2, #000 - end.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee meeting
to order at 8:30 A.M.
PRESENT
Co-Chair Larson Representative Foster
Co-Chair MacLean Representative Martin
Representative Navarre Representative Brown
Representative Parnell Representative Grussendorf
Representative Therriault
Representatives Hoffman and Hanley were not present for the
meeting.
ALSO PRESENT
C.E. Swackhammer, Deputy Commissioner, Department of Public
Safety; John Sandor, Commissioner, Department of
Environmental Conservation; Keith Kelton, Director, Division
of Facility Construction and Operation, Department of
Environmental Conservation; Gregory Capito, Village Safe
Water Section, Division of Facility Construction and
Operation, Department of Environmental Conservation; Mike
Conway, Director, To Report Oil Spills, Division of Spill
Prevention and Response, Department of Environmental
Conservation; Doug Redburn, Chief, Water Quality Management
Section, Division of Environmental Quality, Department of
Environmental Conservation; Remond Henderson, Director,
Division of Administrative Service, Department of Community
and Regional Affairs; Gloria Manni, Director of Accounting,
Alaska Energy Authority, Department of Community and
Regional Affairs; Shirley Minnich, Director, Division of
Administrative Services, Department of Corrections; Chris
Christensen, Staff Counsel, Alaska Court System; Kip Duke,
Facilities Manager, Administration, Alaska Court System.
SUMMARY
HB 535 An Act making appropriations for capital project
matching grant funds and for capital projects; and
providing for an effective date.
1
OVERVIEW: Public Safety, Environmental
Conservation, Community and Regional
Affairs, Corrections,
University, Court System
DEPARTMENT OF PUBLIC SAFETY
C.E. SWACKHAMMER, COMMISSIONER, DEPARTMENT OF PUBLIC SAFETY
explained capital project requests for the Department.
The total request by the Department was $1.575 million
dollars.
* License Plates
This project request of $350.0 thousand dollars would
provide for the purchase of license plates to maintain
storage levels necessary for their continued issuance. The
Division is required by statute to issue license plates.
Therefore, the purchase would be mandatory rather than a
discretionary item.
The license plates are budgeted in the capital budget rather
than the operating budget due to the cost of the total
annual purchase.
* Aircraft Equipment
This project request for $400.0 thousand dollars would allow
for the yearly purchase of equipment needed to replace worn-
out or obsolete equipment.
For the Department to carry out its law enforcement and
search and rescue responsibilities, it is essential that the
aircraft be maintained in an airworthy condition along with
the communication equipment. A minimum level of flying
hours must be maintained to meet the department's
enforcement objectives.
* Fish & Wildlife Protection Enforcement Vessel
Repairs
The project request for $500.0 thousand dollars would
provide for repairs, conversions, servicing and maintenance
of the patrol vessels Woldstad, Trooper, Enforcer Polaris,
Burton and the small vessels.
Repairs to these vessels would include dry docking, deck and
hull cleaning and painting, zinc installation, inspection
and repair of rudders and propellers, inspection, repairs
and calibration of electronics, repairs to bow thruster
2
cooling, air intakes and shut-off valves, and tune-ups of
all engines.
* Alaska State Troopers Replacement Equipment
The project request of $200.0 thousand dollars would provide
funding for the replacement of equipment needed throughout
the Division of Alaska State Troopers.
These funds have been requested in the capital budget due to
lack of funds in the Alaska State Troopers' operating budget
for replacement equipment.
* Fish & Wildlife Protection Equipment Replacement
The project request of $125.0. thousand dollars would be
used to purchase and replace equipment such as skiffs,
outboard motors, snow machines, all-terrain vehicles, and
other equipment required for the day to day enforcement
activity of the division of Fish and Wildlife Protection.
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
JOHN SANDOR, COMMISSIONER, DEPARTMENT OF ENVIRONMENTAL
CONSERVATION, expressed his appreciation for the Committee's
support of the village safe water project.
