Legislature(2001 - 2002)
04/27/2001 08:21 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
April 27, 2001
8:21 PM
TAPES
SFC-01 # 88, Side A
SFC 01 # 88, Side B
SFC 01 # 89, Side A
CALL TO ORDER
Co-Chair Pete Kelly convened the meeting at approximately 8:21 PM.
PRESENT
Senator Dave Donley, Co-Chair
Senator Pete Kelly, Co-Chair
Senator Jerry Ward, Vice Chair
Senator Loren Leman
Senator Lyda Green
Senator Gary Wilken
Senator Alan Austerman
Senator Lyman Hoffman
Senator Donald Olson
Also Attending: SENATOR ROBIN TAYLOR; JANET CLARKE, Director,
Division of Administrative Services, Department of Health and
Social Services; KIRT PARKAN, Deputy Commissioner, Department of
Transportation and Public Facilities; ANNALEE MCCONNELL, Director,
Office of Management and Budget, Office of the Governor; NICO BUS,
Administrative Services Manager, Division of Support Services,
Department of Natural Resources; KURT FREDRIKSSON, Deputy
Commissioner, Department of Environmental Conservation
SUMMARY INFORMATION
SB 29-REAPPROPRIATIONS & CAPITAL APPROPRIATIONS
The Committee adopted a committee substitute, considered amendments
and reported the bill from Committee.
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."
Co-Chair Donley moved for adoption of CS SB 29, 22-GS1050\F, as a
working draft.
There was no objection and the committee substitute was ADOPTED.
AT EASE 8:23 / 8:38 PM
The following amendments are made to the committee substitute.
Office of the Governor
GOV #4: This amendment adds a new bill section to read as follows.
Sec. *. OFFICE OF THE GOVERNOR. (a) The sum of
$16,650,000 in federal receipts that the state receives for
the implementation of the Pacific Salmon Treaty is
appropriated as follows:
(1) The sum of $9,990,000 is appropriated to the
Office of the Governor for projects identified by the
stakeholder's panel to provide economic adjustment assistance
to salmon fishermen east of Cape Suckling;
(2) The sum of $6,660,000 is appropriated to the
Office of the Governor for salmon habitat restoration, salmon
stock enhancement, and salmon research, including the
construction of salmon research and related facilities, east
of Cape Suckling.
(b) The appropriations made by this section do not
include $1,000,000 authorized by the United States Congress
for the Metlakatla Hatchery or $350,000 authorized by the
Congress for the Crystal Lake Hatchery, to the City of
Petersburg.
This amendment also imposes a lapse date of June 30, 2006, on the
appropriations made in the new bill section. Accompanying
explanatory language reads as follows.
Reduce the amount appropriated to the Office of the Governor
for the Pacific Salmon Treaty in the "numbers portion" of the
capital budget to conform to this amendment.
Co-Chair Donley moved for adoption.
Without objection the amendment was ADOPTED.
Department of Transportation and Public Facilities
DOT #3: This amendment deletes the Alaska Marine Highway System:
Prince William Sound Ferry (Ferry #1)(ED35) component and the
$33,000,000 allocated to it on page 31, lines 6-8, from the Surface
Transportation Program Budget Request Unit (BRU) on page 30, line
18, and reduces the $484,756,482 appropriation for that BRU to
$451,756,482
Co-Chair Donley moved for adoption.
Senator Hoffman objected for an explanation.
SENATOR ROBIN TAYLOR informed this appropriation provides for a
second high-speed ferry to operate in Southeast Alaska. He stressed
it had been understood that before this funding would be granted,
adequate proof of the success of the concept and technology would
have to be shown through the operation of the first fast ferry. He
stated that this has not occurred and therefore, authority to
expend the federal funds on this project should be denied.
Senator Hoffman asked what is the funding source.
Senator Taylor answered federal receipts.
The amendment was ADOPTED without objection.
Department of Administration
ADM #1: This amendment adds a new Payroll and Accounting System
Replacement Analysis (ED 99) component on page 1, and appropriates
$400,000 general funds to this component. Accompanying explanatory
language reads as follows.
Funding this project will enable the department to analyze the
remaining viability and begin replacement planning for two
statewide mission-critical computer systems: payroll and
accounting. Both are mature from a system development live
cycle standpoint, and they are showing the signs of that
maturity. The technology used is no longer being taught in
colleges. As a result, we are having difficulty finding
qualified personnel to support the systems.
These systems are used by all three branches of government.
They are key elements to the State's operation and
accountability. Failure of either the payroll or accounting
function would have widespread and devastating impacts on
every program administered by the State of Alaska. Replacement
analysis must begin long before steps are taken actually to
replace these systems. Even if we begin in FY 02, the earliest
possible replacement would be three years later when our
accounting systems turns 20 years old.
Postponing this inevitable task is irresponsible. Strategic
planning now can prevent emergency steps five years from now,
which will ultimately cost more money.
Senator Hoffman moved for adoption.
Senator Green objected.
Senator Hoffman read the explanatory statement into the record.
Co-Chair Kelly commented that as the budget was drafted, it was
agreed that this item does need to be addressed, however, not at
this time.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Leman, Senator Ward, Senator Wilken, Senator
Austerman, Senator Green, Co-Chair Donley and Co-Chair Kelly
The motion FAILED (2-7)
The amendment FAILED to be adopted.
ADM #2: This amendment adds a new Upgrade Internet and Intranet,
and Implement New Technology component on page 1, and appropriates
$539,900 Information Services Funds to this component. Accompanying
explanatory language reads as follows.
If this project is not funded the impact to the state would
be:
· Business and private users who access State of Alaska web
sites to conduct e-business will experience service
degradation due to limitations of the system as it is
today.
· Agencies will continue to have problems deploying new or
upgraded applications due to the limitations of the
system as it is today.
· Agencies will continue to have problems deploying new or
upgraded applications due to the limitations of the
system as it is today.
· Agencies will not be able to take advantage of a much
higher throughput and increased network performance. This
will affect workflow processes and how the public is
served.
· Potential savings from technologies such as Voice Over IP
will be non-existent.
· Some upgrades that are a part of this project may be
necessary if the state enters into a telecommunications
partnership with private industry (Telecomm RFP).
Senator Hoffman moved for adoption.
Co-Chair Kelly objected.
Senator Hoffman pointed out this item does not utilize general
funds. He read the explanatory statement into the record.
Co-Chair Kelly informed that this item could be addressed as part
of a larger information technology project in the future.
A roll call was taken on the motion.
IN FAVOR: Senator Olson and Senator Hoffman
OPPOSED: Senator Ward, Senator Wilken, Senator Austerman, Senator
Green, Senator Leman, Co-Chair Donley and Co-Chair Kelly
The motion FAILED (2-7)
The amendment FAILED to be adopted.
ADM #3: This amendment adds a new State-Owned Buildings Valuation
Project (ED 99) component on page 1, and appropriates $60,000
general funds to this component. Accompanying explanatory language
reads as follows.
Funding would provide for a consultant to devise a methodology
to enable the state to recreate historical costs of state
owned buildings. The historical costs of state-owned buildings
is a missing element necessary for presenting these assets in
accordance with generally accepted accounting principles. This
would be solved with appraisals of current values regressed
back to the year of acquisition. Solving this problem not only
corrects the current financial statements, but would also
provide the basis for presenting them in accordance with GASB
requirements, which go into effect for FY 02
This project would eliminate the only problem preventing the
State of Alaska from obtaining a clean audit opinion of our
financial statements.
Senator Hoffman moved for adoption.
Senator Ward objected.
Senator Hoffman read the explanatory statement into the record.
Co-Chair Kelly recalled this item was listed by the Department of
Administration as having the lowest priority of all requests
submitted. He stated the committee substitute was drafted using the
departments' priority lists as guidelines for reducing costs.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Ward, Senator Wilken, Senator Austerman, Senator
Green, Co-Chair Donley and Co-Chair Kelly
ABSENT: Senator Leman
The motion FAILED (2-6-1)
The amendment FAILED to be adopted.
ADM #4: This amendment adds the following components and
appropriations to the referenced agencies.
Department of Administration
Anchorage Pioneer Home-Ventilation and Humidification
System Emergency Repair component
$1 million general funds
Department of Education and Early Development
Yuut Elitnaurviat (People's Learning Center), Phase I
component
$1 million general funds
Department of Health and Social Services
Alaska Psychiatric Institute Replacement component
$36,550,000 general funds
Department of Revenue
Lime Village Power System Rehabilitation component
$40,000 general funds
Department of Transportation and Public Facilities
Tatitlek Small Boat Harbor Project Completion component
$2 million general funds
Dillingham All Tides Cargo Dock component
$500,000 general funds
Juneau International Airport Roof Repair component
$400,000 general funds
Delta Junction Municipal Airport Improvement component
$250,000 general funds
Illiamna-Williamsport-Pile Bay Road component
$8,600,000 general funds
Sand Point Harbor Access Road component
$2,440,000 general funds
University of Alaska
University of Alaska Southeast-Juneau Classrooms,
Phase II component
$2,500,000 general funds
Senator Hoffman AMENDED the amendment to change the fund source for
the Alaska Psychiatric Institute (API) Replacement component, to
Lease Bond Funds and change the appropriation "amount to reflect
appropriation in HB 76". The amendment to the amendment also places
the Lime Village Power System Rehabilitation component in the
Department of Community and Economic Development budget. He moved
for adoption of the amended amendment.
JANET CLARKE, Director, Division of Administrative Services,
Department of Health and Social Services explained HB 76 would be
referred to the Senate Finance Committee. She stated this
legislation has a fiscal note appropriating $16 million for
lease/bonds proceeds as well as some investment income. She spoke
to an involved amendment drafted in the House Finance Committee,
and the need for an appropriation for the API if HB 76 passes.
