Legislature(2009 - 2010)SENATE FINANCE 532

03/18/2010 09:00 AM FINANCE


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09:05:40 AM Start
09:05:50 AM SB230 || SB253
10:55:44 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 300 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Scheduled But Not Heard
+ HB 302 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Scheduled But Not Heard
+= SB 230 BUDGET: CAPITAL, SUPP. & OTHER APPROPS TELECONFERENCED
Heard & Held
+= SB 253 APPROP: DEFERRED MAINTENANCE/REPLACEMENT TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+ The remaining departments will be TELECONFERENCED
reviewed throughout the week in the
following order:
Dept Revenue
Alaska Housing Finance Corporation
Alaska Court System
Dept Military & Veterans Affairs
Dept Health & Social Services
Dept Education & Early Development
Dept Labor & Workforce Development
Dept Corrections
Dept of Law
Office of the Governor/Language
                 SENATE FINANCE COMMITTEE                                                                                       
                      March 18, 2010                                                                                            
                         9:05 a.m.                                                                                              
                                                                                                                                
                                                                                                                                
9:05:40 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair  Stedman   called  the  Senate   Finance  Committee                                                                    
meeting to order at 9:05 a.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                                                                                                                  
                                                                                                                                
Ginger  Blaisdell,  Director,   Division  of  Administrative                                                                    
Services,  Department   of  Revenue;  Laura   Achee,  Alaska                                                                    
Permanent  Fund  Corporation,  Department of  Revenue;  Mike                                                                    
Burns,   Executive    Director,   Alaska    Permanent   Fund                                                                    
Corporation,   Department   of   Revenue;   Bryan   Butcher,                                                                    
Director,  Government Affairs  and Public  Relations, Alaska                                                                    
Housing  Finance  Corporation,  Department of  Revenue;  Les                                                                    
Campbell,  Director   of  Budget,  Alaska   Housing  Finance                                                                    
Corporation,  Department  of   Revenue;  Chris  Christensen,                                                                    
Staff   Counsel,  Alaska   Court  System;   Susan  Colligan,                                                                    
Director,  Division of  Administrative Services,  Department                                                                    
of   Military   and   Veterans  Affairs;   Arnold   Liebelt,                                                                    
Facilities   Manager,  Finance   and  Management   Services,                                                                    
Department of  Health and  Social Services;  Jennifer Klein,                                                                    
Facilities   Manager,  Finance   and  Management   Services,                                                                    
Department  of Health  and  Social  Services; Alison  Elgee,                                                                    
Assistant  Commissioner,  Finance and  Management  Services,                                                                    
Department  of   Health  and  Social  Services;   Anna  Kim,                                                                    
Director, Administrative  Services, Department  of Education                                                                    
and Early Development; Guy  Bell, Assistant Commissioner and                                                                    
Director,  Division of  Administrative Services,  Department                                                                    
of  Labor  and  Workforce Development  Laura  Achee,  Alaska                                                                    
Permanent  Fund Corporation,  Department  of Revenue;  Laura                                                                    
Achee;  Laura  Achee,  Alaska  Permanent  Fund  Corporation,                                                                    
Department  of Revenue;  Les Campbell,  Director of  Budget,                                                                    
Alaska Housing Finance Corporation, Department of Revenue;                                                                      
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
None                                                                                                                            
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 230    BUDGETS: 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 REVENUE                                                                                                           
ALASKA HOUSING FINANCE CORPORATION                                                                                              
ALASKA COURT SYSTEM                                                                                                             
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS                                                                                     
DEPARTMENT OF HEALTH AND SOCIAL SERVICES                                                                                        
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT                                                                                   
DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT                                                                                   
                                                                                                                                
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."                                                                                                                     
                                                                                                                                
9:05:50 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman  stated that SB  305 would be  brought back                                                                    
during the 3:00pm meeting.                                                                                                      
                                                                                                                                
9:07:57 AM                                                                                                                    
                                                                                                                                
GINGER  BLAISDELL,  DIRECTOR,   DIVISION  OF  ADMINISTRATIVE                                                                    
SERVICES,  DEPARTMENT  OF  REVENUE,  discussed  DOR  capital                                                                    
projects.                                                                                                                       
                                                                                                                                
CAP RN 48745                                                                                                                    
     New Tax Revenue Management Information System Plan                                                                         
     $300,000 Gen Fund                                                                                                          
                                                                                                                                
Ms.  Blaisdell explained  that  the money  for  the New  Tax                                                                    
Revenue Management  Information System  Plan money  would be                                                                    
used  as  project  management  methodology  planning  money.                                                                    
Meaning, it  would be  used to clearly  identify all  of the                                                                    
needs  of  the  information   system;  such  as  stakeholder                                                                    
analysis, risk  analysis, collection mechanisms, and  who is                                                                    
impacted.  The   department  planned  to  rewrite   the  tax                                                                    
programs into  one integrated  tax management  system. There                                                                    
were  about 22  different systems,  including paper,  Excel,                                                                    
Access,  and some  homegrown databases  that manage  all tax                                                                    
systems. Department of Revenue  (DOR) wanted a comprehensive                                                                    
system, because the current systems did not work together.                                                                      
                                                                                                                                
Co-Chair Stedman  asked whether  a comprehensive  system was                                                                    
requested in the prior year's  capital budget. Ms. Blaisdell                                                                    
responded  that DOR  requested between  $24 million  and $27                                                                    
million for the same  project. The price difference depended                                                                    
on  whether  it was  from  general  funds or  financed.  The                                                                    
funding  request  was  higher,   because  the  prior  year's                                                                    
request  did  not  include equipment  needs.  Planning  time                                                                    
could be expedited if the funding were put forward earlier.                                                                     
                                                                                                                                
CAP RN 48719                                                                                                                    
     Net App Upgrade                                                                                                            
     $231,000 Gen Fund                                                                                                          
                                                                                                                                
Ms. Blaisdell  stated that Net  App Upgrade referred  to the                                                                    
hardware  infrastructure that  allows all  the servers  work                                                                    
together.  In the  year prior,  the Juneau  data center  was                                                                    
upgraded. The  FY 11  funding would be  used to  upgrade the                                                                    
Anchorage data center, which was  also the disaster recovery                                                                    
plan. The Anchorage  data center was used to  backup all the                                                                    
systems.                                                                                                                        
                                                                                                                                
9:12:18 AM                                                                                                                    
                                                                                                                                
CAP RN 48720                                                                                                                    
     IBM Bladecenter                                                                                                            
     $230,000 Gen Fund                                                                                                          
                                                                                                                                
Ms.   Blaisdell  stated   that  the   IBM  Bladecenter   was                                                                    
technology  intended  to  manage  the data  apart  from  the                                                                    
application.  She noted  that DOR  receives between  1.2 and                                                                    
1.5 terabytes of  data every filing season,  so she believed                                                                    
the  IBM Bladecenter  would alleviate  the  burden of  large                                                                    
amounts of information.                                                                                                         
                                                                                                                                
CAP RN 42945                                                                                                                    
     Child Support Services Computer Replacement Project-                                                                       
     Phase 1                                                                                                                    
     $133,056 Federal Receipts                                                                                                  
     $68,544 Receipt Supported Services                                                                                         
                                                                                                                                
Ms.  Blaisdell explained  that  the  Child Support  Services                                                                    
computers,  fax machines,  and servers  were replaced  every                                                                    
five  years. This  request is  the first  phase of  the five                                                                    
year cycle.                                                                                                                     
                                                                                                                                
CAP  RN 48739                                                                                                                   
     Permanent Fund Dividend Master Phone Queue                                                                                 
     $350,000 PFD Fund                                                                                                          
                                                                                                                                
Ms. Blaisdell stated that the  Permanent Fund Dividend (PFD)                                                                    
Master  Phone Queue  would be  a module  for the  Voice-over                                                                    
Internet  Protocol (VOIP)  phone  system.  The module  would                                                                    
allow  a  caller to  select  options  to  route them  to  an                                                                    
eligibility technician. She pointed  out that many divisions                                                                    
in the state already had this  module. She noted that in the                                                                    
current phone system for the PFD,  the only way one could be                                                                    
routed to a technician is if  the caller remains in the same                                                                    
prefix.  With the  new module,  the Anchorage  and Fairbanks                                                                    
staff would  be better utilized. Other  state agencies would                                                                    
be able to use the technology, once it's installed.                                                                             
                                                                                                                                
9:15:37 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman  wondered why  Juneau could not  handle the                                                                    
volume  of calls.  Ms. Blaisdell  replied  that callers  and                                                                    
offices were  located across the state.  The computer system                                                                    
and majority  of the PFD  staff are located in  Juneau. Most                                                                    
calls and inquiries are met at  Juneau, but DOR wants all of                                                                    
the staff  from across the  state to be  utilized throughout                                                                    
the entire year.                                                                                                                
                                                                                                                                
