Legislature(2007 - 2008)HOUSE FINANCE 519
03/15/2008 10:00 AM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB311 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 311 | TELECONFERENCED | |
HOUSE FINANCE COMMITTEE
March 15, 2008
10:18 A.M.
CALL TO ORDER
Co-Chair Meyer called the House Finance Committee meeting
to order at 10:18:39 AM.
MEMBERS PRESENT
Representative Mike Chenault, Co-Chair
Representative Kevin Meyer, Co-Chair
Representative Bill Stoltze, Vice-Chair
Representative Harry Crawford
Representative Les Gara
Representative Mike Hawker
Representative Reggie Joule
Representative Mike Kelly
Representative Bill Thomas Jr.
MEMBERS ABSENT
Representative John Harris
Representative Mary Nelson
ALSO PRESENT
Rachel Petro, Deputy Commissioner, Department of
Administration; Frank Richards, Deputy Commissioner of
Highways & Public Facilities, Department of Transportation
and Public Facilities; Nancy Slagle, Director, Division of
Administrative Services, Department of Transportation and
Public Facilities; Dennis Hardy, Deputy
Commissioner/Director of Marine Operations, Marine Highway
Systems, Department of Transportation and Public
Facilities; Leta Simons, Director, Division of Support
Services, Department of Natural Resources; Mike Maher,
Director, Division of Administrative Services, Department
of Revenue; Ted Leonard, Deputy Commissioner, Department of
Commerce, Community and Economic Development; Samuel
Thomas, Director, Division of Administrative Services,
Department of Commerce, Community and Economic Development;
Jeff Hoover, Administrative Services Manager, Division of
Administrative Services, Department of Fish and Game;
Charles Swanton, Director, Division of Sport Fish,
Department of Fish and Game; Bill Griffith, Facilities
Program Manager, Division of Water, Department of
Environmental Conservation; John Cramer, Acting Deputy
Commissioner & Director, Division of Administrative
Services, Department of Military and Veterans Affairs;
Arnold Liebelt, Facilities Manager, Department of Health
and Social Services; Steve McComb, Acting Director,
Division of Juvenile Justice, Department of Health and
Social Services; Laura Baker, Budget Chief, Division of
Administrative Services, Department of Health and Social
Services; Jennifer Klein, Facilities Manager, Division of
Finance & Management Services, Facilities and Planning
Office, Department of Health and Social Services; Allie
Fitzjarrald, Acting Director, Division of Public
Assistance, Department of Health and Social Services
PRESENT VIA TELECONFERENCE
Dick Mylius, Deputy Director, Division of Mining Land and
Water, Department of Natural Resources; Rod Combellick,
Deputy Director, Division of Geological And Geophysical
Surveys, Department of Natural Resources; Chris Degernes,
Field Operations, Division of Parks and Outdoor Recreation,
Department of Natural Resources; Tom Chapple, Director,
Division of Air and Water Quality, Department of
Environmental Conservation; Steve McComb, Acting Director,
Division of Juvenile Justice, Department of Health and
Social Services
SUMMARY
HB 311 An Act making appropriations, including capital
appropriations, supplemental appropriations, and
appropriations to capitalize funds; and providing
for an effective date.
HB 311 was HELD in Committee for further
consideration.
DEPARTMENTS DISCUSSED:
Department of Administration
Department of Transportation and Public
Facilities
Department of Natural Resources
Department of Environmental Conservation
Department of Commerce, Community
and Economic Development
Department of Military and Veterans Affairs
Department of Health and Social Services
Department of Fish and Game
Hb311#
HOUSE BILL NO. 311
An Act making appropriations, including capital
appropriations, supplemental appropriations, and
appropriations to capitalize funds; and providing for
an effective date.
(NOTE: FTR was down for first minutes of meeting; Rachel
Petro read the following from a statement during that
time.)
DEPARTMENT OF ADMINISTRATION
RACHEL PETRO, DEPUTY COMMISSIONER, DEPARTMENT OF
ADMINISTRATION, read from the publication distributed by
the Department. [Copy on File].
• In 2002, the State commissioned a study to develop a
Statewide Information Technology Plan sometimes
referenced to as the PTI study (Pacific Technologies,
Inc.).
• In 2003, the Department of Administration's
"Information Technology Group" was asked to develop an
enterprise implementation strategy building on the
2002 Statewide Information Technology Plan.
• In August 2003, a contractor (Unisys) was hired to
develop an Enterprise IT Integration Plan. The plan
is often referenced as the Unisys Study and set in
motion the following items:
o A departmental IT planning process;
o Establishment of the Enterprise IT Governance
Model;
o An IT budgeting process;
o A change in name from the Department of
Administration's "Information Technology Group"
to Enterprise Technology Services (ETS).
• Since 2003, the State has been using the basic
governance model presented in the Unisys plan and has
made excellent progress in coordinating the State's
annual IT investment.
• Governor Palin proposes that investment in IT can
create efficiencies within State government and
improve Alaskan's access to government while keeping
the information secure.
• The handout as prepared by the Department of
Administration outlines the governance process
currently used:
o The process begins with departments submitting IT
Plans and a review by the TMC (Technology
Management Council), which reviews the plans for
technical compliance with State standards and
alignment with the Enterprise IT mission;
o Department IT plans are then reviewed by the ERT
(Enterprise Review Team) with an eye toward
achieving efficiencies, accessibility, and
security;
o Next, the plans are presented to the EIB
(Enterprise Investment Board) for approval; and
o EIB approved projects are then forwarded to
Office of Management and Budget (OMB) for
consideration in budget development.
• IT projects not approved by the EIB are not considered
for inclusion in the budget. For example, in the
current year, the EIB approved $73 million dollars in
potential IT investments for FY09. The
Administration's initial budget request included $60.5
million of those requests.
• In 2007, departments submitted IT plans which were
considered by the EIB in November 2008 for the FY09
budget.
• In 2008, the IT planning process underwent revisions,
which better align the planning process with the
development of the budget as well as streamlining the
process for individual departments.
10:19:07 AM
Co-Chair Chenault advised that $60 million dollars for
projects had been scattered throughout various departmental
budgets. Ms. Petro affirmed. Co-Chair Chenault inquired
if that was the amount that had been spent during previous
years. Ms. Petro explained the amounts, which had been
approved over the past several years. Co-Chair Chenault
requested more information on the direction the plan would
take the State.
He asked if the $60 million dollars would be an on-going
technology cost or was it anticipated to be an escalating
cost. Ms. Petro imagined it to be an ongoing & fluctuating
cost. In FY05, capital cost funding was nearly $75 million
dollars; FY06, $114 million dollars; FY07 was $110 million
dollars; FY08, $106 million dollars and in FY09, there are
projected costs of nearly $119 million dollars in spending.
She believed that there are costs associated with IT that
are not reflected in the EIB process.
Co-Chair Chenault questioned why such projects had not been
reflected in the budget as he understood that all the
technology projects had been coordinated. Ms. Petro
offered to provide that information. She stated that the
process could be streamlined as the agencies and ATS work
together. There currently is a process in place to
guarantee that the departments follow the IT standards.
10:23:02 AM
Co-Chair Chenault commented on the depth of the public
process while discussing controversial issues regarding
funding requests for the capital budget. He appreciated
the Committee's ability to go through the budget in great
detail.
Representative Gara referenced the Department of
Administration proposal to upgrade the data encryption
process; he wondered if that project had been included in
the proposed budget. Ms. Petro replied it had been
included in the network security portion of HB 65.
Representative Gara complained about a departmental bill
already moving through the process, while at the same time,
charging a fiscal note for something already being
addressed. Ms. Petro noted that concern.
10:26:00 AM
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
FRANK RICHARDS, DEPUTY COMMISSIONER OF HIGHWAYS & PUBLIC
FACILITIES, DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES, introduced himself and mentioned the
Department's requested projects.
NANCY SLAGLE, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES, addressed the Department's proposed
increments/decrements listed February 27, 2008, the
Governor's amended proposals.
Mr. Richards referenced the first project:
AP #30633
Airport Deferred Maintenance
General Fund 1004 $1,000,000
The project will provide for unaddressed maintenance that
has not been achieved through using the existing operating
budget. The dollars would be spread across all 260 rural
airports.
Ms. Slagle discussed the following project:
AP #45568
Marine Highway System Facility Deferred Maintenance
ASLC Bonds $565,000
She explained that the request includes two projects which
need to be brought up to Department of Environmental
Conservation requirements:
• Fire alarms & suppression systems at Auke Bay and
Skagway; and
• Replacement of underground storage tanks at the
terminal in Auke Bay, Skagway, Wrangell, Ketchikan,
Sitka, Petersburg and Hoonah.
Representative Hawker questioned the referenced documents
and asked if each project would be separate. Ms. Slagle
explained that the Facilities Deferred Maintenance would be
the appropriation level and the other two projects the
Fire Alarms and the Underground Storage Tanks are the
allocations within that appropriation.
Representative Hawker indicated that the accompanying sheet
was unclear and asked how to determine which request was at
which level. Ms. Slagle pointed out the reference number
on the summary listing, and that the AP indicates the
appropriation (AP) level and the AL indicates the
allocation (AL).
Co-Chair Meyer recommended that the Committee not address
allocations at the current scheduled meeting, only the
appropriations.
10:33:20 AM
Co-Chair Chenault requested that the fund sources be
identified. He understood that the Alaska Student Loan
Corporation (ASLC) funds would be replaced by the Capital
Investment Fund (CIF) dollars.
Ms. Slagle continued:
AP #42001
AK Marine Highway System
Vessel and Facility Deferred Maintenance
General Fund 1004 $2,000,000
Ms. Slagle advised that the Department had received very
little funding to address deferred maintenance needs of the
Alaska Marine Highway System (AMHS) ongoing vessel and
facility issues.
Co-Chair Chenault mentioned recoating the underwater body
paint for the Aurora; he thought such items should be
considered when the vessel was taken out of the water to
overhaul. Ms. Slagle explained that the overhaul process
does not cover those items but rather addresses engines and
recertification process for the U.S. Coast Guard. Co-Chair
Chenault understood that equipment maintenance should be
included during the overhaul process. Ms. Slagle
reiterated that it is not part of the typical six-week
overhaul process.
10:38:17 AM
Representative Hawker addressed the inadequate maintenance
budget provided to the Department. He did not recall a
budget turned down for deferred maintenance over the years.
Ms. Slagle stated that for several years, the monies for
capital budget had been capped and that the lack of
maintenance dollars had manifested in many other areas of
the State. There has been a combination of pressures from
the Administration to address on-going maintenance
concerns.
Representative Hawker was surprised that there was an
inadequate maintenance budget provided for the Department
of Transportation and Public Facilities.
10:40:33 AM
Representative Joule remembered a task force about 10 years
ago that looked at all the deferred maintenance on state-
owned facilities. He asked the result of that study and
questioned if the Department had been able to make any
progress on it. Additionally, he was curious if new
infrastructure did include up-keep costs.
Mr. Richards responded that the task force had identified a
significant amount of deferred maintenance issues within
the Department and has been slow to make progress. The
Department has also been using their capital budget for
reconstruction and rehabilitation on the major highway and
airports. The list continues to grow with new assets
additions each year. He reiterated that the list is large
and more funds are essentially needed.
Representative Joule inquired if there was a needs-based
running list.
Mr. Richards clarified that the Department keeps a list of
top priority needs to be addressed through the annual
appropriations, especially those used for safety concerns.
In the last four years, the Department has looked across
the entire Department to determine those needs.
Additionally, the Alaska Marine Highway System keeps an on-
going list of their needs.
10:43:43 AM
Ms. Slagle addressed the next project.