Senator Hoffman detailed the proposed projects beginning with the
Anchorage Pioneers' Home. He shared he had visited the facility the
previous summer and learned the importance of the ventilation
system to the health of many of the elderly residents with
respiratory conditions.
Senator Hoffman then addressed the People's Learning Center,
telling the Committee the general funds requested would be used as
matching funds to garner an $8 million federal appropriation. He
described the project to construct a regional learning center for
teenagers and young adults "providing linkage and diverse career
paths into secondary educational and vocational training". He
stressed this project is "strongly supported" by the state's US
Congressional delegation. He also noted collaboration between
public and private entities including the Alaska National Guard,
the Association of Village Council Presidents, the local regional
housing authority, the Bethel Native Corporation, the City of
Bethel, the Coastal Village Regional Fund, the Lower Kuskokwim
School District, the Kuskokwim campus and the Yukon-Kuskokwim
Health Corporation.
Senator Hoffman explained the People's Learning Center is focused
toward teenagers who have dropped out of school or are at risk of
doing so. He stated the programs target the employment needs in the
region and as well as offering opportunities outside of the region.
AT EASE 8:55 PM / 8:58 PM
[Note: Portion of tape contains no audio. However, no portion of
the meeting is missing.]
Senator Olson spoke to the API replacement. He relayed his
experiences as a physician with patients treated at API and
stressed the need for a replacement to this facility.
Ms. Clarke reminded of efforts to secure funding to construct a new
facility for over 12 years. She referred to HB 76, which authorizes
a new facility located near Providence Hospital and the McLaughlin
Youth Center in Anchorage. She stated that a matching appropriation
is necessary for this to occur.
Senator Olson next spoke of the Developmental Disability System
Reform Initiative pointing out Alaska's rank in community services
fiscal effort compared to other states. He said Alaska's spending
th
for services per $1,000 personal income has declined from the 14
st
highest in 1977 to 31 in 1998. He emphasized the waitlists for
people waiting to receive services.
Senator Hoffman informed that the Lime Village Power System
Rehabilitation project is experimental and was originally funded by
the Alaska Industrial Development and Export Authority (AIDEA). He
explained the project pairs a solar panel generator system with a
diesel-powered system. He noted the "one basic flaw" of this
project is that the maintenance required every two to three months,
"far outweighed" the cost of a simple diesel system. He added that
Lime Village is located along a tributary of the Kuskokwim River
and is one of the most remote communities in Alaska.
Senator Olson addressed the Tatitlek Small Boat Harbor Project
Completion. He told of the federal funds received to construct a
small boat harbor for emergency response equipment for oil spills.
He also noted the harbor would "provide the necessary stepping
stones for economic opportunity" and would facilitate long-term
self-sufficiency through tourism and mariculture opportunities. He
stated the project is expected to cost $12 million with federal
funds comprising all but $2 million of that amount.
Senator Hoffman asserted the Dillingham All Tides Cargo Dock
project is important for this community that is dependent upon
salmon fishing. He informed the existing dock owned by the City of
Dillingham is unsafe and has been condemned. He stated the new dock
could reduce fuel and freight costs to residents of the region as
Dillingham serves as a regional hub. He explained this is because
freight barges could use the dock continually rather then the
current practice requiring the barges to move off shore at each
tide cycle. He also noted that larger vessels could utilize the
dock as opposed to off loading onto smaller vessels. He said this
would be cost effective for programs such as Power Cost
Equalization. He listed the total cost of the project as $3,765,000
noting the City of Dillingham would contribute $865,000, and the
federal government would contribute $2.4 million.
Senator Olson testified to the Juneau International Airport Roof
Repair project and read a statement into the record as follows.
The Juneau International Airport serves the capital city and
Alaska's legislatures well. Recent additions of state-of-art
technology has resulted in dramatic decreases in the number of
flights forced to overhead Juneau. However, the airport's roof
now needs major repair. Because of the complexities of federal
regulations and the variety of activities that take place in
the terminal, federal funds are only available for half the
cost of this $800,000 repair. Through passenger facility fees,
the airport is able to provide non-federal match for that
half. However, the source of the additional $400,000 is not
clear. At this point, state capital funding of $400,000 will
enable the Juneau International Airport to continue to provide
good and adequate service to our state and in particular, us
in the legislature.
Co-Chair Donley asked if the Juneau International Airport pays a
dividend to the City and Borough of Juneau, from revenues it
generated.
Senator Hoffman clarified, "It loses money."
KIRT PARKAN, Deputy Commissioner, Department of Transportation and
Public Facilities testified in general to airports paying dividends
to the cities that own them, stressing there is a "major issue"
with the Federal Aviation Administration (FAA) on "diversion of
income." He cited the City of Los Angeles receiving revenues
generated from the Los Angeles International Airport and using
those funds to pay for other city services. He stated that an
airport paying a dividend to the city that owns it is a violation
of federal regulations.
Senator Hoffman next shared that Delta Junction Municipal Airport
Improvements would control access and alleviate design problems
identified by the FAA. He said that unlike any other municipal
airport in Alaska, the Delta Junction facility receives no state
funds or federal Airport Improvement Project (AIP) funds. He
stressed the necessary repair and upgrades are a priority for
supporting the proposed national missile defense system as well as
mining projects.
Senator Hoffman told of traveling along the Illiamna-Williamsport-
Pile Bay Road five years prior with the commissioner of the
Department of Transportation and Public Facilities and
Representative Carl Moses. Senator Hoffman read a statement into
the record as follows.
This road was constructed in the 1930s by the Alaska Railroad
Commission. It connects Cook Inlet and Illiamna Bay with Pile
Bay on Lake Illiamna. The road is approximately 14 miles long.
Approximately half the road is located in the Kenai Peninsula
Borough and half in the Lake and Peninsula Borough. It has
historically been used to transport fishing boats from the
Kenai Peninsula and other parts of Alaska to Bristol Bay.
Using this road is a very significant shortcut and it
eliminates long and dangerous trips around the Alaska
Peninsula and through False Pass. As many as 60 fishing boats
and a large number of freight and cargo are transported
annually along this road. … There have been very little, if
any, improvements along this road in the 70 or so years that
it has been in existence.
Senator Hoffman spoke to the Sand Point Harbor Access Road, located
in the Aleutians East Borough and consisting of realignment and
reconstruction of 5,000 linear feet of the road from the airport to
the new Sand Point Small Boat Harbor. He noted the project would
eliminate three major S-curves and provide an approximately 600
feet line of sight adjacent to the harbor parking and storage areas
as well as installation of subsurface drainage systems.
Senator Olson concluded with the University of Alaska Southeast-
Juneau Classrooms project, which is in the second phase. He shared
he visited the campus earlier in the day. He read a statement into
the record as follows.
The interface to this project was at the top of the
University's capital request list for this year. Ground has
already been broken on the first phase of the classroom
expansion, which would allow the University of Alaska-
Southeast to enroll more students and provide more educational
opportunities. This expansion would also allow UAS to fulfill
its potential.
Co-Chair Kelly stated that an objection was made to the adoption of
this amendment.
Senator Leman shared he was familiar with some of the proposed
projects and opined this amendment contains "several projects that
are worthy of consideration in the future." In particular, he
supported funding the upgrades to the Pioneers' Home in Anchorage.
He remarked he would continue his attempts to identify a funding
source for this project. However, he stated that he would vote
against adoption of the amendment because of the "way it is
packaged."
Co-Chair Kelly agreed there are worthy projects included in the
amendment. He commented that the capital budget is a "work in
progress".
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Wilken, Senator Austerman, Senator Green, Senator
Leman, Senator Ward, Co-Chair Donley and Co-Chair Kelly
The motion FAILED (2-7)
The amended amendment FAILED to be adopted.
Department of Corrections
COR #1: This amendment increases the appropriation to the
Replacement and Repair of Security Systems, and Life and Safety
Equipment (ED 99) component on page 5, lines 30-32, from $250,000
to $500,000 general funds.
Senator Olson moved for adoption.
Senator Green and Co-Chair Kelly objected.
Senator Olson read a statement into the record as follows.
This project funds the replacement of antiquated capital
equipment at the jail institutions throughout the state. All
institutions operate seven days a week, 24 hours a day. This
equipment supports life, health and safety needs for
approximately one million man-days of prisoner care. There
sustained use requires routine replacement of old and worn out
equipment every fiscal year.
Co-Chair Kelly pointed out this component is funded approximately
$65,000 over the amount of the previous fiscal year. Therefore, he
asserted the need is being addressed.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Wilken, Senator Austerman, Senator Green, Senator
Leman, Senator Ward, Co-Chair Donley and Co-Chair Kelly
The motion FAILED (2-7)
The amendment FAILED to be adopted.
COR #2: This amendment increases the appropriation to the
Correctional Institutions Roof Repairs and Replacement (ED 99)
component on page6, lines 6 and 7 from $400,000 to $2,090,000
general funds. Accompanying explanatory language reads as follows.
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. These roofs are in immediate need of
repair and cannot be deferred further without seriously
jeopardizing security and safety of institutional staff and
prisoners and increase repair costs. These roofs can no longer
be maintained with normal in-house techniques.
COR #3: This amendment increases the appropriation from $600,000 to
$1 million general funds for the Facility Maintenance, Repair,
Renewal, Replacement, and Renovation (ED 99) component on page 5,
lines 24-26. Accompanying explanatory language reads as follows.
The agency is responsible for maintaining 112 state-owned
buildings (over 1.1 million square feet and $324.3 million in
replacement value) across the state. A majority of these
correctional center buildings are over 20 years old and 10%
exceeding 40 years of age. Funding appropriated for this
request will be allocated towards addressing essential
security, health, and life/safety maintenance projects that
require immediate repairs to enable continued support for
approximately 1 million man-days of prisoner coverage. Without
these funds, critical repairs to control rooms, AVAC systems,
flooring and carpeting, electrical systems, water delivery and
sewer drainage systems, security doors and locking systems,
and structural repairs will be greatly diminished and could
jeopardize the safety and security of staff and inmates at
correctional centers. The agency currently has over $22.6
million (Reference Alaska State Legislature/Deferred
Maintenance Task Force Report dated January 10, 1998) in
deferred maintenance that needs addressing, this project only
addresses the most immediate essentials of these repair needs.