MIKE  BURNS,  EXECUTIVE   DIRECTOR,  ALASKA  PERMANENT  FUND                                                                    
CORPORATION,  DEPARTMENT  OF  REVENUE continued  to  discuss                                                                    
Capital Projects.                                                                                                               
                                                                                                                                
CAP  RN 48735                                                                                                                   
     Permanent Fund Dividend Portfolio Accounting System                                                                        
     Upgrade                                                                                                                    
     $250,000 PFund Rcpt                                                                                                        
                                                                                                                                
Mr. Burns explained that the  $250,000 for the PFD Portfolio                                                                    
Accounting System Upgrade was  only the first installment of                                                                    
what  would be  a  $1 million  program.  He anticipated  the                                                                    
request  for the  balance be  made the  following year.  The                                                                    
purpose  of  this project  was  to  upgrade and  expand  the                                                                    
capabilities  of   the  investment   portfolio's  accounting                                                                    
system.  The current  version could  not handle  other asset                                                                    
classes in the Alaska  Permanent Fund Corporation's (APFC's)                                                                    
alternative investment  portfolio. The upgrade  would expand                                                                    
the system's capabilities, so  alternative asset types (i.e.                                                                    
private equity, distressed  debt, and infrastructure assets)                                                                    
could  be included  in the  same  system. Further  financial                                                                    
requests would  continue the replacement and  integration of                                                                    
disparate  portfolio accounting  systems.  He asserted  that                                                                    
the private equity  portion of the portfolio  had reached 30                                                                    
percent  of the  portfolio, and  stressed the  importance of                                                                    
having a comprehensive system to include all assets.                                                                            
                                                                                                                                
9:19:31 AM                                                                                                                    
                                                                                                                                
BRYAN  BUTCHER,  DIRECTOR,  GOVERNMENT  AFFAIRS  AND  PUBLIC                                                                    
RELATIONS,  ALASKA HOUSING  FINANCE CORPORATION,  DEPARTMENT                                                                    
OF REVENUE, referred to a  handout entitled, "Alaska Housing                                                                    
Finance  Corporation  Budget  Summary" (copy  on  file).  He                                                                    
reported  no  items on  the  deferred  maintenance list.  He                                                                    
began with the first capital project requests.                                                                                  
                                                                                                                                
CAP  RN 47066                                                                                                                   
     AHFC Fire Protection Systems-Phase 2                                                                                       
     $2,200,000 AHFC Div                                                                                                        
                                                                                                                                
LES  CAMPBELL, DIRECTOR  OF BUDGET,  ALASKA HOUSING  FINANCE                                                                    
CORPORATION, DEPARTMENT  OF REVENUE,  stated the  purpose of                                                                    
the  AHFC Fire  Protection  Systems-Phase 2  project was  to                                                                    
flush,  evaluate,  and  make  life/safety  code  repairs  to                                                                    
public  housing  fire   protection  systems  throughout  the                                                                    
state.  The  projected outcome  was  to  have reductions  in                                                                    
maintenance costs;  increase the useful life  of structures;                                                                    
and increase  the safety  of tenants.  The project  would be                                                                    
ongoing until replacements were complete.                                                                                       
                                                                                                                                
CAP  RN 47068                                                                                                                   
     AHFC Security Systems Replacement/Upgrades                                                                                 
     $500,000 AHFC Div                                                                                                          
                                                                                                                                
Mr.  Campbell  explained  that   the  purpose  of  the  AHFC                                                                    
Security   Systems  Replacement/Upgrades   project  was   to                                                                    
upgrade existing security  access systems to senior/disabled                                                                    
and  multi-family public  housing  complexes. The  projected                                                                    
outcome was  to increase the security  for residents; reduce                                                                    
theft  and  vandalism;   reduce  maintenance  and  custodial                                                                    
costs; and increase the useful life of the structures.                                                                          
                                                                                                                                
9:22:08 AM                                                                                                                    
                                                                                                                                
Senator Huggins  asked if the  sprinkler systems  were going                                                                    
to  be installed  in single  family dwellings.  Mr. Campbell                                                                    
replied that  AHFC did  not anticipate  installing sprinkler                                                                    
systems into single family buildings.                                                                                           
                                                                                                                                
Senator Huggins wondered who had  the authority to approve a                                                                    
sprinkler    system    project.   Mr.    Butcher    believed                                                                    
responsibility for approving projects  belonged to the state                                                                    
fire marshal.  He knew there had  been nationwide discussion                                                                    
over the  issue of  required sprinkler systems,  although he                                                                    
had not heard of that issue for Alaska.                                                                                         
                                                                                                                                
Co-Chair  Stedman  pointed  out   that  there  was  proposed                                                                    
legislation pertaining to mandatory sprinkler system.                                                                           
                                                                                                                                
Senator  Ellis  queried  the  status  of  Chugach  Manor  in                                                                    
Anchorage  regarding  security  upgrades, fire  alarms,  and                                                                    
sprinkler  systems.  Mr.  Butcher  knew  that  the  security                                                                    
upgrades were complete in Chugach  Manor. He pointed out the                                                                    
request for  security updates only applied  to Fairbanks and                                                                    
Juneau.                                                                                                                         
                                                                                                                                
9:24:28 AM                                                                                                                    
                                                                                                                                
Senator  Ellis  voiced concern  about  danger  and crime  at                                                                    
Chugach View and Chugach Manor  because mentally ill younger                                                                    
people  and   senior  citizens  were  housed   together.  He                                                                    
requested a reasonable process of  separating the two groups                                                                    
at  those locations.  He  listed  problems and  specifically                                                                    
pointed out  the lack of  night supervision. He  stated that                                                                    
he would  support upgrades for  facilities in  Fairbanks and                                                                    
Juneau. He  was grateful  for efforts  made at  Chugach View                                                                    
and  Chugach Manor,  but  said a  flaw  existed when  mixing                                                                    
young mentally ill people with seniors citizens.                                                                                
                                                                                                                                
Mr.  Butcher agreed,  and stated  that when  the two  groups                                                                    
were  mixed  it was  due  to  a  change  in federal  law.  A                                                                    
decision  had been  made to  remove the  disabled population                                                                    
from the two locations  and was currently being implemented.                                                                    
He offered to provide more details at a later time.                                                                             
                                                                                                                                
9:26:27 AM                                                                                                                    
                                                                                                                                
Senator  Egan  requested a  copy  of  the 2008  Fire  Safety                                                                    
Survey. Mr. Butcher agreed to provide that information.                                                                         
                                                                                                                                
9:26:54 AM                                                                                                                    
                                                                                                                                
CAP  RN 40068                                                                                                                   
     AHFC Statewide Project Improvements                                                                                        
     $2,000,000 AHFC Div                                                                                                        
                                                                                                                                
Mr.  Campbell  explained  that the  AHFC  Statewide  Project                                                                    
Improvements proposal  was an  ongoing program.  Its purpose                                                                    
was  to  provide  funding  to   address  known  and  unknown                                                                    
conditions in  AHFC's housing stock. The  projected outcomes                                                                    
were  advancements  in  amenities  not  programmed;  enhance                                                                    
operations;  provide funding  for  emergency repairs;  allow                                                                    
quick response to  code changes and life  safety issues, and                                                                    
allow quick response to unforeseen conditions.                                                                                  
                                                                                                                                
CAP  RN 47069                                                                                                                   
     AHFC Building System Replacement Program                                                                                   
     $1,500,000 AHFC Div                                                                                                        
                                                                                                                                
Mr.  Campbell  stated  the   purpose  AHFC  Building  System                                                                    
Replacement  Program was  to address  specific major  repair                                                                    
and replacement items identified  in a five-year review. The                                                                    
projected  outcomes   were  to  reduce   maintenance  costs;                                                                    
increase the useful life of  structures; and increase safety                                                                    
for  tenants. The  funding  would  specifically address  the                                                                    
Chugach  View   roof  replacement   and  siding   repair  at                                                                    
Riverbend School in Juneau.                                                                                                     
                                                                                                                                
9:28:22 AM                                                                                                                    
                                                                                                                                
CAP  RN 48811                                                                                                                   
     AHFC San Roberto Redevelopment                                                                                             
     $7,500,000 AHFC Bonds                                                                                                      
     $2,208,504 AHFC Div                                                                                                        
                                                                                                                                
