Legislature(2001 - 2002)
03/01/2001 09:05 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
March 01, 2001
9:05 AM
TAPES
SFC-01 # 30, Side A
SFC 01 # 30, Side B
SFC 01 # 31, Side A
CALL TO ORDER
Co-Chair Pete Kelly convened the meeting at approximately 9:05 AM
PRESENT
Senator Dave Donley, Co-Chair
Senator Pete Kelly, Co-Chair
Senator Jerry Ward, Vice Chair
Senator Lyda Green
Senator Gary Wilken
Senator Alan Austerman
Senator Donald Olson
Senator Leman
Also Attending: DAN SPENCER, Director, Division of Administrative
Services, Department of Administration; JANE DEMMERT, Executive
Director, Alaska Commission On Aging, Division of Senior Services,
Department of Administration; KIM GARNERO, Director, Division of
Finance, Department of Administration; CHARLES HOSACK, Director,
Division of Motor Vehicles, Department of Administration; JEFF
BUSH, Deputy Commissioner, Office of the Commissioner, Department
of Community and Economic Development; TOM LAWSON, Director,
Division of Administrative Services, Department of Community and
Economic Development; JOAN BROWN, Chief Budget Analyst, Office of
Management and Budget; JOSEPH REEVES, Deputy Director/ASM, Division
of Administrative Services, Department of Corrections; EDDY JEANS,
Manager, School Finance and Facilities Section, Department of
Education and Early Development; KAREN CRANE, Director, Libraries,
Archives and Museums, Department of Education and Early Development
Attending via Teleconference: From Anchorage: ROBERT POE,
Executive Director, Alaska Industrial Development and Export
Authority (AIDEA) and Alaska Energy Authority (ADA) Department of
Community and Economic Development; YVONNE CHASE, Deputy
Commissioner, Early Development, Department of Education and Early
Development; From Mat-Su: GARY SHERIDAN, Consulting Manager,
Anchorage Pioneer's Home, Department of Administration; From
Seward: FRED ESPOSITO, Director, Alaska Vocational Technical
Center, Department of Education and Early Development
SUMMARY INFORMATION
SB 29 - APPROP: GOVERNOR'S CAPITAL BUDGET
The committee heard budget request presentations from the
Department of Administration, Department of Community and Economic
Development, Department of Corrections, and the Department of
Education and Early Development.
SENATE BILL NO. 29
"An Act making capital appropriations and capitalizing funds;
making appropriations under art. IX, sec. 17(c), Constitution
of the State of Alaska, from the constitutional budget reserve
fund; and providing for an effective date."
Department of Administration
Pioneers' Homes Emergency Repairs and Maintenance
$350,000
$250,000 Alaska Housing Fund Corporation (AHFC) Dividend
$100,000 General Fund/Mental Health (GF/MH)
Reference No. 34006
AP/AL: Appropriation
Project Type: Deferred Maintenance
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2001 - 06/30/2006
This request includes eleven fire & life safety projects, six
continued maintenance and structural repairs, and twelve
Alzheimer's Disease and Related Disabilities related facility
renovations.
On-going project
Mental Health Bill
Pioneers' Homes Alzheimer's Disease and Related Disabilities
Modifications
$250,000 Mental Health Trust Settlement Income (MHTAAR)
Reference No.: 34770
AP/AL: Appropriation
Project Type: Construction
Category: Housing/Social Services
Location: Anchorage Areawide
Election District: Anchorage Areawide
Estimated Project Dates: 07/01/2001 - 06/30/2006
Funding will be used to provide for construction of special
care unit bathing rooms and design and engineering for dining
and bathing room conversions at the Anchorage Pioneers' Home.
One-time project
DAN SPENCER, Director, Division of Administrative Services,
Department of Administration presented information about the
$350,000 request for emergency maintenance for the Pioneer's Home.
He informed there were eight projects to be funded in this request,
however, if a pipe broke unexpectedly, the Department might not be
doing any of these projects as it was "conceivable that events may
occur which could lead them to fund something else."
GARY SHERIDAN, Consulting Manager, Anchorage Pioneer's Home,
Department of Administration testified via teleconference from
Anchorage and shared that there are eight projects listed for
funding, but given all the needs of the Pioneers home it had been
difficult to pare down the list to that eight.
Mr. Sheridan informed that the Occupancy Classification Analysis
project involves five of the six Pioneers' Homes because they were
originally built with two separate occupancy statuses (Residential
and Institutional). He continued that over time, the residential
parts of the buildings had changed to more of a nursing care
facility because of the increasing number of patients with
Alzheimer's Disease and other related Disability disease needs. He
informed this shift from a residential facility to an institutional
facility had resulted in the need for those areas of the facility
with the residential status to be upgraded to an institutional
rating, particularly in regards to Fire Codes. He stressed these
funds were necessary to fund a professional level analysis to
determine the extent of these impacts and to help the Pioneers
Homes prepare plans to meet the necessary codes. If the facilities
were not upgraded, residents with Alzheimer's and other
disabilities would have to be removed from the residential areas of
the homes.
Senator Ward asked why these funds would go toward hiring someone
to tell the Homes what needed to be done, instead of having the
state fire marshal came into the facility and list what needed to
be done.
Mr. Sheridan indicated that the state fire marshal does not
identify what was wrong or how to fix it, but rather that the
"facility needed to meet the institutional code." The division
needed the expertise of professionals to go through the homes and
identify the needs and determine how to go about doing what needed
to be done, especially when upgrading the older homes to meet
codes.
Mr. Sheridan continued that another project was the Sitka Pioneers'
Home boiler repairs. He informed that the current boilers were
installed in the 1980's and needed refurbishing because they leak
and are inefficient and unreliable.
Mr. Sheridan explained that another project was the Ketchikan
Pioneer's Home Exterior Entry Doors Upgrade. He stated that the
Ketchikan Pioneers Home has two different entrances with doors that
are very heavy and cannot be opened by residents who are infirm. He
expressed that due to these doors and the awkwardness of the
entrance floor grates, some residents of the Home were unable to
independently get out for activities.
Co-Chair Kelly interjected that every year there was Pioneer Home
requests for maintenance and code upgrade requirements, with
approximately the same amount of money requested. He inquired if
there was "anything unusual from Mr. Sheridan's view" about these
eight projects or were "most of them just upgrades".
Mr. Sheridan agreed that most of the requests were for upgrades. He
stressed that there has been a change in the nature of the Pioneers
Homes' residents because of the growing number of Alzheimer's and
other related diseases citizens, and this change has called for a
more accessible and user-friendly facility.
