Legislature(2007 - 2008)HOUSE FINANCE 519
03/18/2008 08:30 AM House FINANCE
| Audio | Topic |
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| Start | |
| HB311 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 311 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
March 18, 2008
8:37 A.M.
CALL TO ORDER
Co-Chair Meyer called the House Finance Committee meeting to
order at 8:37:22 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 Mary Nelson
Representative Bill Thomas Jr.
MEMBERS ABSENT
Representative Richard Foster
ALSO PRESENT
Dan Spencer, Director, Division of Administrative Services,
Department of Public Safety; Anand Dubey, Director of
Enterprise Technology, Department of Administration; Eric
Swanson, Director, Division of Administrative Services,
Department of Administration
PRESENT VIA TELECONFERENCE
John Norman Chair, Alaska Oil and Gas Conservation
Commission, Anchorage; Traci Mintz, State Lease/Facilities
Manager, Department of Administration; John Glass, Deputy
Commissioner, Department of Public Safety; David Schade,
Director, Division of Statewide Services, Department of
Public Safety
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 HEARD & HELD in Committee for further
consideration.
DEPARTMENTS DISCUSSED:
Department of Administration
Department of Public Safety
HOUSE BILL NO. 311
An Act making appropriations, including capital
appropriations, supplemental appropriations, and
appropriations to capitalize funds; and providing for
an effective date.
DEPARTMENT OF ADMINISTRATION
ERIC SWANSON, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF ADMINISTRATION, presented the following
capital budget requests as submitted by the Department.
8:39:05 AM
AP #45399
Palmer State Office Building
General Fund 1004 $ 15,725,000
He explained that the existing 70 thousand square foot
facility, previously known as the old Valley Hospital, had
been purchased by the State for $5 million dollars. The
State completed the purchase and sale agreement with Triad
Hospitals in September 2006. An additional $5 million
dollars was appropriated for:
· $2 million sent to the Court System for renovations
to the Palmer Courthouse; and
· $3 million allocated for the initial capital
improvements necessary to transform the facility
from a hospital to an office building. Most of the
funding was used for the space occupied by the Court
System.
Mr. Swanson commented that the FY 2009 request would be used
for construction and remodeling work. The dollars intended
will transform that space into a functioning State office
building. Some of that funding would be used for
negotiating early termination of existing office leases.
The objective is to co-locate all area-wide judicial related
offices into the facility, one block from the Palmer Court
House.
8:41:31 AM
Representative Joule pointed out that there has been no
indication for extra funds beyond FY09. Mr. Eric Swanson
agreed that the request will take the Department "where they
need to be" without future requests.
Representative Thomas inquired when the building actually
had been built, indicating concern about purchasing aging
buildings. Mr. Swanson responded, the building was built in
1953.
8:43:10 AM
Mr. Swanson addressed the following project request:
AP #45546
Facility Deferred Maintenance
AK Cap Inc 1197 $7,618,000
He noted that the funding had been requested to address
deferred maintenance needs for the following facilities:
· Atwood Building
· Juneau State Office Building
· Palmer State Office Building
· Court Plaza Building
· Community Building
· Archives Building
· State Museum
· Dimond Courthouse
· Governor's House
The amendment changes the funding source from the Alaska
Student Loan Corporation (ASLC) to the Alaska Capital Income
Fund (ACIF), since credit market concerns have precluded the
ASLC from returning capital to the State in the FY09 budget
cycle.
Co-Chair Meyer remembered a funding request for the Dimond
Court House had been brought forward last year. Co-Chair
Chenault was uncertain of the specifics. Mr. Swanson
indicated there have been annual requests over the years and
that the total deferred maintenance projects exceed what is
requested.
8:46:47 AM
Mr. Swanson continued:
AP #45396
Alaska Oil and Gas Conservation Commission (AOGCC)
Reservoir Depletion Studies Prior to Major Gas Sales
AK Cap In. 1197 $1,500,000
General Fund 1004 $1,000,000
He discussed that the Alaska Oil and Gas Conservation
Commission (AOGCC) must evaluate depletion plans for
reservoirs prior to the start of major gas sales from the
North Slope of Alaska. Withdrawal of gas prior to the end
of the oil productive-life may cause severe loss of
hydrocarbons. The Commission will be required to rule upon
off-take rates, timing and depletion plans for those fields
being developed before the gas sales are approved.
Significant reservoir evaluation studies will be necessary
to accomplish those tasks. AOGCC has completed a portion of
the necessary work, however, does not have the resources at
this time to complete the studies.