Mr.  Campbell explained  that the  purpose of  the AHFC  San                                                                    
Roberto Redevelopment  project was to replace  the three and                                                                    
four  unit rental  structures on  Boston, San  Roberto, East                                                                    
9th, and West  84th Avenue in Anchorage,  that have exceeded                                                                    
their  useful  life span.  The  projected  outcomes were  to                                                                    
reduce  maintenance and  operating expenses;  reduce vacancy                                                                    
rate and tenant turnover;  improve low-income housing stock;                                                                    
and improve the local neighborhood.                                                                                             
                                                                                                                                
CAP  RN 37918                                                                                                                   
     AHFC Housing Loan Program                                                                                                  
     $6,000,000 AHFC Div                                                                                                        
                                                                                                                                
Mr. Campbell said that the  purpose of the AHFC Housing Loan                                                                    
Program  was to  provide funding  to increase  homeownership                                                                    
and/or rental units  throughout the state.   The program was                                                                    
designed  to help  retain desirable  professionals in  high-                                                                    
cost areas.                                                                                                                     
                                                                                                                                
CAP  RN 6323                                                                                                                    
     AHFC Supplemental Housing Development Program                                                                              
     $8,000,000 AHFC Div                                                                                                        
                                                                                                                                
Mr. Campbell stated that the purpose of the AHFC                                                                                
Supplemental Housing Development Program was to supplement                                                                      
federal housing funds, and to provide regional housing                                                                          
authorities funds to ensure safe, decent, and affordable                                                                        
housing throughout Alaska.                                                                                                      
                                                                                                                                
9:32:15 AM                                                                                                                    
                                                                                                                                
CAP  RN 6351                                                                                                                    
     AHFC Energy Efficiency Monitoring Research                                                                                 
     $1,000,000 AHFC Div                                                                                                        
                                                                                                                                
Mr. Campbell explained  that the purpose of  the AHFC Energy                                                                    
Efficiency Monitoring  Research project would be  to conduct                                                                    
research,    analysis,   information    dissemination,   and                                                                    
interchange  among  members  of  the industry,  as  well  as                                                                    
between  the  industry  and  the  public;  gather  data  and                                                                    
perform  analysis  of  geographically diverse  area  energy-                                                                    
efficient designs  for homes; and  monitor homes  for energy                                                                    
usage,  comfort  levels,  durability, occupant  health,  and                                                                    
economic benefits of efficiency features.                                                                                       
                                                                                                                                
CAP  RN 6334                                                                                                                    
     AHFC Senior Citizens Housing Development Program                                                                           
     $4,500,000 AHFC Div                                                                                                        
                                                                                                                                
Mr. Campbell explained  that the purpose of  the AHFC Senior                                                                    
Citizens  Housing Development  program would  be to  provide                                                                    
funds for  the development  of senior citizen  housing. This                                                                    
program funded  1,099 units to date.  The projected outcomes                                                                    
would  be  to fund  six  development  projects or  about  90                                                                    
units, and  provide modifications  for accessibility  for 40                                                                    
units.  It would  also fund  four predevelopment  grants for                                                                    
activities  such as  the purchase  of  building sites;  site                                                                    
preparation;   the   purchasing   of   building   materials;                                                                    
construction;   rehabilitation,    including   accessibility                                                                    
modifications; preparation of  plans and specifications; and                                                                    
to project feasibility studies, appraisals, and other pre-                                                                      
development activities.                                                                                                         
                                                                                                                                
CAP  RN 6347                                                                                                                    
     AHFC Housing and Urban Development Federal HOME Grant                                                                      
     $3,500,000 Fed Rcpts                                                                                                       
     $750,000 AHFC Div                                                                                                          
                                                                                                                                
Mr.  Campbell stated  the purpose  of the  AHFC Housing  and                                                                    
Urban  Development Federal  HOME Grant  program would  be to                                                                    
expand the  supply of  affordable, low-  and moderate-income                                                                    
housing;  and to  strengthen  the ability  of  the state  to                                                                    
design  and  implement  strategies to  achieve  an  adequate                                                                    
supply  of safe,  energy-efficient, and  affordable housing.                                                                    
This program  has funded 44  rental projects  containing 818                                                                    
units  and  rehabilitated  373   low-income  homes.  It  has                                                                    
assisted  another  315  low-income  households  to  purchase                                                                    
homes.   The  projected   outcomes  would   be  to   develop                                                                    
affordable  rental housing  by funding  the development  gap                                                                    
for  four  rental  projects  or   about  50  units,  and  to                                                                    
weatherize 42 homes.                                                                                                            
                                                                                                                                
9:35:37 AM                                                                                                                    
                                                                                                                                
CAP  RN 6342                                                                                                                    
     AHFC Housing and Urban Development Capital Fund                                                                            
     Program                                                                                                                    
     $3,200,000 Fed Rcpts                                                                                                       
                                                                                                                                
Mr. Campbell explained that the  purpose of the AHFC Housing                                                                    
and  Urban  Development Capital  Fund  program  would be  to                                                                    
renovate   and  modernize   public   housing  rental   units                                                                    
statewide. The  projected outcomes were to  modernize public                                                                    
housing rental  units, code  compliance, and  conduct energy                                                                    
audits.                                                                                                                         
                                                                                                                                
CAP  RN 6348                                                                                                                    
     AHFC Federal and Other Competitive Grants                                                                                  
     $3,000,000 Gen Rcpts                                                                                                       
     $1,500,000 AHFC Div                                                                                                        
                                                                                                                                
Mr.  Campbell stated  the purpose  of the  AHFC Federal  and                                                                    
Other Competitive Grants  program would be to  allow AHFC to                                                                    
apply for  U.S. Department of Housing  and Urban Development                                                                    
(HUD), other  federal agency, and private  foundation grants                                                                    
that  target the  housing needs  and supportive  services of                                                                    
low-income and  special needs  groups: senior  citizens; the                                                                    
mentally, physically,  or developmentally disabled;  and the                                                                    
homeless.  The  AHFC  would also  apply  for  energy-related                                                                    
grants as they relate to  housing. When required, AHFC would                                                                    
provide  the  needed  matching  funds.  Some  of  the  funds                                                                    
received would  be passed through  to local  non-profit sub-                                                                    
grantee organizations that  deliver housing and/or services.                                                                    
The projected outcomes would be  to successfully compete and                                                                    
fund the matching portion various grant programs.                                                                               
                                                                                                                                
9:37:10 AM                                                                                                                    
                                                                                                                                
CAP  RN 6350                                                                                                                    
     AHFC Competitive Grants for Public Housing                                                                                 
     $750,000 Fed Rcpts                                                                                                         
     $$350,000 AHFC Div                                                                                                         
                                                                                                                                
Mr.  Campbell  explained  that   the  purpose  of  the  AHFC                                                                    
Competitive Grants  for Public  Housing program would  be to                                                                    
allow  AHFC to  apply  for HUD,  other  federal agency,  and                                                                    
private foundation  grants that target the  housing needs of                                                                    
low-income  and  special needs  groups  who  live in  public                                                                    
and/or assisted  housing. When required, AHFC  would provide                                                                    
the  needed  match. Some  of  the  funds received  would  be                                                                    
passed    through   the    local   non-profit    sub-grantee                                                                    
organizations  that  deliver   housing  and/or  services  to                                                                    
public  housing  residents.  The projected  outcome  was  to                                                                    
match requirements for various federal grants.                                                                                  
                                                                                                                                
CAP  RN 32536                                                                                                                   
     AHFC State Energy Program Special Projects                                                                                 
     $250,000 Fed Rcpts                                                                                                         
     $50,000 AHFC Div                                                                                                           
                                                                                                                                
Mr. Campbell  explained that the  purpose of the  AHFC State                                                                    
Energy Program  Special Projects  program would be  to allow                                                                    
the state  to participate in special  project grants offered                                                                    
by  the  Federal  Department  of  Energy  (DOE)  to  promote                                                                    
energy-related  technologies  and  research.  The  projected                                                                    
outcome  would be  advancements  in  building standards  and                                                                    
technologies.                                                                                                                   
                                                                                                                                
CAP  RN 6332                                                                                                                    
     AHFC Weatherization Program                                                                                                
     $3,000,000 Fed Rcpts                                                                                                       
                                                                                                                                
Mr.  Campbell  stated  purpose of  the  AHFC  Weatherization                                                                    
Program   would   be   to  provide   cost-effective   energy                                                                    
improvements to  home of low-income families.  The projected                                                                    
outcomes  would be  to reduce  household operating  costs of                                                                    
the resident;  improve resident  health and  safety; improve                                                                    
durability and  longevity of  housing stock;  replace unsafe                                                                    
heating systems;  and to install  smoke and  carbon monoxide                                                                    
detectors in homes.                                                                                                             
                                                                                                                                
CAP  RN 45389                                                                                                                   
     AHFC Statewide ADA Improvements                                                                                            
     $500,000 AHFC Div                                                                                                          
                                                                                                                                