Adult Day Facility Prototype Design for Dementia Clients
$30,000 MHTAAR
Reference Number: 34024
AP/AL: Appropriation
Project Type: Planning
Category: Health/Safety
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2001 - 06/30/2006
Funding will be used to contract with an architect with
expertise in the design of Alzheimer's Disease and related
dementia special care facilities. The contractor will analysis
twelve adult day facilities that receive Alaska Commission on
Aging grant funding and will make recommendations concerning
the need for facility upgrades and enhancements.
One-time project
JANE DEMMERT, Executive Director, Alaska Commission On Aging,
Division of Senior Services, Department of Administration informed
that this request involves the funding for a contract that would
enable the twelve adult day programs across the state to have a
review done on their facilities in order to make them more
responsive to the needs of adults with Alzheimer's Disease and
related dementia special care needs. She reiterated that the
growing number of aging people in the state with these diseases
"requires facilities to be as responsive as they can be physically"
to these people's needs.
Senator Austerman asked for clarification on what the difference
was between Mental Health General Funds (GF/MH) and MHTAAR funds.
Mr. Spencer replied that Mental Health Trust Authorized Agency
Receipts (MHTAAR) were non-general funds.
Co-Chair Kelly replied that from his experience working on the
Department of Health and Social Services budget, he understood that
Mental Health General Fund dollars "are those dollars that are
designated to be spent on mental health issues to comply with the
court decision," and if "those dollars are not spent then there has
to be a letter written" justifying why they weren't spend. Co-Chair
Kelly continued that MHTAAR money is money from the Mental Health
Trust that is given with the intent that the Legislature
appropriates those monies to fund specific Trust identified
projects. He informed that MHGF designates "just general funds that
are designated to mental health."
State-Owned Buildings Valuation Projects
$60,000 General Funds
Reference No.: 34019
AP/AL: Appropriation
Project Type: Planning
Category: Public Support Technology/Service
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2001 - 06/30/2006
Funding will be used to contract with a consultant to correct
the State's fixed assets records. The consultant will create
a methodology to recreate historical costs of state-owned
buildings.
One-time project
KIM GARNERO, Director, Division of Finance, Department of
Administration informed the current system on valuation of state
owned buildings as presented in the Comprehensive Annual Financial
report for the State of Alaska reflects insured value rather than
historical cost value as is required by generally accepted
accounting principals (GAAP). She shared that this method of
valuation has been an ongoing problem since the records were first
audited in 1990. She shared that "historical cost records were
never accumulated over the years as buildings were bought, built,
improved and depreciated". She continued that the purpose of this
project is to contract with a building appraisal firm to recreate
those historical costs. She detailed the method to be used in the
process of determining the historical valuation according to GAAP
for state owned buildings. She shared that the funding of this
project would "eliminate the last remaining obstacle to a clean
opinion on the state's financial status".
License Plates and Drivers License Manuals
$345,000 General Funds
Reference No.: 34021
AP/AL: Appropriation
Project Type: Renewal and Replacement
Category: Health/Safety
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2001 - 06/30/2006
Funding will be used to purchase license plates, drivers
manuals, and motor vehicle law books.
On-going project
CHARLES HOSACK, Deputy Director, Division of Motor Vehicles,
Department of Administration informed the Committee that this has
been the requested budget amount for the past several years and
covered the costs of mandatory items used by the department.
Senator Leman inquired as to which types of plates are being
stocked.
Mr. Hosack replied that all types of license plates are stocked
with the bulk of the order being the centennial plates. He informed
there are forty-one different types of plates being used in Alaska.
Senator Leman commented that he had seen many types and asked for
clarification that this request is to stock all types of plates so
that plates were "readily available".
Mr. Hosack replied yes.
Senator Leman stated that $85,000 to stock Driver's Manuals seemed
like a "fairly large amount" and asked if there were "ever
significant changes that would make the manual out-of-date."
Mr. Hosack replied that $85,000 has been the amount spent,
historically, in a year. He informed that the Driver's manuals are
ordered quarterly for the offices and with each order, the
Department was able to make changes.
AT-EASE 9:24am/9:25am
Department of Community and Economic Development
Operation Renew Hope
$30,500,000
$30,000,000 Federal Receipts
$500,000 General Fund (G/F) Match
Reference No.: 33932
AP/AL: Appropriation
Project Type: Health and Safety
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2001 - 06/30/2006
Federal funding for Operation Renew Hope
One-time project
State Match required
Co-Chair Kelly commented that most of the Department of Community
and Economic Development projects are federally funded.
JEFF BUSH, Deputy Commissioner, Office of the Commissioner,
Department of Community and Economic Development acknowledged that
a lot of the funding requests for the Department's projects involve
federal funds, and, in light of that, he would not be going into
great detail on the projects unless the Committee requested it. He
stated there were people available via teleconference who could
answer any questions that may arise during the presentations.
Mr. Bush explained that the year "2000 salmon returns in some areas
of Western Alaska were significantly less than 50-percent of long-
term averages and that, coupled with salmon disasters" of previous
years. created some serious problems for that region. He stated
that in July of 2000, Governor Knowles declared Western Alaska a
disaster area. Mr. Bush explained that this request allowed for the
receipt of federal funds and a General Fund match that would be
"used for providing short term employment opportunities to people
in the region, address immediate basic needs impacts, as well as
provide economic diversification projects to try to reduce the
total dependency on fishing in those regions".
Senator Green asked how "many years straight in a row the state has
had a disaster declaration in this area."
Mr. Bush informed that three out of four recent years were declared
disasters, 1999 being the exception.
Community Block Grants
$9,000,000 federal receipts
Reference No.: 33488
AP/AL: Appropriation
Project Type: Health and Safety
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2001 - 06/30/2006
The Block Grant Programs receive federal funding from several
sources in order to provide grants to local governments and
services to low income people which will improve their quality
of life and remove obstacles to self-sufficiency.
On-going project
Mr. Bush reiterated there was no state match for this project, and
that these federal funds are designated to "alleviate the causes
and conditions of poverty throughout the state" by assisting
homeless providers and shelters, helping with "infrastructure
development and capital projects, planning activities and special
economic development activities for low and moderate income
persons."
Senator Austerman asked if the Department was expecting more money
this year as the history of these funds reflected higher levels of
funding, and if this request is "just a projection."
Mr. Bush noted that the "funding history was all over the board"
and that that some years the department received a large amount and
other years a small amount. He continued that this $9 million
request is a projection.
Federal Community Development Grants
$6,350,000
$6,050,000 Federal Receipts
$300,000 G/F Match
Reference No.: AMD33925
AP/AL: Appropriation
Project Type: Health and Safety
Category: Health/Safety
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2001 - 06/30/2006
The Department receives federal funding from several different
programs, including the Flood Mitigation Assistance grant
program, USDA and the Denali Commission. These have been
listed in the past as separate appropriations under U.S.
Forest Service Mini Grants and Flood Mitigation Assistance
Grants. This project combines the various federal project
funding under one appropriation.
