Legislature(1993 - 1994)
02/02/1993 05:00 PM House TRA
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE TRANSPORTATION STANDING COMMITTEE
February 2, 1993
5:00 p.m.
MEMBERS PRESENT
Representative Richard Foster, Chair
Representative Gary Davis, Vice-Chair
Representative Al Vezey
Representative Eldon Mulder
Representative Bill Hudson
MEMBERS ABSENT
Representative Jerry Mackie
Representative Curt Menard
COMMITTEE CALENDAR
EO 87: Moving state facility leasing and management
functions from the Department of Administration
and other agencies to the Department of
Transportation and Public Facilities.
HEARD AND HELD IN COMMITTEE
WITNESS REGISTER
Frank G. Turpin, Commissioner
Department of Transportation and Public Facilities
3132 Channel Dr.
Juneau, AK 99801-7898
465-3900
Position Statement: Available for answering questions on
EO 87.
Kit Duke, Assistant Commissioner
Department of Transportation and Public Facilities
3132 Channel Dr.
Juneau, AK 99801-7898
465-3900
Position Statement: Project Director for EO 87.
Provided an overview of EO 87.
ACTION NARRATIVE
TAPE 93-2, SIDE A
Number 006
CHAIR FOSTER called the meeting to order at 5:14 p.m.
FRANK TURPIN, COMMISSIONER, DEPARTMENT OF TRANSPORTATION AND
PUBLIC FACILITIES (DOT/PF), introduced KIT DUKE, ASSISTANT
COMMISSIONER OF THE DOT/PF, and indicated that she had been
assigned as the Project Director for the merge of the
leasing and management functions.
Number 020
KIT DUKE began her testimony by indicating that committee
members had the fact sheets in their packets and that they
saw the executive order so she would begin her overview as
to why the Department felt EO 87 was important and critical
to the state. She said the state currently owns
approximately 1700 buildings in 60 communities around the
state, and that represents approximately eleven and one-half
million square feet, which is valued at $2.3 billion
replacement value. This does not include the university
system or rural schools. She stated that the condition of
the buildings was critical to provide productive
environments for people to work. The state has a
responsibility to safeguard and improve its buildings so
that the public and executive branch agencies can get their
work done. In the next few years the state will be facing
some critical requirements. The state buildings are getting
older; most were constructed in late 70's and early 80's.
MS. DUKE said there are several new regulatory requirements,
including the American Disabilities Act, that will have a
substantial cost attached. New technologies are available,
especially in the area of energy conservation. Budget
constraints will continue to exist. She noted that the
DOT/PF has been working for the last few years on this
problem to solve it. She stated that EO 87 was step one in
that process.
MS. DUKE explained that approximately two years ago the
departments formed an organization called the Alaska State
Facility Administrators, made up of facility managers from
about 11 or 12 executive branch departments as well as
someone from the court system and the legislature. Forms
have appeared in prior year budgets which documented the
deficit of maintenance funding for those facilities. The
Governor's Efficiency Task Force prepared a report last year
that indicated more attention needed to be focused on the
management of buildings.
MS. DUKE said last June she was assigned the responsibility
of coming up with a solution. This included funding
mechanisms, organizational changes, and looking at the
bigger picture as to what could be done. The Governor's
Efficiency Report gave several suggestions, including
merging functions under a single administration, creating a
funding mechanism, and charging these agencies rent so there
would be funding to do the necessary maintenance necessary.
MS. DUKE sated that many of the task force ideas had been
pursued in Executive Order 87.
Number 098
MS. DUKE noted that a transition committee had been
appointed which consisted of nine members from different
departments representing different interests. This gets the
merge started, merging it all together under one authority,
in this case the DOT/PF. This gives focus to the
responsibility and allows an asset inventory from a
statewide prospective.
Number 110
MS. DUKE explained several things that were not included
under this merger: rural schools, university system,
legislative space, court system leases, fish hatcheries
managed by local nonprofit organizations, and buildings that
are part of existing corporate assets, such as the Alaska
Industrial Development Authority or the Alaska Railroad
Corp.
MS. DUKE said energy management has been one of the main
focus areas. Last year in the Capital Budget the DOT/PF and
the Department of Military and Veterans Affairs received
money for this purpose. They are currently implementing
those now. A project has been started in Bethel to merge
maintenance staff together in order to do work where more
than one person is needed to provide more efficiency on the
job.
Number 178
CHAIR FOSTER asked how the Department of Military and
Veterans Affairs (DMVA) felt about the merge.
MS. DUKE indicated that the DMVA had agreed to become a part
of the merge. They currently have maintenance management
systems in place and are working towards conserving energy.
CHAIR FOSTER then asked about a contract with Bettisworth
and asked Ms. Duke for the amount and what the organization
does.
MS. DUKE responded that the contract was just under
$100,000. She explained that about two years ago this
organization came before the legislature with a report as to
the condition of the state's buildings inventory. Ms. Duke
noted that about $150 million of deferred maintenance had
accrued to the buildings. The organization put this amount
together using a formula. They took a sample of buildings
types around the state and included this into the terms
required under the American Disabilities Act Survey to try
and get a more accurate estimate.
Number 250
REPRESENTATIVE BILL HUDSON asked how this was reflected in
the budget at the present time.
MS. DUKE indicated that approximately 75 percent is in the
Department of Administration budget, and about 25 percent of
the money used towards leases is in other departments. She
noted there will be a budget amendment to the FY 94 budget
at the end of February that will reflect the transfer of the
monies from the Department of Administration to the
Department of Transportation (DOT) for leasing purposes.
She explained that in FY 95 there will be new budget
instructions that will reflect the other changes of activity
of merged maintenance activity out of other departments. It
will reflect having a rent structure.
Number 232
In answer to a question by REPRESENTATIVE HUDSON,
COMMISSIONER TURPIN stated that the next step would be the
legislation which proposes that the buildings be managed by
an authority within the DOT. The authority will have seven
to nine members who have experience and expertise in
property management, real estate, maintenance, and building.
The primary management will be by this group and the DOT
will just be a carrier for their budget and other things.
He did not feel it would be an additional burden.
CHAIR FOSTER indicated that Executive Order 87 would be held
in the committee for further study.
The meeting was ADJOURNED at 5:33 p.m.
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