JOHN NORMAN, CHAIR, ALASKA OIL AND GAS CONSERVATION
COMMISSION (AOGCC), ANCHORAGE (Testified via
Teleconference), explained that it would be a part of the
reservoir analysis undertaken by the Commission by spending
the last few years to position the AOGCC to be able to act
if a major gas sale project were eminent. Several years
ago, AOGCC sought and received funding from the Legislature
to use for that study. The study of the Prudhoe reservoir
has been completed, so the Pt. Thompson reservoir will
receive the funding request currently before the Committee.
8:48:17 AM
Co-Chair Chenault inquired what is happening at the Pt.
Thompson reservoir. Mr. Norman replied that there is less
data concerning long-term production and anticipated gas
cycling. Over the years, there have been nineteen wells
drilled. The Commission has requested access to that
information; the Commission retains the power to subpoena
and is scheduled to view Exxon's information, including
reservoir modeling that happened in the fall 2006; it has
been delayed because of an ongoing dispute between the State
of Alaska, Department of Natural Resources and the owners,
regarding the legal status of the units. That study is now
back on track. The primary concern of AOGCC is to guarantee
that in producing oil and gas, there is maximum recovery of
both.
8:53:45 AM
Co-Chair Chenault questioned at what point a study becomes
"stale". Mr. Norman thought it could have a possible shelf-
life of three to five years. Pt. Thompson is more difficult
to determine because the study has not been completed; it
will be on-going. The operator has proposed to the
Department of Natural Resources that there will be two wells
drilled within the current season, which should yield
additional information regarding that reservoir.
8:55:41 AM
Co-Chair Chenault thought that unless there is production or
gas reinjection, the studies are "down the line" from the
projects put forth during discussions. Mr. Norman agreed,
however, pointed out that good modeling is possible with the
new available information. He acknowledged progress is
being accomplished at Pt. Thompson.
Co-Chair Chenault reiterated, there is no current production
and it will be difficult to determine future projections.
8:58:50 AM
Representative Hawker questioned the "interplay" between the
Commission and Department of Natural Resources. Mr. Norman
directed his comments on the relationship between AOGCC and
the Department of Natural Resources, stressing they both
have attempted to eliminate overlap. The role of the
Department is different than the Commission and must
optimize production for the State of Alaska. AOGCC is
responsible for looking-out against waste in that resource.
Consequently, each agency has separate focus.
Mr. Swanson addressed the next project:
AP #45354
Microsoft Directory Project Phase 3
Information Svc 1081 $1,750,000
He clarified that the funding would allow work to continue
on the Microsoft project providing dollars to install the
directory. The project was identified as a phase of the
project and a phased approach was chosen for an orderly
build-up and deployment of the centralized services. The
first goal will be to identify the pilot departments
representing differing network environments for the purpose
of outlining the migration of objects, applications, file
and print services. The role of the four pilot departments
will:
· Migrate all work-stations into the enterprise active
directory;
· Migrate all file and print servers into the
enterprise active directory; and
· Authenticate against our enterprise active
directory.
The project anticipates decommissioning legacy files and
printing servers, saving on licensing and administrative
functions. The scope of the project will be defined during
the project planning phase once the project is selected.
Mr. Swanson continued his identification of the following
request:
#AP #45391
Maintenance projects for Facilities outside the Public
Building Fund
General Fund 1004 $250,000
He explained that the funding is necessary for continued
maintenance of facilities outside the Public Building Fund.
The group of facilities includes the Governor's House, the
rd
3 floor of the Capitol, the Archives/Records Center and the
Alaska State Museum and Building Annex. Each of the
facilities is located in Juneau.
Representative Hawker commented that the inventory list was
below the amount requested. Mr. Swanson explained that the
items had also been included in the overall facility
maintenance requested dollars. The Department is currently
doing some of the work from appropriated dollars from last
year. He thought that the request would be adequate to deal
with the most pressing deferred maintenance issues.
9:05:39 AM
Representative Hawker referenced the list of deferred
facility maintenance. Mr. Swanson acknowledged that some of
the projects were the same. He offered to deliberate on the
process, explaining the different funding sources for
specific projects. There are three requests that have
different funding sources, the Capital Income account fund,
the General Fund and the Public Building fund, which is
collected from the rates that are generated statewide.
Representative Hawker interjected that the public deferred
maintenance fund has an additional list totaling $97 million
dollars. He noted frustration by how the State maintains
their public assets. He questioned the "deferred
maintenance" within the school system, pointing out that
there has been no funding for "preventative maintenance".
He elaborated how serious the State's deferred maintenance
needs are.
Mr. Swanson intended for the Department's facilities manager
to address concerns voiced by Representative Hawker.