On-going project
Amendment
Mr. Bush informed that this amended request includes Denali
Commissions Funds of $5.2 million that had been combined with
federal receipt funds of $1.05 million and a General Fund match of
$300,000 to support various projects that the Denali Commission
asked the Department to support.
Senator Green inquired if the Denali Commission or the federal
funding required the match.
Mr. Bush said that the Denali Commission funding required the
match.
TOM LAWSON, Director, Division of Administrative Services,
Department of Community and Economic Development stated that under
the Federal Emergency Management Act (FEMA) there are two different
programs: one of them has a mandatory state match and the other one
does not. He continued that the United States Department of
Agriculture has three separate mini-grants applicable to this
project and the average match was approximately a 25 percent
matching grant ratio.
Mr. Lawson said that this project was a mixture of different grants
some of which required a grant and some that did not.
Co-Chair Kelly remarked that in this grant, there was an aggregate
of 5 percent.
Mr. Bush agreed.
Senator Green furthered that she had understood that the Denali
Funds were not going to require a state match since this request
originally did not include the Denali Funds and the state funding
was originally $300,000.
Mr. Lawson replied that this issue came up last year, and he
explained that the Denali Commission expected a state match;
therefore, the Department included it at the beginning in
anticipation of the Denali funding.
Co-Chair Kelly voiced reluctance to supply the match since the
state did not have the power to appropriate the funds freely since
the Denali Commission dictated where those funds would be
allocated.
Bulk Fuel Systems Upgrades
$4,950,000
$3,350,000 Federal Receipts
$1,600,000 Oil/Haz Fund
Reference No.: 32584
AP/AL: Appropriation
Project Type: Health and Safety
Category: Health/Safety
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2002 - 06/30/2007
This appropriation is requested for expected Federal funds and
state match for construction of new consolidated bulk fuel
storage tank systems in rural Alaska.
On-going project
State Match Required
Mr. Bush reported this is an Alaska Industrial Development and
Export Authority (AIDEA) project to upgrade approximately 1100
above ground storage tank farms in 161 villages in rural Alaska. He
shared that these tank farms are part of the basic infrastructure
in the communities and this project would upgrade the tank farms to
bring them up to code and increase the safety of their operation.
Co-Chair Kelly asked what the funding source of the hazardous fund
was.
Mr. Lawson replied that those funds were from the Department of
Community and Economic Development.
Co-Chair Kelly wished to clarify that these "funds had been set
aside" a few years earlier and this expenditure "was drawing down
from that."
Mr. Bush said he understood that this particular fund was a
"replenishing fund, and as it is drawn down, it was replenished
with monies generated from a tax on royalties on the oil"
transported through the Valdez terminal."
Senator Austerman inquired about the Trans-Alaska liability fund
section of the Department's request that had not yet been
discussed.
Co-Chair Kelly and Mr. Bush acknowledged that the presentation was
slightly out of sequence, and the matter would be addressed.
Senator Austerman asked if it was the intent of the Trans-Alaska
liability fund to be used for Bulk Fuel Systems Upgrades.
Mr. Bush replied no.
Co-Chair Kelly asked if the fund replenished with monies generated
from a tax on oil transported through the Valdez terminal was
running out of money due to lower production.
JOAN BROWN, Chief Budget Analyst, Office of Management and Budget
clarified that the funds being replenished were declining due to
lower production levels.
Senator Austerman asked the Office of Management and Budget to
provide documentation on the history of the funds.
Co-Chair Kelly agreed that the Committee would like to have that
information provided.
Rural Power Systems Upgrades
$10,500,000
$10,000,000 Federal Receipts
$500,000 G/F Match
Reference No.: 32588
AP/AL: Appropriation
Project Type: Construction
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2002 - 06/30/2007
This appropriation is requested for expected federal funds and
state match for capital improvements and new electric power
systems in rural Alaska. Where required, lack of state
matching funds will prevent the federal contribution.
On-going project
State Match required
Mr. Bush informed that this AIDEA project is to provide for
upgrades and new electric utility conditions in Rural Alaska. He
informed that 193 communities are served by 99 independent electric
utilities with 88 of those serving single villages and eleven of
those serving the remaining 105 villages. He stated that most of
the utilities do not meet expected standards for safety,
reliability and environmental protection. The Alaska Energy
Authority gives priority to electric utility systems that are in
the worst condition and over the past several years, AIDEA has
accumulated a detailed database of electric utilities and their
characteristics and has set up a schedule for improvements. In
addition, he said, once a utility was upgraded, it was expected to
be properly run with trained personnel and be maintained.
Senator Leman noted that the Legislature had audited some projects
in a wide variety of programs over the past years and found
deficiency in the management. He cautioned the Department to manage
the distribution of these funds "very carefully. It is awfully easy
to spend a lot of money and not get much for it." He stressed that
he would be watching how this money would be spent and how
important it was for the managers to do their job.
Mr. Bush commented that the Department was aware of those issues
and following up on the projects is a priority.
Co-Chair Kelly asked how the Denali Commission, as referred to in
the project back up information, would be participating in this
project.
ROBERT POE, Executive Director, Alaska Industrial Development and
Export Authority (AIDEA) and Alaska Energy Authority (ADA),
Department of Community and Economic Development, testified via
teleconference from Anchorage and said that the Denali Commission
was contributing funds to the project.
Senator Austerman asked for clarification of the CDBG grant.
Mr. Poe replied that those are Community Development Block Grants
that go directly to a community but process through AIDEA first.
Co-Chair Kelly commented that Senator Leman needed to leave the
meeting and that the attendance roll call had not been taken at the
beginning of the meeting and would be called now.
Senator Olson stated that it was alarming to him as a
representative from the Bush community to learn that most of the
Rural communities "do not meet the accepted utility standards" and
that many of them have "in-serviceable power houses and fuel
contamination" among other things. He asked if there is a
regulatory authority that has oversight on these deficiencies and
if there was, is there a financial equivalent to a fine that could
be levied against the power system.
Co-Chair Kelly replied that the Department of Environmental
Conservation takes care of the bulk fuel and environmental
problems, and the Alaska Energy Authority addresses the power
component.
Mr. Poe commented that the "Alaska Energy Authority does not levy
fines against entities for being out of compliance with electric
generation but documents the problems and then tries to direct
funds to the most critical." He detailed some data that was
complied recently regarding rural electrical plants, and how it
would be used to evaluate current needs.
Senator Wilken commented that the Denali Commission required 30
percent funding from some source other than a federal source on
certain projects and asked for clarification on the 20-to-one match
outlined for this project.
Mr. Poe indicated that the Department tried to combine the matches
required for the rural bulk fueltanks and power upgrades with the
appropriation for general funds to make up the total match. He
detailed how the Department "tried to include funds that are
flowing through the state books" "to get credit for as much funding
that is coming to the state as the Department can to meet that
match."