AP #30624
Alaska Marine Highway System
Vessel and Terminal Overhaul & Rehabilitation
General Fund 1004 $9,900,000
She noted that this was the annual request to meet the
overhauling needs of fleet vessels. It would meet the
certification requirements of the American Bureau of
Shipping and the U.S. Coast Guard standards.
Co-Chair Chenault questioned the relocation of the
temporary Auke Bay vehicle maintenance building. Ms.
Slagle explained that building was not intended to remain
in that particular location on a long term bases.
DENNIS HARDY, DEPUTY COMMISSIONER/DIRECTOR OF MARINE
OPERATIONS, MARINE HIGHWAY SYSTEMS, DEPARTMENT OF
TRANSPORTATION AND PUBLIC FACILITIES, added that the Auke
Bay warehouse building was installed a few years ago but
infringed on the highway right-of-way. It must be moved
out of the way, to another location.
10:47:15 AM
Representative Gara asked why a right-of-way purpose was
important enough to spend money on. Mr. Hardy replied that
the intent was not to replace the building but instead to
take it down.
Mr. Richards addressed the following component.
AP #6391
Americans with Disabilities Act Compliance Projects
General Fund 1004 $500,000
Mr. Richards advised that the Department has approximately
700 buildings that they are responsible to remove physical
barriers for folks with disabilities per the Americans with
Disabilities Act (ADA) compliance needs.
AP #45294
Americans with Disabilities Act Transition Plan Update
General Fund 1004 $200,000
Mr. Richards stated that the Department had put into place,
transitions plans for all modes for ADA requirements.
Those plans need to be updated. The requested dollars will
be used specifically for buildings and harbors that do not
have a federal funding source to be used.
10:49:15 AM
Ms. Slagle continued:
AP #32534
Capital Improvement Program Equipment Replacement
CIP Receipts $1,500,000
She stated that the dollars would allow the Department to
charge all capital projects a certain amount of money and
use that for equipment through the direct charge allocation
plan. The Department can not charge equipment costs
directly to the federal projects.
Mr. Richards moved on:
AP #AMD43010
Chignik Lagoon: Airport Safety Improvements
General Fund 1004 $4,000,000
Mr. Richards stated that the project stems from utilizing
funds that Legislature allocated last year for life and
safety on the rural airports. He explained the reason for
using General Funds rather than federal funds. The Chignik
Lagoon was one of the Departments highest airport safety
projects.
10:52:01 AM
Representative Gara referenced Page 8, removing the ferry
terminal warehouse in Juneau and asked how much of the
appropriation would be used for tearing down the facility.
Ms. Slagle was not sure the portion but offered to find out
that information.
Representative Gara questioned if the request would be more
of a financial justification. He asked the justification
for spending that kind of money. Representative Thomas
agreed with that query.
Representative Thomas referenced the Chignik Lagoon and
asked if the community was in opposition to the project.
Mr. Richards replied that there is opposition to the
environmental process of the relocation of the airport out
into the Lagoon. The Lagoon is a rich fisheries area, so
there has been concern about replacing that amount of fill
and the impact to the fisheries.
Representative Thomas asked how those concerns were being
addressed. Mr. Richards stated that the proposed project
wants to leave the airport right where it is, improving the
surface and adding some length yet making it safer.
Vice-Chair Stoltze interjected that he was "bothered about
the facility being torn down. He questioned if it would be
a safety encroachment. Mr. Richards offered to look into
that. Co-Chair Meyer requested the Department to email the
Committee.
10:56:12 AM
Representative Joule asked if the Chignik runway would be
lit. Mr. Richards did not think so; it is a very difficult
location, which he could not imagine the terrain could be
approached at night.
Mr. Richards continued:
AP #39907
Coffman Cove Maintenance Station
AK Cap Inc 1197 $980,000
Mr. Richards explained that the funding would allow the
maintenance station to be built on Prince of Wales Island.
Ms. Slagle continued:
AP #42968
Community Harbor Def. Maintenance & Transfer Program
General Fund 1004 $2,580,000
The State has been divesting ownership of several ports and
harbors over the past few years and encouraging
municipalities to take over the ownership. Three
communities have obliged. The requested funds would
provide for the deferred maintenance necessary for those
communities to take over ownership of the facilities.
Representative Hawker understood that the authority to
transfer harbors [2002-2003], there had been a bond
proposition to use to fund such projects. He asked why the
request was before the Committee. Ms. Slagle responded
that the harbors listed had not been included in that bond
package. Representative Hawker wanted to know about the
monies remaining in the bond package. Ms. Slagle advised
that there had been legislation passed last year that
allowed the extension for another year for some of the
communities that haven't bonded, which allows time for them
to do that.
11:01:07 AM
Mr. Richards enumerated the following request:
AP #43056
Connect Anchorage
General Fund 1004 $23,500,000
He explained that the project appropriation contained two
separate allocations:
th
• 40 Avenue Extension from Lake Otis Parkway to Dale
Street
th
• New Seward Highway from 36 South increasing the lanes
to six
11:03:28 AM
Representative Hawker questioned how the needs had been
prioritized. Mr. Richards commented that through the long-
range transportation plan, the Municipality of Anchorage
(MOA) had put-forward a list of priorities.
Representative Gara added that another big project is the
connection between where the Glenn Highway comes into
Anchorage and where the Seward Highway starts at Highway
36. He asked the plan for the next phase of that
construction. Mr. Richards understood that at this time,
the project had right-of-way work being done with the
preliminary design-work being added. Once those portions
are complete, the Department will come back to the
Legislative body for future appropriations. He pointed out
that it is the largest costing project in the Connect
Anchorage provision.
Representative Gara inquired if there was a departmental
time frame for completion. Mr. Richards pointed out that
initially it had been a ten-year initiative; however, the
work is happening slowly.
Representative Gara asked if the highway-to-highway project
was part of the Connect Anchorage project. Mr. Richards
responded that it was part of that project.
11:06:44 AM
Representative Crawford described some of his experiences
in the east-west corridor, which had been previously
addressed. He wondered if the congestion was being
addressed. Mr. Richards provided some detail about the
plans in that corridor, which provide an alternate route
from Tudor Street to Dowling, crossing the Seward Highway
to the west side of Anchorage. He offered to research the
timeline for that project.
11:08:56 AM
Ms. Slagle introduced the next project:
AP #30648
Coordinated Transportation and Vehicles
General Fund/M.H. 1037 $800,000
MHTAAR 1092 $300,000
She explained that the request covers costs for a program
that provides increased mobility for the beneficiaries of
the Alaska Mental Health Trust. It is a grant program.
Ms. Slagle continued:
AP #36453
Corps of Engineers Harbor Program
General Fund match $2,250,000
She pointed out that the match would assist the Department
with the harbor corps of engineers program for feasibility
studies working with the local communities to secure
dollars for match funds for the Unalaska harbor
construction.
Mr. Richards noted the next request:
AP #41390
Dalton Highway including Surfacing Materials
General Fund 1004 $5,000,000
He advised the request had resulted from a 2006 initiative,
addressing the condition of the Dalton Highway, the sole
link to the North Slope oil fields.
Representative Gara requested a copy of the multitude of
projects requiring building maintenance & construction
funding expenditures.
11:12:19 AM
Mr. Richards addressed the following project:
AP #45200
Dust Suppression Project Water Trucks and Trailers
General Fund 1004 $650,000
Representative Hawker questioned who would be operating and
maintaining the equipment. Mr. Richards responded that
Department of Transportation and Public Facilities would
purchase the equipment with a goal to contract with various
communities to maintain it. All the equipment would be air
transportable. He suggested that the plan could keep the
Environmental Protection Agency (EPA) from determining how
the State would spend those federal transportation dollars
to address dust needs.
Representative Hawker pointed out that he did not answer
the question. He believed that it would be maintained by
the Department. Mr. Richards affirmed.
Representative Hawker asked why the request under
maintenance and operational costs was indicated as zero.
Mr. Richards responded that the Department wanted to
determine they had the equipment before showing the
operational costs.
Representative Hawker questioned if that was the manner in
which requests should work. Co-Chair Meyer agreed with
Representative Hawker.
11:15:41 AM
Representative Joule asked if the anticipation was that
several communities would be sharing the equipment. Mr.
Richards replied yes.
Representative Joule addressed costs associated with moving
equipment by air; he wondered at what point it would become
more cost effective for the individual communities to have
their own equipment. Mr. Richards explained that the
challenge is purchasing the equipment and then determining
where to house it in each village.
Representative Joule recalled that most of the specified
airports have facilities; each community could assume
responsibility for maintaining their own equipment.
Co-Chair Meyer recommended that the Department submit some
follow-up to each Committee member. Mr. Richards agreed.
11:17:30 AM
Mr. Richards continued:
AP #30634
Emergency and Non-Routine Repairs
General Fund 1004 $500,000
Mr. Richards explained that annually, the Department
participated in statewide activities, impacting the
transportation modes across the State. The Department
needs funding available for rapid response for those types
of emergencies attempting to use federal funds first.
Representative Thomas advised that in his district in
Haines, two roads were wiped out by rain and the Department
of Transportation and Public Facilities has not fixed
either area. He wondered if some of those funds could be
used for these roads or if the Department was waiting for
federal dollars. Mr. Richards responded that if there are
projects or needs with immediate application, State dollars
would be used with the hope of receiving federal
reimbursement.
Representative Thomas mentioned safety issues at Letnikoff
Cove with the lack of guard rails. Mr. Richards clarified
that the Department of Transportation and Public Facilities
would be glad to look at the situation.
11:20:38 AM
Ms. Slagle moved forward:
AP #45567
Facilities Deferred Maintenance
ASLC Bonds 1186 $13,273,000
She advised that the Department is responsible for over 700
buildings statewide. The amount of funds received over the
years has been minimal compared to the needs to address on-
going maintenance.
Ms. Slagle continued:
AP #30632
Facilities Deferred Maintenance & Critical Repairs
General Fund 1004 $2,000,000
She noted that the above mentioned request was from General
Fund dollars as opposed to Alaska Student Loan Corporation
bond fund dollars. The requested amount is necessary to
address the maintenance issues for all statewide buildings
needing repairs such as the State Office Buildings, etc.
If requested, there is a prioritized list available.
Representative Hawker pointed out that all the funding was
being requested for FY09; however, it accompanies a three
year dateline. He recommended it be subject to annual
appropriations. Ms. Slagle explained that some of the
maintenance projects would take considerable time to
complete. She added that an annual appropriation to cover
the Department's needs would be welcome; however, the
actual amounts that have been received have been too small
to take care of the State's declining maintenance needs.
11:24:23 AM
Mr. Richards addressed the next project:
AP #45195
Galena Maintenance Building Efficiency Modifications
General Fund 1004 $156,000
He noted that the U.S. Air Force would be relinquishing
control of the Galena area in September 2008. The State
will assume full responsibility of operations and
maintenance of the facility. The Air Force is donating a
building to the State, too large for the State's needs.
The requested funds will be used to shut off a portion of
that building and modify the existing infrastructure.
Mr. Richards continued:
AP #45659
Glenn Highway Rut Repairs
General Fund 1004 $11,500,000
He explained that the request would address the Glenn
Highway, where there is heavy commuter traffic between
Glenn Allen and Anchorage. The funds would be used to fill
the ruts on the southbound lane.
Ms. Slagle continued with the next project:
AP #7090
Harbor Deferred Maintenance
General Fund 1004 $650,000
Ms. Slagle stated that the State owns, manages, and
maintains 28 harbors. There are no funding included in the
on-going operating budget to provide maintenance for those
facilities.
Representative Gara recalled that last fiscal year, the
Alaska Student Loan Corporation (ASLC) came up with $20
million in dividend repayments for use on such projects.