Representative Hawker reiterated his concerns and
frustrations. Mr. Swanson pointed out there also is an
operating budget component that addresses statewide
facilities.
9:10:45 AM
TANCI MINTZ, STATE LEASE/FACILITIES MANAGER, DEPARTMENT OF
ADMINISTRATION, ANCHORAGE, (Testified via Teleconference),
addressed the preventive maintenance costs, which are
included in the Department's maintenance and operations
annual request. Some major deferred maintenance such as
roofs are addressed in the capital project budget; the
proposed projects have been deferred too long and the
funding has not been made available. She listed the major
roof repair needs, which have occurred over the past few
years.
Representative Hawker pointed out that in the Department's
budget support documents, there is over $1 million dollars
in deferred maintenance itemized request projects, yet the
budget request approaches $10 million dollars. He
questioned if it would it be possible for the State to
address the needs at that rate. Ms. Mintz stressed that it
would be best if the deferred maintenance needs could be
fully funded.
Representative Hawker inquired if there is a comprehensive
deferred maintenance plan in place. He maintained the
objective should be to protect statewide facilities &
assets. Ms. Mintz replied, the Department does have a list
of all the capital projects that need to be replaced.
9:14:51 AM
Ms. Mintz confirmed that the buildings have not been
maintained over the years. Many pieces of equipment are now
failing. The Department's list prioritizes first the life
safety of individuals and then the equipment needs.
Representative Hawker commented that if HB 125 does pass the
Senate, it would require the Legislature to establish a ten
year prioritized plan for addressing maintenance needs. He
underlined the importance of looking forward and planning
for the protection of the State's assets.
9:16:42 AM
Mr. Swanson continued:
AP #45357
Public Building Fund Deferred Maintenance
Public Building 1147 $2,500,000
He discussed funding necessary for continued maintenance of
State-owned facilities, made-up as the public building fund
facility. Those facilities include:
· The State office Building,
· The Alaska Office Building,
· The Community Building,
· The Douglas Island Building,
· The Atwood Building,
· The Fairbanks Regional Office Building,
· The Public Safety building,
· The Court Plaza Building,
· The Palmer State Office Building and
· The Dimond Courthouse.
He pointed out that the request has become annual.
9:17:36 AM
Representative Joule directed comments to the Committee
concerns. He remembered times when Alaska did not have any
extra funds, currently available. At those times, choices
were more closely scrutinized. He indicated support for
continued balancing of the infrastructure needs.
Representative Kelly asked if the projects had been listed
in a priority order. Mr. Swanson affirmed, noting that the
lists provide a "snap shot"; the nature of these lists do
change with statewide emergency needs.
9:20:17 AM
Representative Kelly questioned if "politics" had been used
when determining prioritization lists. Mr. Swanson
explained that the priorities were based on an input process
received from the building advisory committees.
Representative Kelly understood Mr. Swanson to say that
there was no political influence in the decisions that had
been made. Representative Joule countered that there must
have been "politics" used when determining choices at some
level.
9:21:43 AM
Mr. Swanson explained the next request item:
AP #45348
Web Based Banking Services
Information Services 1081 $325,000
He advised that funding was needed to enhance and improve
the functionality, reliability and security of the
Enterprise Banking Web Services (ETS). The services apply
to the credit card service, which enables agencies to accept
credit card payments. The funding also helps the Department
to establish a web site where agencies that have less
programming support, can access to take advantage of all
those services.
Representative Hawker inquired if the Department was aware
of problems resulting from the credit card receipt system
through inaccurate audits and decisions being made to
establish inappropriate rates. He questioned if the
technology was ahead of the Department's ability to manage
the requested dollars. Mr. Swanson was not familiar with
the specifics; however, was aware that the program had run
several years, problem-free.
9:24:22 AM
Representative Hawker explained that the Department of
Commerce, Community and Economic Development has indicated
that Department of Administration is the source of the
error. He was surprised that Mr. Swanson did not know about
it. Mr. Swanson offered to research the issue and then
bring information forward to the Committee.
9:25:04 AM
Mr. Swanson continued:
AP #45395
Division of Motor Vehicles (DMV) Alaska License and
Vehicle Information Network Replacement
Receipt Services 1156 $2,500,000
He explained that the funds were needed to replace the
State's Division of Motor Vehicles (DMV) network. The
entire system is thirty-plus years old and is out of date,
which is becoming increasingly more difficult to support and
maintain. The dollars provide for the necessary
programming, resulting in a new system.
Representative Hawker inquired if existing language was
written in a COBOL system. Mr. Swanson affirmed.