KEITH KELTON, DIRECTOR OF THE DIVISION OF FACILITY
CONSTRUCTION AND OPERATION explained the municipal grants.
The Municipal Matching Grant program exists to carry out its
statutory mandate to provide support for and funding of
basic sanitation facilities to municipalities.
Mr. Kelton noted the two projects recommended for matching
grant funding as well as the Department's Capital
Improvement Project Request: Nome - Moonlight Springs Water
Transmission Line Upgrade and King Cove - Water Development
project.
* Facility Construction and Operation
The project request of $2,880.7 million dollars would fund
the construction of water, waste water and solid waste
facilities in the State's largest communities. The funding
would be provided through the Municipal Matching Grants
program as directed by statute, within the Division of
Facility Construction and Operation.
* Village Safe Water
The appropriation of $23,288.5 million dollars would be used
3
to plan, design, and construct water, sewage and solid waste
improvements in rural Alaska.
Discussion followed among Committee members with regard to
the availability of federal funds and the use of those
funds.
Representative Martin asked specifically about the Northway
Washeteria. The additional funding requests for the
Washeteria is a result of unforseen costs due to the
problems with piping in the permafrost.
Representative Navarre commented that some federal grant
funds were not listed in the overview and specifically asked
if King Cove was eligible for federal grant funds.
Mr. Kelton noted that the Farmers Home Administration
received an appropriation for $15 million dollars available
for village safe water facilities as matching grant funds.
The grant money would be provided directly to the
communities, hence the omission in the overview
calculations.
Mr. Kelton pointed out that King Cove would receive
approximately half of the local share money from the Farmers
Home grants.
DOUG REDBURN, CHIEF OF WATER QUALITY MANAGEMENT SECTION,
DEPARTMENT OF ENVIRONMENTAL CONSERVATION explained the
capital project requests of the Department.
* Polluted Waterbody Assessment
The project request of $200.0 thousand dollars would provide
for the completion of water quality assessments on polluted
waters. This request is part of a three year plan to
comprehensively assess water quality and prepare recovery
plans for the major polluted surface waters in Alaska.
Mr. Redburn noted that the Department of Environmental
Conservation has worked in conjunction with the Department
of Natural Resources and the Department of Fish and Game
when researching water quality information.
MIKE CONWAY, DIVISION OF OIL SPILL RESPONSE AND PREVENTION,
DEPARTMENT OF ENVIRONMENTAL CONSERVATION explained the
capital project requests of the Department.
* Local Response Agreements
The project request of $400.0 thousand dollars would provide
funds needed by local communities who have a Local Response
4
Agreement with the Department, in order to augment their
training and equipment to be able to assist the Department
in responding to releases of oil and hazardous substances.
* Fixed VHF Radio Repeater Installation
The project request of $150.0 thousand dollars for the
installation of a VHF Radio Repeater would establish,
maintain and enhance the Department's ability to communicate
vital information when responding to an oil or hazardous
substance spill.
Both the local response agreement and radio installation
request would be appropriations made from the 470 Fund.
DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS
REMOND HENDERSON, DIRECTOR OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS explained the
capital budget project requests for the Department.
* Community Block Grants
A minimum of 90% of the Community Services Block Grant
program funds are required by federal regulation to be
passed through to community action agencies so that they may
provide services to low-income persons and homeless persons
throughout the State. The state agency in which these
grants are passed is the Rural Alaska Community Action
Program (Rural CAP).
The community block grant expenditure request of $500.0
thousand dollars is for the $2,000,000 million dollars
received from the Department of Health and Social Services
and the $3,000,000 million dollars from the Department of
Housing and Urban Development.
GLORIA MANNI, MANAGER OF ADMINISTRATION FOR DIVISION OF
ENERGY, DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS
explained the capital project requests for the Department.