Senator Wilken noted that this is an on-going program and it would
be "worthwhile for future reference" to have a "list of
communities, the project (bulk fuel, power plant), amounts of each,
the matches for those," and "source funds for the matches" on one
sheet of paper so the Committee would be able to track the
projects. He stated that he was sure that what Mr. Poe had just
said was in the project detail sheets, but the sheets were
difficult to follow. He concluded that these four detail pages
would look different again next year and urged for the creation of
some form to track each community's projects and "all sources of
money in and out." He commented that the Department should work on
a clearer project-tracking sheet for future reference.
Co-Chair Kelly requested this be done and that the information then
be provided to him.
Mr. Poe said he would "be happy to." He pointed out that the
project costs for each village change because there is some
flexibility between the projects. In light of that, he said, the
summary sheet could show the project match to the total program for
that year.
Senator Wilken, wishing to clarify his request for a project-
tracking sheet, used an example of a project from the detail
summary sheet and identified a project, its components and its
funding sources. He continued by saying that if there was movement
of funds among the projects, it could be noted as the sheets were
updated.
Mr. Poe responded that the Department had tried to be as creative
as possible to get to the match and therefore the match was not
broken out specifically to a project. He said the Department could
give "solid numbers" of the cost for each of the bulk fuel projects
and each of the rural power upgrade projects, but they could not
provide break downs of General Fund "match portions" but could
"show the match for that year's program."
Co-Chair Kelly requested that Mr. Poe call Senator Wilken's office
to discuss what the format might look like, and then report back to
the Committee.
Mr. Poe said he would do that.
Senator Green asked if any of the utilities are for profit
operations and privately owned.
Mr. Poe indicated that many of the utilities are rural associations
and "those, by definition, are not for profit." He continued that
some of the utilities "are owned by a city or community which makes
them also not for profit." He clarified that there were some that
are privately owned, but are still associations.
Senator Green summed up the privately owned utilities as
"essentially sort of a co-op."
Mr. Poe agreed.
Senator Green asked if there "was not a requirement and an
expectation of those organizations that they are involved at all in
their own maintenance."
Mr. Poe replied that there was, however, some communities are able
to maintain and upgrade their facility and there are others whose
capability is limited by the size of their community.
SFC 01 # 30, Side B 09:53 AM
Mr. Poe continued that sometimes only one or two people in a
community know how to run the utility, and if one of these persons
moved it could have a "real impact on the ability of that community
to maintain their facility." He said the Alaska Energy Authority
helps keep the facility running and helps train people.
Senator Green commented that there appeared to be "very little
connection between the amount and the purpose of what is going on
here" and a "reduction in the cost of generating power and passing
on lower rates to the consumer." She asked if the lowering of costs
and the subsequent lowering of rates to the consumer was factored
in.
Mr. Poe indicated there were a number of reasons to do rural power
upgrades and one of the reasons was a cost of power generation from
a facility, but the department prioritizes the power generation
upgrades by the need to keep the utility supplying power in a safe
manner first.
Senator Green countered that with all the discussions that had
pertained to cost equalization, and now that the state was starting
to perform upgrades, she asserted that the Department "would be
remiss" if more efficient power generation was not addressed. She
opined "this language should be contained" in the project.
Senator Wilken expressed support of Senator Green's comment and
asked Mr. Poe if there is a "Cost/Benefit analysis" as part of the
ranking and a Return on Investment. He also asked if these
utilities are regulated under the Regulatory Commission of Alaska
(RCA).
Mr. Poe stated that there was not strictly a cost-benefit on the
project, although that was one of the Department's goals. He cited
that a twenty-year-old generator produced fewer kilowatts per
gallon of fuel than a new generator, and likewise, a distribution
process can reduce the cost of power generation. He continued that
the Department does not have a cost/benefit analysis on these
projects.
[NOTE: Audio difficulties occurred with the teleconference
connection.]
Co-Chair Kelly noted that the audio was continuing to be breaking
up and that this discussion would have to be continued another
time.
Senator Wilken communicated to the Committee that he would further
this discussion with Mr. Poe when he talked with him about the
project tracking sheet.
Alternative Energy Program
$5,787,000
$5,287,000 Federal Receipts
$500,000 G/F Match
Reference No.: 32591
AP/AL: Appropriation
Project Type: Construction
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2002 - 06/30/2007
This appropriation is requested for expected federal funds and
state match for alternative energy projects (Fuel Efficiency
Improvements, Conservation, Wind, Biomass).
On-going project
State Match required
Mr. Bush informed that this is an AIDEA project, and he informed
that the diesel efficiency and alternative energy program sought to
lower the cost of power and heat by developing alternatives to
diesel-based systems as well as enhancements to diesel-based
technology. He stated that most of the program focus was in rural
areas where average energy costs are highest and cost reduction
alternatives are most needed. He informed that the match for this
program was not funded in FY 01, although "federal funding was
received as part of a larger federal energy project appropriation
that contained several programs."
Mr. Bush identified the components of the project as outlined in
the back-up sheets.
Co-Chair Kelly asked Mr. Bush is he was very familiar with this
project.
Mr. Bush responded that he was marginally familiar with it.
Senator Austerman inquired if, in any of these energy projects,
there was anything that promoted enhancements using hydro-water.
Mr. Bush replied that he was not aware of any.
[Mr. Poe attempted to respond to Senator Austerman's question, but
the audio problem continued.]
Co-Chair Kelly voiced concern about no major breakthroughs in
alternative energy programs. He expanded on the cost of diesel
generation and of efforts to bring diesel costs down through
efficiencies, but he questioned whether efforts were coming through
the alternative energy program. He wondered if the alternative
energy program might be better served if it was funneled through
the University of Alaska or another entity.
Senator Ward commented that Mr. Poe, if the teleconferencing
problem has not happened, might have expanded on the "new federal
laws that free up the ability for the development for small hydro
projects." Senator Ward believed that the Denali Commission has had
two meetings regarding hydro options.
Senator Olson wondered if anyone was familiar with wood-burning
boilers that are replacing oil burning ones.
Co-Chair Kelly noted that Mr. Poe might be able to answer Senator
Olson's question when he was reconnected using another
teleconferencing line.
Mr. Bush informed that the following projects were non-AIDEA
projects.
Alaska-Russia Far East Projects Phase 2
$305,835 Federal Receipts
Reference No.: 33930
AP/AL: Appropriation
Project Type: Information Systems
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2001 - 06/30/2006
The US Agency for International Development is providing
funding to the Division of International Trade and Market
Development) Alaska projects to provide technical assistance
for Sakhalin's development.