Ms. Slagle was not sure of the funding mechanism on the
capital income. She deferred the question to the Office of
Management and Budget (OMB).
11:27:49 AM
Ms. Slagle proceeded:
AP #AMD7091
Harbor Program Development
General Fund Match 1003 $400,000
She commented that the request would provide assistance to
the local communities in developing their harbor programs
through grant management funding programs.
Mr. Richards addressed the next project listing:
AP #30631
Highway Deferred Maintenance
General Fund 1004 $3,000,000
He explained that the annual request would be used to cover
some of the items that have not been addressed in the
existing operating budget such as resurfacing and
embankment repairs, drainage issues, brush cutting and
guard rails.
Representative Hawker questioned why the request had not
been included in the operating budget. Mr. Richards
responded that the Department utilizes contracts, in which
the funds are not expended in that fiscal year.
Representative Hawker maintained the request should be in
placed into the operating budget.
Mr. Richards continued:
AP #45198
Highway Maintenance Vehicle Replacement & Safety Eqpt.
General Fund 1004 $2,000,000
He clarified that the equipment that the State of Alaska
has, pays into the highway working capital fund. Over the
past several years, the cost of purchasing equipment has
increased a lot. The Department has not been able to put
enough dollars into the fund to replace the pieces of
equipment that need replacing. The funds will be used to
replace approximately 22 units around the State.
Mr. Richards pointed out the following line item:
AP #39900
Jim River Maintenance Station Replacement
AK Cap Inc 1197 $6,000,000
He noted that the funds would be used for a maintenance
station on the Dalton Highway. That building now has
significant structural issues within the walls, the
foundation and the roof structure.
11:32:33 AM
Mr. Richards continued:
AP #ADM45297
Kenai Borough Road Projects
General Fund 1004 $2,000,000
He stated that the funds would be used to upgrade existing
departmental roads and to reduce the Department's
responsibility to the Kenai Borough.
Mr. Richards identified the following project:
AP #45197
Measurement Standards and Commercial Vehicle
Enforcement Equipment Replacement
General Fund 1004 $516,000
He pointed out that they are responsible for verifying &
certifying weighing devices and that it is imperative that
they be accurate. There is a need for a new scale testing
unit in Juneau to serve all of Southeast Alaska.
Ms. Slagle continued:
AP #45192
Nome State Office Building Design Study, Land Purchase
General Fund 1004 $1,900,000
She pointed out that facility, which is located on the
beach side of Nome, has been hit by several severe storms
and has been extensively damaged. The building should be
moved from that location.
11:36:11 AM
Representative Joule asked why the request had been placed
under the Department of Transportation and Public
Facilities. Ms. Slagle responded that the Department is
responsible for the construction of all State facilities.
Mr. Richards continued with the next listing.
AP #42935
Parks Highway Weight Restrictions
General Fund 1004 $2,000,000
He noted that the goal was to remove the need for weight
restrictions on the Parks Highway; the goal being 100%
legal loads, year-round.
11:37:38 AM
Ms. Slagle outlined the following project:
AP #39356
Resource Development Roads
General Fund 1004 $3,000,000
She pointed out that request would improve roads to help
the State access resource development areas, i.e. mining
and timber.
Representative Thomas asked about the Kensington mine
access road and the Cascade shuttle program to Slate Cove.
Ms. Slagle confirmed that moneys had been provided at the
Cascade Point road. She offered to research that
information.
11:39:50 AM
Representative Hawker pointed out the list of past
projects, noting nothing indicated for future
considerations. He inquired how much of the $40 million
dollars had been spent. Ms. Slagle responded that there is
approximately $3 million dollars is remaining from prior
appropriations. She added, a list is being developed of
the current projects, which she offered to provide that to
the Committee.
11:41:23 AM
Ms. Slagle continued:
AP #AMD41146
Richardson Highway, Shaw Creek Bridge
General Fund 1004 $3,000,000
Previously, dollars were received to address upgrades of
the bridge, which would be instrumental for the gas
pipeline. However, now extra funds are needed. She added
that no federal funds were available for that project.
11:42:50 AM
Mr. Richards outlined the following request:
AP #45193
Seward Highway Maintenance Station Replacement
AK Cap Inc 1197 $3,200,000
He pointed out that the project would allow the Department
to move the maintenance functions from downtown Seward to
an outside city land area near the airport.
Mr. Richards continued:
AP #45651
Seward Highway, Milepost 86-Kern Creek Replacement
General Fund 1004 $3,000,000
He explained that the issue is safety related, while
addressing the corrosion of the culverts on that road.
11:44:39 AM
Ms. Slagle discussed the next project:
AP #30628
State Equipment Replacement
Highway Capital $15,000,000
She commented that the request would be used to for
equipment replacement by funds collected through the
agencies for specific equipment replacement needs.
11:45:36 AM
Mr. Richards referenced the next item:
AP #41394
Statewide Anti-icing Program
General Fund 1004 $500,000
The funding would be used to expand the current anti-icing
program., particularly in the coastal communities. It
would be an application of liquid salt to prevent ice from
bonding to the asphalt.
11:46:27 AM
Mr. Richards continued:
AP #45202
Statewide Emergency Bridge Repair
General Fund 1004 $1,000,000
The dollars would be used to address structural
deficiencies in statewide bridges. He provided two
examples:
• The Eagle River Bridge guard rails
• The Trail River Bridge on the Seward Highway
11:47:36 AM
Ms. Slagle discussed the following request item:
AP #42072
Statewide Rural Airport Safety Improvement
General Fund 1004 $3,000,000
She pointed out that the dollars would be used to address
life and safety issues at the 256 rural airports, repairing
malfunctioning electrical components.
11:48:37 AM
Mr. Richards highlighted the following request item:
AP #45207
Stripping and Marking Performance Improvements
General Fund 1004 $1,000,000
He stated that the request would improve the marking and
stripping retroactivity in the dark areas on the highway
between Anchorage and Mat-Su.
Vice-Chair Stoltze asked if it would be done in conjunction
with the resurfacing. Mr. Richards said yes.
Representative Hawker inquired if there would be a change
in procedure from the current marking approach; indicating
that he applauds the effort. He asked if there could off-
set costs indicated in the operating budget. Mr. Richards
acknowledged there had not been an offset in that budget
for the paint application.
Representative Hawker maintained that the paint application
is clearly an on-going expense. He reiterated his
question, regarding whether it would be a one time
investment or on-going costs. He recommended it being
moved to the operating budget.
11:51:20 AM
Mr. Richards responded that the project would be a multi
year contract. The dollars are requested in the proposed
budget in order to see what the market can bear performing
costs.
Representative Gara requested a copy of a comparison of the
Governor's prioritization from the last four year's capital
budgets including the current one proposed by the
Department. He asked how much the Department's operating
budget request was. Ms. Slagle responded that it was
approximately $500 million dollars total funds.
11:54:23 AM
Mr. Richards identified the following request item:
AP #33853
Surfacing Materials
General Fund 1004 $1,000,000
He explained that the request would allow the Department to
purchase crushed aggregate for the gravel roads and for
patching asphalt roads.
Mr. Richards continued with the following increment:
AP #AMD45392
Trunk Road Phase 1
General Fund 1004 $20,000,000
He commented that the request would be used for Phase 1
linkage road also incorporating the use of federal funds.
The road is currently windy and two lanes, which would be
upgraded to four lanes. There has been significant
increase in traffic with construction of the new hospital.
11:55:59 AM
Ms. Slagle addressed the next departmental item:
AP #AMD45392
Statewide Federal Programs
Federal Receipts 1002 $57,500,000
General Fund Match 1003 $51,838,000
General Fund 1004 $ 100,000
State Desig. 1108 $32,000,000
She pointed out that several allocations were included in
the request, which uses mostly federal dollars except an
advanced project definition for the Denali Commission.
11:57:52 AM
Representative Gara questioned if that was the only area
with a required State match to the federal match. Ms.
Slagle clarified that all match monies are State matched;
however, there are two other appropriations following it
for the airport improvement program and the surface
transportation program. Representative Gara asked if the
other two were within the matched amount. Ms. Slagle said
they were; pointing out another match pot.
Representative Gara clarified that in the Department of
Transportation and Public Facilities budget in order that
there is federal leverage, the State will need to spend $51
million dollars total. Ms. Slagle acknowledged that was
correct and that the Department has another match pot in
the amount of $2.38 million dollars for the federal motor
carrier safety administration projects.
11:59:55 AM
Representative Gara recapped the entire budget, in which,
the State funds assume $55 million dollars in order to
qualify for the federal funds. Ms. Slagle affirmed. She
added, $32 million dollars is statutory designated program
receipts (SDPR) funds to be used for cooperative
reimbursable projects, which are projects that the
Department undertakes on behalf of other agencies.
12:01:37 PM
Representative Hawker pointed out that the original budget
request was for $13.5 million SDPR dollars, including an
amendment for an additional $20 million dollars. Ms.
Slagle addressed the need for the amendment, which would
accommodate for communities moving forward in expanding the
correctional facilities.
12:02:25 PM
Representative Hawker inquired if the word "prison"
appeared anywhere in the $20 million dollar requested
amendment. Ms. Slagle apologized that the amendment had
been submitted without that language included. That was an
oversight.
Representative Hawker asked if there were any other places
in the budget that the request was not accurate or total
information had not been included. Ms. Slagle was not
aware of any other problem areas.
12:03:51 PM
Co-Chair Meyer pointed out that the total capital budget
request would be half federal dollars. He asked if the
trend for those dollars would be declining in the upcoming
years. Mr. Richards explained that in the future, the
Department anticipates a significant drop in federal
funding.
Representative Joule commented on the "roads to resources
aspect and asked the Department's future projects. Mr.
Richards noted that the current roads to resources funding,
is to help to access mining & forestry type projects that
provide benefit to all Alaskans. When using federal
dollars, the State is required to meet federal standards.
Representative Joule voiced concerns about the
possibilities of a future gas line & questioned how things
would be planned.
12:09:05 PM
Representative Gara reiterated concerns with anticipated
decreased federal funding. Mr. Richards replied that the
Department of Transportation and Public Facilities attempts
to monitor the federal situation; over the past few months,
the numbers have been see-sawing". The projections are
for a decline next year between 20% and 40%. The challenge
will be with the re-authorization laws. It is likely that
there will be a $50-60 million dollar reduction.
Representative Gara asked about the current Juneau-Haines
road project. Mr. Richards explained that the Department
under that project is required to look at a financial plan.
The plan currently indicates that costs are increasing.
The plan indicates that the State should be able to afford
the road using some federal dollars. He understood that
$20 million dollars a year over the next number of years
would accomplish the task.
Representative Gara questioned the estimated total cost of
that road. Mr. Richards replied that the current project
design from Juneau to Haines is approximately $350 million
dollars.
12:12:20 PM
In response to a query by Representative Kelly regarding
the "roads to resources" project, Mr. Richards commented on
the needs of certain projects; he was not sure at what
point the Department was on that study. He anticipated
needs for a significant amount of capital and resources for
such projects. Of the funds already received, the
Department has placed dollars into relatively small
projects.
Representative Kelly maintained that in order to sustain
the rural communities there must be jobs and that means
developing the mines. He advocated creating a long-term
plan for building the roads. Mr. Richards explained that
the Department has been in conversation with various mining
groups who support providing better access and roads.
12:16:44 PM
Representative Crawford asked the process used to determine
the Department's priorities. Mr. Richards explained that
the Department offers extensive outreach throughout the
State specifically in relation to use of federal dollars.
There is community involvement with lists being created and
planning from that information. From those lists, the
projects are brought forward and then ranked based on
variables using federal dollars. The Department has the
ability to spend those federal dollars in the State on any
project; most other states can only spend their federal
money on the interstate highway systems. In Alaska, there
is a ranking between needs in the urban and rural areas.
