Legislature(2009 - 2010)SENATE FINANCE 532
03/17/2010 01:30 PM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB230 || SB253 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 230 | TELECONFERENCED | |
| += | SB 253 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
March 17, 2010
1:33 p.m.
1:33:06 PM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 1:33 p.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Charlie Huggins, Vice-Chair
Senator Johnny Ellis
Senator Dennis Egan
Senator Donny Olson
Senator Joe Thomas
MEMBERS ABSENT
None
ALSO PRESENT
Jo Ellen Hanrahan, Director, Administrative Services,
Department of Commerce, Community and Economic Development;
Eric Swanson, Director, Administrative Services, Department
of Administration; Dan Spencer, Director, Administrative
Services, Department of Public Safety; Orin Dym, Crime Lab
Supervisor, Department of Public Safety; Matt Tanaka,
Facilities, Department of Public Safety
PRESENT VIA TELECONFERENCE
Rachael Petro, Deputy Commissioner, Department of
Administration
SUMMARY
SB 230 BUDGET: CAPITAL, SUPP. & OTHER APPROPS
SB 230 was heard and HELD in Committee for
further consideration.
SB 253 APPROP: DEFERRED MAINTENANCE/REPLACEMENT
SB 253 was heard and HELD in Committee for
further consideration.
DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT
DEPARTMENT OF ADMINISTRATION
DEPARTMENT OF PUBLIC SAFETY
SENATE BILL NO. 230
"An Act making and amending appropriations, including
capital appropriations, supplemental appropriations,
and other appropriations; making appropriations to
capitalize funds; and providing for an effective
date."
SENATE BILL NO. 253
"An Act making capital appropriations for deferred
maintenance projects, equipment replacement, and
emergency repairs; and providing for an effective
date."
1:34:35 PM
DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT
JO ELLEN HANRAHAN, DIRECTOR, ADMINISTRATIVE SERVICES,
DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT,
stated that there was no deferred maintenance budget for
the department. She turned to the department's capital
projects list.
RN 49127
Denali Commission Federal-State Partnership Grant
$3,000,000 AIDEA Div
Ms. Hanrahan commented that the request is a demonstration
of a valuable partnership for the state. The grant can be
used on any of the programs within the Denali Commission.
RN 38950
Alaska Energy Authority Energy Projects
$16,000,000 Fed Rcpts
$10,000,000 AIDEA Div
Ms. Hanrahan noted that the request dates back to FY 1997
and funds a number of programs such as Bulk Fuel Upgrades,
Rural Power System Upgrades, Alternative Energy and
Efficiency Projects, the Renewable Energy Project, and the
state-funded Energy Planning Project.
Senator Egan asked why the Alaska Capital Income Fund
request appears in FY 2012, but not in FY 2011. Ms.
Hanrahan explained that the fund source can change.
Co-Chair Stedman added that the legislature often makes
fund source changes. Senator Egan pointed out that the
totals were the same, but the sources were different.
1:38:36 PM
RN 45662
Alaska Climate Change Impact Mitigation Program
$500,000 Gen Fund
Ms. Hanrahan pointed out that the request is in line with
the Climate Change Immediate Action work group
recommendations that were published in March of 2009. The
funds will continue to provide grant funding for planning
assistance to imminently threatened communities. They will
be used to do hazard impact assessment mini-grants of
$50,000 for four communities and to do two community
planning grants for $150,000 each.
Senator Egan asked it these funds could go to Alaska
Regional Development Organizations (ARDORs) such as
Southeast Conference projects. Ms. Hanrahan said the ARDORs
are already funded at about $720,000 and it would be a
policy decision to use this grant money otherwise. Senator
Egan suggested that the ARDORs would be an appropriate
place for these funds.
RN 48902
Alaska Visitors Statistics Program
$500,000 Gen Fund
Ms. Hanrahan referenced a program begun in the 80's, which
provides a baseline survey as visitors exit the state. It
is the only comprehensive source of visitor information
data available to help determine the effectiveness of
tourism programs and marketing.
Co-Chair Hoffman asked if there was a report on how the
funds should be allocated. Ms. Hanrahan explained the
report. Co-Chair Hoffman asked if the 2007 report is
available today. Ms. Hanrahan offered to provide a copy.
1:42:42 PM
RN 48894
Banking and Securities Imaging
$609,000 Rcpt Svcs
Ms. Hanrahan explained that the funds would be used to
replace all hard copy documentation with digitized images
and would allow documents to be shared. It would use
current state standards in doing so.