Maintenance to just keep these projects going is getting
impossible and most cannot support further maintenance
efforts.
Senator Olson moved for adoption of both amendments. He read the
explanatory statements into the record.
Co-Chair Kelly noted COR #2 involves replacing federal funds with
general funds but that the request was received late in the capital
budget process and would require restructuring of other funding. He
then commented that the Facility Maintenance, Repair, Renewal,
Replacement, and Renovation component contained in COR #3 is funded
at the same level as requested the previous fiscal year.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Austerman, Senator Green, Senator Leman, Senator
Ward, Senator Wilken, Co-Chair Donley and Co-Chair Kelly
The motion FAILED (2-7)
The amendments FAILED to be adopted.
Department of Education and Early Development
E&ED #1: This amendment adds a new School Construction component on
page 6, and appropriates $69,124,629 general funds to this
component. Accompanying explanatory language assigns priority as
follows.
Southwest Region School District
1.Togiak School Replacement $29,182,163
Bering Strait School District
2.Golovin School Phase III 9,888,192
3.Koyuk School K-12 Replacement 11,660,343
Yupiit School District
4.Tuluksak School Improvement 18,393,931
This amendment also adds a new Major Maintenance component on page
6, and appropriates $58,145,522 general funds to this component.
Accompanying explanatory language assigns priorities to school
districts and specific projects as follows.
1. Petersburg City
Facia/Soffit Repair/Replacement Recovery of Funds
$116,236
2. Yukon Koyukuk
Nulato Structural Repairs
$314,387
3. Bering Strait
Shishmaref School Roof Replacement & Renovation,
Phase III
$8,342,525
4. Iditarod Area
Blackwell School Heating Renovation/Site Repair
$173,754
5. Sitka City Borough
Blatchley Exterior Renovation/Repair
$346,500
6. Chatham
Angoon Elementary School Major Maintenance
$2,066,257
7. Skagway
Skagway Major Maintenance
$35,598
8. Yupiit
Akiak School Repairs
$177,571
9. Pribilof Island
St. George School Remodel
$4,513,164
10. Galena
Project Education Food Service Renovation
$261,806
11. Southwest
Clark's Point School Generator Building
$35,989
12. Ketchikan
Schoenbar Renovation
$4,891,992
13. Southwest Region
Koliganek School Improvement
$451,993
14. Juneau City Borough
Juneau Douglas High School Renovation/ADA Upgrade
$9,097,138
15. Southwest Region
Ekwok, Koliganek, Togiak Schools Heating System Upgrade
$122,256
16. Hoonah City
Hoonah Swimming Pool Sprinkler System
$220,476
17. Galena
High School Remodel
$167,846
18. Kenai Peninsula
McNeil Canyon Replace Septic System
$171,500
19. Kake City
Kake High School Renovation Phase II
$175,065
20. Chatham
Angoon High School Major Maintenance
$1,730,507
21. North Slope Borough
Tikigan School Renovation
$3,675,502
22. Tanana City
Tanana Kitchen Renovation
$438,539
23. Wrangell City
Wrangell Elementary Schools Renovation
$1,129,238
24. Lower Yukon
Emmonak Mechanical System Upgrade
$574,885
25. Lower Yukon
Alakanuk Mechanical System Upgrade
$899,740
26. Iditarod Area
Takotna Community School Water Project
$192,374
27. Anchorage
Service High School Phase I Renovation
$4,998,000
28. Kenai Peninsula
Seward Middle School Gym Reroof
$278,275
29. Iditarod Area
Innoko River School Bathroom, Shower & Underfloor
Damage Repairs
$46,746
30. Iditarod Area
McGrath School Heating Design, Boiler Replacement &
Repairs
$235,200
31. Kenai Peninsula
Kenai Central High School Reinsulate Exterior
$385,610
32. Alaska Gateway
Tok Multipurpose Recreational Complex Renovation Project
$961,612
33. Delta/Greely
Fort Greely Utility Conversion
$2,054,852
34. Iditarod Area
Holy Cross School Bathroom & Shower Deterioration
$47,530
35. Wrangell City
Wrangell Middle School Renovation
$164,522
36. Sitka City Borough
Blatchley Domestic Water System Upgrade
$667,356
37. Skagway City
Skagway Roof Replacement
$174,613
38. Mat-Su Borough
Fire Alarm Systems, 5 Schools
$638,647
39. Fairbanks
Districtwide Fire Protection System Upgrade
$1,193,832
40. Yakutat City
Yakutat High School Gymnasium Structural Repair
$70,981
41. Yukon-Koyukuk
Kaltag School Renovation
$2,418,052
42. Mat-Su Borough
Septic System Upgrade Colony High School
$164,039
43. Wrangell City
Wrangell Elementary School & High School Roof & Exterior
Repairs
$101,216
44. Northwest Arctic
Shungnak Improvements Phase II
$2,740,522
45. Dillingham City
Elementary School Weatherization
$105,418
46. Kuspuk
Chuathbaluk Crow Village Sam School Sewage System
Replacement
$375,661
Senator Hoffman moved for adoption.
Co-Chair Kelly objected.
Senator Hoffman stressed that education has been a major issue
during the legislative session. However, he noted facility
construction, especially in rural areas, has not received as much
attention as the high school exit and benchmark examinations.
Senator Hoffman asserted the list of needs increases each year and
would continue to do so unless addressed. He warned that not
funding the repair and maintenance projects would result in the
facilities deteriorating to such a condition that millions of
additional dollars would be necessary for new construction. He
remarked that it makes "good business sense" to maintain and repair
existing facilities.
Senator Hoffman shared that students and teachers in rural schools
have indicated these projects are necessary for health and safety.
He asserted that the state requires students to attend school at
these facilities, which places these students in the predicament of
inhabiting unsafe buildings.
Co-Chair Kelly commented the size of this request is similar to
what might be contained in a bond bill.
Senator Hoffman responded the funding source is "open for
amendment."
SFC 01 # 88, Side B 09:24 PM
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Austerman, Senator Green, Senator Leman, Senator
Ward, Senator Wilken, Co-Chair Donley and Co-Chair Kelly
The motion FAILED (2-7)
The amendment FAILED to be adopted.
E&ED #2: This amendment adds a new Mt. Edgecumbe High School
Classroom and Fieldhouse Repair and Renovation (ED 2) component on
page 6, and appropriates $150,000 to this component. Accompanying
explanatory language reads as follows.
This project addresses life safety code compliance. American's
with Disabilities Act (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 spectator-seating platforms with 1-
hour rated fire suppression construction are critical safety
concerns and necessary to comply with the fire code.
Essential improvements required under American's with
Disabilities Act include installation of ramps to the athletic
floor and an elevator to access classrooms on the second
floor, and modifications to restrooms.
E&ED #3: This amendment increases the appropriation to the Head
Start Health and Safety Repairs (ED 99) component on page 6, lines
14 and 15 from $200,000 to $500,000 general funds. Accompanying
explanatory language reads as follows.
Alaska Head Start operates programs in 100 communities
statewide. These programs are required to meet state health
and safety standards, as well as federal performance
standards. Improvements necessary to meet these standards have
included replacing windows, stoves, sinks, fire extinguishers,
sprinkler systems, carpets, wiring, insulation, etc. The
operating budgets of these Head Start programs are generally
too lean to include such repairs.
Senator Olson moved for adoption of both amendments and read the
explanatory language into the record.
Co-Chair Kelly stated that although the Mount Edgecumbe request is
a worthy one, $500,000 is already contained in this budget to cover
roof repairs at this facility. He added that the Head Start program
is funded at the same level as the previous year.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Green, Senator Leman, Senator Ward, Senator
Wilken, Senator Austerman, Co-Chair Donley and Co-Chair Kelly
The motion FAILED (2-7)
The amendments FAILED to be adopted.
AT EASE 9:27 PM / 9:39 PM
Department of Environmental Conservation
DEC #1: This amendment changes the name of the Village Safe Water
Projects with Environmental Protection Agency (EPA) Funding BRU to
Village Safe Water Projects on page 9, lines 15 through 17. The
appropriation amount remains $51,303,900. Accompanying explanatory
language reads, "Title Change to reflect consolidation of federal
fund sources (EPA and RDA)."
DEC #2: This amendment adds a new bill section to read as follows.
Sec.___. DEPARTMENT OF ENVIRONMENTAL CONSERVATION. (a)
Section 100, ch. 2, FSSLA 1999, page 46, lines 11 - 12, is
amended to read:
Allocations
Homer East Trunk/Beluga Lift 441,000
Section Upgrade and East End
Road Sewer Main Extension and
Infiltration and Inflow Study
(ED 7-9)
(b) Section 82, ch. 100, SLA 1997, page 50, lines 37-18,
as amended by sec. 49 (c), ch. 2, FSSLA 1999, page 24, lines
18-26, is amended to read:
Allocations
Unalaska-Wastewater Treatment 1,400,000
Plant Upgrade and Water Compliance
Projects and Landfill, [and]
Phase I Development and Water and
Sewer Improvements (ED 40)
Senator Green moved for adoption of both amendments.
ANNALEE MCCONNELL, Director, Office of Management and Budget,
Office of the Governor, explained DEC #1 consolidates the federal
funding sources and simplifies the accounting process. She assured
it is a technical amendment and makes to practical change to the
projects or the appropriation amount. She continued that DEC #2 is
also a technical change to the project title and has no effect on
the amounts allocated to the projects.