The statewide system used is called the Statewide
Transportation Improvement System (STIP).
Representative Crawford questioned how it is determined
that projects receive federal funding or only State
dollars.
12:21:27 PM
Mr. Richards addressed joint projects such as that of the
Department with the Municipality of Anchorage (MOA); the
joint projects result from a combination of federal
dollars, State project funds and locally bonded funds. The
project listings originate from collaboration and a
planning process by identifying project advantages.
Co-Chair Meyer requested a list prioritizing such projects
and any documents that were provided to the Senate Finance
Committee (SFC) and they written responses. Ms. Slagle
acknowledged that the Department had a prioritized list,
which she intended to provide to the House Finance
Committee (HFC).
Representative Joule mentioned communities where airports
are dealing with erosion issues and why those places have
they not received that funding. Mr. Richards explained
that the Governor had initiated a sub-cabinet on global
climate change, consisting of an immediate action work
group, whose main focus would be those communities in
"immediate peril" due to erosion activities.
12:25:55 PM
Representative Joule emphasized the urgent need for certain
communities and that the State needs to be proactive. He
inquired the anticipated timeline for Kivalina. He
stressed that the need there is critical. Mr. Richards did
not know when the working-group report would be complete;
however, he was aware of federal aid dollars, understanding
that the State was already addressing the situation in
Kivalina.
Representative Joule provided a photograph of the erosion
close to the runway at the airport. He pointed out that
the State had placed sandbags, however, that is not a long-
term solution. Mr. Richards acknowledged that he has been
to the airport and understands the critical nature of the
situation. He mentioned that the Army Corps of Engineers
had placed rock at Shismiraff, which now is surviving the
storms but had been very costly.
Representative Joule reiterated the urgency of the
situation and the need for a proactive response. He
expressed alarm at the lack of an adequate response.
12:31:18 PM
Representative Thomas referenced a letter which had been
signed, requesting Juneau road access dollars. He referred
to all the stockpiled materials located in Seattle for that
project. Ms. Slagle explained that last year the
Legislature had reappropriated a little more than $9
million dollars from the Juneau access project to a
statewide project and then identified them as available for
any State project. She understood that they were now
sitting at 17-mile in Juneau's Department of Transportation
and Public Facilities maintenance station and still remain
available for any statewide project.
12:33:50 PM
DEPARTMENT OF NATURAL RESOURCES
LETA SIMONS, DIRECTOR, DIVISION OF SUPPORT SERVICES,
DEPARTMENT OF NATURAL RESOURCES, introduced the first
request item:
AP #45278
Reservoir Studies to Evaluate Oil and Gas Resources
On the North Slope
AK Cap Inc 1197 $4,000,000
She explained that the request was related to the gas
pipeline which should help the State determine the amount
of gas that could be delivered through a pipeline.
Co-Chair Chenault questioned if that was the amount that
had been originally introduced in the operating budget.
Ms. Simons responded that amount was only located had been
within the capital budget.
Ms. Simons continued, itemizing indicators moved to the
operating budget:
AP #45279
Contract Auditors for Reducing Royalty and Net Profit
Share Lease Audit Backlogs
AK Cap Inc 1197 $200,000
AP #31371
Oil and Gas Royalty Valuation
AK Cap Inc 1197 $1,000,000
Ms. Simons addressed the next item remaining in the capital
project list:
AP #43300
Alaska Energy Inventory Project
Completion of Phase 1
AK Cap Inc 1197 $350,000
She noted that the project would identify resources which
would be developed to meet the needs of the local area
energy.
Ms. Simons highlighted the on-going activity needs of land
sales:
AP #38886
Land Sales-New Subdivision Development
State Land 1153 $2,614,000
Co-Chair Chenault asked about the amount of income
anticipated from the resulting land sales. Ms. Simons
affirmed the information is available but that she did not
have it at the meeting. She offered to distribute it to
Committee members.
DICK MYLIUS, DEPUTY DIRECTOR, DIVISION OF MINING LAND AND
WATER, DEPARTMENT OF NATURAL RESOURCES (testified via
teleconference), interjected that in the last two years,
the revenue generated has been approximately $6.5 - $7
million dollars from land sales.
Co-Chair Chenault questioned the amount which the State
would be responsible to pay for costs. Mr. Mylius
responded it would be $4 - $5 million dollars and that the
net profit would be around $2 million dollars.
Co-Chair Chenault inquired if the costs would be inclusive
of the salaries. Mr. Mylius responded that was correct.
12:39:24 PM
Ms. Simons continued:
AP #33955
Wildland Fire Truck Replacement Phase 1
General Fund 1004 $625,000
She noted that periodic replacement of critical fire
fighting equipment is essential for safety and efficiency.
The request would be used to purchase engines.
Representative Hawker inquired how the request would be
sited. Ms. Simons requested that be addressed by someone
else in the Department. She offered to research the
information and submit it to the Committee.
Ms. Simons continued:
AP #6843
State Park Emergency Repairs
General Fund 1004 $400,000
Ms. Simons discussed the annual upgrading the facilities
needs to protect present health safety risks resulting from
storm damage, flooding and vandalism. She emphasized that
there is an on-going need for funding dollars for the
increment.
Representative Joule directed his comments to the amount of
"scaling back" to the State parks that resulted a few years
ago. He questioned if the parks were now getting more
visitors. Ms. Simons noted that there have been several
requests contained in the proposed capital budget to help
the Department come up to date and address back-log
maintenance issues in the statewide park system. The
Division of Parks has developed a ten-year strategic plan.
Vice-Chair Stoltze requested a copy of the Department's
park priority list. Ms. Simons affirmed.
12:44:03 PM
Ms. Simons outlined the following request:
AP #AMD45485
Department of Natural Resources Deferred Maintenance
AK Cap Inc 1197 $6,323,000
Ms. Simons admitted that this was a larger departmental
request to address deferred maintenance concerns that
previously were identified. The FY09 request defines the
needs in the ten year strategic-plan for State parks &
facilities.
Representative Hawker commented that the proposed plan is
more of a vision document rather than a list of
priorities. He questioned why the Alaska State parks were
not a higher priority for the Department. Ms. Simons
responded that she did not have the history to be able to
answer that question; she offered to find out where they
were on the priority list.
Representative Hawker commented that he would like to see
the request moved from a ten year plan to a five year plan.
Representative Kelly explained the work undertaken by the
subcommittee. The proposed departmental increase is @
approximately 500%; he did not think the agency would be
able to grow at that rapid rate to address those concerns.
He agreed that the agency [parks] was in a "deplorable
shape".
Ms. Simons advised that if the Department was able to get
their requests in both the operating & capital budget, they
would be able to "go a long way" in bringing State parks to
better shape.
12:47:22 PM
Ms. Simons explained that the following component had been
moved to the operating budget:
AP #6852
Airborne Geophysical & Geological Mineral Inventory
General Fund 1004 $850,000
Stat Desig Rcpts 1108 $350,000
Ms. Simons continued:
AP #45255
Architecture & Engineering for a New Geologic
Material Center in Eagle River
General Fund 1004 $1,500,000
She clarified that the request could cover approximately
half of the total cost for the project. It is critical to
the energy and success of mineral resource development to
store, protect and provide access to the State's geologic
core samples; the existing facilities are basically
inadequate.
12:49:03 PM
Representative Hawker acknowledged that the need is
important. He asked why the total cost had not been placed
into the operating budget. Ms. Simons clarified that the
Department was asked to phase-in projects. Representative
Hawker asked if that request was unique to the Department
of Natural Resources. Ms. Simons did not know.
12:49:57 PM
Ms. Simons continued:
AP #45283
Implement Electronic document Recording
Receipt Services 1156 $120,000
She noted that the request would allow real estate title
companies, banks, the general public and attorneys to
electronically submit real estate documents to help improve
the efficiency of that function.
Ms. Simons highlighted the following component:
AP #45624
Reforestation in Southcentral & Interior Alaska
General Fund 1004 $370,000
She stated that the request is for an on-going periodic
activity to address reforestation. The project will
prepare the seedlings and the areas at harvest sites.
Representative Crawford commented that in other places,
they have moved away from the human reseeding, letting it
occur naturally. Ms. Simons did not think that technique
would work well in the northern regions of the State. She
offered to provide more back-up on that query.
12:51:35 PM
Ms. Simons noted the following item on the list had been
moved to the operating budget:
AP #41426
BLM 2009-State Support for Public Access
General Fund 1004 $300,000
Ms. Simons continued:
AP #41415
Gas Pipeline Corridor Geologic Hazards
and Resources Phase 2
Alaska Cap Inc. 1197 $600,000
She indicated that the request provides for the
continuation of the project, allowing for the continuation
of geologic mapping, hazard assessment and resource
evaluation along with the proposed gas pipeline corridor
from Delta Junction to the Canadian border.
Co-Chair Chenault inquired about the total number of phases
needed for the project. Ms. Simons did not know; however,
anticipated that the total cost would be about $4.57
million dollars over the next seven years.
12:52:57 PM
ROD COMBELLICK, DEPUTY DIRECTOR, DIVISION OF GEOLOGICAL AND
GEOPHYSICAL SURVEYS, DEPARTMENT OF NATURAL RESOURCES
(testified via teleconference), responded that there had
been funding requested through FY12. The field work will
be complete in two or three field seasons. By FY12, there
should be a final write-up, maps and report available.
12:54:40 PM
Ms. Simons pointed out the following project:
AP #45260
CO2 Sequestration Assessment Phase 1
Federal Receipts 1002 $200,000
General Fund 1004 $100,000
The project is a collaborative effort between the Division
of Geological & Geophysical Surveys, Division of Oil and
Gas, Department of Environmental Conservation, the
University of Alaska and the industry, all of which will
insure utilization of resources for the CO2 storage based
on sound science.
Ms. Simons continued:
AP #42062
Statewide Digital Mapping Initiative Year 3
Federal Receipts 1002 $2,000,000
General Fund 1004 $2,000,000
She discussed that the initiative within Year 3 would
allow all users would have quick and easy access to land
resource information; it would replace the 40-year old
topographic maps. She understood that Alaska was the last
State in the Union to digitize those maps. The request
would be on-going for another five year period. Co-Chair
Chenault asked if that request would be billed at the
estimated $4 million per year. Ms. Simons replied that
they do not know the end number but she imagined that the
total cost would be around $28 million dollars. The
Department anticipates receiving around $18 million federal
dollars for the project.
12:57:01 PM
Ms. Simons pointed out the following proposal for:
AP #6865
State Park Sanitation & Safety Projects
General Fund 1004 $850,000
She stated that the request would address the "worst of the
worst" toilets in the State park system.
Ms. Simons continued:
AP #6865
National Historic Preservation Fund
Federal Grant Program
Federal Receipts 1002 $1,000,000
General Fund match 1003 $ 50,000
She noted that the dollars are continued federal funding &
consistent with prior year funding for the operating
grants, which protect the State's Historic Preservation
Program.
12:57:58 PM
Ms. Simons pointed out the following request:
AP #45259
Geologic Materials Center Deferred Maintenance
Repairs and Operational Upgrades
General Fund 1004 $65,000
She explained that the component requested dollars would be
used for regular maintenance and repairs for the geologic
material center until a new facility is built.
Ms. Simons continued:
AP #45256
Cook Inlet Energy Assessment
Alaska Cap Inc. 1197 $260,000
The requested assessment provides for private sector
resource development information. It will also help to
leverage funds from the private sector for the energy
sponsorship program.
Ms. Simons continued:
AP #41432
Fire Fighting Equipment Replacement - Phase 2
General Fund 1004 $500,000
She explained that the increment could address the on-going
need for replacing and maintaining departmental equipment.