Mr. Campbell stated  that the purpose of  the AHFC Statewide                                                                    
ADA    Improvements   project    would    be   to    address                                                                    
recommendations  suggested  in  the  recent  Americans  with                                                                    
Disabilities Act  (ADA) audit.  The projected  outcome would                                                                    
be to  comply with HUD Voluntary  Compliance Agreement, ADA,                                                                    
and Section 504 of the Fair  Housing Act.  The project would                                                                    
also  address recommendations  suggested in  the recent  ADA                                                                    
audit; it  would maintain federal funding  by complying with                                                                    
HUD;  it would  increase comfort  of tenants;  and it  would                                                                    
increase unit ratability.                                                                                                       
                                                                                                                                
9:40:17 AM                                                                                                                    
                                                                                                                                
CAP  RN 41531                                                                                                                   
     AHFC Denali Commission Projects                                                                                            
     $4,000,000 Fed Rcpts                                                                                                       
                                                                                                                                
Mr. Campbell explained  that the purpose of  the AHFC Denali                                                                    
Commission  Projects  would  be  to  administer  the  Denali                                                                    
Commission's  housing programs,  primarily in  rural Alaska.                                                                    
The projected  outcome would be  to increase  the production                                                                    
of  additional  housing for  teachers  and  rural elders  in                                                                    
Alaska by 10 units each.                                                                                                        
                                                                                                                                
CAP  RN 45390                                                                                                                   
     AHFC Homeless Assistance Program                                                                                           
     $2,000,000 Fed Rcpts                                                                                                       
     $500,000 General Fund/MH                                                                                                   
     $1,150,000 MHTAAR                                                                                                          
     $3,350,000 AHFC Div                                                                                                        
     $3,000,000 AIDEA Div                                                                                                       
                                                                                                                                
Mr.  Campbell  stated  the  purpose  of  the  AHFC  Homeless                                                                    
Assistance  Program  would  be   to  support  programs  that                                                                    
address homelessness by providing  assistance to families in                                                                    
imminent  danger  of  becoming  homeless or  those  who  are                                                                    
currently  homeless.  The  projected outcomes  would  be  to                                                                    
prevent   near  homeless   individuals  and   families  from                                                                    
becoming homeless;  and/or provide individuals  and families                                                                    
assistance to obtain safe, sanitary shelter.                                                                                    
                                                                                                                                
9:43:18 AM                                                                                                                    
                                                                                                                                
CAP  RN 6360                                                                                                                    
     MH AHFC Beneficiary and Special Needs Housing                                                                              
     $1,750,000 AHFC Div                                                                                                        
                                                                                                                                
Mr.  Campbell  explained  the  purpose  of  the  MH  (Mental                                                                    
Health) AHFC  Beneficiary and Special Needs  Housing program                                                                    
would  be to  provide  funds for  Alaskan nonprofit  service                                                                    
providers  and   housing  developers  to   increase  housing                                                                    
opportunities for  Alaska Mental Health  Trust beneficiaries                                                                    
and other  special needs populations throughout  Alaska. The                                                                    
program had  developed 160 units since  FY 00. In FY  09, 42                                                                    
units  were funded  for persons  with severe  mental illness                                                                    
and  developmental  disabilities.   The  projected  outcomes                                                                    
would be to add 40  congregate housing units for people with                                                                    
mental   illness  or   developmental  disabilities;   reduce                                                                    
recidivism  among  clients  spending time  in  institutions;                                                                    
provide  supportive housing,  including assisted  living for                                                                    
people    with    mental,   physical,    or    developmental                                                                    
disabilities,   or    multiple   disorders;    and   provide                                                                    
transitional  housing   with  support  services   for  newly                                                                    
recovering alcoholics and addicts.                                                                                              
                                                                                                                                
Senator Ellis  spoke in support  of AHFC's capital  plan. He                                                                    
voiced concern  about the mistreatment of  beneficiaries due                                                                    
to  no supervision  in AHFC's  housing  units. He  suggested                                                                    
having someone follow up on  this problem. He indicated that                                                                    
criminal  activity occurs  in the  housing units,  once they                                                                    
are  complete.  Mr.  Butcher  explained  that  there  is  an                                                                    
internal  audit   process  to  handle  that   situation,  in                                                                    
cooperation  with the  Mental  Health  Trust Authority.  Co-                                                                    
Chair  Hoffman  asked  how  often  the  audit  happens.  Mr.                                                                    
Butcher  offered  to  get that  information.  Senator  Ellis                                                                    
emphasized  that  the  properties  should be  checked  on  a                                                                    
monthly basis.                                                                                                                  
                                                                                                                                
9:48:01 AM                                                                                                                    
                                                                                                                                
Mr. Butcher stated that the  program was a federally funded,                                                                    
so  DOR is  limited in  what issues  they can  address on  a                                                                    
state level.                                                                                                                    
                                                                                                                                
CAP  RN 49587                                                                                                                   
     AHFC Energy Assurances/Smart Grid Resiliency Program                                                                       
     $262,000 Fed ARRA                                                                                                          
                                                                                                                                
Mr.  Butcher  finished  with the  request  for  AHFC  Energy                                                                    
Assurances/Smart  Grid Resiliency  Program. He  implied that                                                                    
this program was scheduled to be pulled.                                                                                        
                                                                                                                                
9:49:56 AM                                                                                                                    
                                                                                                                                
Senator  Huggins  asked  about  education  and  training  of                                                                    
builders and  homeowners. Mr. Butcher  stated a  request for                                                                    
education  information had  already been  made. He  remarked                                                                    
that some weatherization funds were  set aside for training,                                                                    
and DOR  was also pursuing  $3 million in federal  funds for                                                                    
training and  education. Training session attendance  was in                                                                    
decline, so funding  had decreased due to  lack of interest.                                                                    
He remarked  that if  training were  requested in  a certain                                                                    
area, aggressive planning would occur.                                                                                          
                                                                                                                                
9:52:13 AM                                                                                                                    
                                                                                                                                
Senator   Ellis  echoed   Senator   Huggins'  concerns.   He                                                                    
suggested  also continuing  consumer education.  Mr. Butcher                                                                    
agreed.                                                                                                                         
                                                                                                                                
CHRIS  CHRISTENSEN,  STAFF  COUNSEL,  ALASKA  COURT  SYSTEM,                                                                    
reported on deferred maintenance needs.                                                                                         
                                                                                                                                
DM   AMD 47155                                                                                                                  
     Deferred Maintenance Projects                                                                                              
     $2,500,000 Gen Fund                                                                                                        
                                                                                                                                
Mr. Christensen  stated that the  master list for FY  10 and                                                                    
FY 12  combined was $14,932,200,  but only $2.5  million was                                                                    
included  in   the  deferred  maintenance   legislation.  He                                                                    
defined "Deferred Maintenance"  as ordinary maintenance that                                                                    
has  been  deferred through  lack  of  funding or  attention                                                                    
beyond the  expected useful  life of  a building  or system.                                                                    
The  Court   System  requests  do  not   include  expansion,                                                                    
remodeling,   or   regularly  scheduled   maintenance.   The                                                                    
requests  are  for  buildings   operated  by  the  Executive                                                                    
Branch,  and  the  Court  System  in  merely  a  tenant.  He                                                                    
remarked  that the  Court System  is generally  proactive in                                                                    
maintaining  them, because  it is  more cost  effective. The                                                                    
courts  first priority  is the  Ketchikan  Court and  Office                                                                    
Building, with deferred  maintenance requests totaling $2.37                                                                    
million. The Court  System occupied about 50  percent of the                                                                    
space.  The  second  priority is  the  Boney  Courthouse  in                                                                    
Anchorage, which was also operated  by the Executive Branch.                                                                    
The  deferred  maintenance  projects  totaled  almost  $10.5                                                                    
million.  He pointed  out  that they  had  spent four  years                                                                    
attempting to fix deferred maintenance  issues.  The project                                                                    
was   slowed   down  in   years   prior,   due  to   capital                                                                    
appropriation  vetoes.  He  mentioned  that  any  additional                                                                    
deferred   maintenance  money   that   the  committee   made                                                                    
available would be appreciated.                                                                                                 
                                                                                                                                