The amendments were ADOPTED without objection.
Department of Fish and Game
F&G #1: This amendment increases the general fund appropriation to
the Vessel and Aircraft Repair, Maintenance, and Replacement (ED
99) component from $450,000 to $600,000. Accompanying explanatory
language reads as follows.
This project funds major maintenance work on the department's
research vessels and aircraft. The fishery monitoring and
stock assessment programs carried out by these vessels and
aircraft are critical to the department's ability to meet its
constitutional mandate to manage the state's fishery resources
for sustained yield. Regular maintenance and repair is also
critical to the health and safety of the skippers and crew.
Commercial fishing is the state's largest private employer.
Senator Hoffman moved for adoption and read the explanatory
statement into the record.
Co-Chair Kelly noted the current $450,000 appropriation would
replace the R/V Sundance, which is a top priority and also provide
$150,000 for maintenance efforts.
A roll call was taken on the motion.
IN FAVOR: Senator Olson and Senator Hoffman
OPPOSED: Senator Leman, Senator Ward, Senator Wilken, Senator
Austerman, Senator Green, Co-Chair Donley and Co-Chair Kelly
The motion FAILED (2-7)
The amendment FAILED to be adopted.
F&G #2: This amendment increases the $125,000 general fund
appropriation to $300,000 for the Dock Repairs, Maintenance &
Replacement Phase 2 (ED 40) component on page 13, lines 24 and 25.
Accompanying explanatory language reads as follows.
The department has identified dock repair work at its
facilities in King Salmon, Cordova and Petersburg. Full phase
II funding is needed to complete the King Salmon project and
begin work at Cordova. Without full funding, the department
will be unable to do the preliminary work at Cordova during
the 2001 season, and will lose the 2002 construction season to
complete the project.
Senator Hoffman moved for adoption.
Co-Chair Kelly objected.
Senator Hoffman read the explanatory statement into the record.
Co-Chair Kelly stated the $125,000 currently allocated to this
project would provide adequate funding to finish the King Salmon
project that began the previous year.
A roll call was taken on the motion.
IN FAVOR: Senator Olson and Senator Hoffman
OPPOSED: Senator Ward, Senator Wilken, Senator Austerman, Senator
Green, Senator Leman, Co-Chair Donley and Co-Chair Kelly
The motion FAILED (2-7)
The amendment FAILED to be adopted.
F&G #3: This amendment increases the $300,000 general fund
appropriation to $500,000 for the Statewide Facilities Repair,
Maintenance, and Replacement (ED 99) component on page 13, lines
18-20. Accompanying explanatory language reads as follows.
The department has employees in over 40 locations around the
state. Facilities include offices, bunkhouses, warehouses,
laboratories, workshops, cabins and other structures vital to
the mission of the department. Many projects involve life-
health-safety issues. Identified deferred maintenance projects
total over $4 million. This request represents only a fraction
of that amount.
Senator Hoffman moved for adoption.
Senator Green objected.
Senator Hoffman read the explanatory language into the record. He
stressed the fishing industry in Alaska "more than pay its fair
share of the state's operating budget."
Co-Chair Kelly emphasized this budget has "taken maintenance fairly
seriously" and this item is funded at the FY 01 level.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Ward, Senator Wilken, Senator Austerman, Senator
Green, Senator Leman, Co-Chair Donley and Co-Chair Kelly
The motion FAILED (2-7)
The amendment FAILED to be adopted.
Office of the Governor
GOV #2: This amendment adds a new bill section to read as follows.
Sec.__. OFFICE OF THE GOVERNOR. The sum of $600,000 is
appropriated from the lapsing general fund balance of the
appropriation made in sec. 1, ch. 133, SLA 2000, page 13, line
29, and allocated on lines 30-31 (public assistance-Alaska
temporary assistance program-$66,112,800), to the Office of
the Governor, division of elections, for expansion of the
AccuVote elections system.
Note: This section needs to be added to the capital project
lapse provision.
Accompanying explanatory reads as follows.
This project would fund the purchase of 44 AccuVote units and
essential components to provide early voting units where
needed, additional units for split precincts, and automate an
additional 23 hand-count precincts, for a total 302 electronic
AccuVote tabulation precincts.
Specific costs to purchase the 44 additional AccuVote units
are:
AccuVote tabulation units $226,600
AccuVote Carrying Cases 4,180
AccuVote Ballot Boxes 49,200
Memory Cards, 132K 9,500
AccuVote Batteries 2,775
Shipping Costs 6,388
Total $298,643
The following is the planned unit distribution by regional
office, and the listing of precincts that will be converted
from hand-count to electronic tabulation:
Region I: (6)
Converted from Hand Count to AccuVote (4)
4-Cooper Landing, Gustavus, Thorne Bay
and Yakutat
Additional Units
1-Early Voting
1-back up or spare
Region II: (13)
10-new AccuVote to put in over-crowded precincts in
Anchorage.
2-back up or spares
1-Early Voting
Region III: (7)
Converted from Hand Count to AccuVote (2)
2-Kenny Lake and Nenana
Additional Units
2-in Fairbanks due to over-crowded precincts
1-Early Voting
1-back up for Valdez
1-back up or spare
Region IV: (18)
Converted from Hand Count to AccuVote (17)
17-Noorvik, Pt. Hope, Selawik, Wainwright,
Chevak, Emmonak, Hooper Bay, Mtn. Village,
Savoonga, Unalakleet, Kwethfuk, Togiak, King
Cove, King Salmon, Naknek, Sand Pt. and St.
Paul
Additional Units
1-Early Voting
The amendment was NOT OFFERED.
GOV #1: This amendment increases the $250,000 general fund
allocation to $500,000 for the Americans with Disabilities Act
Compliance Projects (ED 99) on page 14, lines 22 and 23.
Accompanying explanatory language reads as follows.
This project continues the removal of physical barriers to
persons with disabilities within state-owned facilities as
required by Title II of the Americans with Disabilities Act,
Public Law 101-336. Funding covers the cost of design, project
administration, and construction. Aside from the legal
requirements, removal of physical barriers will negate the
need for temporary program modifications that are currently
required of the facilities' occupants. OMB (Office of
Management and Budget) allocates available funding to the
Department of Transportation and Public Facilities for state
facility ADA compliance projects based upon Department of
Transportation and Public Facilities' prioritized project
list. The requested FY 02 funds will continue work on the Wood
Center in Fairbanks.
And
GOV #3: This amendment adds a new bill section to read as follows.
Sec.__. OFFICE OF THE GOVERNOR. The sum of $298,600 is
appropriated from the lapsing general fund balance of the
appropriation made in sec. 1, ch. 133, SLA 2000, page 13, line
29, and allocated on lines 30-31 (public assistance-Alaska
temporary assistance program-$66,112,800), to the Office of
the Governor, division of elections, for expansion of the
AccuVote elections system.
Note: This section needs to be added to the capital project
lapse provision.
Accompanying explanatory reads as follows.
This project would fund the purchase of 44 AccuVote units and
essential components to provide early voting units where
needed, additional units for split precincts, and automate an
additional 23 hand-count precincts, for a total 302 electronic
AccuVote tabulation precincts.
Specific costs to purchase the 44 additional AccuVote units
are:
AccuVote tabulation units $226,600
Accu Vote Carrying Cases 4,180
AccuVote Ballot Boxes 49,200
Memory Cards, 132K 9,500
AccuVote Batteries 2,775
Shipping Costs 6,388
Total $298,643
The following is the planned unit distribution by regional
office, and the listing of precincts that will be converted
from hand-count to electronic tabulation:
Region I: (6)
Converted from Hand Count to AccuVote (4)
4-Cooper Landing, Gustavus, Thorne Bay
and Yakutat
Additional Units
1-Early Voting
1-back up or spare
Region II: (13)
10-new AccuVote to put in over-crowded precincts in
Anchorage.
2-back up or spares
1-Early Voting
Region III: (7)
Converted from Hand Count to AccuVote (2)
2-Kenny Lake and Nenana
Additional Units
2-in Fairbanks due to over-crowded precincts
1-Early Voting
1-back up for Valdez
1-back up or spare
Region IV: (18)
Converted from Hand Count to AccuVote (17)
17-Noorvik, Pt. Hope, Selawik, Wainwright,
Chevak, Emmonak, Hooper Bay, Mtn. Village,
Savoonga, Unalakleet, Kwethfuk, Togiak, King
Cove, King Salmon, Naknek, Sand Pt. and St.
Paul
Additional Units
1-Early Voting
Senator Olson moved for adoption of both amendments and read the
explanatory statements into the record.
Co-Chair Kelly commented the ADA project has been funded $250,000
for the past several years. He then stated that using lapsed Alaska
Temporary Assistance Program (ATAP) funding for GOV #3 would cause
a problem of inadequate funding resources in the next fiscal year.
Senator Hoffman suggested this reason has been given several times
and if the problem did arise, it could be addressed at that point.
He emphasized that the general public is "very very interested" in
the outcomes of elections and he surmised voter turnout could be
increased if election returns were available before midnight on
Election Day.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Green, Senator Leman, Senator Ward, Senator
Wilken, Senator Austerman, Co-Chair Donley and Co-Chair Kelly
The motion FAILED (2-7)
The amendments FAILED to be adopted.
Department of Health and Social Services
H&SS #1: This amendment adds an additional $637,000 general fund
appropriation for the Deferred Maintenance, Renewal, Replacement,
and Equipment (ED 99) component on page 14, lines 28-30.
Accompanying explanatory language reads as follows.
Presently the Department of Health and Social Services has
critical deferred maintenance needs, with 166 identified
projects at a cost of over $1.6 million. The need was
documented by building conditions audits. The committee
substitute for SB 29 funds $363,000 of a $1,000,000 request,
which is only 2% of the need.