Representative Kelly referenced the previous request, the
energy assessment. He asked how that could tie into the
Alaska Energy Authority (AEA). Mr. Combellick explained
that Project #4, energy inventory, is the project that the
Department is conducting in close association with AEA, in
order to compile all statewide energy related data. Cook
Inlet is a field project, which is collecting new geologic
data in that area in support of the industry efforts. He
clarified that it is not occurring in specific cooperation
with AEA but that they were being consulted.
Co-Chair Meyer stated that there would be no public
testimony taken as the meeting.
RECESSED: 1:01:46 PM
RECONVENED: 2:18:10 PM
Ms. Simons identified the following request item:
AP #45257
Geologic Hazards Associated with
Climate Change - Phase 1
General Fund 1004 $330,000
She stated that the request would be used to identify
potential geologic hazards due to climate change. The
product produces a hazard map and prioritized report.
2:19:03 PM
Ms. Simons listed the following items, a continuation of
federal funding:
AP #37769
Federal & Local Government Funded Forest Resource
and Fire Program Projects
Federal Receipts 1002 $2,200,000
Stat. Designated Receipts 1108 $ 800,000
AP #40082
Alaska Coastal Management Federal Pass Through Grants
Federal Receipts 1002 $1,360,000
Ms. Simons addressed the following on-going activities:
AP #38480
Remote Recreational Cabin Sites Surveys & Appraisals
State Land 1153 $1,011,000
She explained that the Department contracts with appraisal
and surveys of properties sold as remote recreational cabin
sites and passes the costs onto the applicants. The
request provides authorization to expend those funds.
Ms. Simons added that the following request continues
federal funding dollars:
AP #32553
Alaska Boating Safety Program
Federal Receipts 1002 $1,000,000
Vehicle Receipts 1195 $ 200,000
2:20:00 PM
Ms. Simons continued:
AP #32552
Land and Water Conservation Fund Federal Grant Program
Federal Receipts 1002 $600,000
She stated that the request continues to use federal
funding dollars.
Representative Hawker asked why the on-going programs had
been included in the capital budget rather than being
placed into the operating activities. Ms. Simons did not
know the history; however, using the federal grant programs
which cross fiscal years, it works better being included in
the capital budget as that budget also crosses fiscal
years.
Co-Chair Chenault questioned the origination of State
funding using vehicle receipts. Ms. Simons explained the
reference was in regard to boat registration fees.
2:21:13 PM
Ms. Simons proceeded:
AP #6854
National Recreational Trail Grants Federal Program
Federal Receipts $1,500,000
AP #33690
Snowmobile Trail Development & Program Grants
Vehicle Receipts 1195 $250,000
Vice-Chair Stoltze pointed out that the receipt funds had
resulted from the snowmobile registration receipts; he
asked if they had the opportunity to access other funds.
CHRIS DEGERNES, FIELD OPERATIONS, DIVISION OF PARKS AND
OUTDOOR RECREATION, DEPARTMENT OF NATURAL RESOURCES
(testified via teleconference), responded that snow-
machines do have access to national recreation trail grant
funds. The funds are divided between motorized and non-
motorized vehicle trails.
Vice-Chair Stoltze requested the historical percentage
breakdown. Ms. Degernes understood that the amounts were
divided as follows:
• 30% provided for motorized;
• 30% for non-motorized; and
• 40% for diversified use.
Representative Kelly inquired the break-down between new
construction and maintenance. Ms. Simons responded that it
would not be a concern to move the request back to the
operating budget. Representative Kelly requested the
information be forthcoming from the Department.
Vice-Chair Stoltze urged that trail money be added to
South-central Alaska.
2:25:10 PM
Ms. Simons continued:
AP #45250
Plant Material Center Deferred Equipment Replacement
General Fund 1004 $465,000
She explained that the request was part of the on-going
amount for equipment, maintenance and fixed assets.
2:25:53 PM
Ms. Simons proceeded with the following three items:
AP #6855
Abandoned Mine Lands Reclamation Federal Program
Federal Receipts 1002 $3,000,000
AP #AMD37762
Cooperative Water Resource Program
Division of Mining, Land & Water
Statutory Designated 1108 $300,000
AP #AMD45693
Cooperative Water Resource Program
Office of Habitat Management & Permitting
Statutory Designated 1108 $300,000
She explained that the Department of Natural Resources
accepts funds from the private sector & local governments
and passes them through to the U.S. Government Services
(USGS) as part of a funding agreement for those programs.
The funding pays for the installation and operations for
equipment in order to receive hydrologic data. She pointed
out that it had been requested two times on the request
list in anticipation of one moving forward to the
Department of Fish and Game.
Ms. Simons continued listing the next two request items:
AP #45274
RS2477 Surveys
General Fund 1004 $100,000
AP #45272
Matanuska Susitna Borough Hydrogeology Assessment
Phase 1
General Fund 1004 $295,000
She advised that in sections of the Ma-Su Borough, the
increased demands on ground-water were causing concern in
how to meet the water needs in the community. The goal of
the study is to provide the Department information on how
to manage that ground-water in that area.
Representative Hawker questioned why the request had been
limited to the Mat-Su Borough.
Mr. Mylius acknowledged that there are other areas with the
same condition; however, the Mat-Su Borough is the fastest
growing area in the State right now and almost totally
depends on ground-water. The project will begin there
first, because there is limited staff and the area is the
highest priority.
Vice-Chair Stoltze interjected that the area does have a
public water system. He did not want to diminish the need
in the Valley project; however, thought that it could have
been misidentified.
2:29:53 PM
Ms. Simons addressed the following four project listings:
AP #34881
Forest Legacy Federal Grant Program
Federal Receipts 1002 $2,516,500
AP #45282
Kenai River Public Use Study
General Fund 1004 $200,000
AP #41648
Coastal Impact Assistance Program (CIAP)
Federal Receipts 1002 $3,000,000
AP #45262
EVOS Restoration Acquisition of Small Parcels
Anchor River, Kilunda Bay, Soldotna, Valdez
EVOSS 1018 $1,513,000
2:30:49 PM
Ms. Simons continued:
AP #45263
EVOS parcel Acquisition-Afognak
EVOSS 1018 $10,000,000
She noted that the request would approve the purchase of
6,200 acres in northern Afognak Island.
Ms. Simons identified the following requested item:
AP #6853
Mental Health Trust Land Development
MHTAAR 1092 $650,000
She commented that the amount would support the Alaska
Mental Health Trust Authority (AMHTA) ongoing management &
development of the mental health trust lands on behalf of
the Authority.
2:31:28 PM
Ms. Simons addressed the last item on the list before the
members:
AP #40474
Mental Health Trust Facilities Maintenance
MHTAAR 1092 $350,000
She explained that the requested funds would be used for
regular facility maintenance and replacement and on-going
property work with snow removal, maintenance and repair for
those properties.
2:31:56 PM
Ms. Simons clarified that there are four remaining projects
on another list that originally had been listed on the FY08
surplus funding list:
AP #41410
Alaska Land Mobile Radio-FCC Narrowanding Phase 2
General Fund 1004 $450,000
She noted that the request would fund the Federal
Communication Commission (FCC) migration to narrow-banding
to 2013.
Co-Chair Chenault inquired the number of anticipated
phases. Ms. Simons offered to research that & provide the
information to the Committee.
Representative Joule asked if it had previously been
located in the Department of Military and Veterans Affairs.
Ms. Simons understood that it was located in more than one
State agency.
2:33:17 PM
Ms. Simons explained that the following request:
AP #38872
Unified Permit Project Completion of Phase 4
General Fund 1004 $800,000
She stated that once the project is complete, it will
provide applicants with automated & a streamlined
processing system for acquiring permit leases for water
rights, burn permits and right of ways, etc.
Co-Chair Chenault asked for information reqarding the total
anticipated costs of the project. Ms. Simons stated that
the total cost was anticipated to be $5.4 million dollars
over a seven year period. She offered to research it
further.
2:34:32 PM
Ms. Simons continued:
AP #45269
DNR Document Management System
General Fund 1004 $1,200,000
She pointed out that the request would automate the
Department's case files by converting them to digital
formats.
Ms. Simons addressed the last item on the list:
AP #45270
DNR Information Technology Infrastructure Upgrades
General Fund 1004 $276,000
The request provides for regular maintenance & upgrading of
the Department's technology systems.
Representative Thomas asked about titling for land
purchased by the State and transferred into State property.
He mentioned property donated in Haines Alaska for the Bald
Eagle Preserve. Ms. Simons offered to provide information
about how such circumstances are handled.
Representative Gara amplified the need regarding to update
the statewide title system. He emphasized that it
currently, is a mess.
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
MIKE MAHER, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF REVENUE, introduced the Department's project
listings:
AP #45210
Monitoring of Dust Control Technologies in Rural AK
General Fund 1004 $224,107
2:38:36 PM
TOM CHAPPLE, DIRECTOR, DIVISION OF AIR AND WATER QUALITY,
DEPARTMENT OF ENVIRONMENTAL CONSERVATION (testified via
teleconference), addressed the project. He noted that the
project worked hand-in-hand with those indicated in the
Department of Transportation and Public Facilities,
providing the air quality monitoring associated with dust
control pilot project. He reiterated that the proposed
plan was a strategy proposed by both departments to avoid a
federal intervention cutting the pollution.
Vice-Chair Stoltze recalled the PM-10 federal grant dollars
for leveraging. Mr. Chapple acknowledged that there had
been money available then by using the PM-10, however that
has diminished. There are no additional federal grants
funds available at this time.
2:41:04 PM
BILL GRIFFITH, FACILITIES PROGRAM MANAGER, DIVISION OF
WATER, DEPARTMENT OF ENVIRONMENTAL CONSERVATION, addressed
the following requested item:
AP #41376
Water and Wastewater Infrastructure Projects
Federal Receipts 1002 $78,728,511
General Fund Match 1003 $22,909.504
General Fund 1004 $18,966,870
Statutory Designates PR 1108 $ 500,000
He explained the appropriation request. The total
appropriation is $121.1 million dollars, which consists of
multiple allocations for statewide water and waste water
improvement projects. The increment will improve & protect
rural households with basic sanitation services and
assisting communities with their existing systems.
Co-Chair Chenault requested a list of where each project
was located statewide. Mr. Griffith offered to make that
available.
Mr. Griffith pointed out that in addition to the single
allocations, the appropriation also includes a single
larger allocation for statewide water and wastewater
infrastructure projects using those federal funds. The
funding for projects consists of 75% federal receipt
authority & 25% required State match dollars. He listed
the projects included.
He reminded Committee members that a three year priority
list was established according to federal funding
requirements for funding large, multi-year projects. This
is the first year that all projects requiring federal
funding have been consolidated into one project allocation.
2:46:28 PM
DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT
TED LEONARD, DEPUTY COMMISSIONER, DEPARTMENT OF COMMERCE,
COMMUNITY AND ECONOMIC DEVELOPMENT, introduced departmental
staff.
SAMUEL THOMAS, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC
DEVELOPMENT, addressed the first listing proposed by the
Department:
2:47:02 PM
AP #38946
Community Block Grants
Federal Receipts 1002 $6,030,000
General Fund Match 1003 $ 70,000
He explained the use for the community services and
development grants. The goal of RuralCap is to protect the
heritage and improve the quality of life for those low-
income residents by providing training. He spoke to the
community development block grants that benefit low income
people by providing financial resources for the public
facilities. The remaining programs are small, such as the
food and nutrition grants used to feed the homeless
throughout Alaska & provide for emergency shelter grants.