* Electrical System Life, Health and Safety
Improvements
The project request for $730.0 thousand dollars would
provide follow-up funding through grants for the agency's
program to correct problems in rural electrical systems that
are or could become a threat to life, health and safety in
rural communities. There is no matching grant requirement
for this expenditure although it is the Department's policy
to use these funds to leverage local matching funds.
5
* Rural Power Systems Upgrades
The project request for $520.0 thousand dollars would
provide funding to continue the Division of Energy's
achievement of a variety of rural power systems upgrades
that have been identified through the Rural Technical
Assistance and Circuit Rider Maintenance programs or which
have been pointed out by community officials and
legislators.
Projects realized under this program will provide for more
efficient operation of rural power systems.
* Bulk Fuel System Emergency Repairs/Upgrades
The project request for $2,000.0 million dollars would fund
the design and repair upgrade of bulk fuel storage and
handling facilities in rural Alaskan communities which are
dependent upon seasonal fuel delivery and long-term
storage.
Repairs and upgrades are critically needed in order to
resolve significant hazards to life, health, safety and the
environment, as well as code violations, and to ensure
continued delivery of vital petroleum products.
Discussion followed regarding inefficient storage and
containment of fuel. It was noted that there are new
federal requirements to deal with that situation and as a
result additional funding would be needed to be in
compliance with these requirements.
Co-Chair MacLean asked how the agency would comply with
these requirements if the Governor does not include adequate
funding. The Department responded that lack of funding
would cause some communities not to be served.
* Small Utilities Improvements
The program request of $2,000.0 million dollars would fund
small power projects which reduce the cost of generating or
transmitting power to the customers of the utility.
Grantees are required to provide a 25% match for these
grants.
* Southeast Energy Fund Grants
The program request of $4,000.0 million dollars would make
grants from the Southeast Energy Fund to utilities
participating in the power transmission intertie between the
Swan Lake and Tyee Lake hydroelectric projects for power
projects, for repayment of loans and for payment of bonds.
6
This would be an allocation from the Four Dam Pool Transfer
Fund.
Discussion followed regarding the Operational, Technical and
Emergency Assistance. It was noted that the division of
energy would provide the services for FY 95.
* Organizational Grants
The project request of $100.0 thousand dollars would fund
the third and final entitlement payment to the City and
Borough of Yakutat for FY95.
DEPARTMENT OF CORRECTIONS
SHIRLEY MINNICH, DIRECTOR OF DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF CORRECTIONS explained the project
request of the Department.
* Statewide Renewal and Replacement
The project request of $1,000.0 million dollars would fund
the renewal and replacement of worn out building components
and retrofitting and replacement of outdated building
systems. It also would correct code deficiencies in the
Department's facilities to resolve major life/safety
problems.
UNIVERSITY OF ALASKA, FAIRBANKS
Representative James addressed the University of Alaska
project request for the funding of the Virus Free Seed
Potato Research.
* University of Alaska, Fairbanks Virus Free Seed
Potato Research
The project request for $120.0 thousand dollars would
establish a diagnostic clinic at UAF for regular tests of
potato diseases. The increment would fund 3.0 FTE research
associates, 2.0 FTE research assistants, pool for lab
assistants, equipment, supplies and travel.
COURT SYSTEM
KIT DUKE, FACILITIES MANAGER FOR ADMINISTRATION, JUDICIAL
BRANCH explained the capital project requests for the
agency.
This project request of $4,800,000 million dollars for
the completion of construction of an Anchorage Court
7
House addition, will supplement prior funding of
$5,000,000 million dollars for design authorized in
1991, $19,750,000 million dollars for construction
received in 1992 and $19,500,000 million dollars for
construction received in 1993. Authorization of the
remaining funding will allow completion of a six-story,
free-standing building of approximately 196,000 square
feet in front of the existing state parking garage.
HB 535 was HELD in Committee for further consideration.
ADJOURNMENT
The meeting adjourned at 9:50 A.M.
HOUSE FINANCE COMMITTEE
April 18, 1994
8:30 A.M.