Phased project
Mr. Bush expressed that phase one of this project had already been
approved by Division of Legislative Budget and Audit (LB&A) in
August 2000, and the Department was requesting an extension of that
project. He informed that this project is funded by a United States
Agency for International Development (USAID) grant for USAID
projects primarily in Sakhalin, Russia to assist their development
agency in providing an economic and infrastructure development in
Sakhalin and to "provide funding for future generations through a
permanent fund that they would like to create over there." He
continued that it would also provide for "Workforce Development-
University of Alaska Mining and Petroleum Training Service and
Sakhalin Alaska College project", and "environmental management."
Mr. Bush expressed "this grant helps Alaska play a major role in
the development of the Russian Far East."
Co-Chair Kelly asked if these were all federal receipts.
Mr. Bush replied yes.
Senator Austerman commented that LB&A approved this project for
$440,000 in August of 2000, and this federal grant is for $305,835.
He asked what the plans are for Phase Two and Phase Three.
Mr. Bush responded that Phase One for $440,000 had been approved,
and this was for an additional $305,835. He continued that there
was another project that asked for the Phase One funds to be
extended and be converted to a capital project.
Senator Austerman clarified that the $305,835 Funding Request was
Phase Two.
Mr. Bush responded yes.
Kodiak Launch Complex Facilities
$4,500,000 Federal Receipts
Reference No.: 34013
AP/AL: Appropriation
Project Type: Construction
Category: Development
Location: Kodiak
Election District: Kodiak
Estimated Project Dates: 07/01/2001 - 06/30/2006
The Alaska Aerospace Development Corporation intends to
locate, design and construct a maintenance facility at the
Kodiak Launch Complex (KLC). This structure will provide a
maintenance support location for the ongoing and future
maintenance requirements of the KLC infrastructure and
launch customers. The area immediately surrounding the
facility will be developed to the extent necessary to
activate the facility.
One-time project
Mr. Bush summarized the project for the Committee.
Arctic Winter Games Team Alaska
$125,000
Reference No.: AMD6782
AP/AL: Appropriation
Project Type: Planning
Category: Development
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2001 - 06/30/2006
This grant will provide, in part, for the expenses of Team
Alaska to participate in the 2002 Arctic Winter Games, and the
international dues payment.
On-going project
Amendment
Mr. Bush informed that the original request was for $75,000 and
this amended request is for $125,000. He stated it would provide
Team Alaska, a non-profit statewide organization, to organize a
team for the bi-annual winter games to be held in the year 2002 in
Nuuk, Greenland. He informed that this grant would help with the
costs of outfitting a team, their travel costs, and the program
annual dues of $30,000 Canadian.
Senator Austerman asked for a breakdown on the costs associated
with Team Alaska and also how much money the team had raised in
addition to this amount.
Mr. Bush replied that that information would be supplied.
Co-Chair Kelly commented that Mr. Poe was back on line.
Mr. Poe responded to the earlier question regarding hydro-water
projects. He informed there had been some successes in small hydro
power generation, and cited a project in Kodiak. He stressed that
the department is looking as small hydro opportunities.
He continued that there have been breakthroughs on alternative
energy sources. He mentioned that the Department had just finished
an analysis on all the ways that had been tried over the years to
reduce the cost of producing electricity in Rural Alaska.
Mr. Poe commented there are several options available to reduce the
inefficiencies of diesel generation: one way would be to improve
waste heat recovery options and another way would be to insulate
buildings better to reduce the loss of heat and thereby reduce the
demand.
Mr. Poe continued that there are "targeted" energy alternatives
that could work in one region but not in another. Wood burning and
small hydro plants could be some of the alternatives, he said, that
might produce electricity at lower costs in places. He said there
could be the possibility to "target some of those alternatives that
make sense for a particular location" to produce electricity at a
lower cost than diesel would.
Senator Olson asked if small communities with a limited fire
department resource would have more potential for problems with
wood burning boilers than with oil burning boilers.
Mr. Poe commented that he was not aware of any specific problems
regarding wood burning boilers, but said that whether a community
was using wood, oil, or gas, it would be necessary to have a
properly operating and controlled boiler system.
Senator Olson shared that from his experience in the villages,
"there was a far higher percentage of dwellings that were burning
down when they burned wood because of the continuous process" of
having to "add wood to the fire as opposed to those that had some
type of stove oil furnace facility."
Mr. Poe stated that he would not disagree with Senator Olson. He
continued that any use of an alternative fuel to reduce the cost of
electricity is always compared against oil as oil has been found to
be the most easily handled, best-contained package of energy
available around the state. He said the state would only look at
wood as an energy alternative in places where it could be done
properly, safely and professionally, and at a lower cost.
Senator Austerman also voiced a word of caution with wood burning
and noted that the time consumed in gathering wood had to be
accounted for in the cost.
Mr. Poe said the Department agreed.
Language Section: Power Cost Equalization
$7,800,000
$2,500,000 Alaska Industrial Development and Export
Authority (AIDEA) Dividend
$620,000 AIDEA Receipts
$4,680,000 General Funds
Reference No.: 34766
AP/AL: Appropriation
Project Type: Health and Safety
Category: Health/Safety
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2001 - 06/30/2006
One-time project
Mr. Bush informed that this request is to address a shortfall of
funding in FY 02.
Senator Austerman asked if the AIDEA dividend and AIDEA receipts
had funded this Power Cost Equalization (PCE) before.
Mr. Poe clarified that these were not actually AIDEA receipts, but
that the department would purchase loans and other assets by taking
AIDEA cash and converting it. He explained that this has not been
done in the past, but would allow the department to be able to
transfer assets.
Senator Austerman wished to clarify that the AIDEA dividend is
general funds.
Mr. Poe replied yes.
Senator Wilken asked Mr. Poe if there had been an analysis done to
determine if the state could use the National Petroleum Reserve -
Alaska (NPR-A) mitigation monies to help offset the AIDEA
requirement.
Mr. Poe replied there had not been an analysis about that to his
knowledge.
Mr. Bush indicated that the NPR-A funds were used to help fund the
FY 01 program for PCE programs, but there was no analysis for using
it for FY 02. He stated that the amount was received for the NPR-A
program for FY 01 was twenty times as much as the department was
anticipating this year.
Mr. Lawson clarified that the NPR-A funds were used to fund the PCE
program in FY 00 in the amount of more than $9 million. He informed
that the department does not expect to use any "NPR-A monies in the
future simply because the amount of revenue that is coming in is
fairly modest, and would be "under $2 million for the next ten
years annually."
Co-Chair Kelly asked about the life expectancy of the $100,000,000
that the Legislature had set aside for PCE. He questioned if it was
established as an endowment and if this $7,800,000 request and
future anticipated requests would be able to be covered without
depleting the fund.