9:27:14 AM
Mr. Swanson addressed the following request:
AP #45400
Retirement and Benefits
Combined Retirement System Upgrade
General Fund 1004 $ 6,400
Benefit System 1017 $103,400
The existing combined Retirement System (CRS) was developed
in COBOL using DB2 as a database on an IBM AS400. That
technology is rapidly nearing the end of a useful life and
the skills needed to maintain the current system are rare in
the present marketplace; staff members possessing those
skills are nearing retirement age. He emphasized that the
system is in great need of upgrading.
9:29:04 AM
Co-Chair Meyer commented that the requested amount was not
adequate to address the scope of the project. Mr. Swanson
explained that system replacements would be addressed over
the scope of several years and that out-year funding would
be requested.
Representative Hawker asked if IBM continues to support the
AS400 series. Mr. Swanson affirmed. Representative Hawker
asked how much longer that could continue.
ANAND DUBEY, DIRECTOR, ENTERPRISE TECHNOLOGY SYSTEMS (ETS),
DEPARTMENT OF ADMINISTRATION, responded that IBM does
continue to support their systems, however, as time
progresses, it becomes more expensive to do so. He believed
that IBM would not let "go of" their AS400's and have newer
technologies that are run on the AS400 series. He added
that IBM is one of the most expensive vendors.
Representative Hawker inquired if the upgrades would be to
the hardware and/or the software components. Mr. Dubey
responded that they would have both components, moving away
from the AS400 series, which is hardware.
9:31:29 AM
Mr. Swanson addressed the final project request:
AP #45653
Cost of Living Survey
General Fund 1004 $400,000
He explained that in accordance with AS 39.27.030, funding
is requested to conduct a cost-of-living survey. The survey
is conducted every five years to review the pay
differentials established in statute. The last survey
conducted was in 1995, which was not implemented.
9:32:47 AM
Mr. Swanson highlighted the three IT requests:
AP #45352
Facilities Remediation
Information Services 1081 $2,700,000
The funding is needed for facilities remediation work in the
Juneau Data Center, the Anchorage Data Center, rural Alaska
locations and the Atwood Building.
AP #45376
Network Security
Information Services 1081 $2,000,000
Mr. Swanson pointed out that the funding would be used to
complete deployment of DMZ and network admission component
(NAC) for securing the State network.
AP #45346
Asset Management
Information Services 1081 $ 500,000
He explained that the funding was needed to better manage IT
asset information. Those dollars will provide a system to
track IT assets as they are procured, deployed and
configured.
9:37:09 AM
DEPARTMENT OF PUBLIC SAFETY
DAN SPENCER, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF PUBLIC SAFETY, presented the departmental
requests:
AP #40007
Anchorage Aircraft Hangar Replacement
General Fund 1004 $3,000,000
*JOHN GLASS, DEPUTY COMMISSIONER, DEPARTMENT OF PUBLIC
SAFETY, (Testified via Teleconference), explained that the
funding would be used to construct a new aircraft hangar at
Lake Hood in Anchorage. That project would safeguard the
Department's aircraft assets and ensure that safe,
dependable and mission capable aircraft were available in
the most cost effective manner to support the Department's
mission of preserving public peace, protecting life,
property and resources.
Mr. Spencer continued:
AP #6121
Aircraft and Vessel Repair and Maintenance
General Fund 1004 $1,000,000
The requested amount is an annual request from the
Department for aircraft and vessel repairs and maintenance
costs.
AP #37774
AST Law Enforcement Equipment Replacement
General Fund 1004 $500,000
He stated the requested dollars would be used for electronic
equipment including radar, scanners and digital cameras used
in the field. It is an annual request, attempting to keep
equipment current.
AP #ADM41788
Facilities Deferred Maintenance, Repairs and
Improvements
AK Cap Inc $1,715,000
Mr. Spencer explained that the item was a "narrowly written
deferred maintenance request" appropriation for the
foundations, sewer systems, roofs and boilers. The last
time the Department did a statewide facility assessment was
in the 1990's.
Representative Hawker pointed out that there has not been a
"comprehensive" facilities study done in 18 years and
questioned if it was time for another one. Mr. Spencer
surmised that a larger study would be productive.
9:44:30 AM
Mr. Spencer introduced the following component request:
AP #ADM 45300
Law Enforcement Equipment Replacement
General Fund 1004 $475,000
He noted that the increment was specific. It would be used
for all necessary items during the course of business
including replacement of four-wheelers and snow machines for
field use.
AP #ADM45337
Mobile Data Computers
General Fund 1004 $480,000
He indicated that the item request would be used for Alaska
State Troopers mobile computers. The funding allows the
Department to place lap-top computers and equipment in sixty
parole cars, which would bring the State Troopers into the
modern technology phase. He maintained it would have
significant benefits for the State of Alaska.