9:56:20 AM                                                                                                                    
                                                                                                                                
Mr. Christensen turned to capital  projects. He noted eleven                                                                    
projects. He  referred to a  handout: "Alaska  Court System,                                                                    
FY  11  Capital  Budget  Request."  He  discussed  the  four                                                                    
priority  projects.  The  first  was  the  Anchorage  Campus                                                                    
Project  Renovation,  totaling  $18,148.1 million.  Over  40                                                                    
percent  of  the statewide  trial  court  case load  was  in                                                                    
Anchorage, in  two court houses.  The Nesbit  courthouse was                                                                    
built in 1996,  and was full upon opening with  no space for                                                                    
future growth. The  Boney courthouse was built  in 1974, and                                                                    
was  owned  by  the  Executive Branch.  The  Boney  required                                                                    
substantial deferred  maintenance needs, which  were already                                                                    
addressed.  He  noted the  lack  of  security for  safe  and                                                                    
efficient  handling of  prisoners.  The  Boney was  designed                                                                    
exactly like office buildings, with  everyone using the same                                                                    
hallways  and  elevators.  There   had  been  a  70  percent                                                                    
increase  in federal  cases  in the  eight  years prior.  He                                                                    
spoke of cost  effectiveness to fix the  building, and noted                                                                    
that repairs could occur throughout the winter.                                                                                 
                                                                                                                                
10:00:12 AM                                                                                                                   
                                                                                                                                
Mr. Christensen highlighted the  Courts second priority: the                                                                    
Nome  Courthouse Deferred  Maintenance,  Code Upgrades,  and                                                                    
Remodel. He  noted that it is  a two year project  with over                                                                    
$3 million in  FY 11 and $4 million in  FY 13. This facility                                                                    
is  currently owned  by the  federal  government, which  has                                                                    
advised  the  court system  of  its  intent to  surplus  the                                                                    
building.  As a  state entity,  the court  system was  given                                                                    
first priority  to take possession  of the building.  It was                                                                    
offered  to  the  court  system  at  no  cost;  however  the                                                                    
building  is  over 50  years  old,  and it  has  significant                                                                    
structural and system deficiencies.  Funding would be needed                                                                    
to meet  current building codes  and standards,  correct and                                                                    
replace  poorly  functioning systems,  replace  deteriorated                                                                    
finishes,  and  to  remodel  several  areas.  Future  years'                                                                    
funding  would  be  used  for  court  space  expansion,  and                                                                    
renovations  of   other  tenants'   offices.  He   noted  an                                                                    
additional $278,000 a year operating cost.                                                                                      
                                                                                                                                
10:02:35 AM                                                                                                                   
                                                                                                                                
Mr.   Christensen  detailed   the   third  priority:   Court                                                                    
Information Technology Enhancements  which was $1.9 million.                                                                    
He  stated  that this  project  was  a catch-all  technology                                                                    
project, which would contain four  stand alone projects. The                                                                    
first sub-project  would be $250,000 for  enhancement of the                                                                    
court  system's wide  area network  (WAN).  The second  sub-                                                                    
project would  be the third  and final year  of enhancements                                                                    
to  the court  view case  management system,  requiring $1.2                                                                    
million. Enhancing court view  would make criminal case data                                                                    
more  complete, accurate,  timely, and  accessible to  other                                                                    
law  enforcement  agencies  in  the state.  The  third  sub-                                                                    
project would be  $32,500 for replacement or  upgrade of the                                                                    
telephone  systems  in  Petersburg,  Hoonah,  Wrangell,  and                                                                    
Kake. Telephones are  used for hearings more  than any other                                                                    
state court system.                                                                                                             
                                                                                                                                
10:05:50 AM                                                                                                                   
                                                                                                                                
Mr. Christensen  explained the fourth  sub-project: $458,000                                                                    
would be needed  to complete the disaster  recovery plan for                                                                    
electronic data.                                                                                                                
                                                                                                                                
10:07:19 AM                                                                                                                   
                                                                                                                                
Mr.  Christensen  discussed   the  fourth  capital  request:                                                                    
$150,000 for  the Law Library Integrated  Services Software.                                                                    
He  explained  that  court system  operated  the  state-wide                                                                    
library systems, which  were 17 libraries.   Some were large                                                                    
libraries  with  paper  volumes,   but  most  were  computer                                                                    
terminals in rural courts. The  materials were managed in an                                                                    
integrated  library  system   software  program  (ILS).  The                                                                    
current   ILS   software   was  eight-years-old,   and   the                                                                    
manufacturer  was   no  longer  releasing   enhancements  or                                                                    
providing  maintenance.  The  current system  lacked  modern                                                                    
features, so new system was requested.                                                                                          
                                                                                                                                
10:08:27 AM                                                                                                                   
                                                                                                                                
Senator  Egan  referred to  page  17  of the  "Alaska  Court                                                                    
System:  FY 2011  Capital Budget  Request." and  queried the                                                                    
court  system's request  of $400,000  to cover  the cost  to                                                                    
upgrade electrical and  communication systems in state-owned                                                                    
buildings. Mr.  Christensen explained it was  for remodeling                                                                    
courtrooms to comply  with ADA, and help reduce  the cost of                                                                    
prisoner  transport.  Senator  Egan  asked  how  that  would                                                                    
reduce  the  cost  of prisoner  transport.  Mr.  Christensen                                                                    
replied  that if  there was  a video  link to  the prisoner,                                                                    
public  safety would  increase,  because there  would be  no                                                                    
need  to transport  the  prisoner. He  pointed  out that  it                                                                    
would   be  cost   effective,  because   of  the   issue  of                                                                    
transferring prisoners between communities.                                                                                     
                                                                                                                                
AT-EASE            10:11:50 AM                                                                                                
RECONVENED         10:13:17 AM                                                                                                
                                                                                                                                
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS                                                                                     
                                                                                                                                
SUSAN   COLLIGAN,  DIRECTOR,   DIVISION  OF   ADMINISTRATIVE                                                                    
SERVICES,  DEPARTMENT  OF  MILITARY  AND  VETERANS  AFFAIRS,                                                                    
began with the deferred maintenance list.                                                                                       
                                                                                                                                
DM   AMD 49583                                                                                                                  
     Deferred Maintenance Projects                                                                                              
     $6,300,000 Fed Rcpts                                                                                                       
     $3,000,000 G/F Match                                                                                                       
     $1,000,000 Gen Fund                                                                                                        
                                                                                                                                
Ms.  Colligan stated  that the  first allocation  associated                                                                    
with  the deferred  maintenance appropriation  was the  Army                                                                    
Guard Facilities Projects Match Funding.                                                                                        
                                                                                                                                
DM   AMD 49611                                                                                                                  
     Army Guard Facilities Projects Match Funding                                                                               
     $892,000 G/F Match                                                                                                         
                                                                                                                                
Ms. Colligan stated that the  Army Guard Facilities projects                                                                    
were identified by the facility  manager as those that could                                                                    
be  initiated prior  to  the  end of  the  fiscal year.  The                                                                    
projects   refer  to   locations  in   Kotzebue,  Fairbanks,                                                                    
Wasilla,  Juneau, Nome,  and Fort  Richardson. The  projects                                                                    
include  items such  as replacing  flooring, ceiling  tiles,                                                                    
siding,  repairing  sheet   rock,  painting,  and  replacing                                                                    
boilers.                                                                                                                        
                                                                                                                                
DM   AMD 49432                                                                                                                  
     Armory Facilities Deferred Maintenance                                                                                     
     $6,300,000 Fed Rcpts                                                                                                       
     $2,108,000 G/F Match                                                                                                       
                                                                                                                                
Ms. Colligan  explained that the Armory  Facilities Deferred                                                                    
Maintenance projects could be initiated  prior to the end of                                                                    
the fiscal  year. The  armories are  located in  Sitka, Fort                                                                    
Richardson,  Jewel  Lake,  and  Kenai.  Some  items  include                                                                    
window  replacement,  painting, asphalt  repair,  helicopter                                                                    
landing zone  repair, as well as  other deferred maintenance                                                                    
items.                                                                                                                          
                                                                                                                                
DM   AMD 35774                                                                                                                  
     Military Youth Academy Deferred Maintenance, Renewal                                                                       
     and Replacement                                                                                                            
     $1,000,000 Gen Fund                                                                                                        
                                                                                                                                
Ms. Colligan  reported the  Military Youth  Academy Deferred                                                                    
Maintenance, Renewal  and Replacement funding would  be used                                                                    
to  replace  insulation  on  21  buildings'  roofs;  replace                                                                    
windows with energy-efficient  force protection windows; and                                                                    
replace  and repair  interior doors  with one  hour interior                                                                    
fire doors.                                                                                                                     
                                                                                                                                
10:16:31 AM                                                                                                                   
                                                                                                                                
Ms. Colligan continued to the capital budget requests.                                                                          
                                                                                                                                
CAP  RN 47882                                                                                                                   
     Interior Alaska Veterans Cemetery Design and Planning                                                                      
     $5,000,000 Fed Rcpts                                                                                                       
     $750,000 G/F Match                                                                                                         
     $250,000 Gen Fund                                                                                                          
                                                                                                                                