Mr. Bush explained that $100,000,000 was placed in the fund in FY
00, along with "an addition of the revenues from the sale of the
st"
four dam pool" which would take place December 31, 2001. He
continued that there was a shortfall in FY 01 because the revenue
from the four dam pool would not be available until the end of the
year which placed it mid-year in the FY 02 budget, and that timing
explained the shortfall for FY 02. He informed that for FY 03 and
beyond there would still remain a $1.6 to $1.7 million shortfall in
the amount of funding for PCE, and that "the endowment would not
quite fill the gap but was very close."
Co-Chair Kelly asked if the shortfall affected future fiscal years.
Mr. Bush commented yes, "forever."
Senator Austerman said there had been a discussion to find other
"funds to supplement the endowment to make it grow enough so that
at some point in time, the shortfall would be zero." He continued
that it "just takes time to build the endowment up."
Language Section: Trans-Alaska Pipeline Liability Fund
$2,150,000 Federal Receipts
Reference No.: AMD34846
AP/AL: Appropriation
Project Type: Health and Safety
Category: Housing/Safety
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2001 - 06/30/2006
Appropriation of the state's additional rebate share of the
Trans-Alaska Pipeline Liability Fund to the Alaska Energy
Authority for use for the remediation of above-ground storage
tanks.
On-going project
Amendment
Mr. Bush indicated this is an AIDEA program and read portions of
the description that accompanies the request as follows:
The balance available from the state's rebate share of the
federal Trans-Alaska Pipeline Liability Fund and all
investment earning on this sum while in the custody of the
state until fully expended are appropriated to the Alaska
Energy Authority for petroleum remediation at rural Alaska
bulk fuel facilities in accordance with federal law (P.L. 101-
380, sec 8102(a)(2)(B)(1), requiring that the rebate be used
for the remediation of above-ground storage tanks.
Co-Chair Kelly inquired if there was a General Fund match on this.
Mr. Bush replied no.
Senator Green inquired as to any limitations as to where the above
ground tanks were.
Mr. Poe asked to clarify that the question was asking about the
location of the communities or the location of the bulk fuel
storage tanks within the communities.
Senator Green replied that she wished to know if the tanks had to
be in a community or in a rural area.
Mr. Poe replied that, generally, the tanks are in rural areas
because that is where they are non-compliant and that is where the
bulk fuel storage is very important to the community since they
have to store so much fuel. He informed that several rural
facilities had been cited by the Coast Guard or EPA as non-
compliant. He stated the department prioritized the tanks by the
condition of the facility and whether they had been cited. He noted
that most of the identified bulk fuel tanks were in rural areas.
Senator Ward referred to the back up information that contained the
language "rural Alaska bulk fuel," and asked if the federal law
specified rural bulk fuel facilities.
Mr. Poe responded that he was not sure of the answer.
Senator Ward asked Mr. Poe to investigate this further so the
Committee knew whether they had to comply with a federal law or
whether the state was imposing a new restriction.
Mr. Poe replied that he would determine the answer to that
question.
Senator Olson asked if there was a difference in remediation
between privately owned or community owned storage tank facilities.
Mr. Poe answered that the Department "had adopted a policy in
cooperation with the Denali Commission that basically tries not to
change the distribution of fuel in a community" but rather, tries
to consolidate it, if there are multiple distributors in a
community, in one facility." They attempt to not change the balance
by trying to maintain the same percentages each party had. He
stressed that the department cannot do anything with the bulk fuel
tanks unless the "community and all the parties involved agree with
what is going to be done."
Language Section: Electrical Emergencies
$350,000 Rural Electric
Reference No.: 32590
AP/AL: Appropriation
Project Type: Health and Safety
Category: Health/Safety
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2002 - 06/30/2007
This appropriation is requested to provide funds for the
Electrical Emergencies Program which provides technical
support when an electric utility has lost the ability to
generate or transmit power to its customers and the condition
is a threat to life, health, and property in the rural
community.
On-going project
Mr. Bush read portion of the description that accompanies the
request as follows:
The Electric Emergencies Program provides funds and technical
support when an electric utility has lost the ability to
generate or transmit power to its customers and the condition
is a threat to life, health and property in the community…
He disclosed that, based on past experience, assistance had been
provided to seven or eight of the eighty small independent
utilities in the state each year and this is what the funding was
based on.
Senator Ward indicated that this project is supposed to have
community participation and wondered how this was working out.
Mr. Poe responded that there is community participation, but
oftentimes, the community does not have any money. He explained
that the department tries to get community participation where it
can, but "must respond to the emergency when it happens, usually in
the middle of the winter." He stated "the department solves the
problem and then does what it can to get the community to
participate."
Senator Ward understood the department's position, but wanted to
know about community participation after the emergency was handled.
Mr. Poe did not know the specific number, but informed that a
"relatively small amount" of communities participated after the
emergency was handled.
Senator Ward wished to clarify "if there is any."
Mr. Poe replied that "yes, there is."
Senator Olson questioned if the number of available funds was going
up, was stabilized, or was going down throughout the history of the
electrical emergency program.
Mr. Poe replied that the numbers has been relatively stable. He
shared that the source of this fund is a revolving loan fund, and
one of things that dictates how much funding is available to
respond to emergencies is "what that loan fund produces" and the
amount of the FY 02 request is reflective of that expected income.
Department of Corrections
JOSEPH REEVES, Deputy Director/ASM, Division of Administrative
Services, Department of Corrections informed the Committee that his
Division prioritizes capital projects by security projects, second
by life/health/safety projects, and lastly by missions support
projects. He continued that the following projects follow this
format.
Facility Maintenance, Repair, Renewal, Replacement, and
Renovation
$1,000,000 General Funds
Reference No.: 30793
AP/AL: Appropriation
Project Type: Deferred Maintenance
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2001 - 06/30/2004
This project funds critical annual facility maintenance,
renewal and replacement, repair and renovation or remodeling
and other miscellaneous capital projects.
On-going project
Mr. Reeves indicated that this project is a historical, annual
project needed to maintain approximately 114 buildings throughout
the state and to insure that the facilities continue to operate
properly following the national standard adopted by all Alaska
state agencies. He stressed that this request was pared down to
this amount to "just address the most critical areas." He continued
that the division estimates that roughly 20 percent of the funds
would be used for emergency work that occurs annually throughout
the department. He informed about the "wide spectrum" of work that
is conducted at the various institutions around the state.
Senator Ward asked about the total cost and timeframe involved in
the asbestos removal at Wildwood Correctional Center.
Mr. Reeves answered that asbestos removal at Wildwood is included
as part of this request, but he did not have the full details. He
said he would gather that information and provide it to Senator
Ward.
Replacement and Repair of Security Systems, and Life and
Safety Equipment
$500,000 General Funds
Reference No.: 30798
AP/AL: Appropriation
Project Type: Equipment
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2001 - 06/30/2004
This project funds the annual replacement of essential
security, life and safety, medical and roads and grounds
maintenance equipment throughout all work sites in the agency
that are old, outdated, and not capable of providing the
needed operating support to the correctional programs.