TAPE HFC 94 - 129, Side 1, #000 - end.
TAPE HFC 94 - 129, Side 2, #000 - end.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee meeting
to order at 8:30 A.M.
PRESENT
Co-Chair Larson Representative Foster
Co-Chair MacLean Representative Martin
Representative Navarre Representative Brown
Representative Parnell Representative Grussendorf
Representative Therriault
Representatives Hoffman and Hanley were not present for the
meeting.
ALSO PRESENT
C.E. Swackhammer, Deputy Commissioner, Department of Public
Safety; John Sandor, Commissioner, Department of
Environmental Conservation; Keith Kelton, Director, Division
of Facility Construction and Operation, Department of
Environmental Conservation; Gregory Capito, Village Safe
Water Section, Division of Facility Construction and
Operation, Department of Environmental Conservation; Mike
Conway, Director, To Report Oil Spills, Division of Spill
Prevention and Response, Department of Environmental
Conservation; Doug Redburn, Chief, Water Quality Management
Section, Division of Environmental Quality, Department of
8
Environmental Conservation; Remond Henderson, Director,
Division of Administrative Service, Department of Community
and Regional Affairs; Gloria Manni, Director of Accounting,
Alaska Energy Authority, Department of Community and
Regional Affairs; Shirley Minnich, Director, Division of
Administrative Services, Department of Corrections; Chris
Christensen, Staff Counsel, Alaska Court System; Kip Duke,
Facilities Manager, Administration, Alaska Court System.
SUMMARY
HB 535 An Act making appropriations for capital project
matching grant funds and for capital projects; and
providing for an effective date.
OVERVIEW: Public Safety, Environmental
Conservation, Community and Regional
Affairs, Corrections,
University, Court System
DEPARTMENT OF PUBLIC SAFETY
C.E. SWACKHAMMER, COMMISSIONER, DEPARTMENT OF PUBLIC SAFETY
explained capital project requests for the Department.
The total request by the Department was $1.575 million
dollars.
* License Plates
This project request of $350.0 thousand dollars would
provide for the purchase of license plates to maintain
storage levels necessary for their continued issuance. The
Division is required by statute to issue license plates.
Therefore, the purchase would be mandatory rather than a
discretionary item.
The license plates are budgeted in the capital budget rather
than the operating budget due to the cost of the total
annual purchase.
* Aircraft Equipment
This project request for $400.0 thousand dollars would allow
for the yearly purchase of equipment needed to replace worn-
out or obsolete equipment.
For the Department to carry out its law enforcement and
search and rescue responsibilities, it is essential that the
aircraft be maintained in an airworthy condition along with
the communication equipment. A minimum level of flying
9
hours must be maintained to meet the department's
enforcement objectives.
* Fish & Wildlife Protection Enforcement Vessel
Repairs
The project request for $500.0 thousand dollars would
provide for repairs, conversions, servicing and maintenance
of the patrol vessels Woldstad, Trooper, Enforcer Polaris,
Burton and the small vessels.
Repairs to these vessels would include dry docking, deck and
hull cleaning and painting, zinc installation, inspection
and repair of rudders and propellers, inspection, repairs
and calibration of electronics, repairs to bow thruster
cooling, air intakes and shut-off valves, and tune-ups of
all engines.
* Alaska State Troopers Replacement Equipment
The project request of $200.0 thousand dollars would provide
funding for the replacement of equipment needed throughout
the Division of Alaska State Troopers.
These funds have been requested in the capital budget due to
lack of funds in the Alaska State Troopers' operating budget
for replacement equipment.
* Fish & Wildlife Protection Equipment Replacement
The project request of $125.0. thousand dollars would be
used to purchase and replace equipment such as skiffs,
outboard motors, snow machines, all-terrain vehicles, and
other equipment required for the day to day enforcement
activity of the division of Fish and Wildlife Protection.