Ms.  Colligan explained  that the  purpose  of the  Interior                                                                    
Alaska Veterans  Cemetery Design and Planning  project would                                                                    
be  to fund  the planning  and design  of a  dedicated state                                                                    
veterans' cemetery in or near  Fairbanks.  The state had the                                                                    
unique    opportunity    to   leverage    federal    funding                                                                    
reimbursement in  the future to offset  operating costs, and                                                                    
$5  million  in  construction  costs,  contingent  upon  the                                                                    
state's commitment to ongoing  operations and maintenance of                                                                    
the facility. With state funding  support, federal funds may                                                                    
be available for community support  of the facility as well.                                                                    
Veterans in this region must  travel 350 miles to Anchorage,                                                                    
the nearest  veterans' cemetery with available  grave space.                                                                    
The next  nearest dedicated  national veterans'  cemetery is                                                                    
in Sitka,  which is over  750 miles  away and could  only be                                                                    
reached   by  air   or  boat/ship.   If  these   funds  were                                                                    
appropriated, Alaska  would be  put on the  top of  the list                                                                    
with the VA to match the funds.                                                                                                 
                                                                                                                                
10:18:29 AM                                                                                                                   
                                                                                                                                
Senator Huggins asked if the  location for the cemetery been                                                                    
decided upon.  Ms. Colligan replied  that the  proposed land                                                                    
was  university-owned, which  was located  near the  current                                                                    
cemetery in Fairbanks.                                                                                                          
                                                                                                                                
CAP  RN 48728                                                                                                                   
     Cold Weather Generation Storage and Maintenance                                                                            
     $50,000 Gen Fund                                                                                                           
                                                                                                                                
Ms.  Colligan explained  that  the  Cold Weather  Generation                                                                    
Storage and  Maintenance project  would be for  49 specially                                                                    
modified emergency  cold weather generators, provided  at no                                                                    
cost  by the  Federal  Emergency  Management Agency  (FEMA).                                                                    
During   a   catastrophic   disaster,   improved   emergency                                                                    
generation capability could save  Alaskans' lives. The State                                                                    
of  Alaska  Division  of  Homeland  Security  and  Emergency                                                                    
Management  (DHS&EM), FEMA,  and  the US  Corp of  Engineers                                                                    
(USACE) had  identified a critical resource  shortage in the                                                                    
area of  emergency power  within Alaska.  Specifically, this                                                                    
shortage  relates  to the  ability  to  provide power  in  a                                                                    
disaster  emergency  situation   to  villages,  cities,  and                                                                    
critical  facilities. Special  consideration had  been taken                                                                    
to  address  the  utilization  of  emergency  generators  in                                                                    
Alaska's arctic climate.                                                                                                        
                                                                                                                                
10:19:51 AM                                                                                                                   
                                                                                                                                
Senator Egan queried  if the generators are  new or surplus.                                                                    
Ms.  Colligan surmised  that they  would be  new generators.                                                                    
She explained  that FEMA and  the US Corps of  Engineers had                                                                    
invested more than $5 million in the project.                                                                                   
                                                                                                                                
CAP  RN 48779                                                                                                                   
     Compliance Site Clean Up at Seward and Anchorage                                                                           
     (Tudor)                                                                                                                    
     $250,000 Gen Fund                                                                                                          
                                                                                                                                
Ms. Colligan  explained that this  Compliance Site  Clean Up                                                                    
at Seward  and Anchorage request would  allow for completion                                                                    
of  the  final  requirements  of the  Alaska  Department  of                                                                    
Environmental   Conservation   (DEC).   Soil   testing   was                                                                    
required, before the sites could be approved.                                                                                   
                                                                                                                                
10:20:53 AM                                                                                                                   
                                                                                                                                
CAP  RN 42898                                                                                                                   
     National Guard Counterdrug Support                                                                                         
     $100,000 Fed Rcpts                                                                                                         
                                                                                                                                
Ms. Colligan explained that the  Alaska National Guard (ANG)                                                                    
Counter Drug Support Program  (CDSP) assists law enforcement                                                                    
agencies  in eradication  of drug  use through  training and                                                                    
enforcement operations.  The CDSP  participates in  the U.S.                                                                    
Department Justice Asset Forfeiture  Program. When other law                                                                    
enforcement agencies  were assisted  in cases  that resulted                                                                    
in federal  asset forfeitures, the  project would  allow the                                                                    
state  to receive  a share  of the  federal funds  that were                                                                    
seized.                                                                                                                         
                                                                                                                                
CAP  RN 42901                                                                                                                   
     State Homeland Security Grant Programs                                                                                     
     $9,500,000 Fed Rcpts                                                                                                       
                                                                                                                                
Ms.  Colligan finished  with a  request  for State  Homeland                                                                    
Security Grant  Programs. These grants had  been provided to                                                                    
Alaska  in  prior years  with  an  80 percent  pass  through                                                                    
requirement to  local jurisdictions. The state's  funds were                                                                    
then  used   for  homeland  security   planning,  equipment,                                                                    
training,  and  exercise  programs   and  staffing  for  the                                                                    
Division  of  Homeland  Security  and  Emergency  Management                                                                    
(DHS&EM).   This  project   would  fund   grants  to   local                                                                    
communities to deploy  and maintain statewide infrastructure                                                                    
for   preparedness  and   response   in   the  event(s)   of                                                                    
catastrophe or emergency.                                                                                                       
                                                                                                                                
10:22:55 AM                                                                                                                   
                                                                                                                                
Senator Huggins  asked if money  from the  Homeland Security                                                                    
Grant  Program could  be available  for  Alaska Land  Mobile                                                                    
Radio  funding, maintenance,  or  annual  renewal fees.  Ms.                                                                    
Colligan offered to provide that information.                                                                                   
                                                                                                                                
Senator Thomas  referred to  the Veterans'  Cemetery funding                                                                    
request. He guessed  that Alaska was near the  bottom of the                                                                    
list  for federal  funding for  the  cemetery, and  surmised                                                                    
that if the project was  state-funded, Alaska would be moved                                                                    
closer  to the  top of  the  list for  federal funding.  Ms.                                                                    
Colligan replied that the Alaska  Department of Military and                                                                    
Veterans Affairs  (DMVA) applied  for funding with  the U.S.                                                                    
Department  of  Veterans  Affairs (VA),  but  without  state                                                                    
appropriated funds  the application  would just stay  in the                                                                    
VA.                                                                                                                             
                                                                                                                                
10:24:48 AM                                                                                                                   
                                                                                                                                
DEPARTMENT OF HEALTH AND SOCIAL SERVICES                                                                                        
                                                                                                                                
ARNOLD LIEBELT,  FACILITIES MANAGER, FINANCE  AND MANAGEMENT                                                                    
SERVICES, DEPARTMENT  OF HEALTH  AND SOCIAL  SERVICES, began                                                                    
with two  deferred maintenance: One  for Pioneer  Homes, and                                                                    
one for Non-pioneer Homes.                                                                                                      
                                                                                                                                
DM   RN 37934                                                                                                                   
     Pioneer Homes Deferred Maintenance, Renovation, Repair                                                                     
     and Equipment                                                                                                              
     $4,000,000 Gen Fund                                                                                                        
                                                                                                                                
Mr.  Liebelt explained  that the  Department  of Health  and                                                                    
Social  Services  (DHSS)  operated   six  Pioneer  Homes  in                                                                    
Anchorage, Fairbanks, Juneau,  Ketchikan, Palmer, and Sitka.                                                                    
The Pioneer  Homes Deferred Maintenance,  Renovation, Repair                                                                    
and Equipment  request included  twelve projects.  The first                                                                    
was for the Sitka Pioneer  Home Totem Square safety upgrade:                                                                    
requesting  $636,000.  It was  a  park  directly across  the                                                                    
street from the Sitka Pioneer  Home, and the safety concerns                                                                    
were  with  the sea  rock  wall,  drainage system,  and  the                                                                    
rotting  totem.  The  second  request  was  for  the  Juneau                                                                    
Pioneer Home to expand the direct digital controls system.                                                                      
                                                                                                                                
DM   RN 31862                                                                                                                   
     Non-Pioneer Home Deferred Maintenance, Renovation,                                                                         
     Repair and Equipment                                                                                                       
     $20,000 Fed Rcpts                                                                                                          
     $100,000 G/F Match                                                                                                         
     $2,900,000 Gen Fund                                                                                                        
                                                                                                                                
Co-Chair  Stedman asked  if there  were any  questions about                                                                    
the   list  of   Non-Pioneer   Homes  deferred   maintenance                                                                    
requests. He  noted that committee members  could comment on                                                                    
items later.                                                                                                                    
                                                                                                                                