On-going project
Mr. Reeves indicated that this is an annual request for replacement
of operating equipment at institutions. He read portions of the
description that accompanies the request as follows:
The Department of Corrections has approximately $16.5 million
in state-owned equipment assets. Replacement of old and worn-
out equipment has been deferred for many years; however,
further deferring of this equipment will severely reduce
security, decrease food service capability, and other day to
day operations capability and require repairs that are not as
cost-effective.
This project funds the replacement of antiquated capital
equipment at institutions throughout the state. It also
includes some new purchases of necessary maintenance, grounds
keeping, snow removal, and kitchen equipment. All institutions
operate 24 hours a day, seven days a week. This equipment is
used constantly and continually supporting life, health, and
safety needs of approximately 2,700 inmates per day. Their
sustained use requires budgeting for routine replacement of
old and worn out equipment every fiscal year.
He stressed that there is equipment throughout every institution in
this capital request.
Co-Chair Kelly noted a list of specific projects on the back-up
sheet.
Senator Ward asked if any capital requests have resulted from a
person being strangled in an Anchorage prison.
Mr. Reeves replied no.
Senator Ward commented that that affected "personnel only then."
Mr. Reeves replied yes.
Community Jails Facilities Maintenance, Repair and Renovation,
and Life and Safety Equipment
$100,000 Federal Receipts
Reference No.: 30782
AP/AL: Appropriation
Project Type: Deferred Maintenance
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2001 - 06/30/2003
This funds local community jails facilities maintenance,
repairs and renovations, and life and safety equipment
requirements necessary for the safe operations of each local
jail facility.
On-going project
Mr. Reeves informed that this is a federally funded project for
maintenance of the fifteen locally contracted community jails.
Co-Chair Kelly specified that this only involves federal funds.
Mr. Reeves concurred.
Correctional Institutions Roof Repairs and Replacement
$2,090,000 Federal Receipts
Reference No.: 30784
AP/AL: Appropriation
Project Type: Deferred Maintenance
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2001 - 06/30/2004
This project funds the review, repair and replacement of
building roofs at the Lemon Creek, Wildwood, Fairbanks, Cook
Inlet, Yukon-Kuskokwim, and Combined Hiland Mountain
Correctional Centers.
One-time project
Mr. Reeves informed that this project is funded totally by federal
funds to be used for roof replacement and repairs. He noted that
none of the projects had an impact to staff or operational needs in
the future.
Department of Education and Early Development
Mt. Edgecumbe High School Classroom and Fieldhouse Repair and
Renovation
$150,000 General Funds
Reference No.: 6254
AP/AL: Appropriation
Project Type: Deferred Maintenance
Category: Education
Location: Sitka
Election District: Sitka, Wrangell, Petersburg
Estimated Project Dates: 07/01/2001 - 06/30/2002
This project addresses life safety code compliance, ADA
compliance, and major maintenance and renovation for the
classroom and field house building at Mt. Edgecumbe High
School. Replacing and certifying fire alarm systems and
reconstructing the wood platforms in the field house for fire
suppression and fire code compliance are critical safety
concerns. Americans with Disabilities Act (ADA) compliance
including installation of ramps, an elevator to the second
floor classroom space, and modifications to restrooms are
essential improvements required under the ADA.
One-time project
EDDY JEANS, Manager, School Finance and Facilities Section,
Department of Education and Early Development informed the
Committee that this request is "mainly a life/safety code for ADA
compliance at Mt. Edgecumbe High School." He informed that Mt.
Edgecumbe School "is not part of the Department's AS 14 priority
process of ranking school districts' priorities because it is a
state owned facility."
He recounted that the request includes the installation of an
elevator to access classrooms on the second floor and other
facility upgrades.
Senator Austerman asked for clarification on Mr. Jeans' statement
that Mt. Edgecumbe School was a state-owned school and "it did not
fall within the same parameters as other schools' requests for
deferred maintenance and construction."
Mr. Jeans replied that was correct.
Senator Austerman asked why that was the case.
Mr. Jeans responded that Mt. Edgecumbe School is a state owned
facility, and the grant process, in statue under AS 1411, is for
school districts only.
Senator Austerman wished to clarify that the statue referred to
schools owned by municipalities.
Mr. Jeans said yes and added "or Regional Educational Attendance
Areas and in some cases, the state does own title on those school
facilities but it is a separate process for schools within school
districts, not facilities owned and operated by the state."
Mt. Edgecumbe High School Roof Repair and Replacement
$600,000 General Funds
Reference No.: 34116
AP/AL: Appropriation
Project Type: Deferred Maintenance
Category: Education
Location: Sitka
Election District: Sitka, Wrangell, Petersburg
Estimated Project Dates: 07/01/2001 - 06/30/2006
This project will addresses critical roof repair and/or
replacement in three of the main residential buildings at Mt.
Edgecumbe High School. The buildings, all built in the 1940s,
include the girls and boys dormitory and the kitchen/dining
building. Leaking roofs and the resulting water damage to
roof decking and interior walls threaten the structural
integrity of these buildings. The supporting timbers must be
inspected for rot and replaced if necessary. In addition, the
current construction does not meeting the required 1-hour fire
code rating.
One-time project
Mr. Jeans informed the Committee that these repairs needed to be
done.
SFC 01 # 31, Side A 10:40 AM
Museum Facility Upgrade
$550,000 General Funds
Reference No.: 6255
AP/AL: Appropriation
Project Type: Deferred Maintenance
Category: Development
Location: Juneau Areawide
Election District: Juneau Areawide
Estimated Project Dates: [dates not provided]
This project addresses essential upgrades to fire suppression,
dust collection, and space modification to protect the museum
collection valued at $24 million.
Phased project
KAREN CRANE, Director, Libraries, Archives and Museums, Department
of Education and Early Development shared with the Committee that
there is a space problem within the Juneau State Museum and it was
time to begin planning for essential upgrades and space
modifications at the facility.
She informed that an appropriation of $500,000 on a FY 94 request
for $1,064,300 enabled the Museum to install a central ventilation
unit, dehumidification system, new boiler, and air filtration unit.
She continued that the FY 02 request would permit the Museum to
complete a number of projects that they were not able to do due to
the FY 94 funding shortfall, including: "heating, ventilation,
electrical, and interior finishes to the new space that was created
on the second floor when the new boiler was put in," and removal of
the abandoned heating and air handling equipment from the basement
in order to "recapture that space" which is adjacent to the current
storage area in order to allow for additional storage space. She
informed "that is a critical need."
Ms. Crane informed that the "museum had placed some temporary
storage units in the parking area in the late 1970's as a temporary
measure, and they are still there."