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
JOHN SANDOR, COMMISSIONER, DEPARTMENT OF ENVIRONMENTAL
CONSERVATION, expressed his appreciation for the Committee's
support of the village safe water project.
KEITH KELTON, DIRECTOR OF THE DIVISION OF FACILITY
CONSTRUCTION AND OPERATION explained the municipal grants.
The Municipal Matching Grant program exists to carry out its
statutory mandate to provide support for and funding of
basic sanitation facilities to municipalities.
Mr. Kelton noted the two projects recommended for matching
grant funding as well as the Department's Capital
Improvement Project Request: Nome - Moonlight Springs Water
10
Transmission Line Upgrade and King Cove - Water Development
project.
* Facility Construction and Operation
The project request of $2,880.7 million dollars would fund
the construction of water, waste water and solid waste
facilities in the State's largest communities. The funding
would be provided through the Municipal Matching Grants
program as directed by statute, within the Division of
Facility Construction and Operation.
* Village Safe Water
The appropriation of $23,288.5 million dollars would be used
to plan, design, and construct water, sewage and solid waste
improvements in rural Alaska.
Discussion followed among Committee members with regard to
the availability of federal funds and the use of those
funds.
Representative Martin asked specifically about the Northway
Washeteria. The additional funding requests for the
Washeteria is a result of unforseen costs due to the
problems with piping in the permafrost.
Representative Navarre commented that some federal grant
funds were not listed in the overview and specifically asked
if King Cove was eligible for federal grant funds.
Mr. Kelton noted that the Farmers Home Administration
received an appropriation for $15 million dollars available
for village safe water facilities as matching grant funds.
The grant money would be provided directly to the
communities, hence the omission in the overview
calculations.
Mr. Kelton pointed out that King Cove would receive
approximately half of the local share money from the Farmers
Home grants.
DOUG REDBURN, CHIEF OF WATER QUALITY MANAGEMENT SECTION,
DEPARTMENT OF ENVIRONMENTAL CONSERVATION explained the
capital project requests of the Department.
* Polluted Waterbody Assessment
The project request of $200.0 thousand dollars would provide
for the completion of water quality assessments on polluted
waters. This request is part of a three year plan to
comprehensively assess water quality and prepare recovery
plans for the major polluted surface waters in Alaska.
11
Mr. Redburn noted that the Department of Environmental
Conservation has worked in conjunction with the Department
of Natural Resources and the Department of Fish and Game
when researching water quality information.
MIKE CONWAY, DIVISION OF OIL SPILL RESPONSE AND PREVENTION,
DEPARTMENT OF ENVIRONMENTAL CONSERVATION explained the
capital project requests of the Department.
* Local Response Agreements
The project request of $400.0 thousand dollars would provide
funds needed by local communities who have a Local Response
Agreement with the Department, in order to augment their
training and equipment to be able to assist the Department
in responding to releases of oil and hazardous substances.
* Fixed VHF Radio Repeater Installation
The project request of $150.0 thousand dollars for the
installation of a VHF Radio Repeater would establish,
maintain and enhance the Department's ability to communicate
vital information when responding to an oil or hazardous
substance spill.
Both the local response agreement and radio installation
request would be appropriations made from the 470 Fund.
DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS
REMOND HENDERSON, DIRECTOR OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS explained the
capital budget project requests for the Department.
* Community Block Grants
A minimum of 90% of the Community Services Block Grant
program funds are required by federal regulation to be
passed through to community action agencies so that they may
provide services to low-income persons and homeless persons
throughout the State. The state agency in which these
grants are passed is the Rural Alaska Community Action
Program (Rural CAP).
The community block grant expenditure request of $500.0
thousand dollars is for the $2,000,000 million dollars
received from the Department of Health and Social Services
and the $3,000,000 million dollars from the Department of
Housing and Urban Development.
12
GLORIA MANNI, MANAGER OF ADMINISTRATION FOR DIVISION OF
ENERGY, DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS
explained the capital project requests for the Department.