There is an urgent need for deferred maintenance projects for
the department's 35 buildings, including the 8 facilities that
are used 24 hours a day. Without these deferred maintenance
projects, the department's buildings will continue to
deteriorate. Urgent repairs and deferred maintenance cannot be
delayed further without seriously affecting the State's
investment in facilities.
For example, with the amount of funding proposed in committee
substitute for SB 29, the department would not be able to:
· Replace pipes in the kitchen of its McLaughlin
Youth Facility. The pipes have corroded from age
and now affect water quality. When the pipe joints
begin to fail, the facility will be subject to
water damage.
· Make repairs to the siding at the youth facility in
Bethel. The siding is no longer properly attached
or finished. Without repair, weather will begin to
deteriorate the siding and parts of it may fall
off.
Senator Hoffman moved for adoption.
Senator Green objected.
Senator Hoffman read the explanatory statement into the record.
Co-Chair Kelly pointed out this item received $405,000 the previous
fiscal year compared to $363,000 general funds combined with
$352,000 federal funds proposed in this budget. He considered this
a "pretty substantial increase".
A roll call was taken on the motion.
IN FAVOR: Senator Olson and Senator Hoffman
OPPOSED: Senator Leman, Senator Ward, Senator Wilken, Senator
Austerman, Senator Green, Co-Chair Donley and Co-Chair Kelly
The motion FAILED (2-7)
The amendment FAILED to be adopted.
AT EASE 9:56 PM
H&SS #2: This amendment adds a new Residential Child Care Facility
Capital Needs Assessment and Grant Program (ED 99) component on
page 14, and appropriates $150,200 general funds and $349,800
Alaska Housing Finance Corporation (AHFC) Dividend funds to this
component. Accompanying explanatory language reads as follows.
The department, through 21 grantees (see list below),
currently provides residential care services for youth using
29 facilities. Grantees are located in local communities and
need to have safe facilities for out kids. Many facilities
that provide these residential services, particularly in rural
areas, are in extremely poor condition and in need of
significant repairs, such as replacement of rotten structural
members. The continued increase in the need for residential
care programs of all levels necessitates the ability to fund
repair projects in order to enable existing providers to
continue services.
This request will fund a capital needs assessment for
approximately 29 facilities statewide that provide all levels
of care. Approximately $50,000 will be used for the
assessment, with the balance used for repairs.
Current list of Residential Child Care Grantees:
Alaska Baptist Family Services
Alaska Children's Services, Inc.
Alaska Youth and Parent Foundation
Anchorage Center for Families
Association of Village Council Presidents, Inc.
Bethel Group Home, Inc.
Booth Memorial Youth and Family Services
Juneau Youth Services, Inc.
Kenai Peninsula Community Care Center
Kids Are People, Inc.
Kodiak Youth Services Center
Mat-Su Community Mental Health Services d/b/a Life Quest
Nome Receiving Home
North Slope Borough Department of Health and Social
Services
Presbyterian Hospitality House
Residential Youth Care, Inc.
Safe & Fear-Free Environment, Inc.
Sitka Youth Home
Fairbanks Native Association
Family Centered Services of Alaska
Senator Hoffman moved for adoption.
Co-Chair Kelly objected.
Senator Hoffman read the accompanying explanatory language into the
record.
Co-Chair Kelly noted this item was not included in the committee
substitute because of the low priority the department placed on it.
A roll call was taken on the motion.
IN FAVOR: Senator Olson and Senator Hoffman
OPPOSED: Senator Ward, Senator Wilken, Senator Austerman, Senator
Green, Senator Leman, Co-Chair Donley and Co-Chair Kelly
The motion FAILED (2-7)
The amendment FAILED to be adopted.
Department of Natural Resources
DNR #1: This amendment adds a new Oil and Gas Royalties Accounting-
Industry Electronic Reporting (ED 99) component on page 16, and
appropriates $150,000 general funds to this component. Accompanying
explanatory language reads as follows.
This project is needed to automate the delivery and processing
of the supplemental documents and to capture the information
in a standardized format. Currently the system automatically
processes oil and gas royalty reports using electronic data
interface format. Each month approximately 400 reports are
filed, accompanied with approximately 1,000 pages of
supplemental documents that explain a royalty payer's reasons
for changes in royalty filing.
And
DNR #3: This amendment changes the appropriation for the Gaseline
Development (ED 99) component on page 16, line 14 from $10,242,800
1108 Statutory Designated Program Receipts (SDPR) to $6,778,500
1108 SDPR and $3,464,300 general funds. Accompanying explanatory
language reads as follows.
This project provides the establishment of an interagency gas
pipeline office to review existing information, conduct
additional investigations, work with project sponsors, federal
and Canadian counterparts and other activities to coordinate
permitting actions and advance commercialization of North
Slope gas resources.
The project also provides funding for studies and other non-
permitting activities including legal work, public outreach,
gas supply studies, and reservoir studies.
Once an application for a pipeline right-of-way is submitted,
most of the permitting work is subject to reimbursement by
project sponsors. The Department of Natural Resources will
also aggressively pursue reimbursement agreements with
potential project sponsors for work associated with permitting
that will take place in advance of an application. However, it
is not known at this time the extent of reimbursement that
will be obtained for the pre-application work.
Additionally, some of the studies and other components of this
project, while directly advancing a gasline, are not directly
related to permitting work and would not be subject to
reimbursement. Consequently, this amendment would provide
funding from general funds for approximately half of the pre-
application permitting work and for the necessary studies and
other non-permitting tasks.
Senator Olson moved for adoption of both amendments.
AT EASE 10:00 PM / 10:00 PM
Co-Chair Kelly objected.
Senator Olson read the explanatory language into the record.
Co-Chair Kelly commented these items are currently funded with
Statutory Designated Program Receipts (SDPR) in the committee
substitute.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Ward, Senator Wilken, Senator Austerman, Senator
Green, Senator Leman, Co-Chair Donley and Co-Chair Kelly
The motion FAILED (2-7)
The amendments FAILED to be adopted.
DNR #2: This amendment adds a new Alaska Applied Remote Sensing
Project (ED 99) component on page 16, and appropriates $3,500,000
1002 Federal Receipts to this component. Accompanying explanatory
language reads as follows.
NASA has designated $3.5 million for grants to Alaska-based
agencies to investigate the application of remote sensing
technology to a range of problems in the broad category of
marine fisheries, air safety, natural resources and geologic
hazards assessment. Needs were identified by Alaska citizens,
the US Congress, and by representatives of Alaska State,
Federal, and Local organizations at a NASA sponsored workshop
held December 14, 2000, in Anchorage, Alaska.
Senator Olson read the explanatory statement into the record.
Co-Chair Kelly noted this request was brought to the Committee late
in the process and therefore was not incorporated into the
committee substitute. However, he pointed out the funds are federal
and he opined the program is worthy.
AT EASE
The amendment was ADOPTED without objection.
DNR #4: This amendment adds a May 15, 2001 effective date for the
$5,638,000 appropriation to the National Fire Plan: Managing
Impacts of Wildfires on Communities and the Environment (ED 7-9)
component on page 18, lines 8-11. Accompanying explanatory language
reads as follows.
This CIP (Capital Improvement Project) will enable the
division to receive federal funds to be appropriated a part of
"National Fire Plan". These funds will be used to mitigate the
existing wildland fire problems on all forested lands in
Alaska and specific hazards created by the spruce bark beetle
epidemic on the Kenai Peninsula and within the Municipality of
Anchorage.
The Department of Natural Resources is requesting to have a
May 15, 2001 effective date for this appropriation so the
Division of Forestry can immediately implement the program and
take advantage of May and June 2001, rather than starting in
July. The Division of Forestry has received some of the
federal grants and would like to start this work as soon as
possible as they are already drafting agreements with
communities and fire crews.
Co-Chair Kelly noted this amendment involves a change to the
language section of the committee substitute.
NICO BUS, Administrative Services Manager, Division of Support
Services, Department of Natural Resources, summarized the
explanatory statement.
Senator Ward moved for adoption.
The amendment was ADOPTED without objection.
Department of Public Safety
DPS #1: This amendment increases the $900,000 general fund
appropriation to $1,200,000 for the Aircraft and Vessel Repair and
Maintenance component on page 18, lines 19 and 20. Accompanying
explanatory language reads as follows.
These funds are for the annual repair and maintenance
requirements of this division's aircraft and vessel fleet. For
example, the funds will be used to rebuild vessel and aircraft
engines and components when they reach the limits of safe
useful life. Large marine diesel engines and aircraft engines
require expert vendors to rebuild them. Many other components
of vessels and aircraft must be maintained or replaced
routinely to ensure safe operating conditions.
If this amendment is not approved, the department will be
required to:
· Ground 4 patrol aircraft impact both Fish and
Wildlife and Alaska State Trooper enforcement
effort.
· Eliminate $153,000 necessary aircraft repairs.
· Eliminate 35 vessel patrol seadays from major
vessels (PV Stimson, PV Woldstad).
· Eliminate approximately $50,000 in maintenance and
repairs to the PV Stimson and PV Woldstad.
· Adversely impact our ability to bring the new
replacement vessel (PV Kamai) into service in
Kodiak, August, 2001.
Senator Hoffman moved for adoption.
Senator Ward objected.
Senator Hoffman read the explanatory statement into the record.
Co-Chair Kelly reiterated that maintenance items were given a
priority in consideration of this budget. He informed the current
funding level is the same as provided in previous fiscal years.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Leman, Senator Ward, Senator Wilken, Senator
Austerman, Senator Green, Co-Chair Donley and Co-Chair Kelly
The motion FAILED (2-7)
The amendment FAILED to be adopted.
DPS #2: This amendment adds a new Fish and Wildlife Enforcement
Vessels Replacement component on page 18, and appropriates $400,000
general funds to this component. Accompanying explanatory language
reads as follows.