Design for Museum and Archives Building Expansion
$500,000 General Funds
Reference No: AMD34048
AP/AL: Appropriation
Project Type: Health and Safety
Category: Education
Location: Juneau Areawide
Election District Juneau Areawide
Estimated Project Dates: 07/01/2001 - 06/30/2006
Additional space for the Alaska State Museum collection, which
has grown from 5,600 objects in 1967 to over 25,000 objects
currently, is critical to preserving Alaska's history and
culture. Accommodating and protecting the current collection
while making room for new acquisitions is not possible in the
current building, which exceeds capacity. Many artifacts are
housed in temporary storage in the parking lot. The building
that houses the state archival documents also exceeds capacity
and is literally tearing apart. This project will provide
funds for design of a facility that will accommodate both the
museum and archival needs of the state.
One-Time Project
Amendment
Ms. Crane informed that as early as 1985, the Department realized
the need for additional space at the state museum and the archives
building. She stressed that the archives building would run out of
storage space in the next two to three years, and she reiterated
that the museum is also in dire need of additional space. She
shared that the Department feels that the best solution, and the
least expensive one, is to add on to the current museum for needed
room for both archives and the museum.
Ms. Crane stated planning was needed for this expansion. She
informed that this was the first request for this project.
Co-Chair Kelly, referring to the temporary storage facility in the
parking lot, shared a saying by Canadian humorist Red Green that
"This is only temporary unless it works."
Ms. Crane stated she would be happy to provide the Committee with a
tour of the facility.
Head Start Health and Safety Repairs
$500,000 General Funds
Reference No.: 32628
AP/AL: Appropriation
Project Type: Renewal and Replacement
Category: Health/Safety
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2001 - 06/30/2005
This project is requested to assist Head Start facilities in
meeting health and safety standards. Types of projects funded
would include replacing windows, stoves, sinks, fire
extinguishers, sprinkler systems, carpets, wiring, insulation
etc.
On-going project
YVONNE CHASE, Deputy Commissioner, Early Development, Department
Education and Early Development, testified via teleconference from
Anchorage and detailed some of the types of projects that had been
funded this year. She stated that in addressing both health and
safety, several of the communities created separate storage for
chemicals to keep them out of reach of children, another facility
purchased a Head Start bus because the old one was no longer safe
to transport children, one facility purchased and installed a new
fire alarm system, and some facilities upgraded playground fencing
to be compliant with access requirements for children with
disabilities. She shared that this year's request of $500,000 was
to make further inroads on the list of projects that had been
identified.
Senator Wilken inquired if there was any federal money available
either outright or with a match requirement for these types of
projects.
Ms. Chase responded there was a possibility that this coming year
there may be some federal funding available from a recent
appropriation approved by Congress, but at this point, it was not
known what might be available for Alaska. She stated there was no
match requirement in terms of capital budget on these funds if they
did become available.
Senator Wilken asked if Ms. Chase knew when the information about
the federal money would be available.
Ms. Chase stated that the Department might know within the next
month about the possibility that any of the federal funds might be
able to be used "toward any programs for capital improvements."
Senator Wilken asked on what projects and where the $500,000 was to
be spent.
Ms. Chase replied that the Department had worked with the Headstart
association to develop a list of their most pressing health and
safety needs. She said she had a list of both the kinds of things
that are "funded specifically within each program this year and the
needs that would be left un-addressed." She said she would be happy
to provide the lists to the Committee.
Senator Green asked if some of the facility improvements would be
"made to other people's properties."
Ms. Chase replied that in some cases yes, because in many of the
small communities, private entities are actually providing space
free of charge for the program, and some of the space needed to be
upgraded to be in compliance.
Senator Green asked if the state had any "comparable programs for
assisting those other daycare workers who run private agencies that
provide similarly needed function in our communities."
Ms. Chase responded that the department did not have a program that
was comparable. She informed that there was legislation passed
several years ago that provided for a Loan fund to assist childcare
programs, and she "understood that the Legislation is still on the
books but there is no funding, however, in that program."
Senator Green asked if there was "any way that this money could
also go to local, privately run and managed daycare centers."
Ms. Chase replied yes, and that would be up to the legislature.
AVTEC Roof Repair and Replacement
$650,000 General Funds
Reference No.: 6263
AP/AL: Appropriation
Project Type: Renewal and Replacement
Category: Education
Location: Seward
Election District: Seward, Soldotna
Estimated Project Dates: 07/01/2001 - 06/30/2002
This project will addresses critical roof repairs and/or
replacement of two of the instructional buildings at the
Alaska Vocational Technical Center (AVTEC) in Seward, the
applied Technology Building and the Oil Rig Building. The
buildings, all over 30 years old, suffer from severe leaking
during heavy rain and snow in Seward. The resulting water
damage to roof decking and interior walls threaten the
structural integrity of these buildings. The supporting
timbers must be inspected for rot and replaced if necessary.
One-time project
FRED ESPOSITO, Director, Alaska Vocational Technical Center,
Department of Education and Early Development testified via
teleconference from Seward and informed the Committee that this
request was for ongoing roof repair and replacement for AVTEC
buildings. The project addressed the need for roof repair for two
buildings at AVTEC that are over 30 years old and leaking, and that
these repairs would prevent any further damage to the buildings. He
stated that prior funding assistance allowed AVTEC to fix roofs on
two other buildings with a third roof replacement slated for this
summer. He informed that this on-going repair request made the
buildings safe and dry and helped preserve the buildings'
integrity.
Senator Austerman asked if these were state-owned buildings.
Mr. Jeans responded yes.
Senator Austerman questioned that the back-up material for the
request did not indicate this was an on-going project, but rather
reflected a one-time project. He stated that clearly "this was an
on-going project" and that the Committee should be provided with a
history and projection of how much work was needed on the AVTEC
facilities.
Co-Chair Kelly agreed that the backup material did not accurately
reflect the situation.
Senator Wilken asked if the FY 01 funding of $365,000 had been
obligated and if the FY 02 request of $650,000 could be phased in
over two years.
Mr. Esposito responded that AVTEC was currently in the design phase
for the third major roof replacement with the FY 01 funding. He
informed that the "design phase for the fairly large metal roof had
not yet been completed" but the replacement of that roof had been
scheduled for summer. He relayed that this roof replacement would
use up all of the funds allocated for FY 01. He continued that the
$650,000 request for FY 02 would allow the replacement of two other
roofs that are leaking, and he stressed that the "snow loads had
taken their toll." He continued that there were other roofs at
AVTEC that were less than twenty years old that also needed
upgrades in order to "prevent realizing any further damage."
Mr. Jean informed that concluded the Department of Education and
Early Development's presentations.
Co-Chair Kelly commented that presentations from the Department of
Fish and Game would be heard at the next capital budget meeting.
ADJOURNMENT
Co-Chair Pete Kelly adjourned the meeting at 10:52 a.m.
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