10:29:16 AM                                                                                                                   
                                                                                                                                
Mr. Liebelt continued with DHSS capital budget requests.                                                                        
                                                                                                                                
CAP  RN 42830                                                                                                                   
     Johnson Youth Center Renovation and Remodel to Meet                                                                        
     Safety and Security Needs - Phase 1                                                                                        
     $9,880,000 Gen Fund                                                                                                        
                                                                                                                                
Mr. Liebelt stated that the  Johnson Youth Center Renovation                                                                    
and Remodel  to Meet Safety  and Security Needs  request was                                                                    
phase one,  of a  three phase project.  The location  was in                                                                    
Juneau  at the  Johnson  Youth Center.  The primary  purpose                                                                    
would be  to replace the existing  eight-bed detention unit.                                                                    
It will be  reconstructed with eight new  detention beds and                                                                    
two  additional  observation   beds.  The  project  included                                                                    
adding a  secure admissions area,  and adding a  new medical                                                                    
suite to  the detention  unit. The project  was part  of the                                                                    
plan to  address safety security  deficiencies for  the four                                                                    
oldest  youth  facilities;  these  included  the  McLaughlin                                                                    
Youth Center,  Johnson Youth  Center, Bethel,  and Fairbanks                                                                    
Youth Facility.                                                                                                                 
                                                                                                                                
CAP  RN 33670                                                                                                                   
     MH Deferred Maintenance and Accessibility Improvements                                                                     
     $500,000 GF/MH                                                                                                             
                                                                                                                                
Mr. Liebelt  explained that the MH  Deferred Maintenance and                                                                    
Accessibility  Improvements  project  was  a  capital  grant                                                                    
program,    which   targets    deferred   maintenance    and                                                                    
accessibility  improvements  for service  provider  agencies                                                                    
and    the   State's    non-profit   agencies    for   trust                                                                    
beneficiaries.                                                                                                                  
                                                                                                                                
CAP  RN 33671                                                                                                                   
     MH Home Modification and Upgrades to Retain Housing                                                                        
     $500,000 General Fund/MH                                                                                                   
     $300,000 MHTAAR                                                                                                            
     $250,000 AHFC Div                                                                                                          
                                                                                                                                
Mr.  Liebelt explained  that the  MH  Home Modification  and                                                                    
Upgrades to  Retain Housing  project was  also known  as the                                                                    
Housing  Modification  Capital  Grant Program.  The  program                                                                    
awarded capital grant funds to  non-profit agencies, to then                                                                    
be   awarded   to    individuals   to   make   accessibility                                                                    
improvements in the individual's home.                                                                                          
                                                                                                                                
CAP  RN 48751                                                                                                                   
     MH Housing Pre-development, Anchorage Assets Building                                                                      
     $500,000 General Fund/MH                                                                                                   
                                                                                                                                
10:33:38 AM                                                                                                                   
                                                                                                                                
Mr. Liebelt stated  that the Anchorage Assets  Building is a                                                                    
state-owned  facility,  but  is  operated  and  occupied  by                                                                    
Assets, Inc., which  is a non-profit agency.  The request is                                                                    
for roof replacement.  This would bring the  building into a                                                                    
high  enough  code  standard, so  the  Mental  Health  Trust                                                                    
Authority would  be willing to take  over responsibility for                                                                    
the building.                                                                                                                   
                                                                                                                                
CAP  AMD 42837                                                                                                                  
     Emergency Medical Services Ambulances and Equipment                                                                        
     Statewide - Match for Code Blue Project.                                                                                   
     $425,000 G/F Match                                                                                                         
                                                                                                                                
Mr.  Liebelt related  that  the  Emergency Medical  Services                                                                    
Ambulances  and Equipment  Statewide -  Match for  Code Blue                                                                    
Project  would  fund  emergency equipment  and  match  funds                                                                    
provided by USDA and other sources.                                                                                             
                                                                                                                                
Co-Chair Hoffman  noted that nursing  home care  was missing                                                                    
in rural areas  in the state. A study  was completed several                                                                    
years   ago  regarding   construction   of  long-term   care                                                                    
facilities. He  said that  90 to  99 percent  of operational                                                                    
costs would  be federal  funded. He  asked why  two projects                                                                    
had  not  been  funded:  the  Yukon  Kuskokwim  facility  in                                                                    
Bethel,  which   has  received  partial  funding;   and  the                                                                    
Maniilaq project  in Kotzebue,  which is a  current project.                                                                    
If  the  rural  projects  were funded,  Alaska  Natives,  in                                                                    
particular, would receive long-term care                                                                                        
                                                                                                                                
ALISON   ELGEE,   ASSISTANT    COMMISSIONER,   FINANCE   AND                                                                    
MANAGEMENT  SERVICES,   DEPARTMENT  OF  HEALTH   AND  SOCIAL                                                                    
SERVICES, explained that the projects  had been in the works                                                                    
for several  years. The department had  been working closely                                                                    
with tribal  health providers and understood  the advantages                                                                    
of   constructing  the   projects.  She   pointed  out   the                                                                    
difficulty in  prioritizing those  types of  facilities. The                                                                    
department  develops  a  list of  constituent  concerns  and                                                                    
shares  the information  with  the  governor's office.  This                                                                    
year  the   list  exceeded  $130  million.   The  department                                                                    
supports  those  projects;  however,   it  is  difficult  to                                                                    
prioritize them against state-owned facility needs.                                                                             
                                                                                                                                
10:38:53 AM                                                                                                                   
                                                                                                                                
Co-Chair  Hoffman stressed  that the  native population  was                                                                    
ignored and  suggested that the  projects be brought  to the                                                                    
top  of the  list.  After  construction, the  responsibility                                                                    
does  not belong  to the  state, but  rather to  the federal                                                                    
government. He saw a situation  where the projects were only                                                                    
partially funded and left hanging  in limbo. He requested an                                                                    
additional  $24   million  to  complete  the   projects.  He                                                                    
questioned how projects like this could not be a priority.                                                                      
                                                                                                                                
Ms. Elgee understood the  advantages Senator Hoffman listed,                                                                    
and believed the projects would  be met if they were funded.                                                                    
Co-Chair Hoffman asked how the  projects could be made a top                                                                    
priority. Ms.  Elgee restated that  the two  facilities were                                                                    
not state  owned or  operated. She said  that she  could not                                                                    
place  priority on  facilities that  were not  state funded,                                                                    
over  facilities that  are state  funded. She  stressed that                                                                    
the  department works  directly  with  provider partners  in                                                                    
terms of  developing the  projects and  relays the  need for                                                                    
them to the administration.                                                                                                     
                                                                                                                                
Co-Chair  Stedman  suggested  Senator  Hoffman  address  his                                                                    
specific concerns in a more focused meeting.                                                                                    
                                                                                                                                
10:43:31 AM                                                                                                                   
                                                                                                                                
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT                                                                                   
                                                                                                                                
ANNA KIM,  DIRECTOR, ADMINISTRATIVE SERVICES,  DEPARTMENT OF                                                                    
EDUCATION   AND   EARLY    DEVELOPMENT,   began   with   the                                                                    
department's one deferred maintenance item.                                                                                     
                                                                                                                                
DM   RN 49412                                                                                                                   
     Mt. Edgecumbe High School Deferred Maintenance                                                                             
     $1,700,000 Gen Fund                                                                                                        
                                                                                                                                
Ms.  Kim  reported  that  the   Mt.  Edgecumbe  High  School                                                                    
Deferred  Maintenance funding  would complete  the remaining                                                                    
maintenance  in the  boys' and  girls'  dorms, and  complete                                                                    
drainage improvements at Heritage Hall.                                                                                         
                                                                                                                                
Co-Chair  Stedman voiced  concern about  a situation  at Mt.                                                                    
Edgecumbe, where  the dorms only  had one desk per  room for                                                                    
four to  five students. Ms. Kim  offered to get back  to the                                                                    
committee with solutions to that problem.                                                                                       
                                                                                                                                
10:46:05 AM                                                                                                                   
                                                                                                                                
Ms. Kim turned to capital requests.                                                                                             
                                                                                                                                
CAP  RN 49414                                                                                                                   
     Nome Beltz Junior/Senior High School Fire Alarm System                                                                     
     Replacement                                                                                                                
     $84,337 Gen Fund                                                                                                           
                                                                                                                                
Ms.  Kim  stated  that the  Nome  Beltz  Junior/Senior  High                                                                    
School  Fire Alarm  System request  was for  an entire  fire                                                                    
alarm system replacement.                                                                                                       
                                                                                                                                