1:43:46 PM
RN 48815
Community and Regional Affairs System Replacement and
Consolidation
$326,000 Rcpt Svcs
Ms. Hanrahan detailed that twelve systems would be
consolidated within the Division of Community and Regional
Affairs. It would do away with a very large maintenance
cost.
RN 38943
Community Development and Assistance
$725,000 Fed Rcpts
$307,500 G/F Match
$1,153,500 I/A Rcpts
$1,000,000 CIP Rcpts
Ms. Hanrahan discussed the on-going grant request which
would encompass several programs including the Alaska Flood
Plain Erosion Management Program, the Coastal Zone
Management Program, Community Mapping Effort, and Alaska
Sustainable Salmon Fund Program.
RN 38946
Community Block Grants
$5,900,000 Fed Rcpts
$70,000 G/F Match
Ms. Hanrahan explained that it was a long-term program that
provides grants to communities and non-profits in order to
benefit low-to-moderate income people.
1:45:42 PM
AMD 47031
Alaska Energy Authority Electrical Emergencies Program
$330,400 Gen Fund
Ms. Hanrahan explained that it was the governor's amended
project to bring the level of funding up to the current
request amount, which had been the amount previously. The
funding supports technical assistance during emergencies.
AMD 38948
NPR-A Impact Grant Program
$4,847,165 NPR Fund
Ms. Hanrahan spoke of the governor's amendment which
decreased the amount of the request from $14.8 million
because there are no planned leases this year.
Co-Chair Stedman asked if the grants for FY 11 are listed.
Ms. Hanrahan said they should be a part of the budget
request.
1:47:22 PM
RN 48906
Newtok Traditional Council-Newtok Evacuation Shelter
and Access Road
$4,000,000 Gen Fund
Ms. Hanrahan explained that the request was also a
suggestion from the Climate Change Immediate Action work
group. It is a state commitment to help ensure that the
Department of Defense Innovative Readiness Training Program
will continue their work in Alaska.
RN 41959
Arctic Winter Games Team Alaska-Games Participation
$250,000 Gen Fund
Ms. Hanrahan turned to this long-standing appropriation in
the state's budget, which helps provide support for Team
Alaska to participate in the Arctic Winter Games.
1:48:33 PM
RN 38713
Arctic Power
$160,000 Gen Fund
Ms. Hanrahan said the purpose was to provide funding to aid
in the opening in the Coastal Plain of ANWAR.
Co-Chair Stedman asked if any headway was being made. He
requested more information. Ms. Hanrahan said she would
provide that information.
RN 49171
Covenant House Alaska-Facility Construction
$3,000,000 Gen Fund
Ms. Hanrahan detailed the program, which helps ensure the
safety and success for at-risk youth, of which about 60
percent are from foster care.
Co-Chair Stedman asked if the Covenant House is to be
relocated and rebuilt. Ms. Hanrahan concurred. Co-Chair
Stedman asked who owns the Covenant House. Ms. Hanrahan
said it was part of a statewide network of private, non-
profit entities.
RN 46475
The Alaska Community Foundation-Jesse Lee Home
Restoration
$1,500,000 Gen Fund
Ms. Hanrahan explained that the money would restore the
Jesse Lee Home as a residential charter leadership school
for high school youth for one semester of their junior
year.
1:52:28 PM
Senator Huggins asked if it was a charter school and
wondered why it was funded outside of the foundation
formula. Co-Chair Stedman asked for information on the
maintenance of that facility. Ms. Hanrahan offered to
provide the information. She pointed out that in 2001 the
legislature passed HB 96 which related to acquisition and
development of the Jesse Lee Home.
1:54:30 PM
RN 49590
Alaska Partnership for Economic Development-Alaska
Forward Initiative
$100,000 AIDEA Div
Ms. Hanrahan noted that the ARDORs are included in this
organization. The initiative is composed of two phases, the
first of which has been completed.
RN 41956
Municipality of Anchorage: Port of Anchorage Expansion
$10,000,000 AHCC Rcpts
Ms. Hanrahan reported on the request by sharing statistics
related to the project. The total cost of the project is
about $350 million to $400 million.
1:56:07 PM
RN 47718
Cruise Ship Related Projects
$21,910,000 CPV Tax
Ms. Hanrahan related information about allocations within
this appropriation: Haines, Hoonah, Juneau, Ketchikan,
Petersburg, Sitka, Skagway, and Wrangell.