AP #42920
Fire Training Engine for
Southeast Regional Training Center
General Fund 1004 $350,000
Mr. Spencer explained the increment provides funding to
purchase a fire training engine for Juneau. Having such an
engine allows the fire fighting training program to use the
most modern equipment and which would also be used for
responding to fire calls throughout the Juneau area.
AP #45325
Crime Laboratory Equipment Replacement
General Fund 1004 $100,000
He explained that the requested item provides an equipment
replacement for the crime lab, which replaces a microscope
that is twenty one years old. Under current technology
standards, the microscope currently used is out of date.
AP #45524
Facilities Engineering Assessments, Repair
and Improvements
General Fund 1004 $350,000
Mr. Spencer continued. The project provides funding for
undertaking a comprehensive review of facilities in
Soldotna, Bethel and Fairbanks area. The allocation would
provide for a contractor to assess the buildings,
determining what it would take to bring the buildings to
code.
AP #45319
Fairbanks Regional Fire Training Center Burn Building
General Fund 1004 $395,000
He stated the request would be used to build a two story,
concrete building at the Fairbanks fire training center.
Construction of that space would provide a place for live-
fire training exercises.
Mr. Spencer explained that the next two items were federal
receipt projects, reoccurring annually.
AP #35825
Marine Fisheries Patrol Improvements
Federal Receipts 1002 $2,000,000
AP #38479
Rural Law Enforcement Training and Equipment
Federal Receipts 1002 $1,000,000
Mr. Spencer noted the information technology projects:
AP #45316
Modernize Supply Inventory, Deliver Order
And Arms Database
General Fund 1004 $50,000
The project would allow the Department to mark inventory,
which in turn would feed various statewide systems. That in
turn would allow the State to access the immediate needs.
Additionally, it could help to automate the records of those
confiscated fire arms.
AP #41544
Alaska Public Safety Inter-Net (APSIN) Redesign
Year 3 of 3-Year Plan
General Fund 1004 $5,000,000
Federal Receipts 1002 $2,000,000
He believed that the funding request would "hopefully" be
the last. The Department has not yet gotten the federal
dollars and if they are not received, they might have to
come to the Legislature for that funding [$2 million
dollars]. The project has been under-way for years, with
work completed by contractors. The system is important to
every agency statewide for performing background checks.
Representative Hawker questioned if the facility had been
included in the out-sourced data warehouse. Mr. Spencer did
not know.
9:52:19 AM
DAVID SCHADE, DIRECTOR, DIVISION OF STATEWIDE SERVICES,
DEPARTMENT OF PUBLIC SAFETY, (Testified via Teleconference),
explained that it is a main-based computer system used by
every law enforcement agency statewide.
9:53:02 AM
Mr. Spencer continued:
AP #45321
Active Director Development
General Fund 1004 $300,000
He advised that the requested dollars would be used for a
primary tool for authenticating users to manage their access
to APSIN redesign. That would include online reports, other
applications and the data bases used within the Department.
Mr. Spencer addressed the next item:
AP #45328
Fingerprint Card AST Case Image Archive
General Fund 1004 $700,000
The project funds a conversion of existing paper fingerprint
cards and the Alaska State Trooper case reports into
digitized images. The files would become easier to retrieve
for use by Alaska law enforcement agencies.
9:54:13 AM
Mr. Spencer continued:
AP #45329
TraCS Project (Traffic & Criminal Software)
General Fund 1004 $900,000
He commented that Traffic & Criminal Software (TraCS) is a
technological improvement, which can enhances accident
report and citation writing and storage as well as
statistical mining, data sharing and interoperability with
other criminal justice system agencies.
9:54:45 AM
Mr. Spencer highlighted the following request item:
AP #45401
Data Exchange with MAJIC Agencies
General Fund 1004 $600,000
He pointed out that the Multi-Agency Justice Integration
Consortium (MAJIC) project would facilitate information
sharing and a reduction in the amount of paper that is
currently sent between agencies. It would support the
Department's end-result of making sure that criminal justice
information is current, accurate and complete.
Mr. Spencer continued:
AP #45336
AST Records Management System
General Fund 1004 $950,000
The requested dollars would provide for the documentation
and collection of information in the form of the police
reports. Charging documents is an integral, enormous, and
necessary part of the criminal investigations and the daily
business of any public safety agency. The modernization of
the records management system will allow for greater
efficiencies in the storage, retrieval and date mining.
HB 311 was HELD in Committee for further consideration.
ADJOURNMENT
The meeting was adjourned at 9:55 A.M.
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