This amendment requests full funding of the original request
for a replacement patrol vessel for Cordova. The 47-foot
Prince William Sound Patrol Vessel Burton deteriorated from
heavy use and became unsafe to operate. It was sold last year
to try to recover some funds but these efforts fell far short
of the actual replacement cost of a new vessel. Replacement
requests for this vessel have gone unfunded to date.
Presently, Prince William Sound search and rescue, commercial
fishing patrols and other law enforcement actions are handled
with one smaller single engine patrol boat stationed in
Cordova.
The division urgently needs the safety and efficiency of a
larger (40-foot class) vessel in Prince William Sound. The
present Cordova patrol boat is small (29-foot) and cannot
safely carry a boarding skiff on the deck. The new replacement
vessel would be large enough to carry a boarding skiff, which
greatly increases the ability to contact commercial fisherman,
hunters, resource users and carry out search and rescue
functions.
This amendment was NOT OFFERED.
DPS #3: This amendment increases the $65,900 general fund
appropriation to $143,700 for the Crime Lab Improvement Program (ED
10-25) component on page 18, lines 32 and 33. The $1.25 million
federal fund allocation remains unchanged. Accompanying explanatory
language reads as follows.
The US Department of Justice will be awarding a $1,250,000
federal grant for the Crime Lab Improvement Program (CLIP).
The CLIP grant along with a general fund match of $416,700
will fund the purchase of lab equipment, training, DNA
supplies and contract with private laboratories for DNA
analysis. In addition to the purchase of equipment, supplies
and services the Crime Lab will remodel the autopsy area now
that the Medical Examiner has relocated to the new public
health facility. The department has reviewed its need and can
accept a reduced amount of $143,700 general funds in FY 02
under this project, but will need to request the balance in FY
03.
The Lab currently has 4 DNA analysts, all crammed into the
Lab's Library which is where they do their analysis and report
writing. The legislature authorized one more DNA analyst in FY
02. There is currently no room for this DNA position. The Lab
will be purchasing another 310 Genetic Analyzer with federal
grant funds and there is no room for this third 310 in the
room where the other two currently reside. This portion of the
Crime Lab remodel needs to be completed in FY 02 in order to
accommodate staff, equipment, and work space requirements for
DNA analysis.
Senator Hoffman moved for adoption.
Co-Chair Kelly objected.
Senator Hoffman read accompanying explanatory language into the
record. He stressed the importance of DNA analysis in solving
crimes in Alaska and in the United States.
Co-Chair Kelly commented that the amount of general funds currently
appropriated is adequate to secure the available federal funding.
A roll call was taken on the motion.
IN FAVOR: Senator Olson and Senator Hoffman
OPPOSED: Senator Ward, Senator Wilken, Senator Austerman, Senator
Green, Senator Leman, Co-Chair Donley and Co-Chair Kelly
The motion FAILED (2-7)
The amendment FAILED to be adopted.
DPS #4: This amendment adds a new Grants to Domestic Violence
Shelters component on page 18, and appropriates $200,000 general
funds to this component. Accompanying explanatory language reads as
follows.
There are approximately $900,000 in repairs and code
compliance projects identified by CDVSA (Council on Domestic
Violence and Sexual Assault) funded programs. This request
would have addressed a small portion of those projects.
Without this funding to repair or install security systems,
doors and locks, remodeling to provide more shelter space,
fire alarms, video cameras and other immediate safety projects
would not occur.
Senator Hoffman moved for adoption.
Co-Chair Kelly objected.
Senator Hoffman read the explanatory language into the record.
Co-Chair Kelly shared that a criteria was used to determine which
items would be included in the capital budget. One of these
criteria was department priority list and this project was listed
last. He also noted this would be a new program.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Ward, Senator Wilken, Senator Austerman, Senator
Green, Senator Leman, Co-Chair Donley and Co-Chair Kelly
The motion FAILED (2-7)
The amendment FAILED to be adopted.
Department of Revenue
REV #1: This amendment increases the $990,000 federal receipts and
$510,000 general fund program receipts to $1,980,000 federal
receipts and $1,020,000 general fund program receipts for the Child
Support Enforcement Caseload Management System Modification Project
(ED 10-25) on page 19, lines 15-17. Accompanying explanatory
language reads as follows.
This project is needed for a program rewrite required to
improve data flow between CSED (the Child Support Enforcement
Division) and Anchorage Data Center. Modifications will reduce
processing time and errors. This project will eliminate two
critical problems within the child support enforcement
computer system (NSTAR). First it will remove outdated
proprietary software used for input/output calls. This
software does not function correctly with new upgrades to the
mainframe operating software. Second the rewrite will
concentrate on making batch programs more efficient to allow
the nightly batch process to be completed in the required
time.
Senator Olson moved for adoption.
Senator Green objected.
Senator Olson read the explanatory statement into the record.
Co-Chair Kelly noted the committee substitute provides half of the
amount requested because the department indicated the entire amount
could not be expended during FY 02. Therefore, he said it would be
expected that a request would be received for the remaining funds
in the governor's FY 03 budget proposal.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman, Senator Olson
OPPOSED: Senator Wilken, Senator Austerman, Senator Green, Senator
Leman, Senator Ward, Co-Chair Donley and Co-Chair Kelly
The motion FAILED (2-7)
The amendment FAILED to be adopted.
Department of Transportation and Public Facilities
DOT #1: This amendment increases the $4,200,000 general fund
appropriation to $4,800,000 for the Alaska Marine Highway System:
Overhaul, Rehabilitation, and Mandatory Training (ED 99) component
on page 20, lines 30 - 32. Accompanying explanatory language reads
as follows.
This additional $600,000 of funding is necessary for the
Alaska Marine Highway System to meet the international safety
training requirements by February of 2002 as mandated by the
Code of Federal Regulations. All crew members must be trained
and certified in Standards for Training, Certification and
Watchkeeping (STCW) or they cannot sail.
Funding to train one-half of the crew, $450,000, was requested
in FY 01. This request was reduced by one-third to $300,000,
so only one-third of the crew was able to be trained in FY 01.
The FY 02 request is to provide the training for the remaining
two-thirds of the crew. Failure to achieve fleet-wide STCW
certification could result in the tying up of vessels for lack
of qualified crewmembers resulting in the loss of Alaskan jobs
and marine transportation to Alaskan communities. AMHS will be
in serious jeopardy of not having adequately certificated
crews to meet summer service requirements in 2002 without this
funding.
Senator Olson moved for adoption.
Senator Green objected.
Senator Olson read the explanatory statement into the record.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Austerman, Senator Green, Senator Leman, Senator
Ward, Senator Wilken, Co-Chair Donley and Co-Chair Kelly
The motion FAILED (2-7)
The amendment FAILED to be adopted.
DOT #2: This amendment inserts a new Valdez-Harborview Development
Center (ED 35) component and appropriates $132,300 general funds
and $129,000 SDPR. Accompanying explanatory language reads as
follows.
This request is essential to being able to complete the final
mothballing of the Valdez facility that was previously used by
Health and Social Services.
Senator Olson moved for adoption.
Co-Chair Kelly objected.
Senator Olson read the explanatory statement into the record.
Senator Hoffman assured this is the final phase of the project.
Co-Chair Kelly informed that funding for this project would be
included in the House of Representative's version of the FY 01
Supplemental budget.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Green, Senator Leman, Senator Ward, Senator
Wilken, Senator Austerman, Co-Chair Donley and Co-Chair Kelly
The motion FAILED (2-7)
The amendment FAILED to be adopted.
University of Alaska
UNIV #1: This amendment inserts a new Bristol Bay Campus
Addition/UAF component and appropriates $1,425,000 general funds.
Senator Hoffman moved for adoption.
Co-Chair Kelly objected.
Senator Hoffman stressed he understood this project has been on the
University's construction list longer than any other project
currently on the list. Yet it is probably the most needed addition
to a regional campus in the state.
Senator Hoffman moved to amend the amendment to delete the funding
amount by $1 million and undertake the project in phases, with
Phase I addressed in FY 02.
There was no objection and the amendment was AMENDED.
A roll call was taken on the motion to adopt the amended amendment.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Leman, Senator Ward, Senator Wilken, Senator
Austerman, Senator Green, Co-Chair Donley and Co-Chair Kelly
The motion FAILED (2-7)
The amended amendment FAILED to be adopted.
UNIV #2: This amendment inserts a new Bristol Bay Campus Addition
Phase I/UAF component and appropriates $425,000 general funds.
Accompanying explanatory language reads as follows.
The programs at Bristol Bay Campus have outgrown the 4,485
square foot facility. Since 1995 student credit hour
production at Bristol Bay Campus has increased 66.7%.
Significant demand exists for expanding the programs at this
location. Program expansion cannot occur without additional
classroom and support space. This Bristol Bay Campus request
provides funding to complete a campus master planning document
and construct additional classroom/office space. Meeting the
growing demand will not be possible without additional
classroom and instructional support space. This request will
allow the college to add approximately 3,500 square feet of
additional teaching space. The planned classroom is essential
to meeting the demands being placed on the Bristol Bay Campus.
This amendment was NOT OFFERED.
Municipal Grants
MUNI #1: This amendment deletes the Palmer Public Safety Building
and Fire Department Building Roof Reconstruction (ED 27) and the
$120,734 Other Funds appropriated to it from page 52, lines 11 -
13. This amendment also inserts a Covered Walkway at Palmer Police
Department (ED 27) component and appropriates $10,000 Other Funds.
This amendment also inserts a Palmer Community Center Improvements
(Train Depot) (ED 27) component and appropriates $110,724 Other
Funds. Accompanying explanatory language reads as follows.
A request for amendment to the Capital Project Matching Grant
Program was received from the City of Palmer.
Senator Green moved for adoption.
Senator Hoffman objected for an explanation.
Senator Green stated this is a request of the City of Palmer.