Senator Thomas asked how much was available in the cruise
ship passenger fund. Ms. Hanrahan said there was estimated
to be a balance in FY 10 of $20 million, of that, $30
million would be in the commercial passenger vessel tax
account and $10 million would be in the regional cruise
ship impact fund. For FY 11 it is estimated that the total
available balance will be $28 million, with $29.4 million
in the commercial passenger vessel tax account and $9.8
million in the regional cruise ship impact fund. Senator
Thomas asked what projects the money would go toward.
Co-Chair Stedman reported on meetings with the Department
of Law defining the projects that could qualify. The
committee will be working more on this area.
1:58:50 PM
Senator Thomas referred back to RN 48894. He asked if
documents would be electronically kept from this time on
into the future. Ms. Hanrahan requested clarification. She
said she could provide that information as it applies to
banking and securities. Co-Chair Stedman requested that
information be sent to his office.
Senator Huggins asked about the relationship of RN 47718,
cruise ship related projects, and RN 48521, Juneau cruise
ship dock replacement. Ms. Hanrahan said the projects were
allocations from the $21 million appropriation.
2:01:57 PM
DEPARTMENT OF ADMINISTRATION
ERIC SWANSON, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT
OF ADMINISTRATION, noted one deferred maintenance request
that has been split into two separate allocations.
DM AMD RN 49602
Statewide Deferred Maintenance Projects
$7,250,000 Gen Fund
DM AMD 49216
Facilities Deferred Maintenance
$4,250,000 Gen Fund
DM RN 49387
State of Alaska Telecommunication System Deferred
Maintenance
$3,000,000 Gen Fund
Mr. Swanson discussed the Facilities Deferred Maintenance
request, which is for work on seven buildings, including
the Governor's Mansion, that are managed by the Department
of Administration. He listed the projects included in the
allocation.
2:04:32 PM
Co-Chair Stedman asked about the cost of renovating the
Governor's Mansion and requested a copy of that report. He
suggested that the building be upgraded to its original
state. Mr. Swanson agreed to provide the report.
Co-Chair Stedman asked if the Wickersham House was included
on the list. Mr. Swanson said it was not a facility that is
managed by the department. Co-Chair Stedman argued for
including it.
Mr. Swanson discussed the State of Alaska Telecommunication
System Deferred Maintenance allocation, which is often
referred to as the SAT System. The SAT System is not
currently connected by fiber or satellite. There are a
number of repair projects included in the request.
2:07:33 PM
Mr. Swanson moved on to the capital projects.
RN 47053
Alaska Public Offices Commission Electronic Filing
System
$600,000 Gen Fund
Mr. Swanson explained that the request is in order to
complete the public official financial disclosure and
legislative financial disclosure module of the project. He
provided the history of the project. The lobbyist module
has been completed. The request is for the second module in
the system and should be completed by FY 11. The third
module is for campaign disclosure and is planned for
completion in FY 12.
Co-Chair Stedman asked what format the information would
take when the modules are finished. Mr. Swanson reported
that the underlying goals of the project are to streamline
the filing process and to improve public access.
2:10:22 PM
RACHAEL PETRO, DEPUTY COMMISSIONER, DEPARTMENT OF
ADMINISTRATION (via teleconference), addressed Co-Chair
Stedman's question. She said it was complicated because
each module has specific requirements. She stressed that an
attempt was being made to make it as easy as possible for
filers. She offered to provide more specific information
later.
Co-Chair Stedman noted the cumbersome changes on the forms.
He suggested the system could be more user friendly and
could be computer generated. He requested feedback about
what the department intends to use for the final output.
Ms. Petro said she shared that frustration and offered to
provide more information. Co-Chair Stedman commented on the
importance of the information and repercussions from
errors.
2:14:14 PM
RN 45395
Alaska License and Vehicle Information System
$8,500,000 Rcpt Svcs
Mr. Swanson spoke of the system that DMV uses, often
referred to as ALVIN. The entire system is outdated and
needs to be replaced.
RN 49391
Anchorage Data Center Design Support and Migration
Planning
$1,300,000 Info Svc
Mr. Swanson explained that the funding would enable the
department to begin engineering and migration planning to
move the Anchorage Data Center from its present location by
December 11, 2011. He provided a description of the Data
Center and the need for a temporary location while ensuring
minimal outages of services.