2:50:42 PM
Mr. Thomas identified the following project:
AP #AMD45296
Licensing Document Imaging & Archival System
Receipt Services 1156 $600,000
Blic&Corp 1175 $600,000
He explained that the dollars would be used toward business
licensing, banking and insurance. The request is
associated with three main objectives:
• Replace licensing into hard copy format;
• Integrating & digitize information; and
• Refinance and streamlining work-flow between Anchorage
and Juneau.
Representative Hawker indicated that he was "skeptical" of
the Department's ability to be able to manage money and
data. Co-Chair Meyer agreed it was worrisome.
2:52:55 PM
Mr. Leonard highlighted the following component:
AP #AMD45298
Investigation System Integration
Receipt Services 1156 $225,000
Blic&Corp 1175 $225,000
He explained that the increment provides for an integrative
package, consolidating three investigative services into
one place. Additionally, it is anticipated garnishing a
performance tool, measuring effectiveness of the Division's
case management skills.
2:54:05 PM
Mr. Thomas continued:
AP #45292
Public Information System Security
Receipt Services 1156 $250,000
Blic&Corp 1175 $250,000
He noted that the Department has over thirty [30] radio
systems available for public. The concern is protecting
the personal data security of the system for the licensing
& banking side of the equation.
2:56:04 PM
Mr. Thomas addressed the following item request:
AP #45293
Professional Licensing Website Development
Receipt Services 1156 $400,000
He stated that the professional licensing consists of over
thirty eight [38] boards and commissions and that only six
of those systems have been computerized.
2:57:06 PM
Mr. Thomas described the component request:
AP #38950
Alaska Energy Authority Energy Projects
Federal Receipts 1002 $30,000,000
I/A Receipts 1007 $ 500,000
Statutory Designated Rcpt 1108 $ 500,000
Alaska Cap Inc 1197 $10,000,000
Mr. Thomas clarified the three main items contained within
that request and explained each:
• Bulk fuel upgrades
• Rural power system upgrades
• Alternative energy efficient programs
Co-Chair Meyer asked about the wind-power options. Mr.
Thomas responded that the Denali Commission is currently
studying wind project options. There are no specific
projects at this time slatted to start by 2009.
3:04:01 PM
Mr. Thomas continued:
AP #40056
Organization Grants Statutory
General Fund 1004 $200,000
Mr. Samuels explained that the grant dollars would be
provided to the City of Wrangell for forming a borough.
3:04:56 PM
Mr. Samuels continued:
AP #45409
Tourism Economic Impact Study
General Fund 1004 $100,000
Vice-Chair Stoltze addressed a need to look at sport-
fishery issues & those impacts on State tourism. He
doubted if the Administration would have a problem tying
sport-fishing to distressed areas. Mr. Leonard agreed, the
Department supports that amendment language.
3:06:59 PM
Mr. Leonard identified the following project request:
AP #41789
Kodiak Launch Complex Infrastructure
Federal Receipts 1002 $14,000,000
General Fund 1004 $ 3,500,000
He explained that the aerospace development had requested a
rocket based storage facility and launch pad, which would
be a two-year project. The prime customer would be the
Missile Defense Agency (MDA). A third pad allows for two
launches to be occurring at the same time. He noted the
new customer, the U.S. Air Force.
Representative Gara questioned creation of a viable, local
aerospace industry, which is mostly accommodating the U.S.
military. He inquired what industry could be produced from
the increment. Mr. Leonard explained what the third launch
pad would be offering the State an ability to do commercial
launches. The current facility offers the City of Kodiak
approximately $5 million dollars revenue each year.
rd
Building a 3 launch pad, the Department anticipates that
within a four or five year period:
• With that number of customers, the State would be able
to provide a dividend; or
• Another option would be making the corporation
private.
Representative Gara referenced Page 20 and questioned where
the launch revenue ends up. Mr. Leonard clarified that
those revenue dollars would to into the Aerospace
Corporation. He noted that the State now owns about $2
million in assets. Representative Gara stressed that the
benefits to the State were being overstated, especially if
the agency goes private.
Representative Hawker disclosed that he did not think the
requested item was a legitimate State activity', but
however, opined that the State is "too far into it" now.
3:14:17 PM
Mr. Leonard continued:
AP #AMD40242
Manufacturing Extension Program
General Fund 1004 $806,401
Mr. Leonard described the nationwide network program, which
is used for non-profit centers with the purpose of
providing small and medium sized manufacturers help
necessary to succeed. He pointed out that there are
federal dollars available for the program, however they are
not indicated.
Representative Hawker wondered about the $2.4 million
dollars a year spent and who those beneficiaries were. Mr.
Leonard explained that the program started in 2005.
Federal dollars require that there are performance measures
necessary based on the bottom-line client impact,
investment leverage, clients served and a percent
quantified impact. Mr. Thomas added that in 2006, the U.S.
general accounting office conducted a study on the program,
which determined it as very valuable and providing for new
jobs nationwide. The program was highly recommended to the
U.S. Congress.
Representative Joule inquired if they had entered into a
high-end market. Mr. Thomas affirmed it was.
Co-Chair Meyer requested examples of other business
benefiting from the program. Representative Joule
understood that the program attempts to help find a market
for manufactured art throughout the State. Mr. Thomas
explained that the program helps rural Alaskans sell their
products, working with the National Institute of Foundation
and Technology.
3:22:16 PM
Mr. Thomas proceeded:
AP #41959
Arctic Winter Games Team Alaska
General Fund 1004 $250,000
Mr. Thomas elaborated on the Arctic Winter Games, which
began in 1970. Up until 2005, the games were gifted $250
thousand dollars. He described the games and the amount of
participation. He understood that this year, over 100
youth would be participating. Representative Joule
interjected that the games take place in Yellowknife.
Co-Chair Meyer recommended that if the expense was going to
receive continued funding, it should be moved out of the
capital budget and into the operating budget.
3:24:41 PM
Mr. Thomas highlighted the following request item:
AP #45654
Alaska Travel Industry Association (ATIA)
Vehicle Rental Tax 1200 $3,000,000
Mr. Thomas mentioned HB 147, which addresses the Alaska
Travel Industry Association (ATIA) concerns. Co-Chair
Meyer pointed out that $900 thousand dollars had been
included in the operating budget for that request. He
inquired if ATIA had submitted the proposed budget every
year to the Department for approval. Mr. Thomas said yes.
3:25:27 PM
Mr. Thomas continued:
AP #38713
Arctic Power
General Fund 1004 $120,000
Mr. Leonard reported that the allocation would continue the
education efforts to open the coastal plain of the Arctic
National Wildlife Refuge (ANWR). The request would be used
for educating federal members of the U.S. Congress.
Representative Hawker shared the hopes of Arctic Power
Corporation and the frustrations of their previous
requests. He asked why the request was so small. Mr.
Leonard offered to provide more information on the
component; he understood that the request was only for a
"maintenance" budget.
Representative Hawker wanted to see reserves made available
for development. Mr. Leonard understood that the attempt
was to divert more education on Alaska to the D.C.
delegation for the need of the oil and gas reserves. Co-
Chair Meyer agreed with the comments made by
Representative Hawker.
3:28:10 PM
Mr. Thomas addressed the following requested item:
AP #38948
Language Section: NPR-A Impact Grant Program
General Fund 1004 $5,600,000
Mr. Thomas stated that the Department is still in the
process of getting the needed applications. Nothing has
yet been finalized.
Mr. Thomas continued:
AP #45418
Language Section: Revenue Sharing
General Fund 1004 $75,000,000
Mr. Thomas noted that the House and the Senate had passed
the revenue sharing component.
Mr. Thomas concluded:
AP #32590
Language Section: Electrical Emergencies
General Fund 1004 $250,000
Mr. Thomas reported on previous funding. The fund provides
technical support when any electrical utility has lost the
ability to transmit power to their customers.
3:30:49 PM
Vice-Chair Stoltze asked about the electrical emergency
repairs and the coverage extended to individual property
owner loss during outages. Mr. Thomas offered to research
that information.
Representative Thomas mentioned the danger of power lines
being heavy with snow and injuries then resulting to snow-
mobile riders. Mr. Thomas did not know. Co-Chair Meyer
recommended those comments should be redirected.
Representative Joule recalled the old name of Department of
Commerce, Community and Economic Development which was the
Department of Community and Regional Affairs. He pointed
to the challenges resulting from erosion experienced by
several rural communities. He questioned why there had no
capital budget item request for those communities included.
Mr. Thomas explained that the Department had requested an
item to be included called Climate Change Impact for $1
million dollars. He thought those communities could
qualify under that item. Representative Joule warned that
the Department needs to address these critical concerns as
soon as possible.
Mr. Leonard reported that the Department has been working
with the federal government to get the funding. He said
that the $1.1 million dollars is the first step.
Representative Joule maintained that no one is responding
to the crisis quick enough. He hoped that the Department
would add additional requests to these urgent needs.
3:39:18 PM
DEPARTMENT OF MILITARY AND VETERAN AFFAIRS
JOHN CRAMER, DEPUTY COMMISSIONER & DIRECTOR, DIVISION OF
ADMINISTRATIVE SERVICES, DEPARTMENT OF MILITARY AND
VETERANS AFFAIRS, addressed the Department's following
requests:
AP #40060
Alaska Aviation Safety Project
General Fund 1004 $500,000
Mr. Cramer addressed the multi-faceted research project, a
funded primarily through National Aeronautic Space
Association (NASA). The mission of the project is to
reduce aircraft related fatalities statewide.
3:41:57 PM
Mr. Cramer explained the following request item:
AP #45205
Anchorage Armory Roof Replacement
Federal Receipts 1002 $2,000,000
General Fund Match 1003 $2,000,000
He explained that the roof replacement is needed. Leaks
are springing up throughout that roof and the Department is
concerned about the integrity of the fire retardant.
3:42:33 PM
Mr. Cramer referenced the third requested item:
AP #42900
Army Guard Facilities Projects
Federal Receipts 1002 $750,000
General Fund Match 1003 $750,000
He stated the increment would be used to address statewide
armories in 96 varying locations. The age of many of the
facilities is over 30-years. The request is an on-going
deferred maintenance unmet concern.
3:43:17 PM
Mr. Cramer continued:
AP #43330
Compliance Cleanup Site Restoration
Federal Receipts 1002 $5,000,000
He noted that the Department has identified statewide
approximately $34 million dollars for liability armory
issues. The project intends to identify and then clean-up
the buildings of greatest concern.
3:43:47 PM
Mr. Cramer continued:
AP #45174
Improved Communications for Emergency Response (ICER)
Federal Receipts 1002 $3,200,000
General Fund Match 1003 $ 800,000
Mr. Cramer advised that the State has been notified by the
U.S. Congressional delegation of a new emergency response
grant program. The intent of that program is to provide
funding for building upon one-time public safety
communications grant, insuring implementation of the Alaska
plan.
Vice-Chair Stoltze asked if there was an incentive for the
Anchorage's Police Department to get on the same
communication system as the rest of the State. Mr. Cramer
acknowledged that are many frequent issues within that
system; he thought the system had been technologically
modified.
3:46:44 PM
Mr. Cramer highlighted the following request:
AP #35774
Military Youth Academy Deferred Maintenance,
Renewal, and Replacement
General Fund 1004 $1,000,000
He commented that at Camp Carol in Ft. Richardson, the
military youth academy occupies twenty-three buildings.
The average life of those buildings is about 35-years. Two
academies are run through that system per year. There are
many inadequacies in those facilities. The funding request
would be used to address basic life safety issues in those
locations, adding that none of the buildings currently are
compliant with the Americans with Disability Act (ADA).
3:47:39 PM
Mr. Cramer continued:
AP #42898
National Guard Counterdrug Support Program
Federal Receipts 1002 $100,000
He stated that the Department is one of many agencies that
participate in the above mentioned program and the
Department is attempting to work to deprive criminals of
profit and proceeds resulting from the sales of illegal
drug activity. He added that the Department does receive a
share of those proceeds.