* Electrical System Life, Health and Safety
Improvements
The project request for $730.0 thousand dollars would
provide follow-up funding through grants for the agency's
program to correct problems in rural electrical systems that
are or could become a threat to life, health and safety in
rural communities. There is no matching grant requirement
for this expenditure although it is the Department's policy
to use these funds to leverage local matching funds.
* Rural Power Systems Upgrades
The project request for $520.0 thousand dollars would
provide funding to continue the Division of Energy's
achievement of a variety of rural power systems upgrades
that have been identified through the Rural Technical
Assistance and Circuit Rider Maintenance programs or which
have been pointed out by community officials and
legislators.
Projects realized under this program will provide for more
efficient operation of rural power systems.
* Bulk Fuel System Emergency Repairs/Upgrades
The project request for $2,000.0 million dollars would fund
the design and repair upgrade of bulk fuel storage and
handling facilities in rural Alaskan communities which are
dependent upon seasonal fuel delivery and long-term
storage.
Repairs and upgrades are critically needed in order to
resolve significant hazards to life, health, safety and the
environment, as well as code violations, and to ensure
continued delivery of vital petroleum products.
Discussion followed regarding inefficient storage and
containment of fuel. It was noted that there are new
federal requirements to deal with that situation and as a
result additional funding would be needed to be in
compliance with these requirements.
Co-Chair MacLean asked how the agency would comply with
these requirements if the Governor does not include adequate
funding. The Department responded that lack of funding
would cause some communities not to be served.
13
* Small Utilities Improvements
The program request of $2,000.0 million dollars would fund
small power projects which reduce the cost of generating or
transmitting power to the customers of the utility.
Grantees are required to provide a 25% match for these
grants.
* Southeast Energy Fund Grants
The program request of $4,000.0 million dollars would make
grants from the Southeast Energy Fund to utilities
participating in the power transmission intertie between the
Swan Lake and Tyee Lake hydroelectric projects for power
projects, for repayment of loans and for payment of bonds.
This would be an allocation from the Four Dam Pool Transfer
Fund.
Discussion followed regarding the Operational, Technical and
Emergency Assistance. It was noted that the division of
energy would provide the services for FY 95.
* Organizational Grants
The project request of $100.0 thousand dollars would fund
the third and final entitlement payment to the City and
Borough of Yakutat for FY95.
DEPARTMENT OF CORRECTIONS
SHIRLEY MINNICH, DIRECTOR OF DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF CORRECTIONS explained the project
request of the Department.
* Statewide Renewal and Replacement
The project request of $1,000.0 million dollars would fund
the renewal and replacement of worn out building components
and retrofitting and replacement of outdated building
systems. It also would correct code deficiencies in the
Department's facilities to resolve major life/safety
problems.
UNIVERSITY OF ALASKA, FAIRBANKS
Representative James addressed the University of Alaska
project request for the funding of the Virus Free Seed
Potato Research.
* University of Alaska, Fairbanks Virus Free Seed
Potato Research
14
The project request for $120.0 thousand dollars would
establish a diagnostic clinic at UAF for regular tests of
potato diseases. The increment would fund 3.0 FTE research
associates, 2.0 FTE research assistants, pool for lab
assistants, equipment, supplies and travel.
COURT SYSTEM
KIT DUKE, FACILITIES MANAGER FOR ADMINISTRATION, JUDICIAL
BRANCH explained the capital project requests for the
agency.
This project request of $4,800,000 million dollars for
the completion of construction of an Anchorage Court
House addition, will supplement prior funding of
$5,000,000 million dollars for design authorized in
1991, $19,750,000 million dollars for construction
received in 1992 and $19,500,000 million dollars for
construction received in 1993. Authorization of the
remaining funding will allow completion of a six-story,
free-standing building of approximately 196,000 square
feet in front of the existing state parking garage.
HB 535 was HELD in Committee for further consideration.
ADJOURNMENT
The meeting adjourned at 9:50 A.M.
15
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