RN 49217
Enterprise Technology Services Infrastructure Upgrades
and Support
$3,700,000 Info Svc
Mr. Swanson reported that the funding would be used for
upgrade and support of the ETS infrastructure in two
separate projects. The first project would provide secure
access to the digital telephone equipment rooms, and the
second project is to replace and consolidate servers.
2:18:22 PM
RN 47058
Facilities Deferred Maintenance.
$3,000,000 Public Bldg
Mr. Swanson discussed the department's regular, annual
deferred maintenance needs for eleven facilities. The money
for the request comes from rent charged in the facilities.
2:19:29 PM
RN 49211
Retirement and Benefits Document Management System
$163,700 Ben Sys
$213,200 P/E Retire
$89,000 Teach Ret
$2,200 Jud Retire
$6,900 Nat Guard
Mr. Swanson referred to the request which would migrate
microfilm records and documents into digital form. The new
system would provide better research and search
capabilities and storage.
RN 45400
Combined Retirement System Upgrade
$137,700 Ben Sys
$179,700 P/E Retire
$75,000 Teach Ret
$1,800 Jud Retire
$5,800 Nat Guard
Mr. Swanson spoke of the need to continue to fund the
retirement system so that retirees can more readily access
information. It also improves the ability to search and
retrieve data.
2:21:31 PM
RN 49392
Alaska Rural Communications Service Digital Conversion
Planning
$50,000 Gen Fund
Mr. Swanson reported that the request is necessary in order
to comply with a FCC mandate.
2:23:30 PM
DEPARTMENT OF PUBLIC SAFETY
DAN SPENCER, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT
OF PUBLIC SAFETY, highlighted one deferred maintenance
project.
DM RN 41788
Statewide Facilities Maintenance, Repairs, and
Improvements
$1,350,000 Gen Fund
Mr. Spencer reported that within the allocation are five
projects: Anchorage Aircraft Hanger, Bethel Aircraft
Hanger, Fairbanks Facility, Kodiak Hanger, and Ketchikan
Post. All have significant deferred maintenance issues. If
something else requires emergency repair, it will be given
priority.
Mr. Spencer turned to capital project requests.
RN 41600
Crime Lab Replacement
$75,750,000 COPs
Mr. Spencer suggested that Mr. Dym could answer questions.
2:25:35 PM
Co-Chair Stedman asked about operational costs of the crime
lab, such as how many additional employees will be needed.
He also requested more information about unfinished square
footage.
ORIN DYM, CRIME LAB SUPERVISOR, DEPARTMENT OF PUBLIC
SAFETY, described the details of the crime lab replacement
which are designed to meet the current needs of the lab.
One additional maintenance position will be needed. The
department does have a 10-year plan for additional
positions.
Mr. Dym explained that the square footage of the building
is 84,000 gross square feet of which 19 percent is
unfinished space to allow for future growth. There will be
45,000 square feet of laboratory space, 6,000 square feet
of evidence storage space, mechanical space, hallways,
bathrooms, and classrooms. The size of the laboratory space
is doubled in the new building and there is space for new
technology in the future.
Co-Chair Stedman suggested cutting the square footage by 20
percent and dealing with an expansion later. Mr. Dym said
that would have required a redesigning of the building and
would have cost more.
2:29:09 PM
MATT TANAKA, FACILITIES, DEPARTMENT OF PUBLIC SAFETY,
addressed Co-Chair Stedman's question. He gave reasons why
building a smaller footprint would be more expensive. It
would necessitate a redesign and a two-year delay. The
method of shelling lab space saves money.
Co-Chair Stedman questioned why there was a need to
redesign the whole project. Mr. Tanaka explained the
complexities of the laboratory design.
Senator Huggins addressed the lack of flexibility. Mr. Dym
explained that the term flexibility referred to the ability
to expand for future use.
Senator Huggins asked how much it would cost to expand over
the next ten years. Mr. Tanaka shared cost details. To
finish shell space would cost substantially less than $20
million. The farther into the future, the more potential
for escalation costs.
2:35:25 PM
Co-Chair Stedman asked about the impact on the operating
account regarding maintenance costs. Mr. Dym referred to
page 26 of a legislative brief and stated that the annual
energy cost of the new laboratory is about $412,000, which
is about 2.7 times higher than the existing crime
laboratory.
Mr. Spencer thanked the legislature for last year's
appropriation for the crime lab design.