The amendment was ADOPTED without objection.
SFC 01 # 89, Side A 10:25 PM
MUNI #2: This amendment on page 66, line 25, increases to $37,322
the $26,322 appropriation from the individual grant account in the
municipal capital project matching grant fund (AS 37.06.010) to the
Department of Community and Economic Development for payment as
grants under AS 37.06.010 to the Anaktuvuk Pass municipality for
community facilities and equipment.
Senator Olson moved for adoption.
Without objection the amendment was ADOPTED.
Unincorporated Grants
UNINCORP #1: This amendment reads as follows.
Amend Section 14 (a) and (b), Capital Project Matching Grants:
Delete the purpose of the unincorporated community capital
project matching grants listed in (a) and the purpose of the
municipal capital project matching grants listed in (b):
Community facilities and equipment
And replace with
Capital projects and improvements
This wording change is a recommendation of the Division of
Legislative Audit to more accurately reflect the purpose of
the grants.
Senator Green moved for adoption.
Co-Chair Kelly objected for an explanation. He noted this amendment
was submitted at the request of Senator Therriault.
Ms. McConnell shared the language used in the Governor's budget
proposal has been determined appropriate by the Division of
Legislative Budget and Audit. However, she noted that the Division
considers the language incorporating projects submitted to the
legislature after the governor's proposal to be too restrictive.
This amendment conforms the language of the later projects to that
contained in statute and used by the Office of Management and
Budget.
Co-Chair Kelly removed his objection.
Without objection the amendment was ADOPTED.
Language
LANG #1: This amendment adds a new subsection (c) to Section 13.
CONSTITUTIONAL BUDGET RESERVE FUND. And amends the current
subsection (c) as follows.
(c) The sum of $125,000 is appropriated from the budget
reserve fund (art. IX, sec. 17, Constitution of the State of
Alaska) to the Department of Revenue, treasury division, for
the fiscal year ending June 30, 2002, for investment
management fees for the budget reserve fund (art. IX, sec. 17,
Constitution of the State of Alaska).
(d) The appropriations made in (a) - (c) of this section
are made under art. IX, sec. 17(c), Constitution of Alaska.
Accompanying explanatory language reads as follows.
This FY 02 operating appropriation to the Department of
Revenue was deleted when both the House and Senate operating
budget CBR votes failed.
Senator Green moved for adoption.
Co-Chair Kelly objected for an explanation.
Ms. McConnell informed that the committee substitute does not
currently contain a provision to cover the cost of fees for
managing the Constitutional Budget Reserve (CBR) fund. She reminded
that the absence of such a provision in a prior year resulted in
difficulty transferring funds out of that account. She stated this
amendment provides the management fees would be paid from the CBR
account.
Co-Chair Kelly removed his objection.
The amendment was ADOPTED without objection.
AT EASE 10:29 PM / 10:31 PM
Department of Transportation and Public Facilities
DOT #5: This amendment adds a Barrow Ahkvaluk Road Improvements
component to the Surface Transportation Program BRU on page 30,
line 18 and allocates $5,000,000 to the component.
Senator Olson moved for adoption.
Co-Chair Kelly objected.
Senator Olson read the explanatory statement into the record. He
noted the increased use of roads in the City of Barrow due to
planning for a natural gas pipeline and activities within the
Alaska National Wildlife Refuge (ANWR).
Senator Leman asked if this amendment utilizes only general funds.
Co-Chair Kelly answered it does.
Senator Olson added that once construction is complete, the North
Slope Borough would maintain the roads.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Green, Senator Leman, Senator Ward, Senator
Wilken, Senator Austerman, Co-Chair Donley and Co-Chair Kelly
The motion FAILED (2-7)
The amendment FAILED to be adopted.
AT EASE 10:34 PM / 10:37 PM
Department of Community and Economic Development
C&ED #1: This amendment adds an Aleut International Association
Grant component to the Grants to Named Recipients (AS 37.05.316)
BRU on page 4, lines 12 and 13 and appropriates $25,000 general
funds to the component. Accompanying explanatory language reads as
follows.
The Aleut International Association (AIA) was formed to guide
the process of re-establishing cultural ties between the
Aleuts her in Alaska and the Russian Aleuts, who live
primarily on the Commander Islands in Russia.
In addition to reuniting ties between the Aleut people, the
AIA was established to address threats to the Aleut lifestyle
including pressures on natural resources.
This $25,000 would support part time staff in Alaska and
Russia to undertake further program development.
Senator Austerman moved for adoption.
Co-Chair Donley spoke to the amendment. He referenced a letter
received from the Dimitri Philemonof, President and Chief Executive
Officer of the Aleutian/Pribilof Islands Association, Inc. [Copy on
file]. Co-Chair Donley expressed he had been interested in working
on a specific Alaska history project with Mr. Philemonof, and had
made several attempts to contact the organization, but never
received a return phone call. He shared that he then received a
letter from the organization asking for his support for funding a
development project. He noted he declined his assistance on that
matter.
Senator Hoffman added his name as a co-sponsor to the amendment.
There was no objection and the amendment was ADOPTED.
Municipal Bonds
MUNI #3: This amendment renames the Seward-Seward Shipyard
Development (ED 8) component the Seward-Seward Shipyard Portable
Work Station (ED 8) on page 4, lines 4 and 5. The $1,000,000
general fund appropriation remains unchanged.
Senator Austerman moved for adoption.
Senator Leman shared he did not object to adoption of the
amendment. However, he expressed he would like further details,
such as the funding sources for comparable projects.
Co-Chair Kelly elaborated on the purpose of the amendment to
"further narrow the application" of the funds appropriated to this
project. He suggested requestors submit more detailed information
in the future.
Without objection the amendment was ADOPTED.
AT EASE 10:41 PM / 10:42 PM
Department of Community and Economic Development
C&ED #2: This amendment adds a Golden Valley Electric Association
to Extend Electric Service to Chatanika component to the Grants to
Named Recipients (AS 37.05.316) BRU on page 4, lines 12 and 13 and
appropriates $250,000 general funds to the component.
This amendment also adds a BRU: Alaska Energy Authority for payment
as a grant under AS 37.05.316 to Matanuska Electric Association to
Extend Electric Service to Unserved Areas, on page 5, following
line 15, and appropriates $750,000 general funds to the BRU.
Senator Green moved for adoption.
There was no objection and the amendment was ADOPTED.
Department of Transportation and Public Facilities
DOT #4: This amendment increases the $1,000,000 general fund
appropriation to $1,300,000 general funds for the Highway Deferred
Maintenance component on page 21, line 12. Accompanying explanatory
language reads, "Justification: Increased road maintenance".
Senator Leman moved for adoption.
Co-Chair Kelly noted this amendment increases funding for road
maintenance.
Senator Hoffman asked if the funds would be allocated statewide.
The amendment was ADOPTED without objection.
AT EASE 10:43 PM / 10:48 PM
Language
LANG #2: This amendment adds a new section to read as follows.
Sec.__. MUNICIPALITY OF ANCHORAGE. (a) Subject to (b) of
this section, the sum of $4,000,000 is appropriated from the
general fund to the Department of Community and Economic
Development for payment as a grant under AS 37.05.315 to the
Municipality of Anchorage for the maintenance of and safety
upgrades to highways, roads, and streets. In this subsection,
"maintenance" has the meaning given in AS 19.45.001(10).
(b) The appropriation made by (a) of this section is
conditioned on the Municipality of Anchorage matching the
appropriation with $1,000,000.
This amendment also adds an Anchorage - Huffman Road and Pintail
Street Traffic Signal component to the Grants to Municipalities (AS
37.05.315 BRU in the Department of Community and Economic
Development budget on page 2, lines 16 and 17, and appropriates
$250,000 general fund to the component. Accompanying explanatory
language reads as follows.
Justification: Decrease crossing danger for schoolchildren and
help with traffic flow entering Huffman Road.
This amendment also adds an Alano Club (ED 10-25) component to the
Grants to Named Recipients (AS 37.05.316) BRU in the Department of
Community and Economic Development on page 4, lines 12 and 13 and
appropriates $295,000 general funds to the component. Accompanying
explanatory language reads as follows.
Justification: Direct Grant to assist with recent moving and
relocation costs. The Alano Club purchased its new building in
Spenard with cash received from the Municipality of Anchorage.
Because the purchase price ($750,000 which was less than the
tax assessment valuation of $754,000) was greater than the
cash received, it was necessary to accept owner financing in
the amount of $255,000. The other $40,000 is to purchase and
nd
pave a small lot to provide safe access from W. 32 Avenue.
This amendment also adds a Nikiski Emergency Exit Road component to
the Department of Transportation and Public Facilities on page 20,
line 22, and allocates $250,000 general funds to the component.
Accompanying explanatory language reads as follows.
Justification: Requested by Kenai Peninsula Borough Nikiski
Fire Department to upgrade the emergency capabilities for
Nikiski. This project provides an alternative to the Kenai
Spur Road and will alleviate the many safety concerns of
Nikiski area citizens.
Senator Leman moved for adoption.
Senator Hoffman objected for an explanation.
Senator Leman spoke to the amendment sponsored by Co-Chair Donley,
Senator Ward and himself and offered on behalf of the Anchorage
Caucus. He explained it contains projects affecting the Anchorage
area that were omitted from the committee substitute.
Senator Leman explained the amendment funds road projects in
Anchorage. It also provides funds for a traffic signal on Huffman
Road near an existing school and the planned location of a new high
school, where increased traffic is expected.
Senator Leman noted the amendment also contains reimbursement of
moving costs for the ALANO Club, an organization that was forced to
th
move when 15 Avenue was rebuilt the prior year. He referenced a
letter from that organization giving justification for the expenses
[Copy not provided].
Senator Ward addressed the Nikiski emergency exit road; the final
project contained in the amendment.