CAP  RN 49415                                                                                                                   
     Nome Beltz Junior/Senior High School Emergency                                                                             
     Generator Automatic Switching Replacement                                                                                  
     $29,807 Gen Fund                                                                                                           
                                                                                                                                
Ms.  Kim  said  the  Nome Beltz  Junior/Senior  High  School                                                                    
Emergency Generator Automatic  Switching Replacement project                                                                    
was for  a replacement of  the automatic transfer  switch on                                                                    
the emergency generator.                                                                                                        
                                                                                                                                
CAP  RN 49416.                                                                                                                  
     Metlakatla High School Renovation Alternates                                                                               
     $1,202,914 Gen Fund                                                                                                        
                                                                                                                                
Ms.   Kim  explained   that  the   Metlakatla  High   School                                                                    
Renovation Alternates project would  provide funding for the                                                                    
gym  and  locker  room area  renovation;  replace  the  dust                                                                    
collection  system in  the wood  shop area;  replace student                                                                    
walkways; improve  entry area; and install  new double walls                                                                    
for the fuel storage tank area.                                                                                                 
                                                                                                                                
10:47:21 AM                                                                                                                   
                                                                                                                                
CAP  RN 49417                                                                                                                   
     Whittier K-12 School Sprinkler Installation and                                                                            
     Interior Renovations                                                                                                       
     $1,762,541 Gen Fund                                                                                                        
                                                                                                                                
Ms.   Kim  stated   the  Whittier   K-12  School   Sprinkler                                                                    
Installation and Interior  Renovations funding would provide                                                                    
a  new sprinkler  system;  replace  suspended and  lighting;                                                                    
repair  and replace  wall and  floor  surfaces; replace  and                                                                    
install  energy efficient  windows; and  asbestos and  other                                                                    
hazardous materials abated and removed.                                                                                         
                                                                                                                                
CAP  RN 49418                                                                                                                   
     Yup'ik Vocational Education Building Water Service and                                                                     
     Boiler Replacement                                                                                                         
     $123,701 Gen Fund                                                                                                          
                                                                                                                                
Ms.  Kim  explained  that the  Yup'ik  Vocational  Education                                                                    
Building Water Service and  Boiler Replacement project would                                                                    
reimburse the  district for boiler replacement  and domestic                                                                    
water line  replacement in  the Yup'ik  Vocational Education                                                                    
Building.                                                                                                                       
                                                                                                                                
CAP  RN 49419                                                                                                                   
     Yup'ik Vocational Education Building Roof Replacement                                                                      
     $80,729 Gen Fund                                                                                                           
                                                                                                                                
Ms.  Kim   said  that  the  funding   would  provide  Yup'ik                                                                    
Vocational Education Building with a new roof.                                                                                  
                                                                                                                                
CAP  RN 49420                                                                                                                   
     Service High School Renovation                                                                                             
     $21,306,131 Gen Fund                                                                                                       
                                                                                                                                
Ms.  Kim  stated that  the  Service  High School  Renovation                                                                    
funding  would   replace  exterior  wall   installation  and                                                                    
windows; upgrade  the H-VAC  and interior  finishes; install                                                                    
automatic   fire  sprinkler   system;  asbestos   abatement;                                                                    
seismic  upgrades; and  site  work  improvements to  provide                                                                    
accessible entries and exits.                                                                                                   
                                                                                                                                
10:48:45 AM                                                                                                                   
                                                                                                                                
CAP  RN 49421                                                                                                                   
     Mosquito Lake Elementary Mechanical Upgrades                                                                               
     $180,491 Gen Fund                                                                                                          
                                                                                                                                
Ms.  Kim  said  the   Mosquito  Lake  Elementary  Mechanical                                                                    
Upgrades allocation  was to  complete renovation  of heating                                                                    
plant removal  of the old  system and install  two oil-fired                                                                    
boilers,   circulating  pumps,   heating  piping,   and  oil                                                                    
delivery systems.                                                                                                               
                                                                                                                                
Ms.  Kim  concluded  by  stating that  AMD  49412,  the  Mt.                                                                    
Edgecumbe   request,  had   been  moved   to  the   deferred                                                                    
maintenance list.                                                                                                               
                                                                                                                                
Co-Chair Stedman  wondered if the  nine items from  the DEED                                                                    
requests came  off of  the major  maintenance list.  Ms. Kim                                                                    
affirmed  that  they had  come  from  the major  maintenance                                                                    
list.  Co-Chair  Stedman  reminded the  committee  that  the                                                                    
major maintenance  list, the deferred maintenance  list, and                                                                    
the major  construction list will  each change from  year to                                                                    
year. He  noted that  school deferred maintenance  is looked                                                                    
at each year.                                                                                                                   
                                                                                                                                
10:49:53 AM                                                                                                                   
                                                                                                                                
Co-Chair  Hoffman noted  that the  school construction  list                                                                    
was  not included  in requested  funds. He  referred to  the                                                                    
Kasayulie v. State decision, which  found that the state was                                                                    
not in compliance.  He said the governor  would be providing                                                                    
a  list of  school construction  projects. Ms.  Kim did  not                                                                    
know about such a list.                                                                                                         
                                                                                                                                
10:50:41 AM                                                                                                                   
                                                                                                                                
DEPARTMENT OF LABOR                                                                                                             
                                                                                                                                
GUY BELL,  ASSISTANT COMMISSIONER AND DIRECTOR,  DIVISION OF                                                                    
ADMINISTRATIVE SERVICES,  DEPARTMENT OF LABOR  AND WORKFORCE                                                                    
DEVELOPMENT,  began with  the only  project on  the deferred                                                                    
maintenance list.                                                                                                               
                                                                                                                                
DM   AMD 48821                                                                                                                  
     AVTEC Deferred Maintenance                                                                                                 
     $1,000,000 Gen Fund                                                                                                        
                                                                                                                                
Mr.  Bell  stated  the Alaska  Vocational  Technical  Center                                                                    
(AVTEC) had 16  buildings in Seward. The  oldest building is                                                                    
over 30 years old.                                                                                                              
                                                                                                                                
10:51:50 AM                                                                                                                   
                                                                                                                                
Mr. Bell addressed the capital projects.                                                                                        
                                                                                                                                
CAP  RN 48820                                                                                                                   
     Alternative Energy Training Facility Expansion                                                                             
     $1,139,000 Gen Fund                                                                                                        
                                                                                                                                
Mr.  Bell  said  the Alternative  Energy  Training  Facility                                                                    
Expansion  project   would  be  for  an   expansion  of  the                                                                    
Industrial/Electrical training  facility at AVTEC.  It would                                                                    
provide   funding  for   wind-turbine  and   hydro  training                                                                    
programs.  The funding  would expand  the building,  upgrade                                                                    
the  building's  mechanical  systems,  and  add  switch-gear                                                                    
connections  from the  wind-turbine to  the existing  diesel                                                                    
plant.                                                                                                                          
                                                                                                                                
CAP  RN 49027                                                                                                                   
     Fairbanks Pipeline Training Center Utilities and                                                                           
     Equipment Purchases                                                                                                        
     $2,000,000 Gen Fund                                                                                                        
                                                                                                                                
Mr. Bell stated that  the Fairbanks Pipeline Training Center                                                                    
Utilities  and  Equipment  Purchases funding  would  include                                                                    
funding to expand the welding training program.                                                                                 
                                                                                                                                
CAP  RN 48823                                                                                                                   
     Medium/Heavy Duty Truck and Culinary Equipment                                                                             
     $1,000,000 Fed Rcpts                                                                                                       
     $500,000 G/F Match                                                                                                         
                                                                                                                                
Mr.  Bell  said the  Medium/Heavy  Duty  Truck and  Culinary                                                                    
Equipment  funding would  provide upgrades  to the  culinary                                                                    
facility  and provide  equipment for  medium and  heavy-duty                                                                    
truck training program.                                                                                                         
                                                                                                                                
10:53:53 AM                                                                                                                   
                                                                                                                                
CAP  RN 49045                                                                                                                   
     Culinary Video Teleconferencing Equipment                                                                                  
     $312,695 Fed Rcpts                                                                                                         
     $100,000 G/F Match                                                                                                         
                                                                                                                                
Mr.   Bell  stated   the  Culinary   Video  Teleconferencing                                                                    
Equipment funding  would provide  AVTEC with  culinary video                                                                    
teleconferencing equipment.  He hoped  to see  more distance                                                                    
learning  capabilities  expanded  to other  schools  in  the                                                                    
future.                                                                                                                         
                                                                                                                                
AT-EASE            10:54:50 AM                                                                                                
RECONVENED         10:55:44 AM                                                                                                
                                                                                                                                
                                                                                                                                
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 10:56 AM.                                                                                          

Document Name Date/Time Subjects