RN 41544
Alaska Public Safety Information Network Redesign,
Year 3 of 3-Year Plan, Replace Federal Funds
$1,000,000 Gen Fund
Mr. Spencer related that the project has been around for
over ten years. He pointed out that the criminal history
repository is used by every law enforcement operation in
the state, as well as by those who need to do background
checks. The department is about $2 million away from
finishing the project. There is concern about losing the
current level of expertise if the project is not funded. He
described the complexities of the project, such as DMV
interfacing.
2:39:48 PM
RN 37774
Alaska State Trooper Law Enforcement Equipment
Replacement
$500,000 Gen Fund
Mr. Spencer discussed the annual request for funds to
replace equipment, such as digital recorders and cameras,
radar equipment, office furniture, ATV's, etc.
RN 6121
Aircraft and Vessel Repair and Maintenance
$850,000 Gen Fund
Mr. Spencer spoke of the need for funding for annual
repairs and maintenance of 40 aircraft and about 18 vessels
over 25 feet. The intent is to split the funding into
$200,000 toward aircraft repairs and $650,000 toward one
vessel, an open ocean boat in need of an engine
replacement.
RN 45300
Alaska Wildlife Trooper Law Enforcement Equipment
Replacement
$500,000 Gen Fund
Mr. Spencer detailed the request as an annual need.
Co-Chair Stedman asked why the amount is not $950,000 as it
appears in the FY 12 request. Mr. Spencer explained that
what is needed depends on the condition of older equipment.
The projection is for the worst-case scenario.
2:43:24 PM
Co-Chair Hoffman referred to page 10 and asked about the
replacement of the engine in the patrol vessel. He wondered
if the work would be done in Alaska. Mr. Spencer did not
know, but noted that there was an Alaskan bidder
preference. Co-Chair Stedman spoke of the fishing fleet's
ability to have engines replaced instate. He requested more
information about the department's bid process for this
type of work.
Co-Chair Hoffman asked if the department has considered
Alaskan preference on similar projects. Mr. Spencer said it
has. He added that there is often a time constraint
involved.
2:45:28 PM
Co-Chair Stedman asked if there was money in the budget to
maintain the mosquito fleet. Mr. Spencer reported that if
there is a significant repair to be done, some of this
funding may be used if it is a higher priority. He gave an
example.
Co-Chair Stedman asked if there is enough money for both
repairs and fuel for coverage of rural areas. He spoke of
pressure on Fish and Game boats to cover rural areas. Mr.
Spencer spoke of the patrol vessel Enforcer which patrols
throughout Southeast Alaska. Co-Chair Stedman voiced
concern over needing more law enforcement presence in sport
fishing and subsistence fishing areas so as not to
negatively impact fisheries.
2:48:59 PM
Senator Olson asked how many aircraft need repair. Mr.
Spencer offered to provide that information. Senator Olson
knew of two accidents and wondered what the consequences
were. Mr. Spencer needed to find out more information about
the accidents.
2:51:03 PM
RN 45337
Alaska State Trooper Mobile Data Computers - Phase 3
$250,000 Gen fund
Mr. Spencer explained that the request would buy 39
computers in order to allow troopers to take their office
with them.
RN 49207
Video Judicial Conference/Arraignment Study
$100,000
Mr. Spencer shared information about the request which
would allow the department to study the technology needed
in order to use web-based video conferencing instead of
doing prisoner transports. The intention is to save money
and time.
Senator Egan asked if the courts were doing this already.
Mr. Spencer replied that there was one video arraignment
system but it has a dedicated line. This request would make
use of the web. Senator Egan asked if it could be done
wireless in the patrol vehicle. Mr. Spencer explained that
it would be point to point orientation. Senator Egan
thought that this was how Anchorage dealt with court
reporting. Mr. Spencer said that the department works with
the Department of Law, the Department of Corrections, and
the Court System.
2:54:19 PM
RN 45325
Crime laboratory Equipment Replacement
$86,000 Gen Fund
Mr. Spencer talked about the need to replace specific crime
lab equipment.
RN 35825
Marine Fisheries Patrol Improvements
$1,500,000 Fed Rcpts
Mr. Spencer concluded that the request is an on-going joint
enforcement agreement with National Marine Fisheries
Service. It funds positions and equipment.
SB 230 was heard and HELD in Committee for further
consideration.
SB 253 was heard and HELD in Committee for further
consideration.
ADJOURNMENT
The meeting was adjourned at 2:55 PM.
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