Co-Chair Meyer interjected that any item 100% federal
receipts does not need to be explained.
3:48:38 PM
Mr. Cramer pointed out the following request item:
AP #42901
State Homeland Security Grant Program
Federal Receipts 1002 $9,500,000
He noted it is additionally a total federal program.
AP #AMD45547
Alaska Military Youth Academy Building Repair
and Compliance and Emergency Equipment
Federal Receipts 1002 $1,769,915
Alaska Cap Inc. 1197 $6,142,000
Mr. Cramer stated that the request provides for multiple
projects, which he offered to review. Co-Chair Meyer
noticed that the requests were allocations and asked
members to decide if they had questions.
AT-EASE: 3:50:12 PM
RECONVENE: 4:01:04 PM
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
ARNOLD LIEBELT, FACILITIES SECTION CHIEF, DEPARTMENT OF
HEALTH AND SOCIAL SERVICES, noted that he would introduce
the capital budget requests put forth by the Department.
He distributed a handout of the power point presentation.
(Copy of File). The mission of the Department is to
promote & protect the health and well being of all
Alaskans.
STEVE MCCOMB, ACTING DIRECTOR, DIVISION OF JUVENILE
JUSTICE, DEPARTMENT OF HEALTH AND SOCIAL SERVICES,
(testified via teleconference), indicated he was available
to further explain the first request of the Department.
Mr. Liebelt listed that request:
AP #41336
McLaughlin Youth Center Renovation to meet Safety
And Security Needs, Phase 1
General Fund 1004 $19,503,700
Mr. Liebelt referenced Pages 2 - 4. He noted that counsel
determined the safety issues at the four oldest youth
facilities throughout the State, including Fairbanks,
Bethel, Johnson Youth Center & the McLaughlin Youth Center.
Through various findings, the Division has put together a
six-year plan on how best to address the issues. The
highest priority on that list is the McLaughlin Youth
Center, the oldest facility, which was constructed in 1967.
He highlighted the first phase, which would not increase
the facilities bed capacity.
4:05:48 PM
Co-Chair Meyer referenced the entire building expansion
location and wondered if the McLaughlin Youth Center was
situated in the best location. Mr. Liebelt said it was.
He deferred to Mr. McComb.
Mr. McComb elaborated that the proximity was good because
it is close to the Anchorage Police department and close to
the bus station in order that parents can visit the
facility.
Co-Chair Chenault questioned if new beds would be
constructed during Phase 1. Mr. Liebelt responded that the
twenty-five new beds would be replacing only dilapidated
old beds.
Co-Chair Chenault asked the capacity of that facility. Mr.
McComb replied 160 beds.
Co-Chair Chenault asked about the plans for Phases 2, 3,
and 4. Mr. McComb commented it is important to remember
that the upgrades would be for all statewide facilities.
He added that each project would be stand-alone.
4:09:46 PM
Co-Chair Chenault inquired about funding allocations
directed toward the projects. Mr. Liebelt stated that the
numbers and schedules had been submitted by design
consultants; however, the McLaughlin Youth Center was the
only one included in the Governor's request.
Representative Hawker mentioned the truth in budgeting
recommendations, commenting that the Department's long-term
project was a good approach and a job well done.
Representative Joule questioned the impact to the Juneau
Youth Center, which initially had been included in the
Phase 1 request. Mr. Liebelt speculated on several
possibilities, which is now taking the Division "back to
the drawing board". He did not know what to expect for
next year.
Representative Hawker proposed that the Committee take a
serious look at the request for the youth facilities and
the proposals put forward by the Department of Justice as
versus the recommendation of the Governor.
4:15:18 PM
Co-Chair Chenault directed comments to the immensity of the
problem, noting that the proposal was a six year plan in
the amount of a $170 million dollar request.
Representative Joule commented on the number of laws passed
that impact the youth criminal justice centers.
Representative Gara shared perspective that he had
personally visited the McLaughlin Youth Center, noting the
national recognition for the reduced recidivism rates from
that facility.
4:16:58 PM
Mr. Liebelt continued:
AP #45177
Sitka Pioneer Home Roof Replacement
General Fund 1004 $1,900,000
He clarified that the Sitka Pioneer Home is the oldest
facility that the Department is responsible for
maintaining, which was constructed in 1933. It has a
unique terra cotta roofing style, which has lasted nearly
75-years. The job will be labor intensive, removing all
the tiles and repairing the rot damage and then replacing
tiles where necessary. The roof has been patched over the
last several years and now needs to be replaced.
Representative Hawker pointed out that the current roof
lasted 73 years. Mr. Liebelt elaborated the advantages of
a terra cotta tile roof; however, the problems exist
because of the excessive amount of rainfall in Southeast
Alaska.
Mr. Liebelt highlighted the following project:
AP #AMD45641
Alaska DHSS Deferred Maintenance, Renovation,
Repair, and Equipment
Federal Receipts 1002 $ 81,600
Alaska Cap Inc $7,110,000
He commented that there had been an amendment proposed for
that amount, changing it from the Alaska Student Loan
Corporation (ASLC) to the Alaska Capital Income Fund
(ACIF). He referenced Page 6 of the handout, indicating
various allocations of funds and facilities.
Co-Chair Meyer referenced Item #25, the Sitka Pioneer Home
and asked if that could be combined with the Pioneer Home
roof project. Mr. Liebelt responded that those two
categories need to be kept separate.
Co-Chair Chenault inquired if most of the requested
allocations would be used for roof replacements. Mr.
Liebelt responded there are not that many roof repairs
needed, but rather deferred maintenance issues for many
facilities.
Co-Chair Chenault asked about the funding source change to
the Alaska Capital Income Fund and offered to consult with
the Office of Management and Budget (OMB) for the correct
information.
4:24:57 PM
Mr. Liebelt continued:
AP #31862
Non-Pioneer Home Deferred Maintenance, Renovation,
Repair and Equipment
Federal Receipts 1002 $ 7,600
General Fund Match 1003 $750,000
He commented that the funds would be used for past work.
Once the Department received responsibility for caring for
the pioneer homes several years ago, they moved forward to
address deferred maintenance requests. The Pioneer Homes
were moved into the proposed bond package and left with an
additional $750 thousand dollars, in which those dollars
could be used for non-pioneer home matters.
Mr. Liebelt addressed the following project request.
AP #45404
Federally Mandated Child & Family Services Review
Federal Receipts 1002 $ 48,300
General Fund Match 1003 $151,700
LAURA BAKER, BUDGET CHIEF, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, spoke
to the allocation for the project request. The Office of
Children's Services (OCS) went under federal review in
2002-2004 and the results found a number of states having
to go through a second round of reviews; that began in
2007. Again, not all states were in compliance in their
efforts, consequently, there is another review beginning in
September 2008 for Alaska. The request provides additional
resources on a one time bases to allow OCS staff to perform
some of those tasks.
Mr. Liebelt continued:
AP #32446
Safety & Support Equipment for Probation Officers,
Social Workers, and Pioneer Home Residents &
Staff
Federal Receipts 1002 $ 87,800
General Fund Match 1003 $399,700
General Fund 1004 $350,000
He explained that the request addresses the equipment needs
for various departmental divisions. He listed the
distribution amounts for each agency. He pointed out the
worker's compensation cost data to reduce injury rates.
4:30:25 PM
Mr. Liebelt added the following project request:
AP #35721
Information Services Security Enhancements
Federal Receipts 1002 $1,000,000
He pointed out it is 100% federally funded.
AP #45182
Craig Public Health Center Replacement
General Fund Match 1003 $797,900
The City of Craig just completed the design for the
construction of a new community facility that would house
offices for the City and the public health staff. He
admitted that the project could be one of high leveraging.
4:31:22 PM
Mr. Liebelt continued:
AP #42837
Emergency Medical Services Ambulances and
Equipment Statewide-Match for Code Blue Project
General Fund Match 1003 $425,000
He pointed out that the Department has requested the same
amount from General Fund match funds for that project in
the past. It is also a high leveraging project and will
purchase ambulances and other emergency medical equipment
needed in the rural communities.
4:31:59 PM
Mr. Liebelt noted that the following three projects have
resulted from the Mental Health (MH) bill:
AP #33672
MH Essential Program Equipment
General Fund / Mental Health 1037 $250,000
The funds would be used for a competitive grant program the
Department offers annually to provide basic one-time
equipment for non-profit agencies providing services for
Trust beneficiaries across the State. In the past, it has
been a successful program.
AP #33671
MH Home Modification & Upgrades to Retain Housing
General Fund/Mental Health 1037 $250,000
MHTAAR 1092 $250,000
He explained that the project has been successful in
serving Trust beneficiaries. The award can be up to $12
thousand dollars for individual's homes for improvements so
that they can live more independently, having greater
access. The award process would be competitive.
Representative Hawker asked if the Alaska Housing Finance
Corporation (AHFC) weatherization increment had been
included and if it would be duplicating dollars. Mr.
Liebelt deferred the question.
JENNIFER KLEIN, FACILITIES MANAGER, DIVISION OF FINANCE &
MANAGEMENT SERVICES, FACILITIES AND PLANNING OFFICE,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES, advised the
program could not be duplicated.
4:35:08 PM
Mr. Liebelt proceeded:
AP #37901
MH Treatment & Recovery Based Special Needs Housing
General Fund/Mental Health 1037 $250,000
MHTAAR 1092 $250,000
AHFC Division 1139 $250,000
Mr. Liebelt reported that the request is also a grant
program for agencies to develop service enriched
transitional housing units to support recovery for the
high-risk alcoholic population.
Representative Hawker asked if any funds would be
duplicated. Mr. Liebelt reiterated they would not.
Representative Hawker noted conflicting testimony
regarding that issue. Mr. Liebelt reiterated that services
must be kept separate, acknowledging that there are some
types of transitional housing that could be supported,
which depends upon custody issues of those living at that
housing. There has to be a separation between the service
provided and the housing itself.
4:37:00 PM
Mr. Liebelt addressed the following IT project requests:
AP #42853
Electronic Vital Record Registration System
General Fund 1004 $3,724,500
The funds would be used to replace the 20-year old system
currently in use. The old system is outdated and difficult
to maintain.
Mr. Liebelt continued:
AP #42854
Evaluate Eligibility Information System
Alternatives, Phase 2
Federal Receipts 1002 $389,700
General Fund Match 1003 $389,700
General Fund 1004 $ 84,900
Mr. Liebelt reported on the request for phase 2 of a
comprehensive needs assessment & feasibility study of a
system used for upgrading and replacing unit existing 24-
year old Evaluate Eligibility Information (EIS) system. He
listed the programs that the system supports. The request
does not replace the system, but rather an investigation of
the best way to replace that system. They are very
expensive to purchase. He proposed the possibility of
copying another system adopted by a different state and
then making adjustments to that program so that it can
address Alaska's needs.
Co-Chair Chenault inquired the estimated costs for
replacement. Mr. Liebelt did not know, reiterating that it
would be high. The State of Texas spent $124 million
dollars and it took 4 years to implement.
Co-Chair Chenault inquired how many additional phases would
be needed. Mr. Liebelt responded that the third phase
would be the actual request for funding for the EIS system.
In response to Co-Chair Chenault, Mr. Liebelt added that
phase 1 would cost the State about $662 thousand dollars in
order to create a project team; phase 2 would be the
proposed request, which will determine the direction for
the State to move forward.
Mr. Liebelt identified the following request item:
AP #42856
Eligibility Information System Maintenance
Federal Receipts 1002 $163,400
General Fund Match 1003 $159,100
General Fund 1004 $105,300
He explained that the request ties directly to the previous
request. Until the EIS is actually replaced, the
Department needs funding to maintain it. A new system
would not be on line and operational for eight to ten
years.