Co-Chair Donley spoke to the ALANO Club request. He informed this
is an organization that "successfully addresses the problem of
alcohol and substance abuse in the Anchorage area for many many
years." He stressed this organization has "never ever asked for a
penny of the state's funds" as dictated by its charter, before the
"City of Anchorage decided to build a road" in the exact location
of their facility. He assured the organization is only requesting
"fair compensation". He opined the municipality was "negligent in
its activities" and uncooperative in this matter, noting
legislative intent language was attached to the appropriation of
funds for the road project requesting further public review, which
he pointed out was ignored.
Senator Hoffman asked if the property was condemned or if the
property was purchased voluntarily.
Co-Chair Donley responded the organization was "forced out of
there" and had been a part of the neighborhood for a long time. He
spoke of the difficult negotiations the organization had with the
municipality attempting to reach a fair price for the facility
along with difficulties in securing a new location due to the
services the organization provides.
Senator Hoffman then requested a list of the specific road
projects.
Co-Chair Donley shared he spoke with the mayor today and learned
the projects are contained in the detailed budget information
provided with the governor's proposed budget. Co-Chair Donley
relayed the mayor assured a specific list would be provided.
Senator Hoffman wanted to know if this information would be
available before the legislation is heard before the full Senate.
Co-Chair Donley replied the mayor would work to do so.
Without objection the amendment was ADOPTED.
Department of Health and Social Services
H&SS #3: This amendment adds a Kenai Youth Detention Facility
component on page 14 and appropriates $4,600,000 general funds to
the component. Accompanying explanatory language reads as follows.
The construction cost estimate is based on the actual contract
award price per square foot area of the Kenai Youth Detention
Facility (just over 12,000 sq. ft.) We have added an
escalation factor of 5% to cover the 2 intervening years since
the Mat-Su facility was bid, and we have deducted $100,000 for
an under floor utilidor which will not be included in the
Kenai Youth Detention Facility.
Senator Ward moved for adoption.
Senator Hoffman objected for an explanation.
Senator Ward noted the design and engineering phase is complete and
this amendment provides funds necessary to complete the project. He
described the site evaluation process and the subsequent
determination that the City of Kenai is the preferable site. He
noted a ten-acre parcel has been donated by the City of Kenai for
this facility. He stressed this is the top priority for the Kenai
Peninsula Borough. He said this facility would address the youth
detention problems present throughout the state.
Senator Hoffman asked if the appropriation is completely general
funds.
Co-Chair Kelly commented that one of his highest priorities as a
legislature has been addressing at-risk youth and juvenile crime.
He supported proper youth facilities for the state and pointed out
this budget funds classroom additions and gymnasium for the
Fairbanks Youth Detention Facility, provides funding for the Kenai
Youth Facility, and funds for the design of a facility in Nome. He
surmised the Kenai and Nome facilities are his top priorities.
Co-Chair Donley spoke in favor of the amendment. He expressed, "I'm
really proud of the way the Legislature's addressed probably 15
years of neglect in our juvenile justice system and our
facilities." He admitted the funds appropriated to this purpose in
the FY 02 capital and operating budgets represents "a significant
commitment" and has been "tough to finance". However, he agreed it
is a top priority both for protection of the public and the
opportunity to rehabilitate youth.
Co-Chair Donley informed he had served on the state's Juvenile
Justice Commission before becoming a legislator and these efforts
were needed then.
Senator Leman asked if alternative delivery systems, such as a
private provider, have been considered.
Senator Ward responded that no private contractors have "come
forth" with a proposal although eight other states do utilize
private contractors for youth detention. He encouraged passage of
this amendment.
Co-Chair Kelly was unsure if current statutes allow for such
privitization.
Senator Hoffman asked the estimated annual operating costs of the
new facility.
Senator Ward did not have the information.
Ms. Clarke recalled the estimated operating costs for the new
Ketchikan and Mat-Su facilities at $1.2 million, but qualified the
transportation expenses for a Kenai facility would be different.
Senator Hoffman next asked how many juveniles the facility would
house.
Ms. Clark answered this would be a ten-bed facility.
Co-Chair Kelly added that the facility has been designed to allow
for future expansion.
Senator Hoffman withdrew his objection and the amendment was
ADOPTED.
Department of Environmental Conservation
DEC #3: This amendment deletes the Oil and Gas Transportation:
Aging Infrastructure Issues (ED 99) component and the $500,000
other funds appropriated to it, on page 7, lines 4 - 6.
Accompanying explanatory language reads as follows.
Justification: This $500K is slated for a duplicative effort
by DEC to review what industry is already doing on its own.
The information from industry is readily available for DEC's
review, the US Coast Guard may be doing a similar risk
analysis. This is simply a duplication of effort and is not
warranted.
Senator Leman moved for adoption.
Co-Chair Kelly objected for explanation.
Senator Leman relayed this issue was brought to his attention by
Senator Pearce. He qualified that studying the pipeline
infrastructure is worthwhile. However, he informed, Unical, Inc.
spent $2.8 million the prior year undertaking a similar effort and
is planning to spend an additional $1 million this year to perform
a "thorough" risk analysis investigation. Therefore, he surmised,
funding this component could be deleted without detriment. He
stressed that Unical has made the information "readily available".
Senator Hoffman requested comment from the Administration on the
matter.
KURT FREDRIKSSON, Deputy Commissioner, Department of Environmental
Conservation testified the funding request is for four specific
projects relating to pipeline safety and spill prevention in the
Cook Inlet, the North Slope and statewide. He pointed out there
have been four "fairly significant" spills in the North Slope
within the past three months and have been associated with pipeline
failures or corrosion of well heads. He stressed the need to
address this matter.
Mr. Fredriksson elaborated the requested funding is to evaluate the
corrosion monitoring and control technologies currently used
throughout the Alaskan oil industry. He stated the funding also
would be used to conduct a Cook Inlet Pipeline assessment as well
as hold a "best available control technology conference" with
industry and other experts. The final use of the funding is for a
study of the American Petroleum Institute Standards for
applicability in Alaska and in arctic climates.
Mr. Fredriksson assured the intent is not to duplicate efforts
already undertaken by the industry but rather to "build a
collaborative effort to get a handle on 'what is some of the
problems and what are the control technologies'" applicable to the
state's "aging" pipeline facilities on the North Slope and in Cook
Inlet.
Senator Hoffman asked if the witness' opinion is that the proposed
use of these funds is therefore not a duplication of effort.
Mr. Fredriksson remarked it is not duplication, but instead would
be complimentary, in his opinion.
Mr. Fredriksson addressed the US Coast Guard's activities in the
matter, stating the US Coast Guard has completed a Cook Inlet risk
assessment, with respect to vessel traffic, but that it did not
include pipeline issues. He noted Unical, Inc. may have done such
an assessment and he assured the department would work together
with the corporation.
Senator Hoffman maintained his objection.
Senator Leman asked who would perform the work proposed in the
projects.
Mr. Fredriksson replied a private contractor with expertise would
be contracted to do the statewide evaluation of corrosion
monitoring and control technology as with the risk assessment of
the Cook Inlet Pipeline. He stated the conference would involve
experts within the state and outside the state and the department
would work directly with the American Petroleum Institute on
evaluating their pipeline safety standards.
Senator Leman expressed that while some of the proposed work might
be appropriate, some of the other proposed efforts are unnecessary
because the information is readily available through other sources.
He suggested the matter could be reconsidered and resubmitted with
additional details before the budget is passed from the Senate.
Until then, he suggested the funding be removed from the budget.
A roll call was taken on the motion.
IN FAVOR: Senator Ward, Senator Wilken, Senator Austerman, Senator
Green, Senator Leman, Co-Chair Donley and Co-Chair Kelly
OPPOSED: Senator Olson and Senator Hoffman
The motion PASSED (7-2)
The amendment was ADOPTED.
Co-Chair Kelly offered a motion to authorize the Division of
Legislative Finance and the Division of Legal and Research Services
to make technical non-substantive changes to the committee
substitute as necessary.
Senator Ward so moved.
There was no objection and the motion was ADOPTED.
AT EASE 11:09 PM / 11:12 PM
AT EASE 11:12 PM / 11:15 PM
Co-Chair Kelly thanked Bryan Butcher, a member of his staff, and
Kara Moriarty, staff to Senator Wilken, for their efforts on the FY
02 capital budget.
Co-Chair Kelly noted that efforts were made to fund "major items"
and maintenance items, and to provide matching funds to secure
other available funding. He added that attempts were also made to
provide a "regionally balanced" allocation of funding.
Senator Wilken summarized the budget totals $1,345,352,000,
consisting of 70 percent federal funds, 12 percent general funds
and AHFC funds, and the remainder from other sources. He divided
the total by the 482,000 voters in the state, and calculated an
average of $2,786 appropriated per voter. He listed Anchorage
voters as receiving an average of $1,068, Fairbanks $1,106,
Kotzebue $7,812, Rural Interior $6,572, Nome $3,997, Mat-Su $2,446,
and Aleutians $2,297. He surmised this shows that the legislature
does not under fund Rural Alaska.
Senator Hoffman requested a breakdown of the general fund
appropriations by election district.
Co-Chair Donley offered a motion to report CS SB 29, 22-GS1050\F,
as amended from Committee.
Senator Hoffman objected.
Senator Hoffman asserted, "There still are a few holes that need to
be patched before we send this ship along its way."
Co-Chair Kelly assured the budget is still "a work in progress".
A roll call was taken on the motion.
IN FAVOR: Senator Leman, Senator Ward, Senator Wilken, Senator
Austerman, Senator Green, Co-Chair Donley and Co-Chair Kelly
OPPOSED: Senator Olson and Senator Hoffman
The motion PASSED (7-2)
The committee substitute MOVED from Committee.
ADJOURNMENT
Co-Chair Pete Kelly adjourned the meeting at 11:20 PM.
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