Representative Joule questioned what would happen if the
State does not maintain the current system. Mr. Liebelt
warned there would be many ramifications.
ALLIE FITZJARRALD, ACTING DIRECTOR, DIVISION OF PUBLIC
ASSISTANCE, DEPARTMENT OF HEALTH AND SOCIAL SERVICES,
responded that if the system is not maintained, the State
risks loosing benefits to the needy families. The current
system is old and costly to maintain and is not keeping up
with current business needs. Meeting federal and State
requirements is becoming more and more difficult.
Representative Joule asked if there could be potential
penalties. Ms. Fitzjarrald reported that there are
penalties associated with not meeting the court required
information for drawing federal match dollars.
Mr. Liebelt continued:
AP #42858
Fraud Case Management System Replacement
Federal Receipts 1002 $113,900
General Fund Match 1003 $110,900
General Fund 1004 $ 73,400
Mr. Liebelt described the project which would fund the
development of a new fraud case management system. The
existing system uses a Microsoft data base, which is
outdated and unstable. That system would be replaced with
a web-based system.
Representative Hawker asked if the system would be used by
the Department or another source. Ms. Fitzjarrald
responded that it would be used by the Division of Public
Assistance, Fraud Control Unit.
Mr. Liebelt listed the last project:
AP #33443
Emergency Medical Services-Emergency Communications
General Fund 1004 $265,000
Mr. Liebelt stated that the purpose of the project is to
protect the health and safety of Alaskans by maintaining
and updating the emergency response systems statewide,
particularly in rural Alaska. There are three components
to funding the request:
• Assessment of the repair needs;
• Updating of the statewide Emergency Medical Services
(EMS) communications plan; and
• Completion of the highest priority projects.
4:48:02 PM
Representative Hawker commented on the need for "front-end
work" converting the State's electronic management systems.
He anticipated over one billion dollars in projects being
proposed; he emphasized the need for a ten-year cash flow
plan in place to understand the context of these decisions.
4:50:48 PM
DEPARTMENT OF FISH AND GAME
JEFF HOOVER, ADMINISTRATIVE SERVICES MANAGER, DIVISION OF
ADMINISTRATIVE SERVICES, DEPARTMENT OF FISH AND GAME,
advised that the Department's projects had been prioritized
in the proposed bill and listed in that order. There are
IT projects listed in the FY2009 request.
4:51:28 PM
Mr. Hoover described the first project:
AP #43322
Statewide Deferred Maintenance, Repair, Upgrades
and Equipment
General Fund 1004 $1,000,000
The request is an annual and on-going need to provide
repairs and maintenance to the Department facilities
statewide, including vessel and aircraft maintenance repair
and purchase of field equipment. There are four parts of
the request with employees in approximately 40 locations
across the State. The maintenance is above and beyond that
paid for out of the operating budget.
4:53:27 PM
Mr. Hoover continued:
AP #45363
Power Backup for Genetics Laboratory
General Fund 1004 $100,000
The project funds the engineering, purchase and
installation of generators for backing up freezers in the
laboratory in case of an electrical power outage in
Anchorage. It would be a one-time project funding. There
are about 450,000 fish specimens, currently located at that
spot.
4:54:11 PM
Mr. Hoover outlined the following project:
AP #45368
Assessment of Pacific Salmon Resources in AYK
Northern Region
General Fund 1004 $150,000
He stated that it would be a phased project over a couple
years with the purpose of the study to evaluate the
distribution and abundance of Pacific salmon in Arctic
fresh water north and east of Pt. Hope.
4:54:56 PM
Mr. Hoover noted that:
AP #42948
Fairbanks Regional Office Enclosed Secure Storage
Compound Design/Construction
General Fund 1004 $2,000,000
The project funds the design and construction of a new
storage facility within the existing Fish and Game
compound. It would be a one-time funded project.
Presently, there is unsecured storage around the historic
farm; over the years, there have been a number of thefts.
Currently, Risk Management will not insure the contents of
the building. The facility would offer about 10,000 square
feet of secured storage.
4:56:19 PM
Mr. Hoover continued:
AP #45381
Subsistence Technical and Scientific Reporting
Integration into Department Database
General Fund 1004 $127,400
The project would add subsistence, fisheries and wild life
publications into a text searchable database, making it
easier to locate the information. It would be a one-time
request.
4:57:01 PM
Mr. Hoover identified the following request:
AP #45369
Kodiak Aircraft Hangar Upgrade
General Fund 1004 $225,000
The project funds the design & construction expansion of
the commercial fisheries hangar in Kodiak. The current
hangar is not large enough. The proposed air hanger would
house four aircraft and provide storage. The project would
add 4,500 square feet to the existing building.
Representative Joule asked if the building would be heated.
Mr. Hoover did not know.
Co-Chair Chenault did not believe that the proposed request
amount could cover the costs of design and construction of
that size building. Mr. Hoover offered to provide further
information.
5:00:27 PM
Mr. Hoover pointed out the following request:
AP #42981
Kodiak Near Island Facility
General Fund 1004 $2,000,000
The project would assist the Kodiak Island Borough in its
efforts to move from the design stage to constructing a new
facility. Currently, the Borough has received $1.5 million
dollars for design. The Near Island sight is adjacent to
the University of Alaska and National Oceanic and
Atmospheric Administration (NOAA) Marine Fisheries. The
Borough is seeking additional funding from Exxon Valdez oil
spill monies.
5:01:41 PM
Mr. Hoover discussed:
AP #44823
Lower Kasilof Boat Launch
Federal Receipts 1002 $ 750,000
General Fund 1004 $1,250,000
The project funds the purchase of property and design &
construction of a public access boat launch at 3.5 Mile,
Kasilof River. It would be a phased-in project.
Discussion occurred between Co-Chair Chenault and
Representative Thomas regarding a project that had been
vetoed previously.
Representative Gara questioned a previous requested item,
wondering if Kodiak had spent $1.5 million dollars for the
design of the $8 million dollar building. Mr. Hoover
understood that the cost of the building has been estimated
to be around $13 million dollars. Representative Gara
questioned the amount spent on the actual design plans.
Mr. Hoover remembered that they had received $1.5 million
dollars, which he assumed had been used for design, but
perhaps it also covered other expenses. He offered to
research that information.
5:05:21 PM
Mr. Hoover continued:
AP #44833
Kanaiku Lake - Angoon Fish Ladder
General Fund 1004 $200,000
He stated that the funding would be one-time and would
provide for planning, construction and elevation of a
sockeye salmon fish pass near Kanaiku Lake close to Angoon.
Co-Chair Chenault questioned if it would be natural or an
enhancement. Representative Thomas replied natural.
5:06:31 PM
Mr. Hoover outlined the following two request items:
AP #33647
Pacific Coastal Salmon Recovery Fund
Federal Receipts 1002 $22,000,000
AP #45358
Licensing Point of Sale System
Fish/Game 1024 $200,000
He pointed out that the Department is developing a point of
sale system so that hunting and fishing licenses can be
sold at major vendors and regional offices. The above
mentioned request would provide funds for purchasing
equipment & terminals for those vendors and regional
offices.
Vice-Chair Stoltze commented that the expenditure would not
be spent in Interior Alaska as they have only 7% of the
licenses. Mr. Hoover offered to provide a list of the top
35 vendors.
Co-Chair Chenault questioned if the purchase of the license
would be overseen by each vendor. Mr. Hoover affirmed it
would and that they would receive a percentage cut of the
license sales. Co-Chair Chenault wanted to know that
purchases would be checked.
5:09:19 PM
Mr. Hoover continued:
AP #45374
Crew Member Fishing Participation Database
Design / Development
Fish/Game 1024 $150,000
The project would provide funds for the development of an
electronic system for collection, maintaining and reporting
commercial fishing activities for crew members. It would
be a one-time project funding.
5:09:55 PM
Mr. Hoover discussed the following request item:
AP #31317
Juneau Hunter Education Indoor
Shooting Range Completion
Fish/Game 1024 $150,000
Statutory Designated 1108 $188,000
The project would allow for the completion of the Juneau
shooting range constructed in 2004. This would be a one
time project funding. The Department is working with the
City and Borough of Juneau (CBJ) to complete the archery
portion.
Vice-Chair Stoltze recalled in the past that Juneau had
attempted to determine how to spend their crew ship tax
dollars and wondered if those funds could be partially used
on the rifle range. Mr. Hoover responded that CBJ did
assist the Department in efforts at the rifle range.
Co-Chair Chenault referenced operating and maintenance
costs and asked if the State had placed $100 thousand
dollars into the rifle range each year. Mr. Hoover said
yes. Co-Chair Chenault requested the yearly dollar numbers
associated with statewide shooting range expenditures. Mr.
Hoover agreed.
5:12:22 PM
Mr. Hoover continued:
AP #45220
Birch Lake Weir Site Land Acquisition
Federal Receipts 1002 $150,000
Fish/Game 1024 $ 50,000
The funding would allow the appraisal and land purchase of
the Birch Lake weir.
Co-Chair Chenault inquired if the State would be manning
the weir project. Mr. Hoover replied they would and has
been operated by the Department since 1952.
Vice-Chair Stoltze surmised that there are many weir
projects, placing pressure on other statewide projects. He
worried about project needs being met in the Valley.
CHARLES SWANTON, DIRECTOR, DIVISION OF SPORT FISH,
DEPARTMENT OF FISH AND GAME, clarified that the Birch Lake
weir is not a manned weir but rather an electrically
operated drum weir for the purposes of cleaning and
maintaining the water level at Birch Lake.
Co-Chair Chenault surmised that the Department would be
purchasing that Mental Health Trust land. Mr. Swanton
replied yes.
5:14:58 PM
Mr. Hoover proceeded:
AP #45215
Whittier Harbor Transient Moorage
Boating Infrastructure Grant (BIG) Tier II
Federal Receipts 1002 $1,500,000
5:15:11 PM
Mr. Hoover continued:
AP #30432
Sport Fish Recreational Boating Access
Federal Receipts 1002 $2,325,000
Fish/Game 1024 $ 775,000
He explained that the request was an on going, annual
request of mixed federal receipts and matched with funds
from the Department of Fish and Game. The funds would be
used to assist and upgrade boating and sport fish access
statewide. The bidding for those dollars would be a
competitive process.
Co-Chair Chenault asked if there was a list available of
the recipients. Mr. Hoover offered to provide it.
5:16:12 PM
Mr. Hoover concluded:
AP #45482
Statewide Facility Deferred Maintenance
Bonding Projects
AK Cap Inc 1197 $1,900,000
He pointed out that the request was originally submitted
for funding by the Alaska Student Loan Corporation bonding
receipts. The amendment changed the funding source. There
are four pieces of it, which are usually one-time projects:
• Tok compound replacement
• Bunk house replacement
• Statewide roofing and siding replacement projects
• Field camp housing replacements
Mr. Hoover mentioned the requests included in the
Department's language section:
AP #42983
Language Sport Fisheries Hatchery Construction
Investment Earnings
AK Capital Inc. $6,000,000
He stated that the funds would allow sport fish to utilize
the investment earnings the Alaska Sport Fish Construction
account for hatcheries.
Mr. Hoover listed the final project:
AP AMD#45688
Installation of Capstone Avionics for Wildlife
Conservation Aircraft
General Fund 1004 $125,000
The project would be a one-time funding and the Federal
Aviation Administration (FAA) would provide the necessary
equipment. The dollars would be used to equip those planes
for better safety reasons.
HB 311 was HELD in Committee for further consideration.
ADJOURNMENT
The meeting was adjourned at 5:20 P.M.
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